The Health Insurance Portability and Accountability Act (HIPAA) is shaping up to be the single most powerful influence on spending patterns in U.S. healthcare, according to a new report by San Jose, CA-based research firm Frost & Sullivan.
The legislation is expected to generate $1.3 billion in total spending by 2003, with the majority of dollars directed toward privacy and confidentiality training for staff, the company reported. Understanding purchasing behavior among these entities will be the key to increasing vendor penetration in the market.
Healthcare information systems software will require significant spending under HIPAA, especially EMR systems for audit trail and access authorization purposes, and EDI packages for converting transaction code set standards used in reimbursement. However, expenditures will be constrained by a combination of reimbursement cuts, high unemployment in the general population, and the increasing cost of payroll and operations, F & S said.
The company will hold a conference call at 3:00 p.m. (EDT) today to discuss the issue in detail. For more information, contact Danielle White at [email protected].
By AuntMinnie.com staff writersOctober 22, 2002
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