QHR buys CLINICARE

It doesn’t take a PHD to see consolidation happening in the Canadian EMR vendor marketplace.  Scores of small(ish) vendors competing in a hyper-regionalized market of about 65K physicians. The question is does the recently announced purchase of CLINICARE by QHR (and sub Optimed) represent the first stage of mass market consolidation or is it a one off?

The questions I am asking myself are:

  • Did QHR do this for an OntarioMD certification and entry into the US, or am I missing something?
  • Which vendor will sell next?

The big issue (for me) that has always slowed a natural market consolidation in this space has not been on the seller side but on the buyer side. There are few EMR vendors that have the interest or financial muscle to buy 2-3 of their competitors. Why buy a small vendor for their install base, if you can try and convert their users to your product for a fraction of the cost. Unless an acute vendor or large multinational gets an EMR itch they have to scratch, I can’t see any of these guys acting as a consolidator.

I can only imagine the reaction amongst EMR vendors that are facing a declining market position (for whatever reason)…do we sell now while we can or do we really think we can survive in this market? Not an easy decision, as I doubt many vendors will get a premium valuation for their company.

Mark

 

 

 

One response to “QHR buys CLINICARE

  1. This is the most intelligent comment I have read on this subject. With so few vendors actually making a real profit, and so many becoming technically obsolete… One would think many are for sale. But as you so rightly state.. what are you really buying?

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