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Healthcare Computer System Markets and Trends In HIT Buying (Forecasts for System, Service and Support Revenues, Areas of Interest, Major Competitor Profiles)

Kalorama Information
August 1, 2009
125 Pages - SKU: KLI2303131

Abstract Table of Contents Search inside this report Related Reports

The healthcare information technology (HIT) market was in a growth trend prior to the recent recession. While economic times have tightened budgets some, there is still opportunities for companies in this market. In this report, Kalorama takes a comprehensive look at the demand for IT products in the healthcare market - with a focus on computer systems for hospitals, nursing homes, physician offices and other healthcare entities. Kalorama has interviewed experts in the HIT industry and presents the latest findings on where the industry is headed. There is tremendous excitement in HIT given the commitment to healthcare investment among healthcare entities and some of the Obama Administration incentive programs; but there is also increased competition. Included in the report is the following:

Current Market Size and Forecast for:
- Hospital Computer System Market
- Nursing Home Computer System Market
- Other Healthcare Entity Computer System Market
Market Breakdown by
- System Revenue (Hardware & Software)
- Support Revenue
- Extra Service Revnue
System Market Breakdown: Hardware and Software
Profile of Companies
Key Products in the Market
HIMSS Status of IT Buying in 2009
Most Sought Benefits for IT Purchases
Impact of EMR incentives

The healthcare industry includes establishments ranging from small private practices of physicians with only one medical assistant to large city hospitals that employ thousands of professionals.

Vendors are a vital part of shaping this industry. Having the competitive intelligence is just one part of advancing this industry. Participants need to be ever vigilant of the economic pulse and the government’s role in healthcare to properly meet the challenges facing the industry today and in the future.

Included in the report are statistics influencing the industry, demographics; life expectancy, and company strategies. Information is presented as a global market, with a emphasis on the U.S. market. A market summary includes a total market analysis. Also included is a competitive analysis of leading healthcare IT system providers.

The information for this report was gathered using both primary and secondary research including comprehensive research of secondary sources such as company literature, databases, investment reports, and medical and business journals. Telephone interviews and email correspondence were the primary method of gathering information. For the purpose of this study, Kalorama Information conducted interviews with more than 10 key industry officials, consultants, health care providers, and government personnel. These sources were the primary basis in gathering information specifically relating to revenue and market share data presented in this report. Additional interviews were completed with relevant company representatives including marketing directors, division managers, and product representatives.

Additional Information

New York, August 4, 2009 — As the Obama Administration provides incentives to push doctors and hospitals to upgrade their healthcare IT solutions, there will be a greater need to replace antiquated computer hardware with newer, more powerful systems that can support the vast amounts of information created by EMR, wireless, RFID, electronic physician order entry (CPOE) and other advanced software that is rapidly being adopted. According to Healthcare Computer System Markets and Trends in HIT Buying, a new report from leading life science market research company Kalorama Information, approximately 56% of healthcare organizations in the US have increased their IT department budget for 2009 despite the recession.

While discussions have mainly focused on HIT software applications, Kalorama also sees an opportunity in healthcare for hardware providers.

According to the report, hardware sales represent about 23% of healthcare computer system sales, or $1.11 billion. This figure does not include software or services, which are also anticipated to grow. With increased investment in healthcare IT, Kalorama expects spending on this sector to grow at a faster pace than IT spending as a whole in the near term, or about 10.7% annually through 2013. These sales are usually made by healthcare computer companies such as McKesson or Eclipsys who buy from hardware manufacturers and package systems to meet the needs of healthcare entities.

“The EMR incentives in ARRA are aimed at software, but they will open up conversations between customers and vendors for new IT spending, and hardware will be part of that,” says Melissa Elder, an analyst with Kalorama Information and author of the report. ”The top IT-related technologies and applications that physicians and facilities are focusing on include identity management, bar coding technology, speech recognition, and handheld personal digital assistants (PDA). All of these will require investment in new hardware.”

A wide range of hardware is available for hospitals, health clinics, pharmacies, and other health facilities, including workstations, servers, PDAs, tablet PCs, carts on wheels, and networking hardware. Given the demands of the hospital environment, healthcare IT hardware must be tailored to withstand a rigorous and sanitary environment. Some portable devices are also being built to withstand a drop of up to three feet. In May 2009, Tangent announced the launch of the new MCA Medix 10T touch screen tablet PC. It runs Windows, has a water and dust resistant exterior for disinfection and runs without a fan.

