Activity-Based Payments and Pay-for-Performance Initiatives Step up the Need for Effective Business Analytics Solutions in the European Healthcare Sector, Finds Frost & Sullivan

LONDON, May 12, 2010 - Business analytics solutions are considered the face of business
intelligence (BI) for healthcare providers, as they assist healthcare
managers and hospital management to compile, arrange and manage clinical,
financial and administrative data in a defined protocol, thereby facilitating
informed business decisions. The European healthcare sector has mostly
adopted activity-based payments. The current trend is that of
diagnosis-related groups (DRGs), which help hospitals minimise patient visits
to their premises, increasing the need for efficient analytics solutions.
Pay-for-performance initiatives have further fuelled the demand for business
analytics systems in the European healthcare sector.

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New analysis from Frost & Sullivan (www.healthcareIT.frost.com),
European Markets for Business Analytics in Healthcare, finds that the markets
earned revenues of US$205.4 million in 2009 and estimates this to reach
US$462.1 million in 2016. The segments of the business analytics solution
markets covered are the financial and administrative module analytics
solutions.

"Business analytics solutions provide a substantial return-on-investment
(ROI) for healthcare organisations, thereby driving the adoption rates of
these systems in Europe," says Frost & Sullivan Industry Analyst S. Priyan.
"These solutions allow the user to control operating costs and streamline
revenues."

Effective healthcare business analytics solutions, along with BI
solutions, provide ROIs ranging from 100-300 per cent. This is extremely
significant to the already cost-sensitive healthcare sector. Furthermore, it
enhances the overall workflow efficiency of healthcare management.

However, stringent hospital budgets towards information technology (IT)
deployment challenge the growth of the European markets for business
analytics in healthcare. Hospitals' IT budgets spent on infrastructure and
devices reduce the investments in IT systems.

"On an average, the IT budget of a hospital is about 1.5 per cent of its
total annual expenditure which is extremely low when compared to the budgets
allocated towards devices and other hospital infrastructure," explains
Priyan. "IT continues to be considered as expenditure rather than an
investment."

Hospitals should increase their investments in IT and procure more
cost-effective systems that provide greater value for money.

"The IT expenditure of the hospitals should be stepped-up to at least to
3.0 to 3.5 per cent of their total annual expenditure," concludes Priyan.
"Additionally, the vendors should enhance the value proposition provided by
the systems so that the hospitals get value for the expenses incurred."

If you are interested in more information on Frost & Sullivan's study of
European Markets for Business Analytics in Healthcare, please send an e-mail
to Katja Feick, Corporate Communications, at katja.feick@frost.com, with your
full name, company name, title, telephone number, company e-mail address,
company website, city, state and country.

European Markets for Business Analytics in Healthcare is part of the
Healthcare & Life Sciences IT Growth Partnership Services programme, which
also includes research in the following markets: Social and Economic Benefits
of Healthcare IT in Poland, Social and Economic Benefits of Healthcare IT in
EMEA Countries, Strategic Analysis of Care Management Market in Europe, and
Pharmacy Information Systems Market in Europe. All research services included
in subscriptions provide detailed market opportunities and industry trends
that have been evaluated following extensive interviews with market
participants.

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             European Markets for Business Analytics in Healthcare
                                     M4ED

    Contact:
    Katja Feick
    Corporate Communications - Europe
    P: +49-(0)-69-7703343
    E: katja.feick@frost.com
    www.frost.com
    Twitter: twitter.com/frost_sullivan

Katja Feick of Frost & Sullivan Corporate Communications - Europe, +49-(0)-69-7703343, katja.feick at frost.com