Market Analysis-Hospital Information Systems

Largely due to government initiatives, EMR systems drive the health information technology market and are a central consideration in most health care information technology purchases. Government initiatives and cost concerns are key drivers of EMR growth. Those factors will continue to drive the market in the near future, Kalorama predicts. 

The term health care information technology refers to the hardware and software that providers use to store, retrieve, share and analyze health care information and data. Hospital information systems (HIS) generally fall into one of two categories: clinical or administrative. The largest segment of this market is for electronic medical record (EMR) systems.

To remain competitive in the market, health care information technology companies must address the need for EMR or build products that can interface with current systems. “An understanding of EMR products in the marketplace is critical,” according to the report.

But there is some confusion about EMR adoption that has influenced the growth rate in the market. Kalorama originally forecasted a 15 percent growth in the EMR market in 2010. Actual growth was slower because of confusion among health care providers about EMR adoption and mandates, according to the report. As both become clear and more guidelines are established, the market will be poised for even more growth: 18 percent in 2011 and 20 percent in 2012 are Kalorama’s latest predictions.

A recent survey conducted by the Centers for Medicare and Medicaid (CMS) showed that nearly 50 percent of U.S. physicians have used EMR, a 20 percent increase over usage figures from 2006. And according to HIMMS analytics, more than four out of 10 hospitals will meet meaningful use standards this year. Through the ARRA stimulus law passed in February, the federal government set aside nearly $20 billion in incentives for practices adopting EMR. The first incentives will be paid in 2011 and will be based on last year’s performance. By 2015, the legislation will allow Medicare and Medicaid to penalize providers who are not using certified EHRs.

These and other factors, Kalorama predicts, will drive the market to more than double in the next four years, reaching a value $31.8 billion in 2015. Market leaders include Allscripts Healthcare Solutions, Cerner, Computer Programs & Systems, eClinicalWorks, Epic, GE Healthcare, McKesson, MEDITECH, MedPlus, NextGen, QuadraMed Corporation and Siemens.

Originally published in Medical Dealer Magazine.