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2016 Hospital EMR Market Share

2016 Hospital EMR Market Share
Significant EMR Decisions Energize U.S. Market

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In 2015, the number of acute care EMR purchasing decisions made in the United States shot to levels not seen since the inception of meaningful use. Over 490 acute care hospitals were involved in a contract decision of some kind—representing an increase of almost 200% over 2014. These contracts included new organization-wide decisions, add-ons, consolidations, and migrations. To answer providers’ questions regarding vendor momentum, KLAS measured EMR market share changes for 2015.

2016 Hospital EMR Market Share 2015 Acute Specialty Hospital EMR Wins Losses and Migrations

1. CERNER SEES SIGNIFICANT GROWTH AMID LOSSES

Citing strong clinical functionality and flexible pricing and deployments, more hospitals chose Cerner than any other vendor in 2015. Cerner won the highly publicized DoD contract and edged out athenahealth to be the most selected vendor for standalone hospitals. 2015 was also a year of significant loss—45 Millennium hospitals (the most of any go-forward platform) and 27 legacy Siemens hospitals decided to leave; nearly all switched to Epic, most over revenue cycle concerns.

2. EPIC LEADS IN NET ACUTE CARE GROWTH FOR FIFTH STRAIGHT YEAR

Due to strong usability and financial/clinical functionality, Epic continues to dominate in decisions by multihospital organizations-70% (22) of competitive decisions chose Epic. Smaller hospitals are enticed by the data-sharing capabilities of Epic's Community Connect offering. In 2015, with publicly announced plans to deploy Cerner, Banner Health acquired an Epic organization, accounting for Epic's two losses. These factors resulted in high net growth-Epic now has more U.S. hospitals under contract than any other vendor.

2016 Hospital EMR Market Share Legacy Customer Retention

3. CERNER, MEDITECH RETAIN LEGACY CUSTOMERS; MCKESSON LOSES

Spurred by Cerner's acquisition, many legacy Siemens customers made decisions in 2015-66% stayed with Cerner, one of the highest legacy retention rates of any vendor in recent years. Improvements to 6.0 and new developments (like Web Ambulatory) have persuaded an increasingly higher percentage of MEDITECH customers to migrate to 6.0 in each of the last three years. Paragon's development challenges and delays have deteriorated EMR customer confidence—nearly half of Horizon customers have made a decision; none have selected Paragon.

2016 Hospital EMR Market Share 2015 Standalone Acute Community Decisions

4. ATHENAHEALTH MAKING STRIDES IN UNDERSERVED COMMUNITY MARKET

Athenahealth saw the third-largest net increase in new hospitals in 2015 and was chosen almost exclusively by critical access facilities. athenahealth's unique payment model—in which customers pay a percentage of monthly revenue—appeals to standalone community hospitals, especially those that have never purchased an EMR or have resource constraints that would impede an EMR replacement. Recently, larger standalone hospitals looking for more robust solutions have increasingly opted for Cerner and Epic. 29% of decisions made by standalone community hospitals were migrations.

2016 Hospital EMR Market Share 2015 Acute Hospital Market Share

Allscripts

In 2015, strongest retention/wins of previous 3 years. Looking forward, 72% of responding organizations say Allscripts is part of their long-term plans.

athenahealth

Significant energy since entering market (in 2015) due to pricing structure. Focused on critical access facilities. 3 legacy losses (2 acquisitions, 1 voluntary).

Cerner

Dynamic year: Second-highest net acute hospital growth bolstered by 3 large IDNs (80 acute hospitals), including the DoD. 72 losses (45 Millennium, 27 Siemens), many of which were longstanding customers, mostly over inpatient/outpatient revenue cycle concerns.

eClinicalWorks

New entrant. Tidelands Health (2 hospitals) publically announced as partner for 10i platform.

Epic

5-year leader for net acute hospital growth; now has largest acute hospital market share. Over 70% of competitive 2015 IDN decisions went with Epic (118 hospitals). 2 losses (1 organization) due to acquisition.

Evident (CPSI)

Little consideration among community hospitals; low customer satisfaction.

Healthland

No net acute growth; little consideration among small standalone hospitals. Recently acquired by Evident (CPSI), who has announced plans to continue Centriq development.

McKesson

Significant decline in acute market share. In 2015, no Horizon customers chose Paragon. 21 Paragon losses: about half were former Horizon customers that either never went live with or never were satisfied with Paragon.

MEDHOST

Slight decrease in overall acute market share; little consideration among small standalone hospitals; 5 specialty hospital wins. Significant decline in customer satisfaction in past 18 months.

MEDITECH

11 new standalone and add-on hospitals counterbalanced by 57 losses, mostly from legacy base due to acquisition. Increasingly higher percentage of legacy customers deciding to migrate to 6.x; few MEDITECH IDNs choose to leave.

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KEY TOPICS

  1. Cerner Sees Significant Growth Amid Losses
  2. Epic Leads in Net Acute Care Growth for Fifth Straight Year
  3. Cerner, MEDITECH Retain Legacy Customers; McKesson Loses
  4. athenahealth Making Strides in Underserved Community Market
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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.