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

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• Publié par: frost-sullivan
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• Langue: English

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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