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Investor Newsletter January 2022 Investor Newsletter January 2022
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Investor Newsletter January 2022

author - Justin Long
Author
Justin Long
author - Joshua Harris
Author
Joshua Harris
 
January 26, 2022 | Read Time: 9  minutes

Current Time Inside Cache Tag Helper: 12/5/2022 12:18:02 PM and Model.reportId = 2778

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

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Current Time Inside Cache Tag Helper: 12/5/2022 12:18:02 PM and Model.reportId = 2778

From the KLASroom

A Deeper Look at Vulnerability: Ambulatory EMR Market

For more than two decades, KLAS has tracked feedback from providers who are using a wide variety of HIT solutions. Part of this feedback is used to track the vulnerability of a solution, vendor, and market segment. This allows KLAS and readers to see which solutions are most likely to see an exodus of clients and which are most stable during a given time period. This quarter, we will be examining the ambulatory EHR market.

The ambulatory EHR market continues to see significant provider movement and significant interest in alternate solutions that can meet providers’ needs. Often, a provider organization chooses to leave their current EHR platform because they want to consolidate systems, but that isn’t always the case. Provider organizations can sometimes find themselves stuck with technology or a relationship that does not meet their needs or expectations. Although their contractual obligations prevent them from immediately moving on, they remain open to the possibility of transitioning once their contract ends if current satisfaction levels do not improve.

After analyzing provider feedback, we found several reasons (outside of consolidation) why provider organizations are currently less than satisfied with their EHR solution and why they may look to other solutions to meet future needs. These are the top five reasons:

integrationIntegration
Many respondents in the ambulatory space are looking to simplify their technology stack by reducing the number of disparate solutions they use within their practice. Organizations that have used this approach have seen better integration between systems, resulting in improved data flow. This change has also positively impacted providers’ ability to deliver patient care and has driven better financial outcomes.

specialty functionalitySpecialty Functionality
When EHR solutions miss the mark for specialty-specific functionality and workflows, provider organizations often replace or consider replacing them with specialty EHRs that allow specialty providers to deliver the quality of care they desire.

innovationInnovation
Several vendors/solutions KLAS measures are seen as falling behind the curve in terms of the technological advancements they are providing for their customers. Provider organizations expect their EHR vendor to not only deliver on regulatory requirement but also push the envelope in developing technology that positively impacts the way they practice medicine.

relationshipRelationship
Several vendors with the largest attrition rates have customers who report having a poor relationship. The number of organizations leaving or considering leaving in the next few years has significantly increased for these vendors. Provider organizations expect their vendor to have their back and not only offer support and guidance but also partner with them on delivering better outcomes utilizing the vendor’s technology.

price valuePrice/Value
Some customers feel they are being priced out of their vendor’s offerings. These organizations have a hard time realizing an ROI with their current offering and are examining other solutions in the market that offer a better price-to-value ratio.

number of respondents staying stuck and leaving by small practice ambulatory emr vendor

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

Everbridge
Emerging Technology Spotlight Report 2021

Everbridge is a market share leader in the critical alert management and mass communications spaces. Enabling healthcare organizations to assess risk, locate impacted people, act rapidly, and analyze outcomes for improvement opportunities, platforms like Everbridge’s are essential for healthcare organizations’ emergency preparedness programs and strategies. This report highlights healthcare customers’ experiences with and usage of the Everbridge platform for emergency preparedness and other mass communications needs.

everbridge key competitors top reasons selected and number of customers interviewed by klas

Omnicell XR2
Emerging Technology Spotlight Report 2022

Hospital pharmacies are evaluating new automations that can reduce costs, improve efficiency, and boost medication safety. Omnicell’s XR2 robot contributes to autonomous pharmacies, and many hospitals are investigating its viability to drive real, lasting automation and change. Reports regarding the XR2 system’s performance are still emerging, and this report contains the experiences of a very small number of live customers.

omnicell xr2 an early look at customer satisfaction

Specialty Reports Published October/November 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.

Comprehensive Ambulatory 2021:
What to Expect from a Single Source

areas of strength in vendor portfolioLooking to improve integration and reduce vendor complexity, ambulatory organizations have recently accelerated efforts to consolidate their technology solutions. However, their EMR vendor’s portfolio may have gaps or may not stack up in certain areas to the specialized functionality of best-of-breed solutions. To help organizations determine whether a consolidated IT approach is best for them, KLAS conducted in-depth interviews with ambulatory organizations that have broadly and deeply adopted their EMR vendor’s technology portfolio. These customers’ feedback reveals what technology is adopted today, where gaps still exist, and what benefits and potential pitfalls other organizations may want to consider as they move toward consolidation.

