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1998 Healthcare Informatics 100 IS Vendors

June 1, 1998
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1998 Top 100 IS Vendors

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June 1998 - Healthcare Informatics

Top 100 Results Reflect Industry Growth and Consolidation

by Jeff Elliott, Business Editor

In annual tradition, we present the fifth Healthcare Informatics Top 100. The industry has doubled since 1994 when we first ranked healthcare IT vendors based on their 1993 financial performance. In 1993, healthcare IS was a $7 billion industry. Revenues of the Top 100 companies ranged from $1.3 million to $501.3 million.

This year’s Top 100 revenues range from $5.5 million to $1.2 billion. Total revenues of the Top 100 companies--$6.9 billion--account for about half of the $14 billion healthcare IS industry in 1997. Industry leaders HBOC, Atlanta, and SMS, Malvern, Pa., continue to distance themselves from the rest of the pack, alone responsible for 30 percent of all Top 100 revenues.

As consolidation commands most of the attention in financial circles, most analysts say that it’s becoming increasingly difficult for the rest of the industry to compete in healthcare IT. Mid-sized companies, in particular, are thought to be a dying breed. If not acquired, they find themselves head-to-head with the handful of industry giants that control proportionate marketshare.

However, companies reporting the most significant growth are not always among the heavy hitters (see "Top 10 Revenue Gainers," page SS26). Advanced Health Corp., Tarrytown, N.Y., grew 207.5 percent and Medical Manager, Tampa, Fla., grew 136.7 percent through acquisition last year. And Lawson Software, Minneapolis, and PeopleSoft, Pleasanton, Calif., reported 94.4 percent and 77.6 percent revenue growth, respectively, from sales of their enterprisewide business applications.

Simply put, the "rest" of the industry will not simply go away, says David Garets, healthcare IT research director for GartnerGroup, Wakefield, Mass. "There is a huge influx of [single application] companies entering the market." While the industry consolidates, it also continues to expand, ensuring that competition in healthcare IT is stronger than ever.

Welcome Aboard
The following companies are among those filling the place of companies we lost from last year:

9Per-Se Technologies is the restructured IT business of Medaphis, Atlanta.

29Applied Healthcare Informaticsformed in October 1996 by United Healthcare, Minneapolis. In 1997 the company acquired Medicode (26), Salt Lake City; O’PIN Systems, Minneapolis; Medical Information Systems, Minneapolis; Certitude, Bethesda, Md.; and Cambridge Health Economics, Burlington, Mass.

91Object Productsmade four acquisitions in 1997--Velocity Healthcare Informatics, Minneapolis; Res-Q Healthcare Systems, Calabasas, Calif.; LINC, Calabasas, Calif.; HealthCheck, Inc., Sacramento, Calif.--placing the company in the Top 100 for the first time with revenues of $8.6 million.

93Triple G Corp. acquired four companies--Rose System Applications Ltd., Victoria, B.C.; Systemes d information SI-4 Inc., Montreal, Quebec; Summit Solutions Corp., Kamloops, B.C.; Technolabs Canada Inc., Markham, Ont.,--generating $8.2 million in revenues and a placement in the Top 100.

Missing in Action
The following companies from last year will not be found in the 1998 Top 100:
21 Enterprise Systems, Inc. acquired by HBOC (1)

24 Phamis, Inc. acquired by IDX Systems Corp. (4)

25 Amisys Managed Care Systems acquired by HBOC (1)

26 Medicode acquired by Applied Healthcare Informatics (29)

33 Medicus Systems Corp. acquired by QuadraMed Corp. (30)

35 HPR Inc. acquired by HBOC (1)

72 Bukstel & Halfpennyacquired by Advanced Health Corp. (78)

72 SDK Healthcare Information Systems acquired by Eclipsys (16)

72 Rothenberg Health Systems acquired by QuadraMed Corp. (30)

86 Healthcare Communications, Inc. (HCI) acquired by HIE (68)

1998 rank
company name
revenue in millions

(800) 981-8601

Malvern, PA
(610) 219-6300

Science Applications International Corp. (SAIC)
San Diego
(800) 535-7762

IDX Systems Corp.1
Burlington, Vt.
(802) 862-1022

Cerner Corp.
Kansas City, Mo.
(816) 221-1024

Medic Computer Systems, Inc.
Raleigh, N.C.
(800) 334-8534


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