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Top 100 Preview - leading HIS Vendors.

June 6, 2009
by vciotti
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You'll be getting the June issue of Healthcare Informatics any day, so here's some added commentary on the "Top 100" list. First, developments with the top 10 HIS System Vendors:
1. McKesson again tops the list, this time claiming almost $3B in revenue. Gosh, maybe they're installing Epic? Seriously, I think they might have changed some organization or accounting policies, as they were "only" $2.4B last year. For example, maybe the Atlanta accountants now think their RX robots are HIT revenue, rather than drug revenue? hard to believe they sold that many new HIS systems...
2. Cerner posted a healthy $1.7B, up from last year's $1.5B. Hard to believe Neal & company started out 20 years ago as an LIS specialist with only $50M in annual revenue in 1989! I wonder who ever talked Neal and co-founder Craig Illig into branching out into an HIS?
3. Siemens - once again, we have to estimate their HIT revenue as this Germans conglomerate so many convoluted divisions and complex product lines, I'll bet they have a hard time figuring out how the old SMS products are doing. Check out their international web site - they even have hearing aids in their "Healthcare" revenue! So, we peg them at a bit below Cerner at $1.4B in pure HIT revenue - that is healthcare information systems.
4. GE - another estimate as these folks could even count the many refrigerators they sell to Lab depts. in their "HIT" revenue, so we're just making a SWAG at about $1B, based on past years' revenue of firms they acquired like IDX (CareCast), Medicalogic (Logician), etc.
5. Epic - comes in at $602M, which I think was for a single new hospital they signed... Just kidding, they have grown in an incredible fashion from a paltry $27M annual revenue in 1996 to becoming the 5th largest vendor - with no hanky-panky about the revenue - this is all pure HIT bucks!
6. Eclipsys - posted $515M, a nice increase from last year's $477M, and another amazing growth story from their predecessor firms (TDS, AllTell, etc.), who were a measly $90M back in 1990. What's really amazing is Eclipsys was formed by Harvey Wilson, co-founder of SMS. That's one man creating two of the leading HIS firms with $2B in annual revenue between them! Eat your hearts out, Neal & Judy!
All of the above vendors concentrate in selling to large IDNs and AMCS, hence their colossal revenue. Next post will cover "small" HIS vendors who sell to community hospitals that can't afford the 8-figure fees the above behemoths command for an HIS.

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