Kalorama Information’s new report, Healthcare Computer System Markets and Trends in HIT Buying, includes statistics influencing the industry, demographics, life expectancy, company strategies and a competitive analysis of leading healthcare IT system providers. A market summary includes a total market analysis, forecasts and a breakdown of revenues by systems (hardware and software), support and extra services.

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Kalorama Information supplies the latest in independent market research in the life sciences, as well as a full range of custom research services.

CHAPTER ONE: EXECUTIVE SUMMARY: Industry at a Glance; Scope and Methodology; Size and Growth of the Market; Key Issues and Trends Affecting the Market; Leading Market Participants
CHAPTER TWO: INDUSTRY OVERVIEW: Overview of Healthcare Computer Systems; Industry Terminology; Industry Structure; The Healthcare Industry; Components of Healthcare Information Systems; Distribution; Regulatory Bodies and Societies; Industry Initiatives; Need for Regulation in Changing Environments; Demographic Trends
CHAPTER THREE: LEADING MARKET PARTICIPANTS: Overview; Cerner Corporation; Cisco Systems, Inc; Computer Programs and Systems, Inc; Eclipsys Corporation; Epic Systems Corporation; GE Healthcare; McKesson Corporation; Medical Information Technology, Inc. (MediTech, Inc.); Quadramed Corporation; Siemens Healthcare
CHAPTER FOUR: MARKET TRENDS AND SUMMARY: Market Overview; End-User Markets; Competitive Analysis; Revenues By Type
CHAPTER FIVE: INDUSTRY TRENDS: Overview; Information Technology (IT) Budget Outlook; Industry Challenges Forcing IT Implementation; Reprioritizing Spending; “Vendor As Lender” Programs; Nudge Approach to Healthcare System Investment; Technology Adoption Issues; Health Information Technology and American Investment and Recovery Act of 2009 (ARRA); Trends in Technology; Bar Code Label Requirements and Technology Demands; Examples of Implemented Technologies
APPENDIX
LIST OF MAJOR COMPANIES
TABLE OF EXHIBITS
CHAPTER ONE: EXECUTIVE SUMMARY: Table 1-1: Global Market for Healthcare Computer Systems, 2006-2013; Figure 1-1: Global Market for Healthcare Computer Systems, 2006-2013
CHAPTER TWO
INDUSTRY OVERVIEW: Table 2-1: U.S. Registered Hospitals by Type, 2007; Figure 2-1: Number of Hospitals in the US, 1975-2005; Table 2-2: Leading For-Profit U.S. Hospital Chains, 2008-2009; Figure 2-2: Number of Hospital Mergers in the US, 1998-2007; Table 2-3: Segmentation of Physicians in the US*; Figure 2-3: Number of Nursing Homes, 2000-2006; Figure 2-4: Number of Pharmacies and Drug Stores, 2000-2006; Figure 2-5: Number of Medical and Diagnostic Laboratories, 2000-2006; Figure 2-6: By Sector Contribution to the U.S. GDP; Figure 2-7: The US Healthcare Spending (2005-2017); Figure 2-8: Value Chain of the Healthcare Industry; Table 2-4: The U.S. Population, 1980-2020; Figure 2-9: The US Population, 1980-2020; Table 2-5: Percent U.S. Population Over Age 65 by Year; Figure 2-10: Estimated Population by Age Group, 2000 and 2050; Table 2-6: The World Population, 1980-2020; Figure 2-11: The World Population, 1980-2020
CHAPTER THREE: LEADING MARKET PARTICIPANTS: Table 3-1: Corporate Details of Cerner Corporation; Table 3-2: Financial Details of Cerner Corporation 2006-2008 ($millions); Figure 3-1: Cerner Revenues 2006-2008 ($millions); Table 3-3: Key Executives of Cerner Corporation; Figure 3-2: Cerner Research and Development Expenditures 2006-2008 ($millions); Table 3-4: Corporate Details of Cisco Systems, Inc; Table 3-5: Financial Details of Cisco Systems 2006-2008 ($millions); Figure 3-3: Cisco Systems Revenues 2006-2008 ($millions); Table 3-6: Key Executives of Cisco Systems; Figure 3-4: Cisco Systems Research and Development Expenditures 2006-2008 ($billions); Table 3-7: Corporate Details of Computer Programs and Systems, Inc; Table 3-8: Financial Details of CPSI 2006-2008 ($millions); Figure 3-5: CPSI Revenues 2006-2008 ($millions); Table 3-9: Key Executives of CPSI; Table 3-10: Corporate Details of Eclipsys Corporation; Table 3-11: Financial Details of Eclipsys 2006-2008 ($millions); Figure 3-6: Eclipsys Revenues 