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Investor Newsletter February 2022 Investor Newsletter February 2022
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Investor Newsletter February 2022

author - Justin Long
Author
Justin Long
author - Joshua Harris
Author
Joshua Harris
 
February 17, 2022 | Read Time: 10  minutes

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Monthly overview of recent KLAS insights, upcoming reports, and industry happenings.

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Current Time Inside Cache Tag Helper: 5/21/2022 12:50:14 AM and Model.reportId = 2792

From the KLASroom

Oracle’s Acquisition of Cerner and Its Impact on the HIT Market

Oracle’s acquisition of Cerner sent shock waves throughout the HIT industry. Numerous reporters, analysts, and industry experts have weighed in on the potential impact of this acquisition and what it will mean for Cerner customers and the broader healthcare marketplace. To amplify provider voices, KLAS has been conducting extensive interviews with Cerner customers to uncover their thoughts and feelings about how the acquisition will affect their organizations and potential long-term plans with Cerner/Oracle. Using these interviews, KLAS intends to publish a series of reports illuminating what this acquisition will mean for the healthcare world and the current and future impact it will have on the provider community.

KLAS’ recently published Cerner Flash Insights report summarizes Cerner’s current performance data and shares initial customer perceptions regarding Cerner’s road map. This report also looks at Cerner’s communication, provider sentiments on the new CEO (David Feinberg), provider thoughts on product announcements, opinions on the vendor’s delivery of new technology, and more.

Following that report, KLAS will release a report on the state of Soarian Financials and gather feedback from current Soarian customers. Cerner’s announcement of RevElate has brought Soarian back into the spotlight after several years of being on the back burner. Soarian’s functionality will be brought into the primary go-forward solution, and KLAS will take its first deep look at this solution since 2015.

In addition to these reports, KLAS will also pursue additional reports and deliverables as dictated or desired by the provider community. KLAS will also continue its planned reports comparing various Cerner products and how they stack up to other products in the marketplace.

likely to recommend cerner millennium powerchart

The KLASifieds

KLAS Emerging Technology

Each week, dozens of new companies are knocking on the doors of provider organizations and health systems to present their latest innovative solutions. KLAS publishes 50–60 individual reports annually that provide early performance data on these solutions designated as emerging, disruptive, or innovative. To access the KLAS Emerging Technology report library, contact our team at investorservices@klasresearch.com.

Recent Emerging Technology Report Sneak Peek

Carium
Emerging Technology Spotlight Report 2021

As healthcare organizations seek to reduce costs and improve patient outcomes, they often look to technology that engages patients in their care. Carium strives to fill this need by providing tools that remotely monitor patients, report on their conditions and progress, and guide them through their care journeys. This report examines the Carium customer experience.

carium key performance indicators

Spectralink Versity
First Look Report 2021

Shared smart devices are a means of improving communication and clinical workflows. For this report, KLAS spoke to different healthcare organizations to understand their perspectives on how well those devices met their needs. Aspects of the report include clinical workflows, network connectivity, call quality (VoIP), barcode scanning, camera quality, overall durability, battery life, bulkiness, operating system updates, native security features, average device costs, and the quality of the vendor’s offered services.

spectralink key functionality performance

Specialty Reports Published January/February 2021

KLAS publishes 70–80 specialty reports annually that provide insights into market trends, vendor performance, and/or key issues within specific segments or categories. To access the KLAS Specialty report library, contact our team at investorservices@klasresearch.com.

Best in KLAS 2022:
Software & Services

The Best in KLAS report recognizes software and services companies who excel in helping healthcare professionals improve patient care. All rankings are a direct result of the feedback of thousands of providers over the last year. A Best in KLAS award signifies to the healthcare IT industry the commitment and partnership that the top vendors should provide. Read the report to see the top-rated medical software and services for 2022.

best in klas 2022

Enterprise Imaging 2021:
A Deep Dive on the Market Landscape

As their enterprise imaging (EI) strategies mature, many healthcare organizations are looking to consolidate their imaging portfolios to save money, simplify IT support, and achieve better and easier access to images and data. Choosing the right imaging partner or partners is critical to long-term EI success. This report aims to help organizations choose vendors who are aligned with their goals and needs through insights on EI market share , breadth of coverage, and typical customer profile.

