A new report from KLAS, a market research firm that measures vendor performance based on feedback from the user community, shows while the market for hospital EHR systems nearly doubled in 2009, only two vendors, Epic and Cerner, appeared to benefit from this market growth. According to an article summarizing major findings from the KLAS report, hospitals “want a vendor that can be a consistent and reliable partner in their efforts to reach meaningful use”. Jason Hess, author of the KLAS report, suggests that “Changes in the CIS (clinical information system the marketplace as a result of ARRA seem to have blindsided some vendors and left them struggling to stay afloat in the hospital market”.
While the US has chosen to let the market decide the vendors with whom they prefer to work, the introduction of “meaningful use” regulations is nonetheless having an impact on the US market. Vendors such as Eclipsys, GE, McKesson, and Quadramed lost more hospitals than they gained, according to KLAS and are “struggling to regain lost ground”. While Siemens and MEDITECH did not lose ground in the same as some other vendors, their growth was much more limited than either EPIC or Cerner.
A little more than a year ago I attended Microsoft session on Healthvault and asked about their business model; ie, how did they plan to make money? Part of the answer involved licensing deals in countries with publicly funded healthcare systems. While we have seen the first non-US implementation in Canada, it is not yet clear when we will see a provincial gov’t step to paying for healthvaults for its citizens. Just recently, Microsoft has announced a partnership with Siemens to roll out Healthvault in Germany
The article was light on details about revenue generation. However, I think that this news shows that there is still strong interest in Healthvault and we will yet see large scale deployments that somehow support electronic exchange of data with publicly funded eHealth systems.
An interesting study from KLAS regarding criteria that small US hospitals apply when selection an HIT system.
Some noteworthy points from this study:
- “in light of new meaningful use requirements, many community hospital executives are now considering more complex – and often more costly – IT solutions, which many providers perceive as supporting greater clinician adoption.”
- “Meaningful use requirements are forcing buyers to focus on this issue rather than cost and infrastructure, which were the much more significant criteria in the past”
- “Meditech still dominates provider mindshare for health information systems, with McKesson also gaining significant traction recently. Meditech continues to leverage its reputation as a low-cost, integrated solution, with 70 percent of providers including the vendor in their selection process”
- “Cerner, Eclipsys, Epic and Siemens Soarian are at the table more frequently due to a perceived higher potential for clinician adoption.”
- “The consideration of these traditional large hospital solutions in community hospitals has also been spurred by the shrinking opportunity for new sales among large organizations.”