Although healthcare was once considered an industry that would not adopt cloud computing due to systemic security, legal, and privacy issues, that no longer seems to be the case. Those in healthcare IT are moving even farther into the world of cloud computing.

The use of cloud computing in the world of healthcare seems logical to me. Healthcare providers, and payers, are cost sensitive. They are also experiencing rapid change, thus they could use technology that’s more agile. Finally, they pay close attention to regulations and compliance. That’s all good for the cloud.

The problem is that most in healthcare don’t understand the value that cloud can bring. Instead, many push back on cloud computing, both private and public, typically due to assumptions that are incorrect. However, there are those who are beginning to push back on the FUD to take advantage of cloud computing.

Information around cloud adoption in healthcare is beginning to come in. This information includes pronouncements by various countries, such as the American Recovery and Reinvestment Act of 2009 (ARRA), laid down by the US Government, that encourage businesses in the healthcare industry to utilize certain applications of electronic records. Recently, cloud technology started to replace legacy systems, and it offers easier, faster, and more cost-effective access to this data.

Moreover, according to Formtek, the healthcare cloud computing market is definitely picking up its pace.

“In 2011, only about 4 percent of healthcare IT providers had adopted some form of cloud computing, but it was at that point that the market started to grow at a healthy rate of about 20 percent each year, and it’s expected to continue until 2017, when it ultimately reaches a market size of $5.4 billion, based on a report by MarketAndMarket. Those estimates are similar to those published by Kalorama which predicts 21 percent growth of healthcare cloud computing in 2013, reaching $3.9 billion by the end of this year.”

The reasons for this growth are rather obvious. They include:

Regulatory pressures that drive providers and payers to seek more agile approaches and technology.

Budget reductions that drive payers and providers to do more with less money.

The need to manage information on mobile devices for both healthcare providers and patients. This includes cloud-based telemedicine and telemetry systems.

The need to leverage key data analytics to drive better care, as well as spot issues before they become larger and more costly.

The movement of core healthcare application providers into the cloud.

Considering the pressure on budgets and the change within most healthcare organizations, the use of cloud-based platforms was just too tempting. Once some data resided in the clouds, and the world did not come to an end, they began to push more traditional systems to the cloud. This trend will continue for the next several years.

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