Health Tools Extended, Partner Community Added

Improvements to Microsoft’s current suite of healthcare solutions, including better integration between solutions and development of a partner channel to sell and implement them, position it to take advantage of changes in U.S. healthcare policy, such as stimulus funding for health IT solutions. Although the current product set is still in incubation and lacks end-to-end reach across the full spectrum of healthcare technologies, the company could still capitalize on its brand and ambition to play a significant role in a fractured healthcare market.

Healthcare Opportunities

The healthcare market, particularly in the United States, represents a very significant opportunity for software companies as governments and businesses struggle to cope with rising healthcare costs, driven at least in part by lack of integration, complex rules and procedures, and resistance to technology in some quarters.

Expected to reach US$2.5 trillion annually in 2009, healthcare in the United States represents 17% of its gross domestic product, and worldwide spending on healthcare exceeds US$22 trillion. Better use of technology is considered to be at least part of the solution to rising costs. Public pressure, such as healthcare legislation that could significantly impact the profitability of hospitals and health insurance companies, could encourage them to employ technologies that can eliminate duplication, reduce costs, and improve patient care.