Consolidation continues to drive healthcare IT vendor landscape

Although Dell does not focus exclusively on the healthcare market, their recent announcement that they will be selling a packaged EMR solution demonstrates that they are a significant player in the eHealth market. Today’s announcement that they are acquiring Perot systems

further demonstrates their commitment to providing a broad range of products and services to the health sector. This announcement puts Dell in the same league as HP and IBM, both of whom offer IT services as well as IT products.


2 responses to “Consolidation continues to drive healthcare IT vendor landscape

  1. What I am seeing is an acceleration of the overall maturing of the IT world as we know it. No great insight, everyone and their dog has been predicting it. What will be interesting is the concentration of power amongst less than a dozen of vendors in the Canadian eHealth market. Don’t be surprised if you see an acceleration of acquisitions in Canada.

    Although the vast bulk of IT funding still goes to acute, these markets are largely done for most vendors. Dominated by a handful of multinationals, these markets have some upside but are very limited. In many cases, these self same dominant players will need to look for growth outside of acute. What will be interesting is not if, but when they start to pick up vendors serving primary care, mental health, community, and even long term care. I suspect that north of 90-95% of all the market share (in all categories) in 5 years will be owned by less than 10 vendors. The market is maturing too quickly and is just not big enough for lots of small and mid-sized companies (Canadian or otherwise) to eke out a living.

  2. In speaking with Canadian CIOs I am seeing a growing frustration with the major HIT vendors. Given the relatively small size and fragmented nature of the Canadian market, these vendors are perceived to be treating Canada as a minor market and are giving it relatively little attention. Indeed, several major vendors are servicing Canada from the US and lumping it in with US regions (e.g. Ontario part of Eastern US region for one vendor). As a result, Canadian CIOs don’t feel that their needs are addressed in an reasonable timeframe.

    This frustration offers an opportunity for small, innovative Canadian vendors. Key to success for these vendor will be their ability to integrate their solutions with the installed administrative and clinical systems from the larger vendors.

    Although consolidation is inevitable, I don’t think that the healthcare IT market is sufficiently mature for a limited number of vendors to emerge in the next 10 years. There is still room for new vendors to grab significant market share and, in some cases, display the existing vendors.


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