The value of the US hospital IT market is predicted to hit €5 billion annually within the next five years.

A new report, from the Healthcare Information and Management Systems Society’s research arm, predicts that US hospitals will spend about €3.7 ($4.7) billion on health IT this year, rising to €5 ($6.8) billion by 2014.

For the report, titled "Essentials of the U.S. Hospital Market, 4th Edition," HIMSS Analytics surveyed 5,100 US hospitals.

The HIMSS researchers estimated that health IT expenditure would account for about 43% to 48% of total hospital capital budgets this year.

The projected figures are lower than 2007 levels, which HIMSS Analytics say is due to the ongoing US recession.

Over the longer term, however, the report predicts that health IT spending will increase by a compounded annual rate of 7.5%.

The report identifies several factors that could account for the increase in US health IT spending, including the incentive payments for electronic health records, outlined in the federal economic stimulus package.

Other factors likely to play a part in boosting growth of hospital IT spending are said to include: increased clinical automation spending; new ICD-10-CM codes; and new standards for electronic claims.