2006-2008 ($millions); Table 3-12: Key Executives of Eclipsys Corporation; Figure 3-7: Eclipsys Research and Development Expenditures 2006-2008 ($millions) 86; Table 3-13: Corporate Details of Epic Systems, Inc; Table 3-14: Financial Details of Epic (estimated) 2006-2008 ($millions); Figure 3-8: Epic (estimated) Revenues 2006-2008 ($millions); Table 3-15: Key Executives of Epic Corporation; Table 3-16: Corporate Details of GE Healthcare; Table 3-17: Financial Details of GE Healthcare 2006-2008 ($millions); Figure 3-9: GE Healthcare Revenues 2006-2008 ($millions); Table 3-18: Key Executives of GE Healthcare; Figure 3-10: GE-funded Research and Development Expenditures 2006-2008 ($millions); Table 3-19: Corporate Details of McKesson Corporation; Table 3-20: Financial Details of McKesson Corporation 2007-2009 ($millions); Figure 3-11: McKesson Corporation (Technology Solutions Business Segment) Revenues 2007-2009 ($millions); Table 3-21: Key Executives of McKesson Corporation; Figure 3-12: McKesson Research and Development Expenditures 2007-2009 ($millions); Table 3-22: Corporate Details of Medi-Tech Inc; Table 3-23: Financial Details of MediTech 2006-2008 ($millions); Figure 3-13: MediTech Revenues 2006-2008 ($millions); Table 3-24: Key Executives of MediTech; Table 3-25: Corporate Details of QuadraMed Corporation; Table 3-26: Financial Details of QuadraMed 2006-2008 ($millions); Figure 3-14: QuadraMed Revenues 2006-2008 ($millions); Table 3-27: Key Executives of QuadraMed; Figure 3-15: QuadraMed Research and Development Expenditures 2006-2008 ($millions); Table 3-28 :Corporate Details of Siemens Healthcare; Table 3-29: Financial Details of Siemens Healthcare 2006-2008 ($millions); Figure 3-16: Siemens Healthcare Revenues 2006-2008 ($millions); Table 3-30: Key Executives of Siemens AG; Figure 3-17: Siemens AG Research and Development Expenditures 2006-2008 ($millions)
CHAPTER FOUR: MARKET TRENDS AND SUMMARY: Table 4-1: Global Market for Healthcare Computer Systems, 2006-2013; Figure 4-1: Global Market for Healthcare Computer Systems, 2006-2013; Table 4-2: The Global Market for Healthcare Computer Systems, by End User 2006-2013; Figure 4-2: The Global Market for Healthcare Computer Systems, by End User Type 2006-2013; Figure 4-3: The Global Market for Healthcare Computer Systems, by End User Type 2008; Figure 4-4: The Global Market for Healthcare Computer Systems, by End User Type 2013; Table 4-3: Revenues and Market Share of Healthcare Computer System Providers 2008; Figure 4-5: Revenues and Market Share of Healthcare Computer System Providers 2008; Table 4-4: Global Market for Healthcare Computer Systems by Type, 2006-2013 (System Sales, Support & Maintenance, Services); Figure 4-6: The Global Market for Healthcare Computer Systems, by Type 2006-2013 (System Sales, Support & Maintenance, Services; Figure 4-7: The Global Market for Healthcare Computer Systems, by Type 2008; Figure 4-8: The Global Market for Healthcare Computer Systems, by Type 2013; Figure 4-9: The Global Market for Healthcare Computer Systems, System Sales by Software and Hardware Segments 2008
CHAPTER FIVE: INDUSTRY TRENDS: Figure 5-1: Estimated Implementation of IT related Technologies and Applications in Developed Regions, (includes both completed and in-progress systems) 146; Figure 5-2: Projected Changes in the IT Budget, 2009; Figure 5-3: Reasons for Increase in the IT Budget, 2009; Figure 5-4: Reasons for Decreases in the IT Budget, 2009; Figure 5-5: IT Priorities of Healthcare Organizations in the US, 2005-2008; Figure 5-6: Increased in Medications Dispensed Electronically in Typical Hospital, AHA Survey; Table 5-1: National Health Expenditure Amounts, by Type of Expenditure: Calendar Years 2001-2015; Table 5-1: National Health Expenditure Amounts, by Type of Expenditure: Calendar Years 2001-2015 157; Table 5-2: Per Capita Healthcare Expenditures, 2001-2015; Table 5-3: RFID Application in Healthcare
APPENDIX: LIST OF MAJOR COMPANIES

Healthcare Computer System Markets and Trends In HIT Buying (Forecasts for System, Service and Support Revenues, Areas of Interest, Major Competitor Profiles)

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