ARRA changes game for IT projects

By Bernie Monegain
04:32 PM

A recent study by research firm KLAS, “Executive Reaction to the Stimulus Package,” addresses the shift in IT project timelines since the ratification of the American Recovery and Reinvestment Act (ARRA) and its provisions for healthcare IT.

While the dramatic 2008 economic downturn redirected most hospitals into survival mode, the future reimbursement changes outlined in ARRA have caused a shock in the market, KLAS reports. According to the report, 28 percent of providers have accelerated or changed the direction of their IT plans since the announcement of the stimulus package, with 43 percent ready to move, but with caution. KLAS interviewed dozens of hospital CIOs and other top executives for the report.

Providers who are accelerating their plans not only have an eye toward reimbursement dollars but also are eager to have first pick of the best resources. As one IDN’s executive team summarized: “The ARRA will create a feeding frenzy for EMRs and will overburden vendors and consulting firms.”

“More than a quarter of the providers we interviewed are looking to vendors to help them achieve a stronger ROI – and that means more training and better support,” said Jeremy Bikman, executive vice president of research and strategy for the Orem, Utah-based research firm. “Providers are essentially saying, ‘Help us use your system more effectively,’ and very few vendors have answered the call.”

“Simply put, the solutions providers are requesting the most are the options vendors are pursuing the least,” he added.

 

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