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The US Market for Electronic Medical Records Will Decline Due to Market Saturation
Date:9/17/2013

TORONTO, Sept. 17, 2013 /PRNewswire/ -- According to Millennium Research Group (MRG), the global authority on medical technology market intelligence, the market for electronic medical records (EMRs) in the United States saw an initial spike in growth in 2012 due to government incentive funding. Following 2012, however, revenues in this space will decline as a result of market saturation.

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Incentive funding for EMRs was introduced as part of the American Recovery and Reinvestment Act in 2009, leading to rapid adoption of these systems. In addition, many facilities have implemented EMRs in order to avoid Medicare penalties; beginning in 2015, hospitals and physicians that cannot demonstrate meaningful use of EMRs will face reductions in Medicare reimbursement. As a result, a significant portion of EMR adoption in the US will occur by 2015 because facilities will acquire systems prior to the start of Medicare penalties.

"Most large facilities have already adopted these systems because they had the necessary capital and information technology (IT) resources to accommodate EMR implementation early on," said MRG Senior Analyst Mickel Phung. "As a result, most system purchases through 2022 will consist of replacement sales and purchases made by smaller facilities that previously could not afford the systems."

Competitors in this space should therefore target small facilities and physician practices or focus on niche segments, such as specialists. Web-based systems are also a major driver for ambulatory systems among small practices, and this space represents a further opportunity for competitors. Web-based EMRs are ideal for smaller practices with limited IT resources because the systems are hosted and maintained offsite by the vendor
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SOURCE Millennium Research Group
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