U.S. MARKET OVERVIEW. Hospital Financial Management (FM) Applications 2010 Year End Report HIMSS Analytics
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1 U.S. MARKET OVERVIEW Hospital Financial Management (FM) Applications 2010 Year End Report This historical report of the U.S. hospital market is brought to you as an online resource from the Dorenfest Institute.
2 Financial Management Applications Summary of Installation (2009/2010) Accounts Payable General Ledger Materials Management Enterprise Resource Planning (ERP) 20% 22% 2009 (n=5,235) 2010 (n=5,281) 99% 100% 99% 100% 97% 97% With the exception of ERP, all financial management applications have achieved market saturation (95 percent or better). There was very little growth in the ERP market from 2009 to 2010.
3 Financial Management Applications Summary of Plans (in Not Automated Hospitals) Accounts Payable General Ledger Materials Management % 11.11% 11.11% New purchase activity in this market will be low. The greatest activity, by volume, will be for materials management and ERP software. Enterprise Resource Planning (ERP) 0.07% (4,084) Numbers in white and parenthesis represents number of hospitals with installed or contracted systems Percent of "Not Automated" Hospitals Planning to Purchase Software
4 Financial Management Applications Summary of Plans (Replacing Current Software) General Ledger Accounts Payable 5,256 5, % 1.20% There is little overall replacement activity across all applications in this suite. Only one percent of hospitals plan to replace their accounts payable or general ledger software. Materials Management 5, % Enterprise Resource Planning 0.17% (1,173) Numbers in white and parenthesis represents number of hospitals with installed or contracted systems Percent of Hospitals with Installed or Contracted Systems Planning to Purchase Software
5 Financial Management Applications Summary of Plans Accounts Payable (n=64) Enterprise Resource Planning (n=5) General Ledger (n=64) Materials Management (n=42) 40% 71% 98% 98% 60% 29% Nearly all of the accounts payable and general ledger plans represent replacement purchases. In contrast, materials management and ERP plans are a mix of first time and replacement purchases. Percent of Hospitals with Installed Software - Replacing Percent of Hospitals Planning to Purchase Software for the First Time
6 Summary of Installation N = 5,281 Only 1,173 organizations (22 percent) have installed, or signed a contract for installation for all four financial management applications. 812 (69 percent) of these organizations report using the same vendor for all four applications. 5,101 hospitals (97 percent) have installed software or have a contract signed for installation for general ledger, accounts payable and materials management applications. 3,906 (77 percent) of the organizations used the same vendor for the three financial management applications.
7 Accounts Payable Top Ten Installed or Contracted Systems LAWSON % MEDITECH % MCKESSON % CPSI % ORACLE CORP./PEOPLESOFT % HEALTHLAND % SELF-DEVELOPED % HEALTHCARE MANAGEMENT SYSTEMS, INC % SIEMENS HEALTHCARE % SAP % 52 Vendors share the remaining 11.03% of the market. N = 5,224
