Ambulatory EHR and Practice Management System Demand

September 25, 2011
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Demand for New and Replacement Systems is Relatively Strong Among Certain Physician Groups

A COMPETITIVE MARKET

Roughly a dozen vendors make up 85 percent of the ambulatory EHR market, Johnson says. He speculates that some physician practices that were early adopters may now be in the replacement cycle or in the market for an integrated EHR/PM solution. As far as who is in the market for a new EHR, the “sweet spot” is clearly the smaller physician groups, particularly those with fewer than 10 physicians, he says.

Broken out by physician size, practices of 11 to 25 doctors is a very competitive market for EHRs, and where the deals tend to get larger. That particular segment is a “pretty significant market, among six, seven, or eight different companies,” whereas smaller and larger size practices tend to have fewer dominant vendors, Johnson notes.

In the most recent survey, 70 percent of practices cited the fact that they have already acquired an EHR as the reason they will not make an EHR purchase; roughly 25 percent cited this reason in the 2010 survey. About 10 percent cited cost as a factor. Of those that are in the market for an EHR, about 55 percent said they were working with their current EHR vendor, roughly the same range as the prior two years.

Roughly half of respondents said they planned to purchase a new EHR in 2011, about the same percentage as in 2010. In 2009, less than 40 percent said they planned a purchase. Of those groups that said yes to a purchase, most (more than 35 percent) were physician groups of 10 doctors or fewer. Most said they planned to make a purchase in seven to 12 months or 13 to 24 months.

Healthcare Informatics 2011 October;28(10):27-46

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