Spending on EHR Systems to See Fastest Growth from Elder Care Facilities

COVID-19 hampers some EHR projects; regulation to support upgrades

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May 21, 2020, 09:37 ET

CLEVELAND, May 21, 2020 /PRNewswire/ -- US expenditures on electronic health records (EHRs) are forecast to advance 6.5% yearly in nominal terms through 2024, according to Electronic Health Records: United States, a report recently released by Freedonia Focus Reports. Vendors will benefit from ongoing regulatory requirements and continued growth in medical service spending, which will allow healthcare providers to install new EHR systems or replace older systems, and purchase ongoing hosting, maintenance, and support services. Medicare penalties for noncompliance with EHR meaningful use requirements will support implementation efforts by healthcare providers that have not implemented EHRs or those using noncompliant systems. EHR expenditures by nursing and residential care facilities – the fastest growing segment – are projected to increase 19% annually through 2024. Many elder care facilities still need to implement EHR systems or upgrade them to the latest editions. In addition, the number of nursing and residential care facilities and their revenues are expected to continue growing as the elderly population expands.

The COVID-19 crisis that began to take serious hold in the US in March 2020 severely strained the budgets of healthcare providers as many non-emergency appointments and procedures were cancelled, while the need to care for infected patients required substantial hospital resources. As a result, many new and ongoing projects, including information technology (IT) projects, were delayed or cancelled. Therefore, many EHR vendors could face some financial setbacks due to the ongoing COVID-19 crisis.

These and other key insights are featured in Electronic Health Records: United States. This report forecasts to 2024 US expenditures on EHRs in nominal US dollars. Total expenditures are segmented by provider in terms of:

hospitals

private hospitals
government hospitals

ambulatory

physician offices
dentist offices
other practitioner offices
outpatient care centers
laboratories and imaging centers
home healthcare agencies

nursing and residential care facilities

To illustrate historical trends, total expenditures and the various segments are provided in annual series from 2015 to 2019.

EHRs represent the comprehensive aggregation of notes and results from all patient interactions with providers in the healthcare system. On the other hand, electronic medical records (EMRs) are the digitized versions of paper medical charts, representing notes and results from one healthcare provider. EMRs were the first step in creating EHRs and comprise the backbone of EHRs.

More information about the report is available at:
https://www.freedoniafocusreports.com/Electronic-Health-Records-United-States-FF40065/?progid=91541

About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Healthcare & Biotechnology reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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