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2016 Acute EMR Buying Decisions

2016 Acute EMR Buying Decisions
EMR Replacements Heating Up

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Vendor and product consolidations continue to reshape the face of the acute care EMR market as the number of hospitals running legacy, or limited life, systems increases. A number of health systems are considering a change, and most say Epic or Cerner is their likely acute care EMR replacement. MEDITECH continues to fight hard to retain their legacy customers, while other vendors get little consideration overall. What does this mean for providers and vendors alike? KLAS spoke to over 800 organizations to find out.

1. EPIC LEADS TUG-OF-WAR WITH CERNER IN EMR MARKET

Providers are increasingly replacing their existing EMRs with Epic and Cerner Millennium to gain integrated enterprise platforms. Organizations nearing decisions, especially multihospital organizations, are more likely to lean toward Epic over Cerner. As these behemoths collide, 26 of 181 responding Cerner organizations are planning/considering a move to Epic—half due to mergers and half to inadequate revenue cycle or ambulatory functionality. Only 2 of 200 responding organizations are considering replacing Epic with Cerner—both due to acquisitions. Those who prefer Epic highlight usability, market reputation, and strong revenue cycle capabilities; those leaning toward Cerner like their strong population health solution, flexible deployments, customization, and pricing.

Acute Care EMR Considerations

Performance vs. Consideration

2. MEDITECH FIGHTS TO RETAIN CUSTOMERS

MEDITECH is the third most considered EMR, though considerations of MEDITECH's 6.x platform come almost exclusively from legacy MEDITECH clients, over half of whom are weighing their options. Those leaning toward 6.x report positive relationships as the driver. As 6.x is not as cost effective as MEDITECH's legacy solutions, larger customers leaving MEDITECH are opting for more robust technologies, with the majority favoring Cerner or Epic. Smaller legacy clients are also weighing their options, as a number of EMR solutions in addition to MEDITECH can meet smaller providers’ needs. Many non-MEDITECH providers avoid MEDITECH altogether due to an unproven ambulatory solution.

MEDITECH Decisions at a Glance

3. MARKET CONFIDENCE FALLS FOR ALLSCRIPTS AND MCKESSON

Provider outlook on Allscripts SCM and McKesson Paragon is at an all-time low, with over one-third of customers (mostly larger organizations) planning to leave in the near future. Customers have lost trust as Allscripts and McKesson have repeatedly failed to deliver on long-made promises around development, integration, and stability. While a significant number of providers, especially Horizon customers, were considering McKesson Paragon a few years ago, few now consider it a legitimate option. Few providers consider Allscripts or McKesson, citing tainted reputations as the main reason. As these vendors become less relevant, providers coalesce around Epic and Cerner.

Who are Providers Selecting? Are Providers Staying Put?

4. COMMUNITY HOSPITAL MARKET HEATING UP

One-quarter of community hospitals report plans to replace their current EMR. Additionally, 13% of the hospitals that don’t have plans to replace are currently relying on legacy systems that will need replacement in the near future. A large number of Evident (CPSI), Healthland, and MEDHOST respondents are actively weighing their options or feeling stuck, as are a large portion of MEDITECH’s legacy clients. These cost-sensitive providers strongly consider Cerner’s hosted solution, followed by Epic’s customer-hosted option. Some providers show interest in athenahealth’s newly acquired web-based system as a possible alternative to traditional community HIS offerings. KLAS will evaluate the system in the future.

Movement in the Community Space Community Hospital Considerations

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KEY TOPICS

  1. Epic Leads Tug-of-War with Cerner in EMR Market
  2. MEDITECH Fights to Retain Customers
  3. Market Confidence Falls for Allscripts and McKesson
  4. Community Hospital Market Heating Up
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This material is copyrighted. Any organization gaining unauthorized access to this report will be liable to compensate KLAS for the full retail price. Please see the KLAS DATA USE POLICY for information regarding use of this report. © 2018 KLAS Enterprises, LLC. All Rights Reserved. NOTE: Performance scores may change significantly when including newly interviewed provider organizations, especially when added to a smaller sample size like in emerging markets with a small number of live clients. The findings presented are not meant to be conclusive data for an entire client base.