Health care information technology companies will benefit in the second half of this year from a growing wave of care providers looking to capitalize on government electronic health record incentives, according to a Morgan Keegan analyst.
Analyst Jamie Stockton said the sector performed better than the broader Standard & Poor’s 500 index in the first half of the year, and he expects that to continue. He said the government is estimated to be distributing more than $30 billion in incentives.
“The government (electronic health record) incentive program should provide a strong tailwind through at least 2013, which is the last year that the majority of the incentive payments are still available,” Stockton wrote.
The first checks started to come out last month, and only 21 percent of hospitals and 10 percent of doctors are positioned to qualify for them. That, the analyst said, gives electronic health records companies “a significant amount of runway” for growth. … Read More.