ICT spending within the Australian healthcare industry reached an estimated A$2.06 billion (US$1.93 billion) in 2012 and is expected to increase to A$2.16 billion (US$2.02 billion) in 2017, representing a compound annual growth rate (CAGR) of 1% for the forecast period, 2013–2017.

According to IDC's report on 'Australia Healthcare ICT Market 2013–2017 Forecast and Analysis', which has detailed analysis of ICT spending by the healthcare industry in the Australian ICT market, ICT spending by the Australia healthcare industry is currently dominated by investments in telecommunications and hardware, accounting for 33.5% and 31.8% of healthcare industry spending on ICT in 2013 respectively. 

However, both telecommunications and hardware are expected to show negative CAGRs over the forecast period, in part reflecting the pattern in overall market growth for the telecommunications and hardware technology segments, but also reflecting the maturity of the healthcare ICT market in Australia, where the infrastructural investments have already been made.

Australian healthcare provider organizations have been the beneficiaries of large funding increases led by Federal Government programs of investment – particularly hospital modernization programs and the Personally Controlled Electronic Heath Record (PCEHR) system. And there is uncertainty about the continuity and the pattern of healthcare investments in the future. 

Australian healthcare provider organizations must now translate those initial investments into outcomes. Large transformational projects will continue to form part of the ICT opportunities within the healthcare industry, but IDC is expecting a much slower growth rate, and a shift in investment to software and IT services in support of the platforms and process changes that are required to deliver improved productivity across the sector.

"Australian healthcare organizations are now challenged by the requirement to create an environment that enables connected care across all facets of healthcare provision, that can deliver more productive services, and ultimately reduce the resources required without threatening the quality of healthcare services," says Emilie Ditton, Head of AP Vertical Markets for IDC Australia.

As aged care and chronic disease management become focus areas for the healthcare industry, care management solutions with mobility as a key enabler will see more investments.

"The success of a connected healthcare atmosphere lies in the ability to give access to healthcare data to clinicians at the point-of-care, including the patient's homes. 

"The eHealth records and the National Broadband Network can be good foundation. What is required in the future is to have policies in place for care management plans that involve the individual, the primary care physician, as well as the social support system in chronic disease, and wellness management," says Sash Mukherjee, Research Manager, IDC Health Insights, Asia/Pacific.