Measures: Surprising HIT opportunities in Obama's federal budget

By Andrea Falciani
08:18 AM

The recent release of the President’s 2013 federal budget indicates a robust market for industry in the health IT marketplace.

The 2013 budget request is estimated at $11.8B, for instance, a slight increase from the 2012 levels of $11.6B. This boost in funding demonstrates the important role health IT provides in advancing our nation’s healthcare system.

Federal Health IT Budget Overview:

  • The 2013 Federal Health IT budget experienced a 2 percent increase moving to $11.8B from $11.6B.
  • The Department of Health and Human Services, Department of Veterans Affairs and Department of Defense lead the pack, accounting for more than 90 percent of the overall health IT budget.
  • The total number of Health IT initiatives/programs is 937 in the 2013 budget request. An indicator the Health IT Market continues to be a robust market in the public sector.
  • Departments with Electronic Health or Medical Record related initiatives worth noting include DOJ, State, HHS and DHS, as well as the large well known iEHR initiatives at the DoD and VA.

Surprising customers/opportunities:

  • The USDA 2013 budget request includes 45 health IT related programs totaling $134M – many of these programs go towards ensuring animal and food safety to protect and preserve human health. The budget also includes $2 million in funding for a new interactive web tool to serve as an educational and nutritional resource for the general public to learn more about dietary guidelines and the USDA’s Food and Nutrition Service (FNS) programs.
  • The Department of Justice 2013 budget request includes 2 health IT related programs totaling $5M – most of this funding goes towards providing electronic medical records of prison inmates.

Major Programs: Top 10 Health IT Initiatives/Programs FY2013

  Agency Investment Description FY13 IT Budget Request ($M)

Department of Health and Human Services

CMS Medicaid Management Information System (NM)

Transfer of funds to the States for the federal share of State Medicaid systems costs.

$ 2,298


Department of Veterans Affairs

Medical IT Support

This investment includes all planning, development, modernization, enhancement, operations and maintenance, and disposal activities and resources for information systems, computing, and network infrastructure that support the delivery of medical care.

$ 1,284


Department of Health and Human Services

ACF IT Grants to States

This project provides IV-D and IV-E systems grants to states as in the President's Budget.

 $ 804


Department of Veterans Affairs

Enterprise IT Support

This investment provides operations and maintenance of information systems and infrastructure that support corporate management, financial resource management, asset management, human capital management,  cyber security, privacy, and other services.

$ 593


Department of Health and Human Services

NIH IT Infrastructure

The NIH IT Infrastructure program consists of network infrastructure, cyber security, office automation, help desk support, and telecommunications for all of NIH.  These tools are used by internal and external researchers, patients, and the public.

$ 374


Department of Defense

Electronic Health Record Way Ahead

Electronic Health Record  Way Ahead (EHRWA) will supersede the current legacy systems providing EHR capabilities, AHLTA and CHCS.  EHRWA will provide a comprehensive, longitudinal electronic health record that is available anytime and anywhere.

 $ 331


Department of Health and Human Services

CMS Quality Program

This investment includes the infrastructure, development, support, implementation, operations, program management, security, and data needs for all quality initiatives.

$ 226


Department of Health and Human Services

FDA OC-OIM Operational Infrastructure

Supports HHS goals of effective IT management and advancing scientific and biomedical research, and HHS regulatory activities by providing IT Infrastructure including voice/data communications, and data center O&M for the FDA.

 $ 221


Department of Veterans Affairs

Corporate IT Support Enterprise Cyber Security and Privacy

This project provides cyber security services to the VA.

 $ 214


Department of Veterans Affairs

Benefits IT Support

This investment provides ongoing IT maintenance and infrastructure support for the VA Benefits IT environment, specifically in the areas of hardware, software, telecomm, audio, video and application installations.

$ 212

Andrea Falciani is a research analyst at Suss Consulting.