Federal Health IT Market, 2020-2022
Published: August 27, 2020
Deltek’s Federal Health IT Market, 2020-2022 report takes an in depth look at the climate, policies and technology drivers that are shaping federal health IT and provides an outlook for the marketplace over the next three years.
Federal agencies with health missions are facing unprecedented challenges, demands and opportunities precipitated by the COVID-19 pandemic. Prior to the pandemic, federal agencies focused on investing in health IT to improve outcomes, lower costs, prevent disease and better public health. However, due to the novel coronavirus, the administration and agencies have a renewed focus on the use of IT to empower care, propel biomedical research, track disease permeation, monitor medical supply chains, and drive therapeutic and vaccine development.
Rising health care costs also drive the growth in federal health IT investments. Increasing enrollment in Medicare and growth in the volume of services under Medicaid will raise federal health care expenditures, which the federal government forecasts at an average annual growth rate of 6.5% from 2018 to 2027. Implementation of DOD and VA Electronic Health Records (EHR) further fuel federal health IT spending over the forecasted period.
Deltek forecasts federal spending on contractor-supplied health IT products and services will grow from $7.8 billion in FY 2020 to $9.2 billion in FY 2022 at a compound annual growth rate (CAGR) of 8.7%.
Changes to Deltek’s Market Forecast Due to COVID-19
Due to the unique circumstances of the COVID-19 pandemic, including the uncertainty of its impact on future federal budgets and operations, FMA has narrowed its forecast focus to “near term,” covering only FY 2020–2022.
- Strong Growth Market. Deltek forecasts the federal health IT market will show strong growth over the next few years as health mission agencies upgrade health IT systems and implement new capabilities due to the COVID-19 pandemic.
- New Electronic Health Records (EHRs). The largest increase in federal contractor addressable health IT spending will stem from DOD and VA EHR implementations which are relying heavily on contractor provided products and services. After many years of effort, DOD and VA are on the verge of creating a single health record for all service members and veterans, moving beyond the aspiration of interoperability.
- Data Focus. Data standards, interoperability, sharing, curation, management, security, and immutability are extremely important to achieving the future benefits of health IT within federal agencies and across the national health care spectrum.
- IT for Public Health. The COVID-19 pandemic is fueling a renewed federal focus on health and medical research, disease surveillance, and public health security and innovation which will likely result in additional health IT investments.
- Integrating Emerging Technology. Health mission agencies are integrating emerging and modern technologies such as Artificial Intelligence (AI), cloud computing, analytics, data lakes, and Application Programming Interfaces (APIs) into health IT applications and solutions.
Critical Insight for Vendors
Deltek’s Federal Health IT Market, 2020-2022 report takes a strategic 3-year look at the trends, drivers, and inhibitors shaping 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 health care 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, 2020-2022 report is delivered in PowerPoint® format, including a PowerPoint® Executive Briefing, and an Excel® data workbook.
FEDERAL HEALTH IT MARKET, 2020-2022
TABLE OF CONTENTS
- Report Purpose
- Scope and Methodology
- Key Findings
- Market Structure
- Budget Environment
- Policy and Legislative Environment
- Technology Environment
Contracting Environment and Historical Spending
- Federal Health IT Contracting Environment
- Historical Health IT Spending from IT Portfolio
Federal Health IT Forecast
- Total Contractor Addressable Market
- Addressable Market by Mission Area
- Addressable Market by Top Agency Buyer
- Health and Human Services (Overview)
- Centers for Medicare and Medicaid Services
- Food and Drug Administration
- National Institutes of Health
- Center for Disease Control and Prevention
- Other HHS Agencies (ACF, ACL, AHRQ, Departmental Management, HRSA, IHS, SAMSHA, OIG)
- Department of Defense
- Veterans Affairs
- Department of Agriculture
- Department of Homeland Security
- Office of Personnel Management
- Department of State
Conclusions and Recommendations