KLAS: Epic, Cerner Capture Three-Fourths of EHR Contracts in Large-Hospital Space | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

KLAS: Epic, Cerner Capture Three-Fourths of EHR Contracts in Large-Hospital Space

August 27, 2013
by Rajiv Leventhal
| Reprints

Health IT vendors Epic and Cerner have combined to capture more than 75 percent of new large-hospital electronic health record (EHR) contracts, while the other vendors struggled to keep pace, according to the latest report from the Orem, Utah-based research and consulting firm, KLAS Research.

The report, “Clinical Market Share 2013: More than Meaningful Use,” shows that the Verona, Wis.-based Epic has the most new hospitals (47) for the fifth year in a row—including many prominent health systems—while Cerner (Kansas City) continues its upward trend with the second-most new hospitals (23). Epic’s 2-to-1 lead over Cerner in new hospitals represents a narrowing gap from 5-to-1 in 2010.

McKesson (San Francisco) signed the third-most hospitals due to the move from its Horizon product to its Paragon system. Paragon’s appeal to 200+ bed hospitals is mostly limited to existing Horizon customers wanting to continue their McKesson relationship, as only 1 out of 12 hospitals switched to Paragon from a competitor’s solution in 2012.

Allscripts (Chicago), Meditech (Westwood, Mass.), and Siemens (Washington, D.C.) were all squeezed out according to the report, as none gained enough new hospitals in 2012 to suggest a market share rebound, and each lost more hospitals than the handful they gained. For the first time since KLAS has tracked market share, Allscripts did not gain any hospitals in the 200+ bed space.

Since the introduction of the HITECH Act, 405 out of nearly 1,500 hospitals with more than 200 beds have selected a new, currently marketed EHR. Still, another 443 are running legacy systems or have no EHR at all, and will face decisions in coming years—a majority of these hospitals are running McKesson Horizon or Meditech Magic. Even currently marketed products will not be immune to turnover, as 39 percent of multihospital systems have heterogeneous environments and may eventually follow peers in standardizing on a single EHR, according to the report.

"The HITECH Act that started this mass migration is clearly not over,” report author Colin Buckley said in a statement. “There are over 400 large hospitals that still do not utilize a currently marketed EHR and thus still face a decision. The question is, ‘Which way they will go and which factors will guide that decision?"

Topics

News

Former Health IT Head in San Diego County Charged with Defrauding Provider out of $800K

The ex-health IT director at North County Health Services, a San Diego County-based healthcare service provider, has been charged with spearheading fraudulent operations that cost the organization $800,000.

Allscripts Touts 1 Billion API Shares in 2017

Officials from Chicago-based health IT vendor Allscripts have attested that the company has reached a new milestone— one billion application programming interface (API) data exchange transactions in 2017.

Dignity Health, CHI Merging to Form New Catholic Health System

Catholic Health Initiatives (CHI), based in Englewood, Colorado, and San Francisco-based Dignity Health officially announced they are merging and have signed a definitive agreement to combine ministries and create a new, nonprofit Catholic health system.

HHS Announces Winning Solutions in Opioid Code-a-Thon

The U.S. Department of Health and Human Services (HHS) hosted this week a first-of-its-kind two-day Code-a-Thon to use data and technology to develop new solutions to address the opioid epidemic.

In GAO Report, More Concern over VA VistA Modernization Project

A recent Government Accountability Office (GAO) report is calling into question the more than $1 billion that has been spent to modernize the Department of Veterans Affairs' (VA) health IT system.

Lawmakers Introduce Legislation Aimed at Improving Medicare ACO Program

U.S. Representatives Peter Welch (D-VT) and Rep. Diane Black (R-TN) have introduced H.R. 4580, the ACO Improvement Act of 2017 that makes changes to the Medicare accountable care organization (ACO) program.