TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
Making the most of digitized healthcare
Insights from TBR’s 1Q14 Healthca...
TBR
2 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Qu...
TBR
3 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
TBR’s healthcare IT servi...
TBR
4 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Qu...
TBR
5 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Qu...
TBR
6 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
The healthcare provider s...
TBR
7 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
A maturing market encoura...
TBR
8 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
HITS revenue growth leade...
TBR
9 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
HITS operating margin lea...
TBR
10 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
HITS vendors are adjusti...
TBR
11 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Q...
TBR
12 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Gaining IP to facilitate...
TBR
13 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
HITS vendors engaged in ...
TBR
14 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT services v...
TBR
15 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Q...
TBR
16 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services V...
TBR
17 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services V...
TBR
18 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services V...
TBR
19 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Questions?
Healthcare IT...
TBR
20 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Joseph Walent
Lead Analy...
TBR
21 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
Healthcare IT Services Q...
TBR
22 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc.
PSP Syndicated Research ...
About Us
Technology Business Research, Inc. is a leading independent technology
market research and consulting firm specia...
Upcoming SlideShare
Loading in...5
×

Making the Most of Digitized Healthcare Data

247

Published on

The Healthcare IT services market has grown in recent years due to an increasing need for healthcare professionals to digitize healthcare data in EHRs and an increased emphasis on improved patient health outcomes. These changes lead to a desire for increased use of analytics to capture trends and key healthcare performance indicators in the healthcare IT sector.

Analyst Joseph Walent shared his perspective on the latest results and provided webinar attendees with additional insight into vendors' performances and the future of the healthcare IT services market. Walent then fielded questions from the audience related to this research.

Questions for discussion included:

• How are healthcare IT services (HITS) vendors employing data analytics tools and solutions to generate improved outcomes for providers and payers?
• What types of solutions are HITS vendors bringing to bear to help ensure patient wellness?
• In what ways are HITS vendors delivering value-added service in transformational technologies and the associated business consulting services to maximize the impact?

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
247
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
15
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Making the Most of Digitized Healthcare Data "

