Thursday, September 13, 2007

RHIO Market Growth Small

The revenue generated from regional health information organizations remains minuscule compared with the rest of the health care information technology industry, according to a new report on RHIO finances.

Report authors estimate the RHIO market size in the United States this year at $128.6 million--about seven-tenths of a percent of the health I.T. market--with growth of only 2.3% from 2006. Further, RHIOs--even the most mature operating in production environments--remain heavily dependent on grant funding.

Healthcare IT Transition Group, a Tulsa, Okla.-based consulting and research firm, surveyed 168 RHIOs and health information exchanges for its report, “Sustainable RHIO Funding and the Emerging Business Model.” The group received 63 responses and the report’s conclusions result from the 38 RHIOs that submitted complete data.

Approximately one-half of the 38 RHIOs reported being in the start-up stage, with one-quarter each in a transition stage or in production. Cash flow remains the primary non-technical challenge, according to respondents, with partner relations, privacy concerns and legislative/political issues also prevalent.

Grants comprised 84% of revenue for start-up RHIOs in 2007, compared with 73% in a similar survey conducted last year. Most responding RHIOs in this year’s survey anticipate the need for continued grant funding, including 60% of the RHIOs identifying themselves as being at the self-sustaining level.

Source : Health Data Management

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