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Seven Factors That Will Make 2018 A Challenging Year For EMR Vendors

Posted on May 24, 2017 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she’s served as editor in chief of several healthcare B2B sites.

Unless they’re monumentally important, I generally don’t regurgitate the theories researchers develop about health IT. But this time I’m changing strategies. While their analysis may not fit in the “earth shattering” category, I thought their list of factors that will shape 2018’s EMR market was dead on, so here it is.

According to a report created by analyst firm Kalorama Research, a number of trends are brewing which could make next year a particularly, well, interesting one for EMR vendors. (By the by, the allegedly Chinese curse, “May you live in interesting times” probably wasn’t Chinese in origin — it seems to have been minted in the 19th century by a British politician named Joseph Chamberlain. But I digress.)

According to Kalorama publisher Bruce Carlton, many forces are converging, including:

  • Frustrated physicians: Physician rage over clunky EMRs may boil over next year. No one vendor seems positioned to scoop up their business, but of course many will try.
  • Hospital EMR switches: While hospitals have been switching out EMRs for quite some time, defections may climb to new levels. Their main objective: Improve workflows.
  • Emerging technologies: Trendy approaches like dashboarding, blockchain and advanced big data analytics will begin to be integrated with existing EMR technologies. Or as the report notes, “the Old EMR doesn’t cut it anymore.”
  • IT staff shortages: It takes a pretty seasoned IT pro to run an EMR, but they’re hard to find, especially if you want them to have a lot of relevant experience. But without their expertise, provider organizations may not get the most out of their systems. This may spell opportunity for vendors offering better service, the report says.
  • Breach of the day: With each cybersecurity breach, EMRs get negative coverage, and the effects of this bad PR are accreting. Tales of ransomware, a particularly lurid form of cybercrime, are only making things worse.
  • Many EMR vendors remain: Despite a barrage of M&A activity in the sector, there are still over 1,000 vendors in the EMR space, Kalorama notes. In other words, competition for EMR customers will still be brisk, particularly given that no one vendor – even giants like Cerner and Epic – owns more than one-fifth of the market (This assertion comes from firm’s own market estimates.)
  • New Administration, new goals: To date the White House hasn’t proposed specific changes to health IT policy, but one clue comes from the appointment of an HHS Secretary who dislikes the meaningful use program. Anything could happen here.

In addition to the factors cited by Kalorama, I’d suggest one other trend to consider. As I’ve noted above, Kalorama argues that customers will demand EMRs that incorporate sexy new technologies, perhaps more so than in the past. I’d go further with this projection. From what I’m hearing, a consensus is emerging that EMR architectures must be completely deconstructed and rethought for today’s data.

With important data flows emerging from wearables, apps, remote monitoring devices and the like, it may not makes sense to put a big database at the center of the EMR platform anymore. After all, what’s the point of setting up an enterprise EMR as the ultimate source of truth if so much important data is being generated by mobile devices at the network edge?

Anyway, that’s my two cents, along with Kalorama’s predictions. What do you think 2018 will look like for EMR vendors, and why?

Major EMR Vendor Consolidation On The Verge

Posted on June 14, 2012 I Written By

Anne Zieger is a healthcare journalist who has written about the industry for 30 years. Her work has appeared in all of the leading healthcare industry publications, and she’s served as editor in chief of several healthcare B2B sites.

Note: This is a post by Katherine Rourke. Tomorrow watch for a post by John on EMR and EHR where he discusses some of his views on this discussion.

While it may not be immediately obvious, the EMR industry is at a major turning point in its history. Any day now, we’re going to see a bunch of mergers and acquisitions go off like a string of firecrackers, some of which may have a direct impact on your business.

Now, I don’t know how many EMR companies there are out there. In fact, I’m not sure anyone has a precise count. But can we agree that we’re looking at 1,000 or more, no?  And, heck, there’s probably thousands of companies pitching practice management + EMR,  medication management systems, clinical decision support, apps, mobile health plug-ins to EMRs and so on. Just visualize it all — you’ll get a headache but you’ll doubtless agree that we’re dealing with a raging flood of technology.

And most of it won’t stand alone forever. Every vendor likes to say that their product line has all the solutions, but even the most green sales rep doesn’t really believe that. Smart EMR tech firms and their natural allies are already beginning the mating dance, and quietly but inexorably, hooking up.

Since this isn’t the Wall Street Journal, I’m sure we don’t need to dig into deep financial discussion over this. And anyone who’s a regular reader of this site knows why software companies often buy rather than build the technologies they need to fill out their portfolio.

But I thought it was still worth noting that within, say, 18 months, the EMR world could look fairly different in the following ways:

* EMRs aimed at doctors are overabundant, to put it mildly. I predict that there will be a dozen or so well-publicized failures or buyouts in this space within the next year.

* Big vendors that pitch to both enterprises and medical practices will largely have to pick one,and it’s the enterprise side that will win. If you’re a doctor running a giant company’s EMR, stay in regular touch with your vendor and get their support promises in writing!

* There will be a flurry of mHealth activity, with EMRs that play nicely on tablets in center stage.  It’s possible the market will even support another IPO or two this year by EMR vendors if they’re offering a nifty mobile health aspect integrated with their core product.

* Doctors, in particular, risk finding that their product becomes abandonware this year as the market consolidates.  Have a Plan B available, and I mean a written plan developed by a consultant or tech-savvy senior member of your team.

So, what else do you think will happen as the market absorbs excess players and recombines relationships?