Note: For the purposes of this research, KLAS defines enterprise imaging as the ability to store and/or view images across the enterprise from more than one service line, PACS, or long-term storage solution. This report focuses on VNA and UV solutions.

† The market share data in this report comes from a combination of provider organization interviews, vendor-reported information, KLAS Decision Insights, and publicly available information. In all cases, KLAS makes a best-effort attempt to use third-party sources and our vast provider network to independently validate vendor-claimed enterprise imaging contracts. While KLAS believes the data in this report is directionally correct, we acknowledge that some variation may exist.

enterprise imaging part of long term plans

Recently Released and Upcoming KLAS Specialty & Emerging Technology Reports

Cerner Flash Insights 2022:
Customers’ Initial Perspectives on Big Company Changes

Cerner clients and the healthcare industry at large believe Cerner is at a crossroads. In the past few months, Cerner has brought on a new CEO, pivoted in a new direction with their revenue cycle offering (RevElate), and announced their acquisition by Oracle. In addition to these recent changes, over the past two years, an increasing number of long-time Cerner executives have left. Amidst these changes, several clients have been forming contingency plans and say they cannot wait one or two years for more solid information. Many have reached out to KLAS seeking to better understand their peers’ impressions of these significant changes. This report—the first of several Cerner-specific reports KLAS intends to publish this year—is a summary of Cerner’s current performance data, collected over the past five years. It is supplemented with initial customer perceptions from 26 unique organizations, all collected after Cerner announced the move to RevElate in October 2021. In future research, KLAS intends to collect perceptions from additional customers and validate the impacts customer organizations have seen from the recent changes.

DHIS 2021 White Paper:
Using Technology to Resolve Patient Pain Points

In September 2021, KLAS hosted its fifth annual Digital Health Investment Symposium (DHIS). In attendance were healthcare thought leaders from private equity and venture-capital firms, digital health companies, and healthcare provider organizations. Small group discussions focused on patient pain points within the care journey, the barriers to solving these pain points, and how technology can be utilized to further activate patients in their own care. The intent of this paper is to share insights from those discussions and to highlight ways stakeholders throughout the industry can support meaningful change to improve the patient experience.

European EMR 2022:
Which Vendors Meet Customer Needs Amid a Rapidly Shifting Landscape?

In the past few years, there has been significant purchasing and merger and acquisition (M&A) activity among EMR vendors who market in Europe, creating one of the world’s most dynamic EMR markets. Between 2016 and 2020, KLAS validated over 300 EMR decisions impacting over 1,200 inpatient facilities. Using this data and customer feedback from 100 organizations, this report examines the customer satisfaction, market share, and recent wins and market energy of European EMR vendors and evaluates which vendors are best meeting their customers’ needs in this ever-changing, competitive market.

Healthcare AI 2022:
Proven Outcomes with Data Science Solutions

The potential for artificial intelligence (AI) to transform healthcare has been both championed and challenged. In 2019, KLAS published our first research on healthcare AI data science solutions, exploring the clinical, financial, and operational use cases for which healthcare organizations had deployed the technology and the early outcomes they were achieving. An update to that research, this report examines how outcomes and customer satisfaction have evolved in the years since. Though progress has been somewhat hamstrung by the financial and operational constraints of COVID-19, many of the organizations interviewed for this research have found results by focusing on the right problems.

Healthcare IoT Security 2022:
Moving beyond Device Visibility

As the number of devices connected to networks within healthcare organizations continues to grow, so does the potential for network security to be compromised. These security risks—which can come from medical devices or the myriad other devices connected to healthcare networks—can impact not only information security but patient safety as well. Many healthcare internet of things (IoT) security solutions give organizations visibility into connected devices, but the most effective solutions also help actively reduce the risk associated with those devices. To inform healthcare organizations of their IoT security options, this report highlights the performance and purchase decision energy of software vendors in this space. The performance of IoT security services firms is also shared.

