Professional services cost billions

Tags: healthcare

03 Jun 2009

Healthcare IT professional services are now generating revenues of more than $2.2 billion (€1.5 billion) a year, according to Frost and Sullivan.

In a report on the Healthcare IT Professional Services Markets in Europe, the analyst and consulting company estimates that this could reach $3.6 billion (€2.5 billion) by 2015.

However, it warns that the high demand for professionals and their high pay cheques could impose constraints on market expansion; especially as end-users look to trim costs as a result of the global economic downturn.

“The revenue potential of professional services in healthcare IT markets is significant because it can create a recurring revenue stream for vendors,” said a Frost and Sullivan senior researcher.

Conversely, he said: “IT services expenditure is one of the main concerns of end users in the context of healthcare IT spending. Support and maintenance services, in particular, account for more than 50% of the total professional services markets in Europe.

“Mounting pressure to reduce costs in the healthcare sector will make it increasingly difficult for vendors to continue with current spending levels on the employment of professional services experts.”

Frost and Sullivan argues the support and maintenance segments of the healthcare IT services market are likely to continue to dominate revenues overall.

Its analysis argues that other providers will need to focus on delivering highly customised, user-focused consulting and shorter, easier training courses to thrive in the future.

Link: Frost and Sullivan

Lyn Whitfield

Reader's Comments

The restriction of IT consultants fees

terry.hannan@dhhs.tas.gov.au

04 Jun 09 09:06

This comment reflects that in fact the current state of IT managment in health is not working. The fees are exorbitant and do not chnage the care/cost/quality processes. This is now an opportunity to focus on health IT solutions that actually work. Systems require focus on the "care process" and clinical decsion making supported by clinical provider order entry and access to clinical knowledge - down to and including the patient. Dr Terry Hannan FRACP,FACHI,FACMI. Health Informatician

eHealth training

Susan_E_Smith@health.qld.gov.au

09 Jun 09 02:06

An alternative approach to looking outward (ie at the vendors and Consultant IT professionals) to 'fix things' would be for healthcare organisations to look inwards at how e-health systems are managed in the workplace. Deriving maximum benefit from any system (good or imperfect) requires staff (usually clinical) to be trained beyond the simple input, administration and reporting management of the system. Specialist training in health informatics aspects which include eg governance, data management & quality, legislative and privacy requirements, and importantly data analysis and interpretation including basics of biostatistics and clinical epidemiology principles, would greatly assist in realising the potential these systems have to contribute to the quality and safety of healthcare. Susan Smith, BSc (Hons), Clinical Register Coordinator.