HIMSS12 Annual Conference and Exhibition:  Top Takeaways and Health IT Focus for 2012           Excerpts from Frost & Sull...
Contents (Full Report)Section                                           Slide Numbers Executive Summary                   ...
Conference Overview and HighlightsSummary StatisticsThe HIMSS12 conference was the best-attended ever, attracting 37,032 a...
Conference Overview and Highlights (continued)Special ExhibitionsThe Interoperability Showcase—offered in collaboration wi...
Conference Overview and Highlights (continued)Major AnnouncementsProposed Rules for Stage 2 Meaningful Use—The proposed ru...
Conference Overview and Highlights (continued)Key ThemesMeaningful Use and EHR Adoption Trends—the most important them for...
Conference Overview and Highlights (continued)Payment Reform—Payment reform, namely moving away from fee-for-service to re...
Top TakeawaysDynamic Health IT Market Presents Opportunities and ThreatsAs of early 2012, we find the status of the U.S. h...
Top Takeaways (continued)Stage 1 Meaningful Use is Still the Primary FocusWhile EHR sales have been robust and adoption co...
Health IT Focus for 2012               Market Needs            Opportunities/Product Focus                                ...
CertificationWe hereby certify that the views expressed in this research service accurately reflect ourviews based on prim...
Legal DisclaimerFrost & Sullivan takes no responsibility for any incorrect information supplied to us bymanufacturers or u...
Who is Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth andachieve b...
What Makes Us Unique  Focused on Growth      All services aligned on growth to help clients develop and implement         ...
TEAM MethodologyFrost & Sullivan’s proprietary TEAM Methodology ensures that clients have a complete 360 DegreePerspective...
Our Global Footprint 40+ OfficesScanning the Globe for Opportunities and Innovation9837-48                                ...
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HIMSS12 Annual Conference and Exhibition: Top Takeaways and Health IT Focus for 2012

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Excerpts from a Market Insight reviewing the HIMSS12 annual conference, by industry director Nancy Fabozzi.

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HIMSS12 Annual Conference and Exhibition: Top Takeaways and Health IT Focus for 2012

  1. 1. HIMSS12 Annual Conference and Exhibition: Top Takeaways and Health IT Focus for 2012 Excerpts from Frost & Sullivan Market Insight Report9837-9837-48May 2012
  2. 2. Contents (Full Report)Section Slide Numbers Executive Summary 3 Conference Overview and Highlights 6 Excerpts from the HIMSS 2012 Leadership Survey 12 Top Ten Industry Trends 21 Top Ten Featured Companies 32 Top Takeaways and Health IT Focus for 2012 43 Appendix 49 The Frost & Sullivan Story 51 9837-48 2
  3. 3. Conference Overview and HighlightsSummary StatisticsThe HIMSS12 conference was the best-attended ever, attracting 37,032 attendees, an 18 percent increasefrom last year, as well as 1,100 exhibitors who offered a broad spectrum of health IT products and relatedservices. The conference also provided a robust selection of educational content, with more than 300sessions spanning 23 topic categories selected by a peer-review panel.Notable SpeechesFarzad Mostashari, M.D., the head of the Office of the National Coordinator for Health InformationTechnology (ONC), gave an upbeat keynote address that focused strongly on the impressive uptick in theadoption of EHRs among hospitals and physician practices seen in the past few years and also providedperspectives on ONC’s future plans to build on the momentum around health IT, including what to look forin Stage 2 Meaningful Use. Mostashari described interest in Meaningful Use as “sky high” among providersand hospitals.Biz Stone, co-founder of the wildly popular social media platform Twitter, provided perspectives on howsocial media will come to significantly influence healthcare by re-defining how providers and others shareinformation.Carolyn Clancy, M.D., director of the Agency for Healthcare Research & Quality, spoke of how the use ofhealth IT has now reached critical mass across the provider landscape, thus continuously enabling qualityimprovements for a wide range of patients. Source: Frost & Sullivan analysis. 9837-48 3
  4. 4. Conference Overview and Highlights (continued)Special ExhibitionsThe Interoperability Showcase—offered in collaboration with Integrating the Healthcare Enterprise (IHE),the exhibit featured vendors, solutions, and educational sessions focused on enabling connectivity.The Intelligent Hospital Pavilion—offered in collaboration with the RFID in Healthcare Consortium. Theexhibit provided simulated inpatient settings (ICU, step down, ED, etc.) featuring various technologies usedin improving patient care, safety, and operating efficiencies, including auto-ID/Bar code scanning systems,RFID/RTLS, and sensors and wireless solutions.Knowledge Centers—a first at HIMSS, these were six subject-specific exhibits designed to bring togethereducational sessions, vendor case studies, exhibition booths, and various HIMSS resources in oneconvenient location. Subject areas reflected some of the most critical focus areas in the health IT industryand consisted of Accountable Care Organizations, value-based purchasing, mobile health, medical devicesintegration, business and clinical analytics/intelligence, cloud computing, and ICD-10.HIMSS Social Media Center—designed to provide various types of activities including educational sessionsand networking with experts around how best to leverage social media in healthcare, including advice onstrategies and tactics for branding, business development, mobility, and driving consumer engagement. Source: Frost & Sullivan analysis. 9837-48 4
