MARKET OVERVIEW. Hospital Revenue Cycle Management (RCM) Applications 2008 Year End Report HIMSS Analytics
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1 MARKET OVERVIEW Hospital Revenue Cycle Management (RCM) Applications 2008 Year End Report
2 RCM Applications Summary of Installation (2007/2008) ADT/Registration Patient Billing Patient Scheduling Credit/Collections Electronic Data Interchange Contract Management Eligibility Enterprise Master Person Index Bed Management Not Tracked 16% 55% 62% 60% 61% 52% 57% 37% 41% 97% 99% 97% 99% 80% 91% 85% 89% All RCM applications showed a slight increase in the installation rate in the past year. ADT/registration and patient billing are saturated markets, while patient scheduling and electronic data interchange showed the largest increase (N=5,068) 2008 (N=5,166)
3 RCM Applications Summary of Plans (in Not Automated Hospitals) Patient Scheduling ADT/Registration Patient Billing Bed Management Contract Management % 0.5% (3,115) (1,845) 3.5% 3.1% 5.4% Very few hospitals that are not presently using the applications outlined in this report intend to make a purchase in this area. Enterprise Master Person Index 0.5% (2,953) Eligibility Credit/Collections Electronic Data Interchange (EDI) 0.5% 0.4% 0.3% (2,127) (525) (1,833) Number in white and parentheses represents number of not automated hospitals. Percent of "Not Automated" Hospitals Planning to Purchase Software
4 RCM Applications Summary of Plans (Replacing Current Software) Patient Billing ADT/Registration Patient Scheduling Credit/Collections Contract Management 0.7% 0.6% 0.6% 0.6% 0.5% (5,115) (5,118) (4,680) (4,575) (3,160) Replacement activity in the RCM space is minimal. Market activity will be strongest for patient billing followed by ADT/Registration and patient scheduling and credit/collections applications. Bed Management 0.5% (832) Enterprise Master Person Index Eligibility Electronic Data Interchange (EDI) 0.5% 0.4% 0.3% (2,106) (2,948) (3,212) Number in parenthesis represents number of hospitals with installed or contracted systems Percent of Hospitals with Installed or Contracted Systems Planning to Purchase Software
5 RCM Applications Summary of First Time Purchase & Replace ADT/Registration (N=33) Bed Management (N=21) Contract Management (N=26) Credit/Collections (N=27) Electronic Data Interchange (EDI) (N=17) Eligibility (N=23) Enterprise Master Person Index (EMPI) (N=26) Patient Billing (N=35) 19% 62% 65% 57% 38% 97% 81% 38% 93% 97% 35% 43% 62% The majority of purchases for ADT/Registration, credit/collections and patient billing will be among hospitals that plan to replace existing software. Bed management and EMPI application purchases will most likely be first time purchases. Patient Scheduling (N=52) 54% 46% Replacement purchase First time purchase
6 Summary of Installations 336 hospitals (7 percent) have installed software or signed a contract for software in all nine application areas. Of the 336 hospitals, 4 hospitals (1 percent) use the same vendor for all nine application areas. In addition, 725 hospitals (14 percent) have either installed or signed a contract for eight of the nine RCM applications. Sixteen percent (16 percent) of the hospitals have at least seven of nine RCM applications installed or signed a contract for installation.
7 ADT/Registration Top Ten Installed and Contracted Systems MEDITECH % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CPSI % HEALTHLAND % HEALTHCARE MANAGEMENT SYSTEMS, INC % CERNER CORPORATION % EPIC SYSTEMS CORP % SELF-DEVELOPED % GE HEALTHCARE % 41 Vendors share the remaining 9.96% of the market. N = 5102
8 Bed Management Top Ten Installed and Contracted Systems N = 763 MEDITECH % TELETRACKING TECHNOLOGIES INC % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CERNER CORPORATION % SELF-DEVELOPED % EPIC SYSTEMS CORP % PREMISE CORPORATION % PICIS % GE HEALTHCARE % HILL-ROM CO., INC % 7 Vendors share the remaining 1.57% of the market.
