With 2011 just around the corner, investors are predicting that the year will be a good one for electronic health records and other medical technology.
A recent survey conducted by National Venture Capital Association found that 77 percent of the venture capitalists surveyed predict that investments in health IT will pick up in the coming year. The respondents believe that healthcare organizations will spend more on technology and that this increase is largely attributable to the large incentives being offered by the federal government.
The Centers for Medicare and Medicaid Services is currently offering more than $19 billion in incentives to healthcare providers who adopt EHRs.
"The improving exit market and a renewed excitement in the IT sector have engendered a confidence among VCs and the CEOs of the companies in which we invest that promises to propel the start-up community forward in 2011," said Mark Heesen, president of the association.
The findings are based on a survey of 330 venture capitalists and 180 U.S.-based venture-backed companies.