  5. 5. Conference Overview and Highlights (continued)Major AnnouncementsProposed Rules for Stage 2 Meaningful Use—The proposed rules were announced toward the end of theconference. Although there was little time for review or discussion, the initial general consensus seemed tobe positive, as the rules seemed to a logical continuation of Stage 1. Although the total number of requiredcore and menu items has been reduced from Stage 1, the measures associated with these requirementshave been strengthened, particularly around CDS, CPOE, HIE, reporting clinical quality measures, andpatient engagement. The proposed Stage 2 rules stipulate that physicians need to meet at least 17 coreobjectives in addition to three of five menu objectives while hospitals are expected to meet 16 coreobjectives in addition to two of four menu objectives. The final Stage 2 rules are due out around June 2012.ICD-10 Delay*—Although announced just prior to HIMSS12 rather than at the conference, the potentialdelay in implementing ICD-10, originally due to go into effect in October 2013, was much discussed andthere was some grumbling. It is unclear how much leeway will be given on the original deadline, but mostindustry insiders thought that HHS would propose a nine- to 12-month delay; some even speculated thatICD-10 might be delayed indefinitely and passed over until ICD-11 is ready. General comments at HIMSSindicated that while some vendors and providers are unhappy about this disruption given the considerabletime and expense they have already invested in changeover to ICD-10, a potential delay will provide manyhospitals and physician practices much-needed time to focus on getting their core EHR projects in line forMeaningful Use.*On April 9, 2012 HHS announced a proposed rule to postpone the compliance date for ICD-10 to Oct. 1, 2014 Source: Frost & Sullivan analysis. 9837-48 5
  6. 6. Conference Overview and Highlights (continued)Key ThemesMeaningful Use and EHR Adoption Trends—the most important them for HIMSS12. As noted byMostashari in his keynote speech, EHR adoption has been quite robust since the passing of the HITECH Actthree years ago. Statistics supporting this trend were repeatedly noted in various conference speeches andeducational sessions. According to CMS, $3.9 billion in Stage 1 EHR incentive funds had been paid outthrough the end of February 2012, consisting of almost $1.2 billion to 84,000 physicians and $2.7 billion to2,355 hospitalsaround 10 to 15 percent of providers (both physicians and hospitals). In addition, recentfigures from the National Center for Health Statistics (NCHS) show that 35 percent of U.S. physicians inambulatory practices now are using either a basic or comprehensive EHR, the same percent of EHRadoption by U.S. hospitals according to a recent announcement by HHS secretary Kathleen Sebelius.*Connectivity and Interoperability—The concept of connecting systems and people for coordinated carewas ubiquitous, and many vendors are incorporating this concept into their marketing messages: ConnectedHealthWorking Better Together (Cisco); Connecting People to Connect Care (Siemens); HealthConnections Brought to Life (RelayHealth); A Connected Community of Health (Allscripts); EnlightenedAction. Connected Care (InterSystems); Connected and Cool (Epic).*Data on the CMS Medicare and Medicaid EHR Incentive Program can be found at data.gov. The data set merges information about the CMS EHR IncentivePrograms attestations with the ONC Certified Health IT Products List, enabling systematic analysis of the distribution of certified EHR vendors and products amongthose providers that have attested to meaningful use within the CMS EHR Incentive Programs. The data set can be analyzed by state, provider type, providerspecialty, and practice setting. Source: CMS, NCHS, and Frost & Sullivan analysis. 9837-48 6
  7. 7. Conference Overview and Highlights (continued)Payment Reform—Payment reform, namely moving away from fee-for-service to reimbursement based onvalue and outcomes, was strongly evident in the messages that many vendors were using to promote their“next-generation” revenue cycle management solutions. The notion of “accountable care” continues as akey focus, although diminished somewhat from the enthusiasm seen at HIMSS11, where Accountable CareOrganizations as defined by the Medicare Shared Savings Program generated substantial buzz.Health Insurance Transformation—Another topic of interest related to payment reform was the idea thathealth insurers need to brace for a completely new way of doing business, as dramatically noted by Aetnapresident Mark Bertolini in a speech where he talked about “the end of insurance companies.” This attitude ismostly brought on by changes due to PPACA, like the new rule around the minimum medical loss ratio,which requires insurers to spend 80 to 85 percent of all premiums received on claims.Mobility—Once again, mobility was a prominent theme, with almost every vendor featuring an iPhone oriPad app and hospital chief information officers (CIOs) talking about the need to manage the “BYOD” (bringyour own device) trend.Population Health—Many vendors promoted new solutions around the growing need to managepopulations. Web or “cloud”-based solutions that aggregate patient data in electronic data repositories andwarehouses and use predictive analytics to improve quality and efficiency were featured. Solutions demo’dby vendors like eClinicalWorks, Optum, and others were specifically designed to appeal to emergingcoordinated care models like Accountable Care Organizations and Patient-Centered Medical Homes. Source: HIMSS and Frost & Sullivan analysis. 9837-48 7
