It was less than one year ago that Kalorama Information surveyed the market for electronic medical records. Yet much has changed and the changes may reach into every aspect of healthcare. Since our last report, the U.S. Government has decided to incentivize the use of EMRs through extra Medicare payments, companies have merged and new players - including some well-known corporate giants, have entered the field.
What impact have the announcement of ARRA (stimulus) incentives had, if any? What is the realistic opportunity for producers of EMR systems and system components? Who are the key players who will determine the future of EMR? What is the actual usage rate of EMR? Is this market still open for new entrants?, and what are the strategies that are working in the marketplace? These questions and more are addressed in this report.
In EMR 2010 (Markets, Key Players, ARRA Stimulus Incentives and Innovations), Kalorama Information provides the most current market research on EMR available. As part of its research, EMR 2010 includes:
As with all Kalorama Information research, secondary research into company reports, government reports, trade publications were used as foundation and primary research - interviews with industry experts were used to assess the data and make forecasts.
News Since Report Publication
Allscripts-Eclipsys Deal a “Significant Event” In EMR Market - Kalorama
NEW YORK - June 9th - A ‘significant event’ in the EMR market has occurred with the purchase of Atlanta-based Eclipsys by Allscripts, a Chicago-based company, according to healthcare market research publisher Kalorama Information. The company has been publishing detailed studies on the 13.8 billion dollar EMR market for the past four years, and sees the purchase as a plausible attempt to unite a market where currently, hospitals and physicians choose from a wide range of vendors..
“We talk in our study about how there was no clear market leader in EMR; and a there was a window for new entrants to enter the market,” said Bruce Carlson, Publisher of Kalorama Information. “This deal doesn’t close that window, but perhaps the opening just got a little smaller.”
According media reports, the purchase will be conducted in an all-stock deal valued at about $1.3 billion. The combined company would have 5,500 employees. Allscripts CEO Glen Tullman will serve as CEO of the combined company, with Eclipsys President and CEO Phil Pead taking the chairman’s title.
In its existing form, Allscripts was a well-recognized and successful names in the physician EMR market, according to Kalorama’s most recent report on the market, EMR 2010, published earlier this year before the purchase was announced. The company ranked in the top three in name recognition surveys along with Epic and Centricity. The report also indicated that in the category of “physician office and web-based sales” of EMR software (excluding large hospital/health system sales), Allscripts was the number one company in the segment. Allscripts provides electronic health records software primarily to physicians practices and post-acute organizations, and claims 180,000 physician clients. The Eclipsys purchase brings them nearly 1,500 hospital customers, which Kalorama sees as significant.
“It’s logical to match these companies up since Allscripts has physicians and Eclipsys reaches into hospitals and health systems as well,” said Carlson. “Despite Allscript’s name recognition in the physician market, it would have been hard for any company to maintain leadership in EMR without reaching into the hospital space as well. It’s not easy to break into the hospital EMR market, so acquisition was the logical play here.”
The company still faces challenges including the blending of their software offerings and as a combined concern will face competition from McKesson, Cerner, GE Healthcare, as well as Dell Microsystems which recently entered the EMR market. The EMR industry collectively faces the challenge of incorporating “meaningful use” guidelines into vendor offerings in a way that will encourage physicians to use EMR at greater rates than currently seen.
Kalorama Information’s report, EMR 2010, written before the Allscripts-Eclipsys contains more information on the EMR Market including market forecasts, market segments, pricing information, profiles of the top vendors in the market and more information.