Sustainable RHIO Funding and the Emerging Business Model
[author:Healthcare IT Transition Group Public time:Sep 6, 2007] |
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The Annual Survey of Regional Health Information Organization Finance, conducted by Healthcare IT Transition Group in 2006 and 2007, gathered financial data from U.S. RHIOs (also called Health Information Exchanges) at all stages of development, from earliest startup through the most mature production stage. The survey team’s report, Sustainable RHIO Funding and the Emerging Business Model, is available at http://rhio.hittransition.com.
The sample included 23% of the estimated U.S. RHIO cohort. Respondents were located in 28 U.S. states and territories; 52% reported being in the startup stage, 24% in a transition stage, and 24% in production.
The report’s financial analysis of the RHIO space includes an examination of revenue streams, service offerings, stakeholders as sources of revenue, value creation and capital development strategies. Investigators studied contributed, earned and other income, including loans and investor proceeds. The survey report includes 48 charts and tables that illustrate a broad and deep financial picture for this nascent segment of the healthcare and health information technology markets, but one that still remains hamstrung by various technological and non-technological trials.
Based on data on RHIO budgets and technology spending, the investigators provide a guarded estimate of the current U.S. RHIO technology market for 2006 and 2007, and a projection for 2008. The estimate for 2007 indicates a scant $128.6 million total U.S. RHIO technology shopping cart. With slow growth reported by respondents (averaging 2.3% from 2006 to 2007), this remains a modest market -- about seven tenths of a percent (0.7%) of the total U.S. health information technology market. The report provides breakdowns of technology spending in seven categories, including hardware, software, and consulting services.
With recent high-visibility announcements of nine digit RHIO development plans, this segment appears to be poised for rapid growth, provided that reported challenges can be met. RHIOs report frustrations relating to data controls, security and privacy issues. 53% of respondents reported that cash flow was a significant challenge; cash flow and it led the list of non-technology challenges, followed by partner relations, privacy concerns and legislative/political issues.
Contributed income continues to dominate RHIO revenues. Startup-stage RHIOs reported increased percentages of income from grants, up from 73% for 2006 to 84% for 2007.
The survey data provide the basis for other analyses, including a shift in RHIO geographical reach, changes in service offerings, staffing levels, and top sources of earned revenue and grants.
The full 79-page report is available at http://rhio.hittransition.com.
Otherinfo:http://hittransition.com
Printed From:http://www.free-press-release.com/news/200709/1189114544.html
Source:Free Press Release
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