Healthcare providers to spend Rs 5,700 crore on IT in 2013

Healthcare services providers in India are expected to spend Rs 5,700 crore on IT products and services in 2013, a growth of seven per cent over 2012, research firm Gartner said today.

Healthcare services providers, such as hospitals, hospital systems, ambulatory service and physicians' practices, had spent Rs 5,300 crore on internal IT, hardware, software, external IT services and telecommunications in 2012, Gartner said in a statement.

Telecommunications, which includes telecommunications and networking equipment and services, is expected to remain the largest overall spending category.

It is expected to grow 3.9 per cent in 2013 to reach Rs 1,720 crore in 2013, up from Rs 1,660 crore in 2012.

Internal services, which refer to salaries and benefits paid to the information services staff of an organisation, is expected to grow 18 per cent in 2013.

IT services are forecast to grow 9.7 per cent to reach Rs 1,450 crore in 2013, up from Rs 1,320 crore in 2012, led by growth in process management and consulting.

"Rising demand from the growing middle class in India's large cities is fueling growth in private sector healthcare. Large national and state government programs will spur growth along the primary (and secondary) care sector and public health domain," Gartner Research Director Anurag Gupta said.

Hospital information systems, picture archiving and communications systems, electronic health records and mobile technologies will be high on the agenda, he added.

Health insurance growth will also catalyse technology adoption in healthcare provider segments, Gartner said.