Market Research Logo

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

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.


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.

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

  • EXECUTIVE SUMMARY
    • INDUSTRY AT A GLANCE
    • SCOPE AND METHODOLOGY
    • SIZE AND GROWTH OF THE MARKET
      • Table Global Market for Healthcare Computer Systems, 2006-2013 (in millions of dollars at the manufacturer's level)
    • KEY ISSUES AND TRENDS AFFECTING THE MARKET
    • LEADING MARKET PARTICIPANTS
  • INDUSTRY OVERVIEW
    • OVERVIEW OF HEALTHCARE COMPUTER SYSTEMS
    • INDUSTRY TERMINOLOGY
    • INDUSTRY STRUCTURE
      • Hospitals
        • Table U.S. Registered Hospitals by Type, 2007
        • Table Leading For-Profit U.S. Hospital Chains, 2008-2009
      • Physicians
        • Table Segmentation of Physicians in the US*
      • Nursing Homes
      • Pharmacies
      • Medical and Diagnostic Laboratories
    • THE HEALTHCARE INDUSTRY
      • European Union and Asia-Pacific Markets
      • The US Market
      • The Value Chain of the Healthcare Industry
    • COMPONENTS OF HEALTHCARE INFORMATION SYSTEMS
      • Organization
      • Administrative System Components
      • Laboratory System Components
      • Radiology System Components
      • Pharmacy System Components
      • Computerized Physician Order Entry
      • Clinical Documentation
      • Flow of Patient Data across Various Components
      • Hardware Examples
    • DISTRIBUTION
    • REGULATORY BODIES AND SOCIETIES
      • United States Department of Health and Human Services
      • Health Level Seven
      • Federal Communication Commission
      • Healthcare Information and Management Systems Society
      • Health Industry Business Communications Council
      • The Joint Commission
      • Nationwide Health Information Network (NHIN)
      • Health Information Exchange (HIE)
    • INDUSTRY INITIATIVES
    • NEED FOR REGULATION IN CHANGING ENVIRONMENTS
    • DEMOGRAPHIC TRENDS
      • US Demographics
        • Table The U.S. Population, 1980-2020
        • Table Percent U.S. Population Over Age 65 by Year
      • World Demographics
        • Table The World Population, 1980-2020
  • LEADING MARKET PARTICIPANTS
    • OVERVIEW
    • CERNER CORPORATION
      • Table Corporate Details of Cerner Corporation
      • Table Financial Details of Cerner Corporation 2006-2008 ($millions)
      • Table Key Executives of Cerner Corporation
    • CISCO SYSTEMS, INC.
      • Table Corporate Details of Cisco Systems, Inc
      • Table Financial Details of Cisco Systems 2006-2008 ($millions)
      • Table Key Executives of Cisco Systems
    • COMPUTER PROGRAMS AND SYSTEMS, INC.
      • Table Corporate Details of Computer Programs and Systems, Inc.
      • Table Financial Details of CPSI 2006-2008 ($millions)
      • Table Key Executives of CPSI
    • ECLIPSYS CORPORATION
      • Table Corporate Details of Eclipsys Corporation
      • Table Financial Details of Eclipsys 2006-2008 ($millions)
      • Table Key Executives of Eclipsys Corporation
    • EPIC SYSTEMS CORPORATION
      • Table Corporate Details of Epic Systems, Inc.
      • Table Financial Details of Epic (estimated) 2006-2008 ($millions)
      • Table Key Executives of Epic Corporation
    • GE HEALTHCARE
      • Table Corporate Details of GE Healthcare
      • Table Financial Details of GE Healthcare 2006-2008 ($millions)
      • Table Key Executives of GE Healthcare
    • MCKESSON CORPORATION
      • Table Corporate Details of McKesson Corporation
      • Table Financial Details of McKesson Corporation 2007-2009 ($millions)
      • Table Key Executives of McKesson Corporation
    • MEDICAL INFORMATION TECHNOLOGY, INC. (MEDITECH, INC.)
      • Table Corporate Details of Medi-Tech Inc.
      • Table Financial Details of MediTech 2006-2008 ($millions)
      • Table Key Executives of MediTech
    • QUADRAMED CORPORATION
      • Table Corporate Details of QuadraMed Corporation
      • Table Financial Details of QuadraMed 2006-2008 ($millions)
      • Table Key Executives of QuadraMed
    • SIEMENS HEALTHCARE
      • Table Corporate Details of Siemens Healthcare
      • Table Financial Details of Siemens Healthcare 2006-2008 ($millions)
      • Table Key Executives of Siemens AG
  • MARKET TRENDS AND SUMMARY
    • MARKET OVERVIEW
      • Table Global Market for Healthcare Computer Systems, 2006-2013 (in millions of dollars at the manufacturer's level)
    • END-USER MARKETS
      • Hospitals and Clinics
      • Home Healthcare and Nursing Homes
        • Table The Global Market for Healthcare Computer Systems, by End User 2006-2013 (in millions of dollars)
    • COMPETITIVE ANALYSIS
      • Table Revenues and Market Share of Healthcare Computer System Providers 2008
    • REVENUES BY TYPE
      • Systems
      • Support
      • Services
        • Table Global Market for Healthcare Computer Systems by Type, 2006- 2013 (System Sales, Support & Maintenance, Services) (in millions of dollars at the manufacturer's level)
  • INDUSTRY TRENDS
    • OVERVIEW
    • INFORMATION TECHNOLOGY (IT) BUDGET OUTLOOK
      • Budget Increases
      • Budget Decreases
    • INDUSTRY CHALLENGES FORCING IT IMPLEMENTATION
    • REPRIORITIZING AND SHIFTING IT SPENDING
      • CPOE and Bedside Matching
    • "VENDOR AS LENDER" PROGRAMS
    • NUDGE APPROACH TO HEALTHCARE SYSTEM INVESTMENT
      • Table National Health Expenditure Amounts, by Type of Expenditure: Calendar Years 2001-2015 1 (In billions of dollars)
      • Table Per Capita Healthcare Expenditures, 2001-2015
      • Emphasis on Reducing Hospital Days
      • Nursing Shortage
      • Cost Effectiveness
    • TECHNOLOGY ADOPTION ISSUES
    • HEALTH INFORMATION TECHNOLOGY AND AMERICAN INVESTMENT AND RECOVERY ACT OF 2009 (ARRA)
    • TRENDS IN TECHNOLOGY
      • Wireless in the Healthcare Setting
      • Adoption of the Electronic Medical Record
      • Remote Patient Monitoring
      • Telemedicine
      • E-Prescription
      • Medical Tablet PC
      • Patient/Asset Tracking
        • Table RFID Application in Healthcare
    • BAR CODE LABEL REQUIREMENTS AND TECHNOLOGY DEMANDS
    • EXAMPLES OF IMPLEMENTED TECHNOLOGIES
  • LIST OF MAJOR COMPANIES

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report