12. • NextGen is the smallest player in the small-sized hospital market
in number of hospitals, but they have the largest revenue ($445M)
due to the huge physician practice revenue from ≈40K MD clients.
- NextGen’s parent firm QSI (Quality Systems Inc)
was formed many decades ago, and they are a
giant in the physician practice market, commonly
known as “ambulatory” (as if hospitals didn’t have
a lot of outpatients who walk in for tests…)
• QSI recently acquired the “free” interface engine formerly
known as Mirth, so you may see their name pop up in IE bids...
• NextGen got into the hospital field by acquiring two HIS vendors:
- Opus– a solid EHR piloted by hospital
chain Universal Health Systems (UHS).
- Sphere – Florian Weiland’s rock-solid
financial systems, both RCM & ERP.
13. • Interesting trend how other leading physician practice vendors
are buying their way into the hospital HIS market like NextGen:
– Allscripts – this MD giant with ≈50K physician practices on its
PM and EHR systems acquired Eclipsys in 2010 to enter the
large hospital market through its strong RCM & EHR systems.
– Athenahealth just acquired RazorInsights, a very small HIS
vendor (≈$2M in annual revenue) with only ≈30 clients,
mostly CAH, based in GA. Athenahealth is a major player in
the physician practice market with about 60K providers.
• I guess these moves make them feel they can compete with Epic
by playing in both markets, but what a difference to have a fully
integrated system for hospitals & physician practices like Epic
pioneered (and Meditech & Paragon are now starting to build),
versus buying an HIS and building an interface to its foreign DB
and OS, like these 3 physician practice vendors have done…
Latest Big Entrant into Small Market
14. Recap
• So there it is, the 2014 revenue figures for the 12 leading HIS
vendors, separated into their three target market niches:
– Large hospitals >300 beds, AMCs & IDNs, who buy:
• Cerner, Epic, Allscripts and GE
– Mid-sized community hospitals from 1-300 beds, who buy:
• Meditech, McKesson’s Paragon, NTT Data & QuadraMed
– Small hospitals under 100 beds, who generally buy from:
• CPSI, Medhost, Healthland and NextGen
• The only question I couldn’t answer is why so many have blue as
the color of their logo – is it a sign of recent market activity?
• I’m sure I missed a few things more, so if you have any questions
(like how much I got for my 1969 Honda CB750 on eBay), contact:
- vciotti@hispros.com
- 505.466.4958