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Rivals Will Drive Toward Alliances or Merge in Healthcare I.T. Industry, National Biz School War Game Predicts
Date:4/13/2009

ge, engendered by EMR, means some interests will win dollars while other traditional players will lose - and no one wants to lose. Physician, hospital and patient/consumer markets--are going to be major challenges for all companies in the field, the teams acknowledged. Hospitals and doctors actually can make money through these current inefficiencies and will likely resist change. Smaller medical practices may continue to resist installing such EMR systems, not wanting to invest in long-term promises while sinking lots of money into new and complicated electronic medical records systems. Emerging pay-for-performance requirements, and reimbursement incentives may sway the thinking though.

  • A shortage of technical manpower will slow down the implementation of electronic medical records, no matter how much money is thrown against the challenge.

  • Allscripts (and other similar pure plays, such as Epic) will seek to exploit cheaper web-based solutions to bring EMRs to smaller medical practices. In order to penetrate the small medical practice market, where most of the EMR potential user base exists, it will have to look to stripped-down, cheaper cloud computing solutions rather than the client/server solutions sold to larger medical practices and hospitals. It may also have to look to form an alliance or merge with a larger player that has a far more extensive sales force, such as a pharmaceutical firm, to effectively access the small medical practice market across the nation.

  • The market that is driving efficiencies, such as EMRs and other scalable solutions, will act as a catalyst to force small medical practices to band together or merge in the next few years, allowing doctors to spread the cost - and the risk - of EMR implementation.'/>"/>

SOURCE Fuld & Company
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