KPMG-Leavitt: Where hospitals and systems plan to invest in health IT during 2019

Well being IT will stay a sizzling funding sector by means of 2019 – pushed by the necessity for instruments that healthcare suppliers should have to satisfy the surge in consumerism, based on a brand new KPMG-Leavitt Companions 2019 outlook survey.


Hospital and well being system enterprise determination makers working to determine on the place to allocate assets to maintain tempo or surpass opponents simply bought a glimpse of what some rivals is likely to be considering. 

The KPMG-Leavitt outcomes comply with projections from Forrester that 2019 will mark the start of the top of care supply as we all know it and IDC’s 2019 predictions, which counsel that IT leaders can be measured by their capacity to implement rising applied sciences successfully.

To that finish, KPMG-Leavitt’s analysis discovered that greater than a 3rd (34 p.c) of the healthcare professionals surveyed mentioned they have been most curious about investing in well being IT, the others named as their high curiosity:

  • Care administration (31 p.c)
  • Residence well being (23 p.c)
  • Retail-centric medical teams (22 p.c)
  • Main care practices (21 p.c)

For the general image, buyers have been pretty break up over the prospects. The bulk (64 p.c) of these surveyed mentioned the well being IT sector is overvalued, however 40 p.c anticipate the valuations to extend in 2019. About half (51 p.c) mentioned they see the worth of the well being IT market staying the identical.

KPMG and Leavitt Companions surveyed 175 respondents on-line from firms, well being techniques, funding banks, enterprise capital and personal fairness corporations between Sept. 17 and Oct. 21 of this yr. Of these surveyed 32 p.c have been c-suite executives; 29 p.c have been principal, accomplice or managing director; 32 p.c have been vice presidents or administrators; 6 p.c have been analysts/associates and a pair of p.c held different titles.


Consumerism will drive not solely the general well being IT market, as suppliers and healthcare organizations scramble to satisfy the calls for of shoppers, however it’s going to additionally drive the care administration sector due to the risk-bearing, extremely aggressive nature of that sector. Early intervention to forestall and coordinate persistent sickness can also be an element protecting this sector sizzling, the survey mentioned.

“Offers are largely being pushed by the necessity for financial savings, economies of scale, and enhancing money move or accretive earnings per share,” mentioned Carole Streicher, KPMG’s deal advisory chief for healthcare and life sciences. “Secondarily, there’s a little bit of a defensive posture motivating investments as healthcare organizations cope with competitors and reimbursement fashions related to high quality and effectivity, in addition to the doorway of tech corporations investing within the sector.”

We additionally reported final month another excuse for a surge of funding within the well being IT sector subsequent yr. Built-in supply networks (IDNs) are demanding product consolidation of digital well being data, income cycle and apply administration distributors are more likely to ship sooner moderately than later, based on new Black E-book analysis.


“We aren’t stunned by the nice deal of curiosity in well being care IT and care supply outdoors the hospital,” mentioned Mike Leavitt, founding father of Leavitt Companions and former Utah Governor and U.S. Well being and Human Providers Secretary. “As healthcare continues to march towards worth, the emphasis on shifting care to decrease price websites and enhanced coordination will proceed, and those that can enhance high quality and decrease price will win.” 

Diana Manos is a Washington, D.C.-area freelance author specializing in healthcare, wellness and expertise. 
Twitter: @Diana_Manos
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