8 Accounts Payable Top Ten Installed/Contracted Systems Hospitals Under100 Beds MEDITECH % CPSI % HEALTHLAND % LAWSON % HEALTHCARE MANAGEMENT SYSTEMS, INC % MCKESSON % ORACLE CORP./PEOPLESOFT % SELF-DEVELOPED % SIEMENS HEALTHCARE % SAP % 47 Vendors share the remaining 11.38% of the market. N = 2,628
9 Accounts Payable Top Ten Installed/Contracted Systems Hospitals Beds MEDITECH % LAWSON % MCKESSON % SELF-DEVELOPED % ORACLE CORP./PEOPLESOFT CORP % SIEMENS HEALTHCARE % HEALTHCARE MANAGEMENT SYSTEMS, INC % CPSI % PEROT SYSTEMS CORPORATION % SAP % 22 Vendors share the remaining 8.35% of the market. N = 1,006
10 Accounts Payable Top Ten Installed/Contracted Systems Hospitals Beds N = 625 LAWSON % MEDITECH % MCKESSON % ORACLE CORP./PEOPLESOFT CORP % SELF-DEVELOPED % SIEMENS HEALTHCARE % INFOR GLOBAL SOLUTIONS % MEDICLICK % HEALTHCARE MANAGEMENT SYSTEMS, INC % 4 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE 17 Vendors share the remaining 4.96% of the market %
11 Accounts Payable Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % MEDITECH % ORACLE CORP./PEOPLESOFT CORP % SELF-DEVELOPED % SIEMENS HEALTHCARE % PEROT SYSTEMS CORPORATION % MEDICLICK % HEALTHCARE MANAGEMENT SYSTEMS, INC % SSA GLOBAL TECHNOLOGIES, INC % 11 Vendors share the remaining 5.61% of the market. N = 410
12 Accounts Payable Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % ORACLE CORP./PEOPLESOFT CORP % MEDITECH % SIEMENS HEALTHCARE % SELF-DEVELOPED % PEROT SYSTEMS CORPORATION % SAP % INFOR GLOBAL SOLUTIONS % MEDICLICK % 11 Vendors share the remaining 7.76% of the market. N = 219
13 Accounts Payable Top Ten Installed/Contracted Systems Hospitals 500+ Beds LAWSON % ORACLE CORP./PEOPLESOFT CORP % MCKESSON % MEDITECH % SELF-DEVELOPED % INFOR GLOBAL SOLUTIONS % SAP % SIEMENS HEALTHACRE % ECLIPSYS % 2 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % 7 Vendors share the remaining 2.68% of the market. N = 336
14 Enterprise Resource Planning Top Ten Installed or Contracted Systems LAWSON % ORACLE CORP./PEOPLESOFT % SAP % MCKESSON % MEDITECH % SELF-DEVELOPED % INFOR GLOBAL TECHNOLOGIES, INC % SSA GLOBAL TECHNOLOGIES, INC % MEDASSETS % SIEMENS HEALTHACARE % 21 Vendors share the remaining 3.65% of the market. N = 1,150
15 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals Under100 Beds LAWSON % SAP % ORACLE CORP./PEOPLESOFT % MEDITECH % MCKESSON % SELF-DEVELOPED % INFOR GLOBAL SOLUTIONS % CPSI % SEIMENS HEALTHCARE % 5 VENDORS HAVE THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE 8 Vendors share the remaining 2.26% of the market % N = 354
16 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % ORACLE CORP./PEOPLESOFT % MEDITECH % SAP % MCKESSON % SIEMENS HEALTHCARE % MEDICLICK % INFOR GLOBAL SOLUTIONS % SELF-DEVELOPED % SSA GLOBAL TECHNOLOGIES, INC % 7 Vendors share the remaining 3.17% of the market. N = 221
17 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % ORACLE CORP./PEOPLESOFT % MCKESSON % MEDITECH % SELF-DEVELOPED % SAP % SSA GLOBAL TECHNOLOGIES, INC % MEDASSETS % ECLIPSYS CORPORATION % 3 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % N = 187
18 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % ORACLE CORP./PEOPLESOFT % MCKESSON % MEDITECH % SELF-DEVELOPED % SAP % SSA GLOBAL TECHNOLOGIES, INC % MEDASSETS % 6 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % N = 153