  1. 1. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C. Making the most of digitized healthcare Insights from TBR’s 1Q14 Healthcare IT Services Benchmark July 17, 2014
  2. 2. TBR 2 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Readout: Presenter Joseph Walent Lead Analyst, Healthcare IT Services Professional Services Practice Email: joseph.walent@tbri.com Twitter: @JDWalent
  3. 3. TBR 3 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. TBR’s healthcare IT services reports deliver unique insight and value through in-depth analysis in a concise, consumable format TBR Healthcare IT Services Overview Clients gain advantages and a better understanding of revenue opportunities through our reports and their personal relationships with TBR • TBR continually covers 20 vendors in its Healthcare IT Services Benchmark. • Of those vendors, we publish five healthcare IT services (HITS) company reports, focusing on the HITS businesses of Accenture, CSC, Dell Services, HP Services and IBM Global Services. • The healthcare activities of eight other firms are covered in TBR’s overall IT services quarterly and semiannual reports on CGI, Cognizant, Deloitte, General Dynamics, HCL, Infosys, Leidos and Xerox. • TBR’s Healthcare IT Services Benchmark includes the activities of Allscripts, Cerner, CPSI, Epic, Harris, McKesson and NextGen. o TBR reports are unique due to their deep, holistic analysis of leading vendor businesses. o Financial modeling and TBR insights help customers build a better understanding of vendor business models. o TBR reports and webinars are designed to be responsive to client time lines, to be clear and concise, and to provide insights across multiple layers of an organization. o TBR’s strategic assessment provides an impartial reality check on how vendors are performing in their strategic objectives and the overall market.
  4. 4. TBR 4 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Readout: Agenda and Format Today’s Agenda 1. Key fiscal results from the 1Q14 benchmark 2. Strategic actions: M&As, alliances, portfolios 3. Where is the market headed? 2014 outlook 4. Q&A
  5. 5. TBR 5 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Benchmark Highlights for 1Q14 Balancing portfolios: M&As, alliances, internal Around the bend: HITS market focus areas Solid vertical demand: Recent fiscal results Continued evolution of demand in the various segments of the HITS marketplace expanded the scope of opportunities for vendors in 1Q14 SOURCE: WWW.THINKWITHGOOGLE.COM SOURCE: WWW.INETU.NET SOURCE: WWW.TREKEARTH.COM
  6. 6. TBR 6 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. The healthcare provider segment will remain the central revenue engine in the majority of HITS vendors’ business models in 2014 Declining federal subsidies for IT implementation in healthcare contributed to softening demand for HITS solutions Healthcare IT Services Quarterly Benchmark Research Highlights 8.8% 8.9% 8.6% 8.0% 6.0% 9.7% 9.3% 9.4% 8.6% 7.9% 0% 2% 4% 6% 8% 10% 12% 1Q13 2Q13 3Q13 4Q13 1Q14 Growth% Calendar Quarter Average Growth (YTY TTM Revenue & YTY Quarterly Revenue) for HITS Vendors Average YTY Growth Average TTM YTY Growth TBR SOURCE: TBR ESTIMATES AND COMPANYDATA
  7. 7. TBR 7 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. A maturing market encouraged HITS vendors to develop and implement mission-specific solutions to secure market share Vendors that focused on niche HITS solution delivery fared better than their generalist counterparts in 1Q14 Healthcare IT Services Quarterly Benchmark Research Highlights Accenture CGI Cognizant Harris Cerner Allscripts Infosys Leidos Deloitte Epic -20% -10% 0% 10% 20% 30% 40% 50% 60% -20% -10% 0% 10% 20% 30% 40% OperatingMarginTTM Healthcare IT Services Revenue TTM Growth YTY 1Q14 HITS TTM Operating Margin and Revenue Growth NOTE: SPHERESIZEREFLECTS VOLUMEOF REVENUE. SOURCE: TBR ESTIMATES AND COMPANYDATA TBR 9.4% Avg. Healthcare IT Vendor TTM Growth YTY 13.2% Avg. Healthcare IT Vendor TTM Operating Margin
  8. 8. TBR 8 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. HITS revenue growth leaders are expanding their presence in new segments and pursuing international opportunities to drive growth Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services TTM Revenue Growth Leaders in 1Q14 • Logica acquisition masked the negative impact of loss of HealthCare.gov and Massachusetts Health Connector engagements. • Opportunities captured in Europe offset setbacks in the U.S. public sector. • Focus on systems for large-scale U.S. provider market continued to generate leading growth rates. • Expanded presence in federal and consumer healthcare IT markets in 1Q14. 26.3% in 1Q14 25.7% in 1Q14 29.9% in 1Q14 • Internal development of proprietary solutions for business process outsourcing (BPO) and IT outsourcing (ITO) • Aggressive pursuit of engagements in public sector, payer and life sciences segments Other vendor revenue growth leaders in 1Q14: Deloitte (23.1%), Cognizant (19.9%), Cerner (17.7%) Infosys CGI Epic
