Healthcare information technology sector poised for growth

09/15/05 - JMP Securities

NEW YORK, September 15 (newratings.com) – Analyst Alexander Y Draper of JMP Securities believes that the healthcare information technology sector is poised for growth and is likely to play a crucial role in transforming the healthcare industry.

In a research note published this morning, the analyst mentions that IT spending by the healthcare industry has been significantly lower than IT investments made by other industries. So far, the adoption of EHR systems by the US healthcare industry has been sluggish, the analyst adds. The clinical systems market is under-penetrated, which presents a significant opportunity for healthcare information technology companies, JMP Securities points out. According to an article in Health Affairs, the $40-$45 billion healthcare information technology market is likely to grow at a CAGR of at least 7% till 2010, the analyst says.