Health IT Continues to Attract Attention
Growth remains elusive for many private and public sector IT companies given the slow economic recovery and the stressed Federal budget environment.
However, there are dramatic growth opportunities for companies with capabilities and domain expertise in Health IT. Requirements exist for immediately addressing near-term priorities (with long-term benefits) such as lowering healthcare costs, improving access to care and reducing system-wide fraud, waste and abuse.
Bringing the entire health system completely into the digital age through electronic health records and other means, a process that is slowly underway, requires continued substantial investment within government (at the Federal, state and local levels) and commercial realms. In particular, we are seeing a very strong interest level from commercial and government IT contractors in buying other contractors with exposure to the Military Health System, Veterans Affairs and Health and Human Services agencies.
The number of target companies with access to these client organizations is relatively limited, creating a heightened valuation environment given the high level of demand. Growth is the key, and the Health IT sector is a major bright spot in the current environment.
For additional information on this topic, read Healthcare IT Spending To Reach $40 Billion from Information Week.