1. 2017 top his vendors
TRANSCRIPT
Top 10 HIS Vendors by 2016 Revenue
© 2017 by H.I.S. Professionals, LLC, all rights reserved.
By Vince Ciotti & Elise AmesHIS Professionals, LLC
1980 1990 2000 2010 2015
HIS-tory of “Top” Vendor Reviews• If you’re reading any of the few print magazines left in our
industry or getting far more unvarnished insights from HIStalk, you’ve probably followed our annual review of the leading HIS vendors in order of their annual revenue for many years:– Original credit for the idea must go to Bill Childs who created
this whole media when he started his Computers in Hospitals magazine in 1980 with a whopping 52 page first issue.
• Bill’s magazines morphed & were renamed many times over the years, and subsequent rags expanded the vendor review from 25, 50 and then 100 “Top” vendors in 200+ pages.
• We’ve been continuing Bill’s tradition of HIS vendor revenue reviews for about the past 20 years, now listing ours on HIStalk, the source today for unbiased vendor info & critiques.
Definitions• It’s important to define what one means by an “H.I.S.” vendor
since a leading print rag’s rankings include vendors in their top 10 like Optum, Cognizant, Dell, Phillips, Xerox and EMC, that don’t even offer an H.I.S. system, which we define as:
- Hospital – acute care facilities are their primary market, not “just” physician practices, managed care, long term care, home health, PACS, etc.
- Information – the full suite of apps needed to automate a hospital: both financial and clinical systems. Thus, niche payers like Sunquest & Soft for LIS and Oracle & Ormed for ERP are excluded.
- Systems - the complete package of hardware, software and implementation. This excludes giants like CSC, IBM, Leidos, HP, Dell, EMC, etc, who “only” offer hardware and/or consulting.
HIS Vendors Revenue for FY 2016• Revenue figures came from SEC filings (10-Ks) or info received
from the vendors themselves. Estimates had to be made for companies with a late fiscal year like McKesson (March 30), many divisions like Harris Health, or privately held like Medhost.
2016 vs. 2015 Changes• The increase/decrease in revenue per vendor, as well as the
huge disparity in $ size and market share from top to bottom:
2016 Revenue Shockers• There are some changes in this table that deserve highlighting:
- Cerner – forged way ahead of #2 Epic for the lead in the HIS industry by revenue for the third year in a row, thanks to the $1B+ in revenue they gained from Siemen’s clients, many of whom are being sold Millennium & Community Works.
- McKesson – sold off about half of their EIS division:- Change Health - got the largest share, while- eMDs – bought the physician practice systems.The remainder (Paragon, etc.) is still for sale…
- Meditech – declining revenue for the 4th year in a row, reflecting the many Magic and Client/Server clients’ reluctance to change without MU $s...
New/Changed NamesThere were several new or changed HIS vendor names this year:• eClinicalWorks – joined athenahealth in crossing over from the
physician practice market into the HIS space, claiming 13 pilot hospital sales of an integrated HIS/MD system “in the works.”
• CPSI – evidently their re-branding as “Evident” didn’t quite work out, so they’re back to using their old acronym which stands for “Computer Programs and Systems, Inc” - hope they Thrive…
• Harris Healthcare – From Compucare to QuadraMed to the Canadian Constellation Software’s N. Harris division (not to be confused with the US “Harris”), it’s been quite a ride!
• NTT Data – the new home & name for Dell’s $2B+ HIT consulting division, which dwarfs the “Keane” HIS Division so much there wasn’t a mention of the Optimum HIS at their HIMSS booth…
Quite a hot year for the vendors of business cards and stationary!
MIA!?Several vendor names dropped from past years’ HIS vendor lists:
– Siemens/SMS - the leader in HIS revenue for decades before being acquired by Siemens circa Y2K, & then Cerner in 2015.
– GE – this tech giant is a major player in the physician practice and ancillary department (eg: OB) market niches, but has only about a dozen clients on the ex-IDX “Centricity” HIS.
– Healthland – this small hospital (<100 beds) giant with over 350 hospital clients was acquired by Evident (CPSI) in 2015.
– NextGen – acquired the Opus hospital EMR and Sphere financials (RCM and ERP) several years ago, but couldn’t sell the interfaced systems, and sold out to QuadraMed in 2015.
And one name soon to be dropped pending an imminent sale:– McKesson - the leader in HIS revenue for a full decade before
selling off half their business and trying to sell what’s left...
20 Years of HIS Vendor RevenueHere’s two decades worth of revenue for today’s Top 10 vendors:
Next Episodes• We’ll delve into the details of the top 10 vendors’ performance
over the next 3 episodes, broken down by the three major HIS market segments (in terms of bed size and vendor revenue):– Large – those vendors whose derive the majority of their
revenue from large hospitals over 300 beds in size, including large AMCs & Multi-IDNS: Cerner, Epic, & Allscripts.
– Mid-Size – vendors whose target market includes mainly mid-size hospitals of 100 to 300 beds in size, including Meditech (all 3!), Paragon, NTT Data, Harris Healthcare & Medhost.
– Small – vendors whose client base consists of mostly under 100 bed facilities, including CAH (Critical Access Hospitals) of under 25 beds, where athena & eCW are challenging CPSI.
• For questions, comments, or legal action, please contact us at:[email protected], 505.466.4958 or [email protected], 413.329.6925