Dive Brief:
- A new report from Dallas-based research firm MarketsandMarkets projects that the global healthcare information exchange (HIE) market will grow to $878 million by 2018, up from $558 million in 2013.
- Researchers found that US government incentives to improve patient care and safety are driving the US market, though high implementation costs, slow returns on investment and interoperability problems are slowing global HIE markets' growth.
- The researchers predict growth of more than 10% in the private HIE market, the largest sector by setup type, which they attribute to clear business models and rising investments by major HIE vendors.
Dive Insight:
For several years now, HIEs backed by state and local grants have struggled to survive, largely because participants were skeptical that the business model worked. Now, it appears that private HIEs may have come to take the place of government-funded efforts. Over the long term, this is a good thing for HIE fans, as a business model that can sustain itself has a much greater chance of staying in the marketplace than one whose funding can be taken back by grantors in government and within private foundations.