Focus: IT in health services - information technology

The health of the U.S. health industry depends on who you are. If you are a consumer and/or voter, there is a growing perception of crisis. If you are a health professional, you are likely to be unhappy but making money. If you are an IS manager in the health sector or a vendor supplying it, you are happy and the envy of your peers.

* Health services was the only industry grouping in the survey to register double-digit growth in 1991. Although it does not expect to repeat this in 1992, growth should continue to outpace the industry average. * A survey-high 70% (compared to 52% overall) of health increased IS spending in 1991, and a survey-low 6% (compared to an average of 16%) decreased spending.

* A survey-high 64% of the health services base expect spending to increase in 1992 over 1991, compared to an average of 47%, while a relatively low 11 % (compared to 15% overall) anticipate a decrease.

* Health services had the highest proportions of any vertical market groups in the survey agreeing that their needs were growing rapidly and that they would continue to invest heavily in hardware, software, and services (35%, compared to a 26% average); stating that while they had enough hardware horsepower, they were now investing mostly in software and services (31% compared to 24%); and noting that, while most of their software was in place, they were increasing their hardware capacities (21% compared to 15%).

* Conversely, health had by far the lowest proportion stating that their IS environment was basically stable with no major growth anticipated in hardware, software, or services (8% compared to 27% overall), and a survey-low 5% (compared to 9% overall) stating that their IS environment was contracting.

* A survey-high 58% of the health services base (compared to 43% overall) agreed that their organization still needs many more PCs and workstations and that they will buy them as fast as they can afford to.

* Its stance towards IS change is experimental without being "bleeding edge"; a survey-high 41% (compared to 29% overall) agreed with the statement "We experiment with new technologies but generally maintain a 'let others prove it' attitude."

* Health scored above average in the penetration of new products and services. Besides EDI and workstations, image processing is a major drawing card for 1992 spending. It had comparatively high acceptance rates for several product types, including disk arrays (RAID technology) and multiprotocol routers.

* The prognosis for Unix among IS managers in health is in general not very good, with a very high 80% (compared to 63% overall) neither pursuing nor considering a Unix-oriented strategy.

* The proportion of IBM-compatible PCs with MS-Windows in the health sector was a survey-low 16% in 1991, and is expected to improve only marginally in 1992 to 28%. The survey averages were 25% and 44%, respectively.

* A survey-high 52% of 1991 software spending in the health survey base went for packaged software, and a survey-low 41% for internally developed applications.

* The health sector is relatively cool to training staff in CASE tools and methods or in object-oriented technologies over the next two years, with survey-low levels of importance assigned to the prospect. Training in network management and operating systems, on the other hand, is important.

COPYRIGHT 1992 International Data Corporation
COPYRIGHT 2004 Gale Group