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Acute Care EMR 2014

Acute Care EMR 2014
The Next Buying Wave

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The acute care EMR market is on the verge of a new buying wave as hundreds of hospitals running legacy EMRs are expected to select more current platforms that will carry them through the next decade and beyond. A previous wave generated by meaningful use changed the vendor landscape significantly. Some vendors surged to the forefront (Epic and Cerner), some exited the market (GE Healthcare and QuadraMed), and others are still adjusting their strategies. How will the market change in the coming years? Based on 280 interviews with 277 providers, KLAS explores the future of EMR selection and what the next EMR buying wave will look like.

KLAS Report: Acute Care EMR 2014

WORTH KNOWING

EPIC AND CERNER—STILL RIDING THE WAVES

Nearly half of the hospitals interviewed plan to make a new purchase decision by 2016. They are giving the most looks to integrated offerings from Cerner and Epic. Epic still has the most momentum, with nearly two-thirds of interviewed hospitals at least considering them and nearly one-third already signed to a contract or likely to do so. Cerner is the only other vendor with significant mindshare across all providers.

MCKESSON AND MEDITECH—CAN VALUE PROPOSITIONS STOP EROSION?

Neither McKesson nor MEDITECH is being considered much outside of their customer bases. Both have watched scores of legacy customers depart in recent years, but hundreds more are still using their legacy EMRs and contemplating migration to Paragon and 6.0. Affordability attracts, but some providers feel neither product is sufficiently mature. Looking forward, one-quarter of Horizon providers say Paragon is a likely pick, and twice as many indicate that it is in the running. MEDITECH MAGIC and C/S hospitals are more loyal. About half say they will likely move to 6.0.

ALLSCRIPTS AND SIEMENS—LITTLE WIND IN THEIR SAILS

Historical challenges around integration and delivery continue to steal wind from Allscripts’ and Siemens’ sails. These vendors receive little attention from buyers, with the exception of some McKesson Horizon sites that are taking them into account before making a decision. Both vendors are paddling hard to gain momentum and much is riding on Allscripts’ ability to provide a compelling integration story (dbMotion/Sunrise Ambulatory) and Siemens’ ability to show their new ambulatory module is a viable option.

MEANINGFUL USE MOVES FROM CATALYST TO CONSTRAINT

Looming timelines and enticing reimbursements created a wave of buying in recent years, but they are no longer a focus going forward. In some cases, meaningful use has led hospitals to slow down as they wait for Stage 2 to pass before dealing with the disruption of a new EMR. Only one provider described government programs such as meaningful use or ICD-10 as specific reasons for moving now.

VENDORS

ALLSCRIPTS

Lack of progress on promised integration has led to slowing sales and a shift to smaller hospitals. Few buying hospitals consider Allscripts an option. Current customers encouraged by management changes and await results, though over 40% are already looking elsewhere. Acquisition of dbMotion and Jardogs a step in the right direction.

CERNER

Considered a market leader due to integration and expansive functionality. Second most-considered vendor for hospitals seeking a new EMR. Few current customers are looking elsewhere today, though continued development on Cerner’s revenue cycle solution is important for long-term stability.

EPIC

Overall the most considered vendor with the highest probability of purchase among those considering. Seen as a safe bet due to “total integration” and reliable delivery. No current customers considering a move.

MCKESSON

Strategy shift to Paragon puts Horizon customers most at risk for vendor change. Many cautiously considering Paragon for cost benefit but also looking around as they wait for proof Paragon can meet the needs of larger health systems. Few current Paragon customers looking to leave. Few non-McKesson customers interviewed were looking at Paragon.

MEDITECH

Some recent attrition due to IDNs standardizing on other platforms. Majority of customers on MAGIC and C/S expect to choose a new EMR in coming years. Most are leaning toward 6.0, but many will wait until after meaningful use to give 6.0 time to further mature. Some non-MEDITECH hospitals looking at 6.0 as well but as yet unsure.

SIEMENS

Aside from INVISION hospitals, serious consideration of Soarian is rare. Lack of mature, integrated ambulatory solution turns buyers away. Current customers appreciate Soarian’s flexible architecture and few plan to move, but there is little optimism that the recently released ambulatory module will be viable anytime soon.

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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.