19 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % ORACLE CORP./PEOPLESOFT % MCKESSON % SAP % MEDITECH % INFOR GLOBAL SOLUTIONS % MEDASSETS % SIEMENS HEALTHCARE % SSA GLOBAL TECHNOLOGIES, INC % STRATA DECISION TECHNOLOGY, LLC % SUNGARD DATA SYSTEMS, INC % N = 85
20 Enterprise Resource Planning Top Ten Installed/Contracted Systems Hospitals 500+ Beds LAWSON % ORACLE CORP./PEOPLESOFT % MCKESSON % SAP % SELF-DEVELOPED % INFOR GLOBAL SOLUTIONS % SSA GLOBAL TECHNOLOGIES, INC % MEDASSETS % 4 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % N = 150
21 General Ledger Top Ten Installed or Contracted Systems LAWSON % MEDITECH % MCKESSON % ORACLE CORP./PEOPLESOFT % CPSI % HEALTHLAND % SELF-DEVELOPED % HEALTHCARE MANAGEMENT SYSTEMS, INC % SIEMENS HEALTHCARE % SAP % 47 Vendors share the remaining 10.86% of the market. N = 5,221
22 General Ledger Top Ten Installed/Contracted Systems Hospitals Under100 Beds MEDITECH % CPSI % HEALTHLAND % LAWSON % HEALTHCARE MANAGEMENT SYSTEMS, INC % ORACLE CORP./PEOPLESOFT % MCKESSON % SELF-DEVELOPED % SIEMENS HEALTHCARE % SAP % 41 Vendors share the remaining 11.54% of the market. N = 2,626
23 General Ledger Top Ten Installed/Contracted Systems Hospitals Beds MEDITECH % LAWSON % MCKESSON % SELF-DEVELOPED % ORACLE CORP./PEOPLESOFT % SIEMENS HEALTHCARE % HEALTHCARE MANAGEMENT SYSTEMS, INC % CPSI % SAP % INFOR GLOBAL SOLUTIONS % 20 Vendors share the remaining 8.85% of the market. N = 1,006
24 General Ledger Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MEDITECH % MCKESSON % ORACLE CORP./PEOPLESOFT % SELF-DEVELOPED % SIEMENS HEALTHCARE % INFOR GLOBAL SOLUTIONS % MEDICLICK % HEALTHCARE MANAGEMENT SYSTEMS, INC % SSA GLOBAL TECHNOLOGIES, INC % 17 Vendors share the remaining 6.88% of the market. N = 625
25 General Ledger Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % MEDITECH % ORACLE CORP./PEOPLESOFT % SELF-DEVELOPED % SIEMENS HEALTHCARE % SSA GLOBAL TECHNOLOGIES, INC % HEALTH MANAGEMENT SYSTEMS, INC % MEDICLICK % 2 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % 10 Vendors share the remaining 4.17% of the market. N = 408
26 General Ledger Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % ORACLE CORP./PEOPLESOFT % MEDITECH % SELF-DEVELOPED % SIEMENS HEALTHCARE % INFOR GLOBAL SOLUTIONS % SAP % EPIC % MEDICLICK % 10 Vendors share the remaining 7.27% of the market. N = 220
27 General Ledger Top Ten Installed/Contracted Systems Hospitals 500+ Beds LAWSON % ORACLE CORP./PEOPLESOFT % MCKESSON % INFOR GLOBAL SOLUTIONS % MEDITECH % SELF-DEVELOPED % SAP % SIEMENS HEALTHCARE % SSA GLOBAL TECHNOLOGIES, INC % MEDICLICK % 7 Vendors share the remaining 3.27% of the market. N = 336
28 Materials Management Top Ten Installed or Contracted Systems LAWSON % MEDITECH % MCKESSON % CPSI % ORACLE CORP./PEOPLESOFT % HEALTHLAND % HEALTHCARE MANAGEMENT SYSTEMS, INC % SELF-DEVELOPED % SIEMENS HEALTHCARE % CHOICE SYSTEMS, INC % 59 Vendors share the remaining 12.59% of the market. N = 4,958
29 Materials Management Top Ten Installed/Contracted Systems Hospitals Under100 Beds MEDITECH % CPSI % LAWSON % HEALTHLAND % MCKESSON % HEALTHCARE MANAGEMENT SYSTEMS, INC % CHOICE SYSTEMS, INC % ORACLE CORP./PEOPLESOFT % SELF-DEVELOPED % SIEMENS HEALTHCARE % 48 Vendors share the remaining 10.85% of the market. N = 2,378
