CDW: Healthcare sector to lead IT spending | Healthcare IT News

From Healthcare IT News

October 20, 2011 | Molly Merrill, Associate Editor

VERNON HILLS, ILL – In the midst of economic uncertainty, IT decision-makers in the healthcare industry report expected growth in overall IT budgets and hiring, according to the latest CDW IT Monitor.

While the latest wave of the CDW IT Monitor noted numerous fluctuations among sectors and industries surveyed, the comprehensive figures indicate that, on the whole, IT sentiment is holding steady. The Six Month Growth Outlook, which measures long-term anticipated investment, decreased one point from June, to 67, and was unchanged from one year ago.

[See also: Analysts forecast moderate growth for health IT]

“Despite ongoing economic uncertainties, the overall outlook remains relatively stable,” said Neal Campbell, senior vice president and chief marketing officer, CDW. “This shows that while IT decision-makers are evaluating and scrutinizing their investments, they are still spending, especially in areas such as software and security."

In the corporate sector, 22 percent of small business IT decision-makers predict budget increases in the next six months, gaining three percentage points from June. Additionally, small businesses anticipate more near term spending and are expecting to increase software investments by six percentage points and solutions investments by five percentage points over the next six months.

Leading the corporate sector, 66 percent of healthcare IT decision-makers anticipate budget increases in the next six months. Ninety-two percent expect to purchase hardware and software, while 66 percent foresee investments in solutions in the next six months. The healthcare industry also continues to see an uptick in hiring, up 24 percentage points since June.

[See also: Health IT No. 1 on list of top 10 'hot' careers]

Despite eight and 10 percentage point budget declines at the state and federal levels of government respectively, 29 percent of local government IT decision-makers foresee budget increases in the next six months, up seven percentage points from June. Local government is less bullish on long-term hardware and software spending, but expects to increase both one-month and six-month spending levels in IT solutions by four percentage points over June.

While six-month anticipated hardware spending dropped among medium and large-size businesses, 87 percent of medium and 90 percent of large-size businesses are still committed to hardware investments. On the software front, demand over the next six months slipped four percentage points for medium-size businesses to 84 percent, while investments at large-size businesses held steady at 91 percent.

Hardware and software investments over the next six months are expected to increase for state and federal government. According to the latest CDW IT Monitor, hardware investments at the state level will increase one percentage point to 84 percent and five percentage points at the federal level to 90 percent. The six-month outlook for software climbed five percentage points for government organizations at the state and federal levels, reaching 82 percent and 91 percent, respectively.

Investments in IT solutions remain a priority in both corporate and government; however, the weak budget outlooks did impact spending potential in the next six months. In the IT solutions category, security now tops the list of IT decision-makers' priorities. Fifty-nine percent of those IT decision-makers who are spending more on solutions this month will spend on security.

1.6 Million Affected by Lost Backup Tapes

1.6 Million Affected by Lost Backup Tapes:

I really can't figure this out! When will people learn? Don't store sensitive data in your car, trunk, briefcase...ANYTHING!! Keep the stuff locked up. Store the items in a place where there is something like our NetLock which tracks access and has a complete audit trail. The NetLock can even snap a photo or video clip of when the card is presented to open a door.

Until then, please don't put laptops, backup tapes, thumb drives containing patient data in your car. I literally read WAY TOO MANY stories like this; that are completely avoidable.

HIPAA Audit Update: Susan McAndrew

New post from www.healthcareinfosecurity.com.

Federal HIPAA privacy and security rule compliance audits of healthcare organizations and their business associates likely will start later this year, says Susan McAndrew, deputy director for privacy in the HHS Office for Civil Rights.

In an exclusive interview, McAndrew says the timing of the start of the HITECH Act's mandated audit program "will really depend on the ultimate selection of what model we use" and how fast that model can be implemented.

McAndrew also said:

• The audits likely will be outsourced and not conducted by OCR staff.
• Security audits will check that organizations have completed a risk assessment and implemented appropriate administrative, technical and physical safeguards.
• Audits for compliance with the privacy rule will focus on organizations' efforts to uphold individuals' rights, such as their right to access their own medical records.

McAndrew made her comments in an interview at the conference: "Safeguarding Health Information: Building Assurance through HIPAA Security," sponsored by OCR and National Institute of Standards and Technology.

Survey: Healthcare organizations' security not up to HITECH standards

Molly Merrill, Associate Editor at Healthcare IT News

CHICAGO – Healthcare organizations aren't prepared to meet privacy and security standards associated with the American Recovery and Reinvestment Act, according to a new survey.

The survey of 196 healthcare information technology and security professionals, conducted by the Healthcare Information and Management Systems Society and sponsored by Symantec Corp., a Mountain View, Calif.-based developer of security, storage and systems management solutions, indicated healthcare organizations aren't using available security technologies to keep patient data safe. Reasons given include stretched budgets and lack of a chief security officer (CSO) or chief information security officer (CISO).

Approximately 60 percent of respondents said their organization spends 3 percent or less of their organization's IT budget on information security. This is consistent to the level of spending identified in the 2008 HIMSS study. And fewer than half of the respondents said their organization has a formally designated CISO or CSO. [Continue Reading]