2017 top his vendors

1. Top 10 HIS Vendors by 2016 Revenue
© 2017 by H.I.S. Professionals, LLC, all rights reserved.
By Vince Ciotti & Elise Ames
HIS Professionals, LLC
1980 1990 2000 2010 2015

2. HIS-tory of “Top” Vendor Reviews
• If you’re reading any of the few print magazines left in our
industry or getting far more unvarnished insights from HIStalk,
you’ve probably followed our annual review of the leading HIS
vendors in order of their annual revenue for many years:
– Original credit for the idea must go to Bill Childs who created
this whole media when he started his Computers in Hospitals
magazine in 1980 with a whopping 52 page first issue.
• Bill’s magazines morphed & were renamed
many times over the years, and subsequent
rags expanded the vendor review from 25, 50
and then 100 “Top” vendors in 200+ pages.
• We’ve been continuing Bill’s tradition of HIS
vendor revenue reviews for about the past 20
years, now listing ours on HIStalk, the source
today for unbiased vendor info & critiques.

3. Definitions
• It’s important to define what one means by an “H.I.S.” vendor
since a leading print rag’s rankings include vendors in their top
10 like Optum, Cognizant, Dell, Phillips, Xerox and EMC, that
don’t even offer an H.I.S. system, which we define as:
- Hospital – acute care facilities are their primary
market, not “just” physician practices, managed
care, long term care, home health, PACS, etc.
- Information – the full suite of apps needed to
automate a hospital: both financial and clinical
systems. Thus, niche payers like Sunquest & Soft
for LIS and Oracle & Ormed for ERP are excluded.
- Systems - the complete package of hardware,
software and implementation. This excludes
giants like CSC, IBM, Leidos, HP, Dell, EMC, etc,
who “only” offer hardware and/or consulting.

4. HIS Vendors Revenue for FY 2016
• Revenue figures came from SEC filings (10-Ks) or info received
from the vendors themselves. Estimates had to be made for
companies with a late fiscal year like McKesson (March 30),
many divisions like Harris Health, or privately held like Medhost.

5. 2016 vs. 2015 Changes
• The increase/decrease in revenue per vendor, as well as the
huge disparity in $ size and market share from top to bottom:

6. 2016 Revenue Shockers
• There are some changes in this table that deserve highlighting:
- Cerner – forged way ahead of #2 Epic for the
lead in the HIS industry by revenue for the third
year in a row, thanks to the $1B+ in revenue they
gained from Siemen’s clients, many of whom are
being sold Millennium & Community Works.
- McKesson – sold off about half of their EIS division:
- Change Health - got the largest share, while
- eMDs – bought the physician practice systems.
The remainder (Paragon, etc.) is still for sale…
- Meditech – declining revenue for the 4th year in a
row, reflecting the many Magic and Client/Server
clients’ reluctance to change without MU $s...

7. New/Changed Names
There were several new or changed HIS vendor names this year:
• eClinicalWorks – joined athenahealth in crossing over from the
physician practice market into the HIS space, claiming 13 pilot
hospital sales of an integrated HIS/MD system “in the works.”
• CPSI – evidently their re-branding as “Evident” didn’t quite work
out, so they’re back to using their old acronym which stands for
“Computer Programs and Systems, Inc” - hope they Thrive…
• Harris Healthcare – From Compucare to QuadraMed to the
Canadian Constellation Software’s N. Harris division (not to be
confused with the US “Harris”), it’s been quite a ride!
• NTT Data – the new home & name for Dell’s $2B+ HIT consulting
division, which dwarfs the “Keane” HIS Division so much there
wasn’t a mention of the Optimum HIS at their HIMSS booth…
Quite a hot year for the vendors of business cards and stationary!

8. MIA!?
Several vendor names dropped from past years’ HIS vendor lists:
– Siemens/SMS - the leader in HIS revenue for decades before
being acquired by Siemens circa Y2K, & then Cerner in 2015.
– GE – this tech giant is a major player in the physician practice
and ancillary department (eg: OB) market niches, but has
only about a dozen clients on the ex-IDX “Centricity” HIS.
– Healthland – this small hospital (<100 beds) giant with over
350 hospital clients was acquired by Evident (CPSI) in 2015.
– NextGen – acquired the Opus hospital EMR and Sphere
financials (RCM and ERP) several years ago, but couldn’t sell
the interfaced systems, and sold out to QuadraMed in 2015.
And one name soon to be dropped pending an imminent sale:
– McKesson - the leader in HIS revenue for a full decade before
selling off half their business and trying to sell what’s left...

9. 20 Years of HIS Vendor Revenue
Here’s two decades worth of revenue for today’s Top 10 vendors:

10. Next Episodes
• We’ll delve into the details of the top 10 vendors’ performance
over the next 3 episodes, broken down by the three major HIS
market segments (in terms of bed size and vendor revenue):
– Large – those vendors whose derive the majority of their
revenue from large hospitals over 300 beds in size, including
large AMCs & Multi-IDNS: Cerner, Epic, & Allscripts.
– Mid-Size – vendors whose target market includes mainly mid-
size hospitals of 100 to 300 beds in size, including Meditech
(all 3!), Paragon, NTT Data, Harris Healthcare & Medhost.
– Small – vendors whose client base consists of mostly under
100 bed facilities, including CAH (Critical Access Hospitals) of
under 25 beds, where athena & eCW are challenging CPSI.
• For questions, comments, or legal action, please contact us at:
vciotti@hispros.com, 505.466.4958 or eames@hispros.com, 413.329.6925