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Acute EMR market consolidation – And then there were five - Cover

Acute EMR market consolidation – And then there were five

The acute EMR landscape has been undergoing consolidation for several years, but it feels like things are speeding up. When I started at KLAS five years ago, there were eight vendors: Allscripts, Cerner, Epic, GE, McKesson, MEDITECH, QuadraMed, and Siemens all actively marketed EMR solutions. McKesson actively marketed two.

How things have changed in a few short years! Providers stopped seriously considering GE and QuadraMed within the last few years. Then McKesson consolidated to one EMR (Paragon), and Cerner just bought Siemens. If that deal goes through, there will be five EMR vendors still standing:

 

1.       Allscripts

2.       Cerner

3.       Epic

4.       McKesson

5.       MEDITECH

This reduction in options places many providers at a critical crossroads. There are a significant number of providers running legacy EMR systems that will soon need replacement. Pressure from meaningful use continues to force change. Payment reform and value-based care are driving many provider organizations to standardize, merge, and partner to survive. EMR decisions are crucial for the long-term welfare of these organizations. 

And there are still a lot of EMR decisions being made that will drive further change among vendors.

Chart showing replacement vulnerability by organization

Over the past several months, KLAS has been asking providers whether they are considering replacing their EMRs and, if so, who they are considering. An early look at the data shows that legacy customers are on the move. 2015–2016 should be a busy year for provider decisions. Stay tuned as we put the data together. (The report should be out in early February.)

 Acute Care EMR Purchasing Plans 2015: Who's Winning in a More Competitive Market?

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