Drug Diversion Monitoring 2021:
Energy High for Next-Generation Solutions

In the last 12 months, KLAS has interviewed 41 healthcare organizations that have recently purchased a drug diversion monitoring solution or are in the process of doing so. This represents a sharp increase in market activity. Several factors are fueling the growth, including greater awareness of the opioid crisis as well as a greater need during the COVID-19 pandemic for visibility and automation when it comes to managing medication inventories. Additionally, organizations are considering several newer technology options purported to offer more intuitive workflows and more complete investigational tools. This report examines recent and upcoming drug diversion monitoring purchase decisions to determine which vendors are generating the highest interest.

new wins by bed size

Upcoming KLAS Specialty & Emerging Technology Reports

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.

Carium:
Emerging Technology Spotlight 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.

DeliverHealth Gemini:
Emerging Technology Spotlight 2021

More and more healthcare organizations are looking to engage patients throughout their healthcare experience. DeliverHealth’s Gemini—a digital front door solution—is intended to improve the patient experience while minimizing pain points that can arise. This report seeks to validate early adopters’ experience with Gemini.

DeliverHealth (MIST) Ambulatory Services: 
First Look 2021

Healthcare organizations often seek to simplify their IT processes by eliminating productivity barriers and lessening physicians’ documentation burdens. To aid organizations in streamlining their processes, DeliverHealth (formerly MIST) provides industry expertise and customizable EMR consulting and advisory services. This report is a first look at the DeliverHealth client experience.

Nuance DAX: 
Emerging Technology Spotlight 2021

To increase clinical documentation quality and reduce physician burnout, provider organizations look to technology that captures physician notes or scribes who can take notes during patient appointments. Nuance’s Dragon Ambient eXperience (DAX) solution uses ambient technology to securely capture and automatically document patient encounters via a mobile app. This report seeks to validate early adopters’ experience with the solution and what outcomes they anticipate.

Spectralink Versity:
First Look 2021

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

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

A Third of Seed-Funded Companies Survive for Later Stage Rounds

Those odds improve significantly when a start-up has raised a seed funding of $1 million or more, Crunchbase data shows. Around a third of seed-stage funded companies raised a $1 million seed round or higher. For those companies, more than one out of two start-ups on average successfully raise funding that is Series A or later.

New Accounting Standard for Leases Impacts Private and Public Companies

ASC 842 requires leases with contractual terms of more than one year to be presented on the balance sheet. This means lessees are required to include lease obligation as a liability and the right-of-use as an asset on their financial statement, regardless of whether it is an operating or financing lease.

CVS, Microsoft Ink Alliance

The two companies are forming a strategic alliance to co-develop products around the areas of personalized care and digital health to deliver more customized health recommendations when and where consumers need them as the retail pharmacy giant continues to focus on digitally enabled and consumer-centric health services.

Is Sequoia’s New Fund Model Evolutionary or Revolutionary?

Becoming a registered investment advisor allows Sequoia to be more flexible with managing its funds. The main driver of this change is that companies are staying private much longer than in the past. Now, due to bigger rounds at even larger valuations, companies can stay private for a decade before even considering going public, cutting significantly into how long a venture capital firm can hold its public stake before needing to close what is typically a 10-year fund.

Advances in Voice Services Will Apply to Healthcare

Many large retailers are adding voice services to their ordering capabilities to improve the consumer digital experience. These services are referred to as “frictionless shopping alternatives.” Healthcare organizations will need to adopt these same conversational voice capabilities to remain competitive in their markets.

Augmented Intelligence Equals AI for Healthcare

No physician should trust or rely entirely on the output of an AI solution to dictate their course of treatment for a patient. Rather, AI should be used to augment the physician’s education and experience for determining the best course of action for patient care.

Best in KLAS 2022

The long-anticipated wait will soon be over! KLAS’ industry-renowned Best in KLAS report is scheduled to publish on Tuesday, February 8, 2022. This annual report recognizes top software and service market vendors for their outstanding efforts to provide the broadest operational and clinical impact on healthcare organizations. To secure your copy of the upcoming report, contact the KLAS Investment Advisory team at investorservices@klasresearch.com

author - Natalie Jamison
Designer
Natalie Jamison
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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.