Driven by meaningful use incentives and a rebounding economy, nearly three quarters (72 percent) of respondents to the 21st Annual Healthcare Information and Management Systems Society (HIMSS) Leadership Survey said they expect their IT operating budgets to increase in 2010.

Last year, only 55 percent of respondents expected an increase in their budgets. Nearly half (49 percent) who said their budgets would increase this year reported that meaningful use would be a driver. Another 45 percent reported the increase would be due to an overall growth in the number of system and technologies at their organization.

Two-thirds (66 percent) expected to increase the number of IT staff, which is consistent with 2008 data, after dipping to less than half a year ago.

Asked to identify their single IT priority during the next two years, 42 percent of respondents identified meeting meaningful use criteria. Many likely will be doing so by implementing clinical systems: when asked to identify their organization’s primary clinical IT focus, 35 percent said it would be ensuring their organization has a fully functional electronic medical record in place and 27 percent said it would focus on installing a computer order entry (CPOE) system.

“Many healthcare executives are paying attention to the improving financial picture, evaluating their systems and starting to make investments, said Barry P. Chaiken, MD, HIMSS board chair. “A year ago, spending was down and hospitals were feeling pressure, but the stabilizing of the economy and the ARRA meaningful use provision has provided an incentive for making healthcare IT investments.”

Meaningful use was reflected in answers throughout the survey.

For instance, more than one-third (38 percent) said government issues were the business issue they felt would have the biggest impact on healthcare in the next two years, whereas last year, only six percent thought that would be the case.

This year’s response reflects compliance with new regulations regarding meaningful use, as well as coding upgrades and claim processes impacted by ICD-10 and the updated version of HIPAA (5010). Financial considerations (such as demand for capital and finding new revenue resources) were identified as the top business issue last year, chosen by 54 percent of respondents. This year, 23 percent identified it as the top business issue.

Security concerns continue to remain consistent. One third of respondents (34 percent) said an internal breach of security was their top security concern, and nearly one-quarter (23 percent) said their organization had a security breach in the past year. Thirty percent said their major security concern was compliance with Health Insurance Portability and Accountability Act (HIPAA) security regulations and Centers for Medicare & Medicaid (CMS) security audits.

Healthcare organizations continue to make progress on EMR adoption. Nearly half (48 percent) said they have a fully operational EMR in at least one facility, compared to 41 percent last year. Nearly a quarter (22 percent) said they have a fully operation EMR throughout their entire organization, up from 17 percent last year. Almost a third (32 percent) have begun to install an EMR in at least one facility.

Asked about what area of patient care they felt IT could have the most impact, more than a third (37 percent) said it could improve clinical and quality outcomes. Another quarter (28 percent) felt the biggest impact would be in reducing medical errors and improving patient safety. The 2009 survey identified the same top two items, with the order reversed. Nearly all (95 percent) said clinicians play a role in the IT process at their organizations, key to its successful implementation.

The self-administered Web-based Leadership Survey collected responses from 398 participants between Dec. 14, 2009 and Jan.29, 2010.

Those surveyed represent 250 unique healthcare organizations and nearly 700 hospitals throughout the United States. The average bed size of the hospitals was 519 and the median bed size is 300. Eighty five percent of respondents said they are senior IT executives at their organizations, and 66 percent are corporate chief information officers.