MOUNTAIN VIEW, CA – With the prospect of billions of dollars in federal funds expected to flood the healthcare and medical technology industries, outside corporations are looking to share in the proceeds.

Companies like Google, Intel, Delphi, Microsoft, Wal-Mart and Procter & Gamble have set their sights on the growing healthcare and IT markets for future expansion.

Dell’s recent $3.9 billion acquisition of Plano, Texas-based Perot Systems, an international provider of IT solutions and services, and Norwalk, Conn.-based Xerox’s $6.4 billion acquisition of Dallas-based Affiliated Computer Services, Inc., are just a few examples of a growing economic push toward the healthcare sectors.

"In most cases, these companies see an ability to leverage their strengths to tap into a market with strong fundamentals – an aging population, consistent growth and the ability to reward innovation," said Charlie Whelan, director of healthcare consulting for Frost & Sullivan. "While the ultimate fate of healthcare reform is still to be determined, it will likely result in the expansion of healthcare services to millions of new consumers of medical goods and services."

The types of companies expected to enter the healthcare market, said Frost & Sullivan officials, include materials, component and OEM manufacturers, finished goods manufacturers in non-healthcare sectors, information technology companies, contract manufactures, consumer goods companies and distributors and retailers.

Frost & Sullivan has recently published a White Paper titled, ”Looking at the Healthcare Industry for Growth Opportunities: What New Entrants to the Market Need to Know,” exploring these new companies and their motivation for entering into the healthcare market.

The American Recovery and Reinvestment Act of 2009 has allocated billions of dollars in federal funds to assist physician practices, clinics and hospitals make the transition to digital healthcare. By promoting solutions like EHRs, clinical decision support, e-Claims and workflow management systems, the government looks to reform healthcare by making it more efficient and less costly.

Frost & Sullivan officials said challenges such as digitizing healthcare have encouraged companies to develop products that help to address these problems.

"Companies with a fresh, outside perspective will be invaluable to improving healthcare delivery and producing the next generation of medical technology," said Whelan. "The enormous demand for new technology and solutions to address both the clinical needs of patients and the systemic problems of healthcare delivery will create opportunities for companies with the foresight to identify and capitalize on opportunities."

While the prospect of federal funding makes the healthcare industry attractive, Frost & Sullivan officials said companies need to assess their opportunities and goals before making large-scale investments in the complex market.

Many factors control and regulate the healthcare industry, including insurance reimbursement guidelines. Purchasing and distribution pathways are also complex, said officials.