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Application Hosting 2008

January 7, 2008

In order to improve patient care, keep up with government regulations, function with even tighter budgets and limited resources and deliver increasingly complex technology solutions, many healthcare providers are turning to software vendors or third party firms to host and manage some of their critical applications. KLAS’ Application Hosting Study set out to help providers better understand what is happening with the application hosting market and to investigate the successes and struggles providers are experiencing with regard to application hosting of core clinical and financial software applications.

KLAS asked healthcare organizations in this study if they were planning to renew their contract, whether the level of service for the application had improved or declined since hosting and whether they felt that they were getting more or less value for their money. In all cases the overwhelming majority responded favorably to each question. Seventy-seven percent of survey respondents indicated that they were getting more for their money. However, not everyone was content with their hosting experience. Forty-five percent mentioned having at least one expectation that was not met. Additionally, many reported that while benefits are being attained, they do not match the original reason(s) that lead to the decision for application hosting in the first place.

The three top reported driving factors leading healthcare providers to application hosting are lower cost/capital outlay, lack of in house expertise or capacity and enabling resources to focus on other areas. Also, when considering application hosting, system reliability and uptime, system performance and ongoing support are all critical factors.

Nine vendors qualified to be included in either the main body or early data for this 293 page report:

  • ACS
  • Cerner
  • Eclipsys
  • McKesson
  • NaviSite
  • netASPx
  • Perot Systems
  • PHNS
  • Siemens

Five more vendors are on the cusp of qualifying for study inclusion including: CedarCrestone, GE, Lawson, Oracle and Phoenix Health Systems.

author - Robert Ellis
Project Manager
Robert Ellis
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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. © 2024 KLAS Research, 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.

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