Traditional healthcare IT market already saturated; US medical IT providers have entered broad health service market
With policy support, the traditional healthcare IT solution market in the US has been saturated. In August 2009, the US government provided US$1.2bn in subsidies to help hospitals and health care service providers introduce EMR (electronic medical records). Before 2015, doctors who used EMR systems would receive a bonus of US$44,000~64,000 in the form of medical insurance, while hospitals and doctors that did not apply this system or could not prove meaningful use would receive less medical insurance compensation. Driven by the government, the hospital information system construction focusing on EMR has been completed in recent years. Industrial giants such as Epic, Allscripts and Nextgen (a subsidiary of Quality Systems) faced bottlenecks in their traditional hospital IT business.
Traditional medical IT giants have entered broad health service area and use diversified profit models. The traditional medical IT giants have entered new areas related to doctors, patients, drugstores and health insurers (even including molecular diagnosis and individualized health care solutions). This will increase the room for health care market growth. Based on different targets, medical IT players have identified different profit models.
Market share of top 10 hospital/regional health care IT solution providers in 2014
Segment market shares: EMR Solutions in 2014
Segment Market Shares: PACS Solutions in 2014
