While federal spending is expected to remain flat overall for several years to come, investment in health IT and electronic health records will likely continue to receive strong support, according to a new report.

In its paper, "Federal Health Information Technology Market, 2011-2016," Delteck estimated that government investment in health IT will reach an annual growth rate of 7.5 percent. Overall government spending during this time period is only expected to grow at an annual rate of 1.1 percent.

For the purposes of the report, health IT spending covered funding for payment systems, IT to support federally funded health research and programs to encourage the adoption of electronic health records and other tools necessary for the direct delivery of care.

The report pointed out that the Department of Defense and Department of Veterans Affairs are both working toward implementing a new EHR system. Numerous other agencies are following suit. These efforts will complement the federally funded EHR incentive program currently being offered to private physicians.

A projected doubling of healthcare costs over the next 10 years will be one of the primary motivators to get more providers using EHRs, the report indicated.