  8. 8. Top TakeawaysDynamic Health IT Market Presents Opportunities and ThreatsAs of early 2012, we find the status of the U.S. health IT market to be in a dynamic, transformative period,presenting a high degree of opportunities and threats for both legacy market participants and new marketentrants. One of the most compelling issues to consider at this juncture is the degree of near-termdisplacement opportunities in the EHR market as providers seek advanced integrated solutions to meetMeaningful Use requirements as stipulated by the CMS EHR Incentive Program and/or to prepare forcoming changes related to the growing complexities of value-based reimbursement, coordinated care, and,eventually, personalized medicine.EHRs Continue to Dominate the Health IT MarketThe key health IT focus continues to be on implementing EHRs and related applications. Even thoseproviders who do not intend to attest for Meaningful Use (e.g., ambulatory providers who do not participatein Medicare or Medicaid or who do not find the government incentives compelling) increasingly understandthat EHRs are inevitable and that eventually all healthcare providers will be using them - and all payers willrequire them. Over the next couple of years, we foresee a robust but highly competitive EHR market.Ambulatory EHR adoption will continue at a brisk pace through 2014, especially in small practices. However,small niche ambulatory EHR vendors will increasingly exit the market due to increasing providerconsolidation and increasing costs associated with Meaningful Use certification. Source: Frost & Sullivan analysis. 9837-48 8
  9. 9. Top Takeaways (continued)Stage 1 Meaningful Use is Still the Primary FocusWhile EHR sales have been robust and adoption continues at a steady pace, the market is still at theformative stages and will remain so for the next 18−24 months. We see that the majority of the market is notyet ready to move beyond Stage 1 Meaningful Use. The timing of overlapping initiatives like Meaningful Use,ACOs, ICD-10, and PPACA-related changes have been too aggressive for most providers. Predictably,physicians and small hospitals are bearing the brunt of the burden, as witnessed by increasing realignmentand changes in ownership among these market segments, as well as the calls to push back on ICD-10 andHIPAA 5010 timelines. As Meaningful Use and EHR deadlines have been pushed back, we think mostproviders and vendors will benefit. Vendors have more time to design, develop, and test new functionality,and providers have more time to implement their EHR systems.Most Providers Will Upgrade Financial IT Systems but Uncertainty PrevailsFor non-clinical IT systems, vendor focus on payment reform and next-generation RCM as demonstrated atHIMSS12 may be ahead of strong market demand given political uncertainty, the pushback on ICD-10timing, and the ultimate fate of PPACA and payment reform. Once these issues are clarified, we expect tosee RCM gaining speed across the market. Source: Frost & Sullivan analysis. 9837-48 9
  10. 10. Health IT Focus for 2012 Market Needs Opportunities/Product Focus Potential displacement Electronic Health Records opportunities as providers look to Stage 2 Meaningful Use Exchange and integration of Health Information disparate data sources to enable Exchange/Data Integration single view of patient information Comprehensive, evidence-based Clinical Decision Support solutions seamlessly integrated with clinician workflow Innovative, web-based solutions Patient Engagement designed for ease of use and sustained engagement Real-time analytics at the point of Population Health care; robust reporting capabilities for bundled payments Source: Frost & Sullivan analysis.9837-48 10
  11. 11. CertificationWe hereby certify that the views expressed in this research service accurately reflect ourviews based on primary and secondary research with industry participants, industry experts,end users, regulatory organizations, financial and investment community, and other relatedsources.In addition to the above, our robust in-house forecast and benchmarking models, along withthe Frost & Sullivan Decision Support Databases, have been instrumental in the completionand publishing of this research service.We also certify that no part of our analyst compensation was, is or will be, directly orindirectly, related to the specific recommendations or views expressed in this service.9837-48 11
  12. 12. Legal DisclaimerFrost & Sullivan takes no responsibility for any incorrect information supplied to us bymanufacturers or users. Quantitative market information is based primarily on interviewsand therefore is subject to fluctuation. Frost & Sullivan research services are limitedpublications containing valuable market information provided to a select group of customers.Our customers acknowledge, when ordering or downloading, that Frost & Sullivan researchservices are for customers’ internal use and not for general publication or disclosure to thirdparties. No part of this research service may be given, lent, resold or disclosed tononcustomers without written permission. Furthermore, no part may be reproduced, storedin a retrieval system, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording or otherwise, without the permission of the publisher.For information regarding permission, write to: Frost & Sullivan 331 E. Evelyn Ave. Suite 100 Mountain View, CA 94041 © 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.9837-48 12
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