9 Contract Management Top Ten Installed or Contracted Systems MCKESSON PROVIDER TECHNOLOGIES % MEDITECH % SELF-DEVELOPED % SIEMENS MEDICAL SOLUTIONS % CPSI % AMISYS SYNERTECH, INC % HEALTHCARE MANAGEMENT SYSTEMS, INC % LAWSON SOFTWARE % ECLIPSYS CORPORATION % THE MEDSTAT GROUP % 66 Vendors share the remaining 25.90% of the market. N = 3128
10 Credits/Collections Top Ten Installed or Contracted Systems MEDITECH % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CPSI % SELF-DEVELOPED % HEALTHCARE MANAGEMENT SYSTEMS, INC % HEALTHLAND % EPIC SYSTEMS CORP % CERNER CORPORATION % GE HEALTHCARE % 52 Vendors share the remaining 10.28% of the market. N = 4486
11 Electronic Data Interchange Top Ten Installed or Contracted Systems MCKESSON PROVIDER TECHNOLOGIES % SSI GROUP % MEDITECH % CPSI % SELF-DEVELOPED % SIEMENS MEDICAL SOLUTIONS % HEALTHCARE MANAGEMENT SYSTEMS, INC % MEDASSETS % CAREMEDIC SYSTEMS, INC % HEALTHLAND % 80 Vendors share the remaining 25.39% of the market. N = 3044
12 Eligibility Top Ten Installed or Contracted Systems SIEMENS MEDICAL SOLUTIONS % MCKESSON PROVIDER TECHNOLOGIES % SAGE SOFTWARE % MEDITECH % PASSPORT HEALTH COMMUNICATIONS, INC % CPSI % HLTH CORPORATION % SSI GROUP % HEALTHLAND % EPIC SYSTEMS CORP % 56 Vendors share the remaining 21.03% of the market. N = 2829
13 Enterprise Master Person Index Top Ten Installed or Contracted Systems MEDITECH % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CERNER CORPORATION % CPSI % INITIATE SYSTEMS % EPIC SYSTEMS CORP % SELF-DEVELOPED % HEALTHLAND % GE HEALTHCARE % 17 Vendors share the remaining 8.22% of the market. N = 2056
14 Patient Billing Top Ten Installed or Contracted Systems MEDITECH % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CPSI % HEALTHLAND % SELF-DEVELOPED % HEALTHCARE MANAGEMENT SYSTEMS, INC % EPIC SYSTEMS CORP % GE HEALTHCARE % QUADRAMED CORPORATION % 45 Vendors share the remaining 10.84% of the market. N = 5074
15 Patient Scheduling Top Ten Installed or Contracted Systems MEDITECH % MCKESSON PROVIDER TECHNOLOGIES % SIEMENS MEDICAL SOLUTIONS % CPSI % HEALTHCARE MANAGEMENT SYSTEMS, INC % HEALTHLAND % CERNER CORPORATION % EPIC SYSTEMS CORP % QUADRAMED CORP % SELF-DEVELOPED % 43 Vendors share the remaining 11.01% of the market. N = 4640
16 RCM Applications Summary of Installation ADT/Registration Bed Management Contract Management Credit/Collections EDI Eligibility EMPI Patient Billing Patient Scheduling 15% 35% 27% 15% 9% 16% 26% 44% 9% 26% 40% 22% 17% 33% 28% 15% 7% 30% 33% 28% 9% 20% 39% 30% 8% 24% 41% 25% 16% 33% 28% 16% 11% 34% 37% 15% The majority of market activity for RCM applications has taken place since More specifically, at least 60 percent of purchases for bed management, contract management, EDI, eligibility, and EMPI occurred after Prior to to to to to to 2008
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