While health-care reform continues to be mired in debate, one of the few initiatives that has garnered bipartisan support has been the development of electronic health records (EHRs) and interoperable health-care information technology (HIT). Numerous studies have shown that the implementation of this technology can improve both operating costs and the quality of care, and the Health Information Technology for Economic and Clinical Health (HITECH) Act, which passed in February 2009, provides federal funding by way of grants and incentive payments in order to promote HIT adoption.
Although a meaningful implementation of this technology may take the better part of a decade, a few key factors may help determine which companies will come out on top. In our April issue of Healthcare Observer, our health-care analysts offered a review of the current state of the industry and the challenges to achieving rapid uptake among hospitals and physicians.
Revenue and Clinical Integration
Generally speaking, the HIT market is an amalgamation of boutique shops and specialized software. Oftentimes one company may provide billing software, while another provides an EHR platform. Companies that develop modular software that successfully incorporates the various components of HIT will have an advantage over firms that continue to specialize in one particular niche.
Over the past several years, Eclipsys (ECLP) has striven to diversify its offerings. By providing clinical, financial, and infrastructure platforms, the company is a solid candidate for health-care networks searching for an all-in-one solution. Eclipsys' top line has taken a considerable hit in recent quarters as hospitals delayed IT projects, but the company's relatively affordable subscription fees and increased outsourcing should enable it to survive the lull long enough to reap the benefits of increased private and federal pressures.
Hospital and Physician Compatibility
HIT companies have historically catered to either hospitals or smaller physicians' offices. Companies that can develop software that meets the needs of both group
s will be highly attractive for potential clients searching for advanced cross compatibility. Many hospitals choose to help fund HIT installations in local physicians' offices. Hospitals in large urban areas often rely on referrals from nearby practices.
