Abstract
In the US, the $2.4 trillion ecosystem of hospitals, physicians,
pharmaceutical companies, and insurance providers that make up the healthcare
industry will be spending tens of billions of dollars between now and 2014 on
telecommunications services and equipment. The new administration has raised
the importance of improving health care, while simultaneously solving the
costs challenges. Stimulus funding for computerized medical records,
prevention and wellness initiatives, research, and workforce training has
already started.
Rising healthcare industry costs and a shortage of skilled staff have created
a lucrative opportunity for technology and service providers, as hospitals and
other front-line healthcare providers look to adopt new technology to lower
their operating costs. The Congressional Budget Office estimates that by
2025, one out of every four dollars in our national economy will be tied up in
the health system.
Fiber optics, wireless access, and digital transmission will transform
healthcare networks, while extending care to remote patients via telemedicine
applications will lower healthcare delivery costs. The healthcare industry
may finally be poised to make the commitment to a new generation of networking
technology.
This study examines the transformation of healthcare information technology,
the trends in provider care, and the forces that shape this massive industry.
We survey a representative number of US hospitals and care providers, make
recommendations for carriers who address this industry, and provide forecasts
of spending for hardware and network services.
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