Federal Health IT Market, 2023-2027

Published: August 31, 2023

Federal Market AnalysisElectronic Health RecordForecasts and SpendingHealth CareHealth ITHealth ServicesInformation Technology

Deltek’s Federal Health IT Market, 2023-2027 report examines the budgets, policies and technologies driving the federal health IT environment with an outlook on the marketplace over the next five years.

The rising cost of healthcare drives initiatives to improve patient care and increase health program efficiencies. Federal health agencies continue to invest in IT infrastructure and solutions in the transition from response to prevention following the height of the COVID-19 pandemic.  Health IT investments are evolving to improve patient care, advance public health equity, mitigate current and emerging health threats, bolster the medical supply chain, prevent fraud, and drive research in early detection and prevention of diseases.

However, challenges remain among health mission agencies in maximizing the benefits of health IT solutions, including aging legacy systems, lack of quality data and workflow, inadequate data management solutions, and a culture of siloed data and infrastructure preventing interoperability and access.

Looking ahead, electronic health record investments by VA, Indian Health Service (IHS) and DOD will shape federal health IT spending. Additional areas of future health IT investments include automation, artificial intelligence/machine learning, and telehealth.

Deltek forecasts federal spending on health IT solutions and services will increase from $9.2B in FY 2023 to $11.7B in FY 2027, an increase of 27% in the next five years.

Key Findings

  • EHR Deployment: Upcoming health IT spending is propelled by VA’s EHR implementation, a proposed EHR project at Indian Health Services (IHS), and DOD’s work on its MHS Genesis initiative.
  • Federal Health Priorities: Post-pandemic, public health focus and resources are shifting to disease surveillance, public health security, health and medical research, and innovation.
  • Legislative Environment: The 21st Century Cures Act continues to drive advances in interoperability, health records exchange, and advances in health and life sciences research.
  • Technology Drivers: Health mission agencies are investing in several technologies to improve health data and outcomes, including telehealth, advanced analytics, big data solutions, AI/ML, virtual/augmented reality, 5G, automation, data and infrastructure modernization, cloud computing, and cybersecurity.

Critical Insight for Vendors

Deltek’s Federal Health IT Market, 2023-2027 report provides strategic insight to the trends and drivers influencing federal health IT procurement.

The report will help federal IT contractors:

  • Understand the health IT environment and the trends driving federal investments.
  • Assess the policy and legislative initiatives shaping the current federal healthcare and health IT environment and their impact on the market.
  • Gain an understanding of the health IT applications, technology areas and market segments within the federal health IT market.
  • Assess the market size and forecast for health IT within agencies possessing a health mission.
  • Identify key health IT priorities and investments by agency.
  • Obtain actionable intelligence for strategic planning and business development in the federal health IT market.

Deltek's Federal Health IT Market, 2023-2027 report is delivered in PowerPoint® format, including a PowerPoint® Executive Briefing, and an Excel® data workbook.

  • Introduction
  • Market Drivers
  • Contracting Environment and Historical Budgets
  • Market Forecast
  • Agency Analysis
  • Conclusions and Recommendations
  • Appendix