Top HIS Vendors by 2013 Revenue

Who Gets In? Who Gets In?

Ranked companies offer a suite of core financial and clinical systems to automate the major departments in a hospital, and may offer ancillary products. Vendors with niche ancillary products, hardware vendors and consulting firms are excluded. HIS Pros scoured web sites, published earnings reports and contacted vendors to get revenue figures. Estimates were made for companies that are privately held (e.g.: Healthland), or are a part of giants whose revenue includes non-healthcare sectors (e.g.: Siemens and GE). These estimates were based on past years when HIS revenue was reported and adjusted for market share growth/decline since then.

McKesson McKesson

The parent company provides one-third of all drugs sold in the US and their “Provider Technologies” division once again gives the main portion of their profit and leads the HIS vendor pack in 2013, their 12th year at the top. Their $3.4B in technology revenue includes InterQual and RelayHealth, up from $3.2B last year. Strong Paragon sales into mid-sized hospitals offset any sunsets on the Horizon…

Cerner Cerner

Sales of their Millennium suite of HIS products yielded annual revenues of $2.9B, up from nearly $2.7B in 2012. They are selling strongly considering they are in Epic’s market space (witness the Intermountain Healthcare win), have a large international presence, and even offer “Community Works” to Critical Access Hospitals.

Siemens Siemens

The vendor’s $1.8B HIT revenue is estimated based on their complex parent organization, which had revenue of 76 billion Euros worldwide, a 1% drop from 2012. About 17% of these Euros are in healthcare, primarily imaging equipment. Although the Soarian EHR has a tough go selling against Epic to new prospects, Siemens’ superb sales organization does well selling it to hundreds of clients on their aging Invision and MedSeries4 systems.

Epic Epic

The Wisconsin “polar vortex” has won every major IDN and AMC decision over the past five years, except for the surprising loss to Cerner at IHC last year. Privately held, Wikipedia lists their 2013 revenue at $1.7B, well up from last year’s $1.5B. Future prospects are equally rosy as the Epic “lemming effect” seems to be taking hold internationally as well. The only thing growing faster than their revenue seems to be their product suite, encompassing every app except ERP.

Allscripts Allscripts

Several years of turmoil in their C-suite, boardroom and stock price was reflected in their revenue being down to “only” $1.37B compared with $1.44B the previous year. But new CEO Paul Black had a strong sales track record at Cerner. Allscripts has been a leader in the physician practice markets for years, so combined with the HIS they acquired from Eclipsys, they should become a major player in an ACO world that demands interoperability.

GE Healthcare GE Healthcare

The company slipped again in 2013 as it continues to lose Centricity Enterprise (hospital) clients with no new hospital sales reported. We estimate HIS revenue has dropped to about $800M from $850M a year ago. Their overall healthcare division represents 18% of the corporate parent GE’s billions, selling myriads of technology products in radiology (RIS/PACS) and other niches such as cardiovascular.

Meditech Meditech

We estimate revenue of $600 million as they have not published 2013 revenue as of mid-March due to revenue recognition auditing issues. Those are impressive revenue figures, as we noted last year, considering that among top vendors, only they and Epic do not sell servers. Net income on 2012's $597M revenue was $130M--a 21 percent profit margin. Strong 2013 sales of Release 6 were balanced by losses of aging Magic clients, so overall revenue was flat.

NextGen NextGen

The company is a division of Quality Systems, Inc. that acquired Opus’ hospital EHR and Sphere’s financial systems, creating a total HIS to go with NextGen’s strong physician electronic records and practice management systems. We estimate their 2013 revenue at $460M up 7% from $429M in 2012.

Computer Programming & Systems Inc. Computer Programming & Systems Inc.

Leader in the under 100-bed hospital market who broke the $200M barrier in 2013 and had a 16% net profit margin. Revenue of $201M was up 10% from 2012’s $183M, thanks to new sales of their highly integrated “CPSI System” and EHR upgrades for their client base of 650 mostly small hospitals.

MEDHOST MEDHOST

Originally Healthcare Management Systems and known as HMS, then re-named HealthTech after they merged with the MedHost EDIS giant, and now re-named as MEDHOST. A leader among the many hospital chains based near their HQ in Nashville (like CHS), their CEO recently claimed $180M in annual revenues for 2013 compared with $156M in 2012.

NTT Data (formerly Keane) NTT Data (formerly Keane)

An IT subsidiary of Japan telecom giant Nippon Telegraph & Telephone and headquartered in Plano, Texas, NTT Data claimed $230M for 2013, of which we estimate HIT revenue at about $175M for their Optimum HIS and NetSolutions LTC systems, a good bump from $150M the previous year.

QuadraMed QuadraMed

The firm’s $90M in estimated revenue is far down from previous years (estimated $106M in 2012 & $170M in 2011) due to the sale of their Quantim HIM system to Nuance, which had been a large chunk of their business. Their QCPR electronic health records system at New York City Health and Hospitals Corporation will be replaced over the next few years by Epic, so their new owner, Quebec-based N. Harris Computer Corp., faces many long-term challenges.

Healthland Healthland

The vendor specializes in the Critical Access Hospital market with $80M in estimated 2013 revenue (up $5 million from 2012), due mainly to sales of EHR applications to their large client base of 400+ hospitals, as well as upgrading many Classic clients to the newer Centriq version.

About the Authors About the Authors

Vince Ciotti had over 40 years of HIS industry experience, including 15 years working for vendors and 25 years in consulting. He is a co-founder of HIS Pros, and worked at many of their 370 client hospitals on system selections. He can be reached at vciotti@hispros.com.

Bob Alcaro focuses on healthcare financial systems having served as a hospital CFO and internal auditor. He has headed up financial-based application development for such firms as Tymshare Medical Systems and McAuto. Bob has been with HIS Pros for over 20 years and can be reached at ralcaro@hispros.com.

With over 90 percent of US hospitals attesting for meaningful use of an EHR last year, most hospital information system vendors reported continued growth in annual revenue for 2013. So how did your vendor fare in the race for these HITECH dollars? Consultants Vince Ciotti and Bob Alcaro from HIS Professionals annually rank the top HIS vendors by revenue. The players did not change, nor did their rankings. But some had better years and some worse, and some are looking at better times while others may struggle. Ciotti and Alcaro assess the market.

 

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