Everyone is grabbing their fair share of the stimulus bill, and IBM
Today, the company announced that it had signed up four hospital groups in the U.S. to use its electronic medical records systems. The stimulus bill contained $19 billion in grants and incentives to encourage doctors and hospitals to invest in electronic medical records. Those incentives help lower the true cost of installing medical records for the hospitals and doctors' offices, and ultimately help the companies that sell the systems, like IBM, Allscripts-Misys Healthcare Solutions
The company also said it was installing a system in Guang Dong Hospital in China. Interestingly, the hospital doles out traditional Chinese medicine (TCM) -- like that sold by American Oriental Bioengineering
The nice part is that once IBM has the system adjusted for TCM, it'll be easy to install in other Chinese hospitals. In fact, IBM seems to be establishing a foothold in China; last year the company announced a partnership with China's Ministry of Health to set up a system to share electronic medical records across different hospitals in China.
While IBM is clearly a major player in electronic medical records, it's important for investors to keep in mind that the overall benefit for IBM won't be nearly as pronounced as it would be at a smaller company like Quality Systems
Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool owns shares of American Oriental Bioengineering, which is a Motley Fool Hidden Gems selection. The Fool has a disclosure policy.