  9. 9. TBR 9 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. HITS operating margin leaders employed a variety of strategies to secure top spots for profitability Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Operating Margin Leaders in 1Q14 • Expanding offshore labor pools • Introduction of automated service delivery to maximize resource utilization • Near-exclusive focus on the small and midsize provider community combined with efficient use of technology helped preserve profits. • Expiration of federal incentive payments for HITS adoption will weigh on CPSI’s business in coming quarters. 25.6% in 1Q14 23% in 1Q14 24.7% in 1Q14 • Strong market position with premium price points coupled with exclusivity on customization of systems • Leverage of C&SI firms for lower-value implementation and integration work • Epic’s push to generate additional analytical insights for clients will increase value and improve profitability. Other operating margin leaders in 1Q14: Cerner (22.3%), Cognizant (19.4%), Infosys (17.8%) HCLT Epic CPSI
  10. 10. TBR 10 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. HITS vendors are adjusting their offerings as healthcare industry clients widen their use of IT-enabled solutions Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Segment Trends in 1Q14 Payer: HITS vendors are supporting payer clients with patient engagement solutions such as patient portals and population health management tools that help members make positive healthcare decisions. Provider: Healthcare providers are moving to a collaborative healthcare system where IT system interoperability is critical to improving quality of care and patient outcomes. Life Sciences: Life sciences IT vendors are generating analytics offerings that provide capabilities to help drive insights around drug discovery or biological manufacturing. Federal: Growth of the federal healthcare segment decelerated as financial outlays for the implementation of the Affordable Care Act (ACA)-mandated health insurance exchanges diminished. State and Local: As part of the ACA, states are revamping Medicaid Information Management Systems, creating opportunities for vendors such as Xerox and HP. SOURCE: WWW.DAC-LAW.COM SOURCE: WWW. CPRNETWORK.CA SOURCE: WWW. XCONOMY.COM SOURCE: WWW. OCCASIONALPLANET.COM
  11. 11. TBR 11 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Benchmark Highlights for 1Q14 Balancing portfolios: M&As, alliances, internal Around the bend: HITS market focus areas Solid vertical demand: Recent fiscal results Broader access to HITS solutions affords HITS vendors opportunity to secure wallet share from clients SOURCE: WWW.THINKWITHGOOGLE.COM SOURCE: WWW.INETU.NET SOURCE: WWW.TREKEARTH.COM
  12. 12. TBR 12 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Gaining IP to facilitate the delivery of a wider range of HITS services and capabilities influenced 1Q14 acquisitions Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Vendors: Key Mergers and Acquisitions in 1Q14 Cloudant: As healthcare becomes increasingly personalized, access to Cloudant’s Database as a Service (DBaaS) capabilities will provide IBM GS an attractive offering that caters to developers creating mobile and Web apps. ISG Holdings: Xerox’s acquisition of ISG’s established medical bill review, care management services and analytics solutions will enhance Xerox’s healthcare provider BPO portfolio. Xerox IBM
  13. 13. TBR 13 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. HITS vendors engaged in alliances to deepen portfolios and extend market reach Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Vendors: Key Alliances and Partnerships in 1Q14 Texas A&M Health Science Center: Dell and Texas A&M partnered to create a health technology academy that will provide healthcare professionals specialized information technology education. Amazon Web Services: The partnership will result in the development of healthcare cloud solutions that leverage Amazon’s public cloud offerings and CSC’s cybersecurity, cloud management and electronic health record (EHR) system integration capabilities. Apple: Epic’s MyChart will integrate with Apple’s HealthKit, allowing consumers to feed their biometric information into the application, increasing Epic’s direct exposure to the healthcare consumer. CSC Dell Services Epic
  14. 14. TBR 14 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT services vendors focused internal development efforts on improving efficiency and security of healthcare organization operations Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Vendors: Key Service Announcements in 1Q14 FusionFX: Harris released its long-awaited EHR integration platform enabling the efficient exchange of patient information through its patient portal interface. ConvergeHealth: Deloitte launched a transformational business unit focused on delivery of outcome-based solutions by providing data-driven consulting services. Managed Mobile Services: The expansion of McKesson’s HITS portfolio to include a mobile device management solution addresses the security concerns of provider IT departments that are stretched thin. Deloitte Harris McKesson
  15. 15. TBR 15 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Research Highlights Healthcare IT Services Benchmark Highlights for 1Q14 Balancing portfolios: M&A, alliances, internal Around the bend: HITS market focus areas Solid vertical demand: Recent fiscal results Changes in how healthcare is delivered and results are measured will spur solution development for HITS vendors in 2014 SOURCE: WWW.THINKWITHGOOGLE.COM SOURCE: WWW.INETU.NET SOURCE: WWW.TREKEARTH.COM
