Federal stimulus money helped to pump up the value of stocks in 11 health care technology companies by 82 percent since President Obama took office, well above the 51 percent growth in the Standard & Poor's stock index over the same period, according to an analysis by USA Today.
The 2009 economic stimulus bill included up to $30 billion earmarked for health IT spending in the form of incentive payments for health care providers achieving meaningful use of electronic health records. Purchasing and implementing EHRs can be expensive, especially for small medical practices. The incentive cash promotes EHR adoption, an Obama administration priority, by helping practices to recoup some implementation costs.
The benefit to health IT companies has been enormous, according to the USA Today report, which says the $20 billion "boost in companies' value far exceeds the amount spent so far" under the stimulus bill.
The newspaper noted that shares of industry leader Cerner rose 194 percent, or $6.5 billion, as Cerner's clients received $100 million in incentives for achieving meaningful use. Shares of major competitor Allscripts Healthcare Solutions rose by 134 percent, while Athenahealth's stock value doubled.
John Pulley
John Pulley has written the Health IT Update blog since May 2011. Prior to becoming a regular contributor to Nextgov, he covered technology for Federal Computer Week and Government Health IT magazines. He has written about government for Federal Times and Air Force Times, as well. Pulley has worked in journalism for more than 20 years. He began his career covering local government for regional newspapers. In addition, he served as a writer and senior editor at The Chronicle of Higher Education for seven years. In 2006, he founded The Pulley Group, an editorial services agency.
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