Dive Brief:
- Federal agencies increased by 27% the amount spent on health IT services from $2 billion in 2011 to $6.5 billion last year despite sequestration, according to a report from research firm Govini.
- HHS and CMS unsurprisingly spent the most during the time period analyzed.
- Govini says the Department of Veterans Affairs and the Defense Health Agency are “planning major IT investments that rival HHS’s in scope” for FY 2017.
Dive Insight:
Govini's findings supports the healthcare industry's push for modernizing health IT and cybersecurity.
CMS accounted for roughly half of HHS' IT spending and has been making investments in "call centers, IT infrastructure, and data centers," the report states.
HHS' spending grew at a compound annual growth rate (CAGR) of 34% and the VA's grew at a 25% rate, while DHA's spending decreased at 6% CAGR.