30 Materials Management Top Ten Installed/Contracted Systems Hospitals Beds MEDITECH % LAWSON % MCKESSON % ORACLE CORP./PEOPLESOFT % HEALTHCARE MANAGEMENT SYSTEMS, INC % SIEMENS HEALTHCARE % SELF-DEVELOPED % CPSI % PEROT SYSTEMS CORPORATION % SMART SOFTWARE, INC % 20 Vendors share the remaining 10.58% of the market. N = 992
31 Materials Management Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % MEDITECH % ORACLE CORP./PEOPLESOFT % SELF-DEVELOPED % SIEMENS MEDICAL SOLUTIONS % MEDICLICK % HEALTHCARE MANAGEMENT SYSTEMS, INC % PEROT SYSTEMS CORPORATION % SAP % SMART SOFTWARE, INC % 21 Vendors share the remaining 6.09% of the market. N = 624
32 Materials Management Top Ten Installed/Contracted Systems Hospitals Beds LAWSON % MCKESSON % MEDITECH % ORALCE CORP./PEOPLESOFT % SELF-DEVELOPED % PEROT SYSTEMS CORPORATION % MEDICLICK % HEALTHCARE MANAGEMENT SYSTEMS, INC % SIEMENS HEALTHCARE % SMART SOFTWARE, INC % 10 Vendors share the remaining 5.87% of the market. N = 409
33 Materials Management Top Ten Installed/Contracted Systems Hospitals Beds Vendor # of Installations % of Market LAWSON % MCKESSON % ORACLE CORP./PEOPLESOFT % MEDITECH % PEROT SYSTEMS CORPORATION % SIEMENS HEALTHCARE % SAP % MEDICLICK % INFOR GLOBAL SOLUTIONS % 3 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE 11 Vendors share the remaining 4.99% of the market % N = 220
34 Materials Management Top Ten Installed/Contracted Systems Hospitals 500+ Beds LAWSON % MCKESSON % ORACLE CORP./PEOPLESOFT % MEDITECH % SELF-DEVELOPED % SAP % MEDICLICK % INFOR GLOBAL SOLUTIONS % SIEMENS HEALTHCARE % 3 VENDORS WITH THE SAME NUMBER OF INSTALLATIONS AND MARKET SHARE % 5 Vendors share the remaining 1.50% of the market. N = 335
35 Accounts Payable Vendors Being Considered for a Planned Purchase Vendor # of Times Considered ORACLE CORP./PEOPLESOFT 23 MEDITECH 11 MCKESSON 8 HEALTHLAND 6 CPSI 6 HEALTHCARE MANAGEMENT SYSTEMS, INC. 4 NEXTGEN HEALTHCARE 2 LAWSON 2 EPIC 2 CERNER CORPORATION 2 5 ADDITIONAL VENDORS BEING CONSIDERED 5
36 Enterprise Resource Planning Vendors Being Considered for a Planned Purchase Vendor # of Times Considered MCKESSON 3 LAWSON 2 SIEMENS HEALTHCARE 1
37 General Ledger Vendors Being Considered for a Planned Purchase Vendor # of Times Considered ORACLE CORP./PEOPLESOFT 23 MEDITECH 10 MCKESSON 7 HEALTHLAND 7 CPSI 6 HEALTHCARE MANAGEMENT SYSTEMS, INC. 5 LAWSON 2 EPIC 2 CERNER CORPORATION 2 6 ADDITIONAL VENDORS BEING CONSIDERED 6
38 Materials Management Vendors Being Considered for a Planned Purchase Vendor # of Times Considered CPSI 8 MEDITECH 7 MCKESSON 6 OCCUPATIONAL HEALTH RESEARCH 5 HEALTHCARE MANAGEMENT SYSTEMS, INC. 4 HEALTHLAND 3 LAWSON 2 9 ADDITIONAL VENDORS BEING CONSIDERED 9
39 Financial Management Applications Temporal Summary of Contracts Accounts Payable (n=3,577) Enterprise Resource Planning (n=550) General Ledger (n=3,551) Materials Management (n=3,124) 10% 10% 9% 33% 40% 34% 29% 32% 43% 33% 37% 21% 17% 20% 23% About a third of the four financial management applications were purchased between 2000 and Another third of the four financial management applications were signed between 1995 and Prior to to to to to to 2010
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