83. meditech part 1
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- 1. H.I.S.-toryby Vince CiottiEpisode #83:Meditech Part 1 2012 by H.I.S. Professionals, LLC, all rights reserved.
2. 7th of Todays Leading HIS Vendors This week we continue the HIS-tory of todaysvendors with Meditech, whose 2011 annualrevenue places them in the middle of the pack: 1.$3.2B = McKesson, ne HBOC = Walt Huff, Bruce Barrington, & David Owens 2. $2.2B = Cerner, still run by Neal Patterson, co-founded with Cliff Illig 3. $1.7B (est) = Siemens, ne SMS: Jim Macaleer, Harvey Wilson & Clyde Hyde 4. $1.4B = Allscripts, ne Eclipsys, also founded by Harvey Wilson of SMS. 5. $1.2B = Epic. Gee, I have to wonder, just who was it who founded them? 6. $900M (est) - GE Healthcare, ne IDX/PHAMIS: created by Malcolm Gleser 7. $545M = Meditech, still run after all these years by Antonino Papallardo 8. $353M = NextGen: ne Quality Systems Inc. founded by Sheldon Razin 9. $174M = CPSI, founded by M. Kenny Muscat & Denny P. Wilkins (who??) 10. $170M = QuadraMed, ne Compucare, founded by Sheldon Dorenfest 11. $160M = Keane, parent giant by John Keane, but HIS div. built by Ray Paris 12. $110M = HMS (Healthcare Management Systems), Tom Givens & John Doss 3. 44 Years Ago! Its hard to remember what life was like back in 1969, the yearMeditech was founded. To give you (relatively) young CIOssome idea, heres a few of the salient events of that year: 4. So Whats The Big Deal? You ask: So what if Meditech is 44 years old? Well, only a fewother HIS vendors go back that far, but none have survived beingacquired, and with the same (very!) senior management team. To get this point visually, check out the chart below that showsthe timeline for all 13 of todays leading HIS vendors, showing theyear they were founded and major changes in ownership/name. Only 1 vendor has lasted so long under the same name: Meditech 5. More Perspective on Meditech I spent so much time building this silly chart that I have to make afew more observations from it putting Meditech into perspective: Only 4 other of todays 13 leading HIS vendors have neverbeen merged or acquired: Cerner, Epic, CPSI and HMS Two other vendors were formed in 1969: SMS &Compucare Only one other predates these 1969 graduates: LockheedsMIS, although it changed hands six times before Allscripts 6. Amazing Financial Performance Had Neil chosen to go public, its hard to imagine how manygazillion he &Meditechs employee stockholders would be worthtoday. I could only find published records for Meditech starting in1983, but look at the growth to todays over Billion in revenue: 7. Huge Client Base Meditech claims over 2,300 clients, although this figure needs tobe broken down into many sub-categories. Based on followingthem over the years, heres my best guess as to the breakdown: 400 International: UK, Ireland, South Africa, Australia In Canada alone, they claim 40% of the hospital market! 300 Partial: only a few Meditech applications, e.g.: LIS They are a major Lab player, e.g., UCLA kept their MeditechLIS system rather than converting to Epics Beaker 200 HCA who run a highly customized set of clinicals only HCAs RCM and ERP financial are inhouse self-developed 1,300 HIS US total HIS clients, on 3 different products: 650 (down from 700) still running the old Magic OS 450 (down from 500) running Client Server 300 on Focus, er, Release 6.0, er, Advanced Technology 8. Which Generation? So whenever youre talking about Meditech, itsimportant to specify which of their HIS systemsyoure talking about, as with so many vendors: McKesson Is it the new Paragon, recently sunset Horizon, or the aging Star or Series? Siemens Is it red hot Soarian (with the most R&D), or the aging Invision or Medseries4? And its not just which generation of HIS youre talking about, itswhich of vendors many products, some good and some not: Cerner Is it their rocket-ship Millennium EMR, one of the few competitors to Epic in the IDN market, or inaptly-named ProFit? Allscripts orNextGen is it their industry leading Practice Management and Ambulatory EMRs, or far less dominant HIS? Healthlands Classic or Centriq? Keanes PatCom or Optimum?? The devils in these details, which too many HIS pundits gloss over 9. Next Episodes So we will next delve into the details of each ofMeditechs 3 systems in turn, thanks to help from: Bill OToole - If youre a regular reader of HIS- talk, youve seen a series of excellent articles on legal matters by Bill who spent decades working inside Meditech since 1981 before forming his OToole Law Group (781/934-7400) in nearby Duxbury, Mass. (email@example.com). Also, Bills dad, William F. OToole, who was thePathologist at Cape Cod Hospital that becameMeditechs first hospital client in 1971! Im also eager to hear from any other Meditechdevotees out there, so if you have any good (orbad) Boston stories to tell, please call (505/466-958) or write (firstname.lastname@example.org).