Health IT spending will surpass $34 billion in 2014, according to new reports. Healthcare mandates and a need to modernize infrastructure will result in $34.5 billion in IT spending by payers and providers in 2014, according to a new study from Technology Business Research.
The report claims that payers and providers’ average annual IT budget is $18 million and $12 million, respectively. The funds will be spent on electronic health records (EHR), claims processing and management, and customer call center support, among other workloads.
“Regulatory compliance funds take the priority, absolutely, for the healthcare industry,” said one survey respondent quoted in TBR’s report. “For example, ICD-10 is not a project; it’s a program with an estimated end-to-end budget of $2.5 million. A large part of that is based on consultants’ contributions, because we’re not relying on people who are unfamiliar with this.”