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In Post-EHR Market, HIS Revenue Growth to Come From Non-Clinical Segments

February 4, 2015
by Gabriel Perna
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A research effort predicting major growth for the hospital information systems (HIS) market is not a shocker, but a recent one from Frost & Sullivan says that most of the increasing revenue will go to non-clinical HIS segments.

Frost & Sullivan’s report, U.S. Hospital Information Systems Overview and Outlook, 2013–2020: Managing Information in an Era of Reform, predicts that the market for HIS in U.S. hospitals will grow at a compound annual growth rate (CAGR) of 5.7 percent between 2014 and 2020. The kicker is that, in a “post-EHR era,” most of the growth will come from non-clinical systems. Specifically, administrative information systems (predicted CAGR of 10.4 percent over the next five years) and financial information systems (predicted CAGR of 9.7 percent) will grow significantly more than clinical systems (predicted CAGR of only 0.6 percent).

Administrative systems and financial systems will help hospitals navigate the new era of reimbursement, says Frost and Sullivan. They will help hospitals manage labor costs, drive productivity with new workflow tools, engage consumers, and ensure financial viability.

"Hospitals understand they must establish new business models in order to survive under a dramatically transformed provider landscape," Frost & Sullivan Connected Health Principal Analyst Nancy Fabozzi said in a statement. "Most impactful will be cuts in Medicare reimbursement required by the Affordable Care Act as well as the shift to value-based reimbursement by commercial payers.”

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