The U.S. market for electronic health record systems is expected to reach $8.3 billion by 2016, growing at an annual rate of more than 12%, according to a report from Millennium Research Group, a Toronto-based market research firm, Health Data Management reports.
Increased Demand for EHRs
The report — titled, “U.S. Markets for Electronic Medical Records 2012” — predicted that Medicare reimbursement penalties for noncompliance with meaningful use requirements starting in 2015 will fuel steady demand for EHR systems (Goedert, Health Data Management, 11/10).
Under the 2009 federal economic stimulus package, health care providers who demonstrate meaningful use of certified electronic health record systems can qualify for Medicare and Medicaid incentive payments. Eligible health care providers who do not meet meaningful use requirements by 2015 will see their Medicare reimbursements decline by one percent annually to a maximum of five percent.
According to the report, many hospitals are electing to replace rather than upgrade their current EHR system to comply with meaningful use requirements.
Market Growth Expected To Benefit Established Vendors
Mickel Phung, an analyst for MRG, said that more than 750 new EHR vendors have entered the market in the last two years but that such companies might not have long-term sustainability. Phung said, “Customers want to make sure their systems meet complex and changing requirements. The best way to do that is to go with a larger company with long experience in the market.”
He added that most EHR buyers receive recommendations from colleagues when making purchasing decisions, “which also will favor companies with an established presence” (Byers, CMIO, 11/10).
Source: iHealthBeat
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