Final Report: Providers

4. IT Priorities

HIPAA compliance continues to play an important role in healthcare IT. Internet, IT staffing less of an industry concern.

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) continues to drive the healthcare IT industry. Upgrading security on information technology (IT) systems to meet HIPAA requirements is the top IT priority-identified by 60 percent of respondents, up from 57 percent in 2001.

The next most pressing issue identified is reducing medical errors and promoting patient safety, 46 percent of respondents identifying this as their facility's most pressing IT priority. (Data were not gathered on this item last year.) Rounding out the top three IT priorities is the replacement or upgrade of inpatient clinical systems (42 percent-an eight-point increase over last year's response).

Deploying Internet technology, last year's second priority, decreased eight points this year. Last year's third priority, improvement of IT departmental services, cost effectiveness and efficiencies, decreased four points.

An even larger decline in importance occurred with regard to the recruitment and retention of high-quality IT staff. In 2001, 26 percent of respondents cited this as a priority; in 2002, 13 percent identified it as a priority.

Respondents believed their facilities will have the same priorities in two years as they do today, with relative importance of those priorities approximately the same two years from now as today. Top priorities forecast over the next two years are:

• Upgrading security on IT systems to meet HIPAA requirements-56 percent, compared with 53 percent last year;
• Implementing technology to reduce medical errors/promote patient safety-46 percent (not asked last year); and
• Replacing and upgrading inpatient clinical systems-41 percent, compared with 30 percent last year.

Deploying Internet technology decreased 14 points in future importance. Recruitment and retention of high-quality IT staff has also declined in importance as a future priority-by 10 percent.

Once again, respondents identified HIPAA compliance as the top business issue that will affect healthcare in the next two years, identified by 81 percent, an increase of four points over last year. The reduction of medical errors (52 percent) moved into the second slot, up from fourth last year (44 percent). Last year's second-highest priority-cost pressures-fell to third (51 percent, compared with 52 percent in 2001). Improving operational efficiency dropped to fourth place (40 percent, compared with 45 percent in 2001). Additionally, consumerism/satisfying customers and the availability and retention of staff both dropped 9 percent from 2001 to 2002.

Figures:

Figure 6. Current IT Priorities (Within Next 12 Months)
Figure 7. Projected IT Priorities (Next Two Years)
Figure 8. Top Business Issues Facing Healthcare (Within Next Two Years)

Next: IT Barriers