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Spiralling Expenditure Creates Pressing Need for Sustainable Business Models in Healthcare IT, Says Frost & Sullivan

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Spiralling Expenditure Creates Pressing Need for Sustainable Business Models in Healthcare IT, Says Frost & Sullivan PR Newswire LONDON, June 12, 2012 - Involvement of Top Management in Healthcare Facilities and Key Stakeholders Crucial to Successful Implementation of Such Models LONDON, June 12, 2012 /PRNewswire/ -- Healthcare expenditure is reaching unsustainable levels on a global scale. There is an urgent need for sustainable business models that can curb expenditure and promote better healthcare delivery. The focus is shifting from traditional to newer, more sustainable business models. New analysis from Frost & Sullivan (http://www.healthcareIT.frost.com), Strategic Analysis of Healthcare IT Implementation Business Models, finds that a critical factor for the successful implementation of IT business models in healthcare is the involvement of top management in healthcare facilities and key stakeholders in the entire process. This research analyses software as a service (SaaS), Managed Services, Open Source and the Freemium business models. The healthcare system across most of Europe has remained unchanged for many decades. However, since the 1970s, some Western European countries have been closely monitoring the performance and cost-effectiveness of their healthcare systems and the delivery of healthcare.
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Spiralling Expenditure Creates Pressing Need
for Sustainable Business Models in Healthcare
IT, Says Frost & Sullivan
PR Newswire
LONDON, June 12, 2012
- Involvement of Top Management in Healthcare Facilities and Key
Stakeholders Crucial to Successful Implementation of Such Models
LONDON
,
June 12, 2012
/PRNewswire/ -- Healthcare expenditure is reaching
unsustainable levels on a global scale. There is an urgent need for sustainable
business models that can curb expenditure and promote better healthcare
delivery. The focus is shifting from traditional to newer, more sustainable
business models.
New analysis from Frost & Sullivan (http://www.healthcareIT.frost.com),
Strategic Analysis of Healthcare IT Implementation Business Models
,
finds that a critical factor for the successful implementation of IT business
models in healthcare is the involvement of top management in healthcare
facilities and key stakeholders in the entire process. This research analyses
software as a service (SaaS), Managed Services, Open Source and the
Freemium business models.
The healthcare system across most of
Europe
has remained unchanged for
many decades. However, since the 1970s, some Western European countries
have been closely monitoring the performance and cost-effectiveness of their
healthcare systems and the delivery of healthcare.
"As a result of such endeavours,
Europe
is witnessing a rise in the adoption of
innovative business models in healthcare information technology," notes Frost
& Sullivan Senior Research Analyst Simone Carron-Peters. "Business models
such as SaaS, Managed Services, Open Source and Freemium are gaining
prominence, alongside traditional capital investment and licensing alternatives."
In addition to limiting spiralling healthcare outlays, other factors highlighting the
popularity of innovative business models have been the growing need for
physicians to be able to access patient records at any time and at any place,
the increase in consumer demand and an ageing population.
But while there is an undeniable need for innovative healthcare models, a key
concern is security, particularly related to data privacy and reliability. The fact
that patient data will be stored remotely in an off-site facility sparks concerns
about patient privacy.
"Customers still distrust the aspect of remote data storage and management
and are also sceptical about the fact that they have no control over disaster
recovery and business continuity protocols that the software vendor places on
their data," elaborates Carron-Peters.
Ultimately, healthcare involves many stakeholders - patients, health
professionals, insurers and government bodies. The key strategy would be to
implement a business model that accounts for the interests of all relevant
stakeholders.
Therefore, software service providers should work with hospital management
to ensure that their IT goals are aligned with overall business objectives. This