Medication Inventory Management 2022:
Insights from Advanced Users Reveal What Is Possible Today

Medication inventory represents tremendous hospital spend. Managing it well is crucial for patient safety and cost management, yet many healthcare organizations report they struggle to get the right tools and workflows in place, leading to high-touch, manual processes. To understand what is possible with medication inventory management today, KLAS spoke to organizations that have broadly adopted capabilities from BD, Epic, Omnicell, and Swisslog Healthcare. Based on the feedback from these advanced users, this report examines what capabilities have been adopted today, how well the solutions integrate with various hardware components, and how well the vendors support their customers to drive key outcomes. Performance data from vendors’ general customer bases is also included for additional context.

Patient Perspectives on Patient Engagement Technology 2022:
Identifying Opportunities to Align Patient, Organization, and Vendor Priorities

The pandemic has emphasized the need for healthcare organizations to decrease barriers to effective care and better accommodate patients’ needs. However, patients are almost always absent from discussions around healthcare information technology (HIT). In KLAS’ last report on the patient perspective, we discovered a lack of alignment between patients’ engagement technology priorities and those of provider organizations and vendors. Since then, KLAS has sought to identify whether industry alignment has improved. This report seeks to highlight the patient perspective and is one of many KLAS initiatives aimed at more deeply understanding and measuring patients’ perspective on HIT.

To make a purchase or find more information on KLAS reports, contact the KLAS Investment Advisory team at investorservices@klasresearch.com.

Market Activities Impacting Investments

Google Healthcare Investments Focused Primarily on Bioscience/Tech

To date, Alphabet and affiliated funds have led 76 rounds for healthcare and biotech companies, with those rounds collectively valued at just over $4 billion. They have participated in over 260 rounds. Several of their portfolio companies have gone on to multibillion-dollar valuations, including cancer screening platform Grail, gene-editing company Editas, and primary care provider One Medical.

Is Digital Health Funding Sustainable in 2022?

“So far, digital health companies are on pace to raise more than $28 billion this year,” said Rock Health COO Megan Zweig in a Zoom interview. That’s a record amount, and significantly higher than their earnings in previous years. For some context, last year, digital health companies amassed $14.5 billion by Rock Health’s count. In 2019, they amassed $7.9 billion.

Behavioral Health Market to $132 Billion by 2027

The US Behavioral Health Market was valued at $90.5 billion USD in 2020 and is projected to be worth around $132.4 billion USD by 2027, registering a compound annual growth rate of 5.3% from 2021 to 2027, according to a Precedence Research report.

Start-Ups Are Being Pressured to Mature Faster

Higher funding rounds are driving expectations for start-ups to advance their corporate governance and product development capabilities at a faster rate.

North American Investors put $329.5 Billion into Start-Up Investments in 2021

Start-up investments across all stages set a record for 2021 that was an increase of 92% from 2020 levels, which were themselves record-setting. Crunchbase research drills down into the investments.

Inflation Impacts Start-Up Early-Stage Investment Funding

Series A for an American start-up was around $10 million in 2020. In 2021, it was $13 million, per a recent report. This equates to a year-over-year inflation rate of 30%. All funding series rounds have been impacted.

Mark Your Calendar—KLAS Digital Health Investment Symposium (DHIS) 2022

Carrying the momentum from the successful in-person 2021 DHIS event, we’re getting a jump start on DHIS 2022. Seats will fill quickly, so mark your calendars for September 13th–14th in Park City, Utah.

For information on all KLAS events, including those that are coming soon, visit the KLAS events page here: klasresearch.com/events.

Follow KLAS on social media: LinkedIn | Facebook | Twitter

author - Jess Wallace-Simpson
Designer
Jess Wallace-Simpson
author - Andrew Wright
Project Manager
Andrew Wright
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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. © 2022 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.