Healthcare IT Dilemma: iPad Lust Meets Software Reality

In addition to being a top priority for legislators and the press, healthcare has become a major target for IT vendors. Driven by economic pressures that force hospitals to merge and consolidate, regulations that force better documentation and security, and legislation that may fundamentally change the industry's business models, healthcare companies will spend more on technology this year than any other type of company, according to a study released Jan. 31 by Enterprise Strategy Group.

Slideshow: Apple's iPad: The Key Capabilities, at a Glance

Much of the attention focuses on endpoint devices such as the iPhone, the new iPad and other gadgets doctors or nurses can carry during patient exams. However, the real spending will be for core applications such as billing and records systems, business-information systems, and upgrades that standardize IT after mergers or acquisitions, according to Mark Bowker, analyst at ESG.

To continue reading, register here and become an Insider. You'll get free access to premium content from CIO, Computerworld, CSO, InfoWorld, and Network World. See more Insider content or sign in.

In addition to being a top priority for legislators and the press, healthcare has become a major target for IT vendors. Driven by economic pressures that force hospitals to merge and consolidate, regulations that force better documentation and security, and legislation that may fundamentally change the industry's business models, healthcare companies will spend more on technology this year than any other type of company, according to a study released Jan. 31 by Enterprise Strategy Group.

Slideshow: Apple's iPad: The Key Capabilities, at a Glance

Much of the attention focuses on endpoint devices such as the iPhone, the new iPad and other gadgets doctors or nurses can carry during patient exams. However, the real spending will be for core applications such as billing and records systems, business-information systems, and upgrades that standardize IT after mergers or acquisitions, according to Mark Bowker, analyst at ESG.

[ For timely virtualization news and expert advice on strategy, see CIO.com's Virtualization Drilldown section. ]

The ESG survey of 515 companies with IT budgets greater than $50 million showed 52 percent have IT budgets larger in 2010 than 2009; in healthcare 67 percent of companies will increase spending.

Half of all healthcare companies plan to add IT staff positions this year as well -- more than any other industry surveyed.

"We have seen some gadget-y technology in healthcare environments. Certain endpoint devices become attractive as mobile options for a certain class of users, but IT has to deploy them in a way that's in compliance with regulations," Bowker says.

Top priorities for IT spending are business intelligence systems, network upgrades and improved security, according to ESG's survey.

Billing Software, Virtual Desktops Top of Mind

The highest priority for healthcare companies is to capture billing data immediately -- in real time as a doctor provides the services -- so the hospital can bill an insurance company as quickly as possible, according to Leo Carpio, vice president for the Health Care IT & Services practice of equity research firm Caris & Co.

Weighing the Pros/Cons of Desktop Virtualization

"A lot of iPhones have apps that tie in to medical records programs, and can let a doctor pull up prescription data, look at labs, or put in orders from the phone," Carpio said. "[Doctors] can use the tools to avoid staying in the office to clear up paperwork."

Virtual desktop implementations from Citrix, Microsoft, VMware and other vendors may be able to provide secure access and keep data locked up even if the device is stolen, but the effort to support handhelds may be more effort than it's worth.

Citrix, seeing the opportunity to extend its leading share in the terminal-services and VDI markets into the smartphone market, last week announced a reference architecture called the "nirvana phone" that would support full-function virtual desktops on smartphones. Citrix and development partner Open Kernel Labs, which develops embedded virtualization software for handheld devices, are promoting the design to smartphone manufacturers and carriers. Most successful access or desktop virtualization projects in healthcare focus on systems that are beefier than handhelds -- workstations in exam rooms or on mobile carts on hospital floors, for example, Bowker said.