Ovum Survey: Hospital CIOs plan to increase IT spending in 2011

By eGov Innovation Editors | May 17, 2011

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Chief Information Officers (CIOs) of hospitals plan to significantly increase spending on IT in 2011, results of a survey done by analyst firm Ovum said.

Ovum unveiled the results of its latest healthcare Business Trends Survey in a new report that showed 42 percent of hospital CIOs who participated in the survey said they will increase spending on IT this year, 22 percent of whom said will ramp up spending significantly, compared to only 14 percent who said so last year.

The survey also showed that in 2011 the number of hospital CIOs who will cut their IT budgets fall by five percentage points compared to 2010. Last year, 22 percent said they would slash their budgets but this year only 17 percent plan to make cuts.

“The overall outlook for hospitals’ IT expenditure is more optimistic for 2011 than for 2010. This year our survey confirms that, due to a heavy governmental push, mainly in the UK, the US, and Canada, electronic health records (EHRs) represent the dominant clinical application priority overall,” Cornelia Wels-Maug, Ovum analyst and author of the report, said.

Ovum said that although (EHRs) are still the number-one investment priority, digital imaging solutions rank second. Meanwhile, the survey also revealed that hospitals' need to become more efficient is driving investment in scheduling, billing, admissions, and reporting systems to remain competitive.

“The need to trim costs as well as enable more efficient healthcare delivery is driving CIOs to explore new routes. Our research shows that telehealth and mobile health are receiving more attention than in previous years, a trend that will accelerate with consumers’ urge to purchase tablet PCs and smartphones,” Wels-Maug said.

Telehealth applications include healthcare consultations carried out remotely, electronic reminders and remote monitoring of patients. In addition to enabling the access to health services on tablets and smartphones, mobile health can also be administered through the provision of specialized ‘smart’ devices that support a mobile lifestyle, Ovum said.