Electronic Medical Records Market Nears $30 Billion
ROCKVILLE, Md., May 16, 2018
Kalorama Information said market for EMR was $29.7 billion in 2017 as indicated it is expected to rise to $39.7 billion by 2022. The healthcare market research firm reports on the industry each year, and includes revenues for EMR/EHR systems, CPOE systems, and directly related services such as installation, training, servicing, and consulting which are key profit areas for companies. It does not include PACS or hardware. The firm published its latest report, EMR 2018, this month.
“We believe adoption and upgrading activities will still be stimulating growth in 2017-2022,” said Mary Anne Crandall. “As new systems are sold, companies will still earn revenues from existing clients in servicing and consulting services.”
The electronic medical record (EMR) is a computer-based patient medical record. Over the last 30 years, medical institutions have encouraged the shift towards computerization to help manage patient information. However, the early medical information systems were not integrated. During the late 1980s, efforts were made to transform these individual laboratory computers into integrated clinical information systems. This meant that information pertaining to the patient’s test results, including blood chemistry, microbiology, radiology, biopsy reports, etc., could be retrieved from a single terminal. Later, healthcare providers began incorporating parts of the clinical narrative by employing transcription services. Surgical operative notes, discharge notes, summary of the patient’s medical problems, and lists of their current medications started appearing in the clinical information system.
Medical records permanently document information relevant to the patient’s health care management. A medical record facilitates the provision of continuity of care to the patient. It also helps in planning patient care and documenting prescriptions from multiple physicians or healthcare providers. These records assist in protecting the legal interest of the patient and the healthcare provider and help in processing of insurance claims. After each clinic visit, information about the reasons a client sought medical care, the medical history, results of diagnostic tests, and the plan of therapy is recorded. Other information may include laboratory test results, physicians’ prescriptions, referrals ordered to healthcare providers, instructions for self-care, and follow-up visits.
Kalorama’s forecast assumes the trend of adoption will continue to move forward, although slowing; hospital EMR adoption will supersede doctors EMR adoption. It is anticipated that current EMR owners will upgrade and train on systems, and that the threat of penalties will force doctors and hospitals to make upgrade decisions. The following conclusions are listed in the report:
– The market for EMR systems continues to grow but at a slower rate, as more physicians and hospitals use EMR and acquire EMR systems, and as hospitals and physician groups upgrade existing systems.
– Mergers and acquisitions are impacting industry in a big way. According to industry experts, the number of mergers and acquisitions has increased 15 percent over the past year with private equity firms gathering the lion’s share of deals.
– Smaller and mid-size companies gained some share from giants. Epic systems made slight share gains. McKesson decided to exit the EHR health IT business. It sold its outpatient EHR to eMDs and Allscripts bought part of the Enterprise Information Solutions business unit that includes the Paragon EHR system. The remaining EHR IT business was folded into the new Change Healthcare.
– Artificial intelligence in healthcare is an exciting new prospect gaining attention and many feel that it is the future of healthcare. Future prospects include health assistance and medication management, precision medicine applications, drug creation, and helping people make healthier choices and decisions.
– In terms of growth, the ride is not over. Expect growth this year and next (5-10%) and stable growth until 2022. Eventually, there will be market saturation, but this is a bit of a way off, especially in emerging markets.
About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services.