The U.S. electronic health records market will continue to grow even as Meaningful Use incentive funds start running out, according to research firm Kalorama Information.

The firm projects annual market growth of seven to eight percent during the next five years, with good competition and stable growth despite the absence of incentives boosting the market. An EHR market now valued at nearly $25 billion will grow to $35.2 billion by 2019, according to Kalorama. This includes revenue for EHRs, CPOE, installation, training, services and consulting; it does not include PACS and hardware.

Also See: KLAS Finds New Competition in Hospital EHR Market

The Meaningful Use program has worked and even in later stages its residual effects will be felt, according to the report. In 2006, 29 percent of physicians used some type of EHR; in 2014 that figure hit 82 percent.

The MU incentives continue for now to be a market driver, but Medicare reimbursement penalties that will be imposed starting in 2016 for eligible providers not using a certified EHR also are a driver. Opportunity continues for new entrants, particularly for web offerings.

Cerner is the vendor leader in market share with 14 percent, followed by McKesson at 13 percent and Epic at 7 percent. Other major vendors, with less market share, include Allscripts, Siemens and GE Healthcare all at 5 percent, athenahealth (3 percent), Meditech and NextGen (2 percent), and eClinicalWorks (1 percent). All others make up the remaining 43 percent of market share.

The 490-page report mentions more than 50 vendors, costs $4,200 and is available here.

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