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Revenue Cycle Future Plans
Providers Weigh Integration, Functionality, and Clinical Decisions
Current hospital revenue cycle challenges include legacy platforms in need of upgrades, the need to weigh functionality against integration with best-of-breed platforms, and an overall drive toward enterprise-wide integration. In this report, KLAS spoke with providers at acute care facilities to understand how these factors are influencing their decisions to stay with or leave their current platforms and what RCM projects they are focusing on for the future.
1. EPIC PRAISED FOR PERFORMANCE; CERNER CUSTOMERS SETTLE FOR INTEGRATION OVER FUNCTIONALITY
Almost 30% of providers are planning to switch RCM platforms, with Epic and Cerner retaining the most customers. Epic’s integration and performance generate loyalty, with only two potential losses. Cerner customers are heavily invested and staying for integration, but nearly 30% feel buyer’s remorse due to functionality deficits. MEDITECH C/S and 6.x are fulfilling customers’ needs, with most staying; the majority of a small sample of MEDITECH MAGIC customers are planning to leave due to clinical decisions. In contrast, Allscripts may lose customers, as promised integration with new Sunrise Patient Financials is coming too late. GE Healthcare and QuadraMed could lose most customers, as integration needs trump functionality and positive relationships.
2. MCKESSON LOSING MOST CUSTOMERS IN SHIFTING LEGACY MARKET
With the 2018 sunset of Horizon and Series, 70% of McKesson legacy customers are moving to different vendors. Also, 17% of validated Paragon customers are moving to new EMR and RCM software, many citing poor functionality issues as a major dissatisfier. Most Cerner INVISION and MedSeries4 (Siemens) customers are choosing to stay on their current platforms or move to Cerner Patient Accounting; many of those moving face an uncertain transition from highly customized INVISION builds. Most Cerner Soarian Financials (Siemens) customers are choosing to stay, indicating confidence in Cerner's go-forward plans despite initial struggles with implementations and realizing full product potential.
3. PROVIDERS SEE LIMITED OPTIONS BEYOND EPIC AND CERNER
Epic and Cerner are first choices for most providers planning on moving. Epic offers full integration and reduced bolt-ons. Cerner needs continued RCM development to match optimism from customers for future functionality. Allscripts is recruiting customers from their clinical client base, where clinical integration and current relationships drive interest in new Sunrise Financial Manager. All interest in Cerner Soarian Financials (Siemens) and MEDITECH is from customers upgrading from legacy platforms; no customers from other vendors are considering them as a first choice. McKesson, GE Healthcare, and QuadraMed are the least considered replacement platforms.
4. DELOITTE AND HURON GARNER THIRD-PARTY MINDSHARE FOR REVENUE CYCLE CONSULTING
Over 40% of planned RCM projects are focusing on new RCM evaluations, implementations, and training, and roughly 20% are focusing on streamlining functionality or optimizing the RCM system. Deloitte has the most consideration from providers wanting help, with projects spanning implementations, optimizations, and assessment work; providers praise Deloitte’s experience and methodologies. Huron is mentioned for work in optimization projects, where they demonstrate strong improvements in technology and workflow. Cerner gains mindshare from current customers because of existing relationships and is often engaged to resolve implementation issues.
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KEY TOPICS
- Epic Praised for Performance; Cerner Customers Settle for Integration Over Functionality
- McKesson Losing Most Customers in Shifting Legacy Market
- Providers See Limited Options Beyond Epic and Cerner
- Deloitte and Huron Garner Third-Party Mindshare for Revenue Cycle Consulting
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. © 2020 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.