The Real Deal: Top HIS Vendors by Revenue
With so many I.T. vendors selling multiple products to hospitals such as supplies, monitors, consulting, and outsourcing, Top Vendor lists have become very confusing.
To set matters straight, a team of veteran consultants from HIS Professionals--Vince Ciotti, Barry Mathis and Elise Ames--analyzed the market for 2011 and compiled a list of the top vendors by revenue whose business is hospital information systems.
HOSPITAL: The target market for the vendors on this list is primarily hospitals, not physician practices, managed care organizations, long term care facilities or other health care markets.
Many vendors sell to multiple markets, but for the purposes of this analysis HIS Professionals required the majority of revenue to come from hospitals.
INFORMATION: The full suite of applications needed to automate most major departments in a hospital: financial (access, HIM, and revenue cycle), and clinical (EMR, nursing, and major ancillary departments).
SYSTEMS: The complete package of hardware, software and implementation needed to convert a hospital, and the ongoing software maintenance and support needed to keep it running.
To obtain 2011 revenue figures, HIS Professionals scoured government and financial Web sites, published earnings reports and contacted vendors directly to come up with the numbers.
In some cases, estimates had to be made for companies that are privately held or are parts of larger conglomerates.
HIS Professionals estimated the 2011 market for health information systems was $12 billion. Here's a breakdown of the market share for vendors included in the following analysis.
2011 HIS Revenue: $3.195 billion
2010 Revenue: $3.124 billion
Source: SEC 10-K
The company's Provider Technologies division continued its dominance of the HIS market by posting nearly $3.2 billion in 2011 HIT revenue, up from 2010s total of just over $3.1 billion.
The I.T. division represented 44% of the parent drug companys profit from their $112 billion in total revenue.
2011 HIS Revenue: $2.2 billion
2010 Revenue: $1.85 billion
Source: SEC 10-K
Revenue grew by 20% as sales of the Millennium suite of EHR products yielded annual revenues of $2.2 billion.
Cerner selling strongly in the community hospital market through its remote hosted solutions, has a strong international presence, and now is offering Community Works to Critical Access Hospitals (CAH) under 25 beds.
2011 HIS Revenue: $1.7 billion
2010 Revenue: $1.6 billion
The $1.7 billion in HIT revenue is estimated based on its complex parent organization, which does over 85 billion Euros worldwide.
Siemens Soarian EHR is selling well, and a number of clients still are on the aging Invision and MedSeries4 systems that are Soarian prospects.
2011 HIS Revenue: $1.4 billion
2010 Revenue: $704 million
Source: SEC 10-K
Reported $1.4 billion in 2011 revenues, thanks in part to the acquisition of Eclipsys in 2010, which was a dominant player in the high-end HIS market with its Sunrise suite.
AllScripts had been a major player in the physician practice market and its impressive revenue figure reflects the growing interest in community-wide EHRs that include hospitals as well as physician practices.
2011 HIS Revenue: $1.2 billion
2010 Revenue: $825 million
Epic continues its amazing growth thanks to a slew of signings in 2011.
2011 HIS Revenue: $900 million
2010 Revenue: $950 million
The Centricity product line comprises former IDX CareCast hospital EHR and practice management systems, as well as MedicaLogics Logician ambulatory EHR.
HIS Professionals estimates that HIT revenue has dropped from $950 million in 2010 due to sluggish sales, although parent GE is still the sixth largest firm in the United States and its health care division, which sells myriads of technology products in radiology (RIS/PACS) and other niches (CVIS), posted $18 billion in sales.
2011 HIS Revenue: $545 million (estimate)
2010 Revenue: $459 million
Source: SEC 10-K
The $545 million would be even larger if it included hardware-- Meditech and Epic being the only HIS vendors that do not sell servers.
The 19% jump from 2010 revenue of $459 million is a testimonial to the company's ability to juggle three product platforms with hundreds of hospitals running on each: Magic, Client/Server and Release 6 (now being called Meditech Advanced Technology, or MAT).
2011 HIS Revenue: $353 million (estimate)
2010 Revenue: $292 million
The practice system vendor acquired Opus modern and highly functional inpatient EHR, Spheres hospital financial systems and Rick Oprys IntraNexus (successor to the SMS Allegra system).
Like Allscripts, NextGen offering a total HIS along with a strong physician EMR/PM system has been a hot seller, primarily in the small hospital market.
2011 HIS Revenue: $174 million (estimate)
2010 Revenue: $153 million
Source: SEC 10-K
The leader in the small (under 100-bed) hospital market, with $174 million in revenue and a 15% profit margin. Revenue was up 14% from 2010s $153 million, thanks to another year of strong sales of its CPSI System, installed in over 600 hospitals.
2011 HIS Revenue: $170 million (estimate)
2010 Revenue: $150 million
The $170 million in 2011 revenue estimate reflects sales of its QCPR (QuadraMed Computerized Patient Record) EHR, acquired from Misys to the Affinity client base, as well as strong sales of its HIM and identity management eMPI systems.
2011 HIS Revenue: $160 million 2010 Revenue: $190 million
The company was sold to NTT (Nippon Telephone & Telegraph) by Caritor in 2010, complicating HIT revenue figures.
Its I.T. subsidiary NTT DATA Inc posted $1.5 billion in worldwide revenues, of which HIS Professionals estimates includes $160 million in 2011 HIT revenue.
The company sells the industry-leading LTC system, plus sales of their new Optimum HIS to PatCom and First Coast clients.
2011 HIS Revenue: $110 million
2010 Revenue: $100 million
The HMS based in Nashville, Tenn. (another company called HMS is based in New York and sells managed care software).
HMS is a leader among small hospitals, and HIS Professionals estimates $110 million in 2011 revenue, much of it from the acquisition of MedHost, a popular ED system, and a new ambulatory EHR. Company is owned by Primus, a European VC firm.
2011 HIS Revenue: $70 million
2010 Revenue: $65 million
A strong player in the under 25-bed CAH (Critical Access Hospital) market with an estimated $70 million in 2011 revenue, mainly sales of EHR applications to a large client base of over 400 hospitals.
For more information about HIS Professionals, go to www.hispros.com/.
To access last year's Top HIS Vendors by Revenue report, click here
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