  16. 16. TBR 16 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Vendor Trends for 2014 — Patient Engagement HITS vendors will enhance patient and member communication solutions to deliver more personalized medical treatment Healthcare IT Services Quarterly Benchmark Research Highlights Challenges • Shift to outcome-based remuneration, placing more risk with providers. • Personalization of healthcare plans and strategies requires flexibility and interoperability in healthcare data exchange. Opportunity • HITS vendors with experience in development and implementation of retail customer contact solutions will translate offerings to healthcare patient case management strategies and solutions. • Integration of security within solutions across platforms and access points will stand out in the marketplace. SOURCE: WWW.SNAPCOMMS.COM
  17. 17. TBR 17 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Vendor Trends for 2014 — Convergence and Consolidation Expanding regulatory requirements and demand for more coordinated care are changing the payer and provider landscape Healthcare IT Services Quarterly Benchmark Research Highlights Challenges • Expansion of the payer and provider model across various states with varying insurance regulatory structures and requirements • Maintaining protected health information (PHI) while simultaneously improving information liquidity Opportunity • Consumer-oriented healthcare delivery will encourage leverage of economies of scale. • Improved population health data enables improved preventive healthcare delivery. • Solutions limiting internal sharing of certain healthcare data in converged organizations SOURCE: WWW.WORKLIFECHAMPIONS.COM.AU
  18. 18. TBR 18 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Vendor Trends for 2014 — Management of Chronic Conditions Solutions for managing secure communication across accountable care organizations will be in demand from HITS vendors in 2014 Healthcare IT Services Quarterly Benchmark Research Highlights Challenges • Chronic conditions such as diabetes, asthma and heart disease consume the majority of healthcare delivery spend globally. • Expansion of healthcare coverage in the U.S. increases demand for healthcare infrastructure for chronic condition management. Opportunity • Development and implementation of remote monitoring and telemedicine delivery capabilities via cloud and mobility solutions • Vendors with international HITS delivery have greater exposure to in-home medical delivery models effective in chronic condition management. SOURCE: WWW.DIABETESMINE.COM
  19. 19. TBR 19 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Questions? Healthcare IT Services Quarterly Benchmark Research: Questions
  20. 20. TBR 20 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Joseph Walent Lead Analyst, Healthcare IT Services Professional Services Practice Email: joseph.walent@tbri.com Twitter: @JDWalent James McIlroy Vice President of Sales Email: mcilroy@tbri.com Telephone: 603.929.1166 Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel LinkedIn: www.linkedin.com/company/technology-business-research Healthcare IT Services Quarterly Benchmark Research: Contact Information
  21. 21. TBR 21 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. Healthcare IT Services Quarterly Benchmark Research: Appendix Accenture CGI Cognizant CSC Harris CernerIBM GS HP Services Allscripts Infosys Dell Services Xerox Leidos NextGen McKesson Deloitte General Dynamics Epic HCL CPSI -20% -10% 0% 10% 20% 30% 40% 50% 60% -20% -10% 0% 10% 20% 30% 40% OperatingMarginTTM Healthcare IT Services Revenue TTM Growth YTY 1Q14 HITS TTM Operating Margin and Revenue Growth NOTE: SPHERESIZEREFLECTS VOLUMEOF REVENUE. SOURCE: TBR ESTIMATES AND COMPANYDATA TBR 9.4% Avg. Healthcare IT Vendor TTM Growth YTY 13.2% Avg. Healthcare IT Vendor TTM Operating Margin
  22. 22. TBR 22 TBR HITS Benchmark Webinar | 1Q14 | www.tbri.com | ©2014 Technology Business Research Inc. PSP Syndicated Research Coverage IT Services Vendors Public Sector Vendors Benchmarks (Benchmark XLS data also available) • Accenture • Atos • Capgemini • CGI* • Cisco Services • Cognizant • CSC • Dell Services • Fujitsu • HCL Technologies • HP Services • IBM Global Services • Infosys • T-Systems • Tata Consultancy Services • Unisys • Wipro IT Services • Xerox Services • Booz Allen Hamilton* • CACI International* • General Dynamics IS&T* • L-3 Communications* • Leidos* • Lockheed Martin IS&GS* • ManTech* • Northrop Grumman IS&TS* • Raytheon Intelligence, Information & Services* • SAIC* • Global Delivery Market Landscape • Healthcare IT Services Vendor Benchmark • IT Services Vendor Benchmark • Management Consulting Benchmark • Public Sector IT Services Vendor Benchmark • Software Alliance Benchmark Healthcare IT Services Vendors • Accenture HITS* • CSC HITS* • Dell HITS* • HP HITS* • IBM HITS* Management Consulting Vendors • Bain & Company* • Booz & Company* • Boston Consulting Group* • Deloitte Consulting* • McKinsey & Co.* TBR Professional Services Practice Syndicated Coverage *Semiannual publication
  23. 23. About Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. Contact Us 1.603.929.1166 info@tbri.com www.tbri.com 11 Merrill Drive Hampton, NH 03842 USA This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact ©Technology Business Research, Inc. for permission to reproduce.

×