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WHAT'S HOLDING UP EMR ADOPTION?

How Europe's public hospitals will redefine healthcare by 2030

Overview

The global addressable market1 for electronic medical records (EMR) and electronic health records (EHR)2 is projected to grow at a slower pace in the next two years than previously realized, reflecting the ongoing need to improve the quality of patient care while managing cost pressures.

Restrained by a maturing market in the US and parts of the international community that are still in economic recovery, growth has and may continue to remain slow. As such, innovative solutions will be crucial to thrive in an increasingly competitive environment with changing needs. Governments and health systems will be better equipped to make a transformational leap forward toward the next wave of EMR/EHR needs if IT vendors embrace interoperability, mobile, cloud and big data.

Accenture research estimates that the size of the global EMR/EHR addressable market will grow at an annual rate of 5.5 percent (CAGR) between 2012 and 2015. Accenture forecasts that the global market will increase from $18.8 billion (USD) in 2012 to $22.3 billion by the end of 2015.This represents a slowdown from the growth rates previously forecasted by Accenture, which were as high as 9 percent in some markets.3

Addressable Market defined as hospital providers (all sizes) and IT Services for business (Consulting, Implementation, Business Process Outsourcing, IT Outsourcing)

Electronic medical records (EMRs) are defined as patient treatment records, including a patient’s background information and history of patient care, maintained within a hospital or clinic. Electronic health records (EHRs) are defined as patient health records that include clinical data and information from multiple sources and that are maintained outside of a single hospital or clinic.

Accenture Research, Overview of International EMR/EHR Markets, 2010

Background

Accenture forecasts that the Americas1 will remain the largest market for EMR/EHR, accounting for roughly 50 percent of the global market by the end of 2015. Specifically, the US will spur this growth, growing annually at 7.1 percent to $9.3 billion by the end of 2015.

Europe, Middle East, and Africa (EMEA) expect to be worth $7.1 billion by the end of 2015, with a CAGR of 3.3 percent. In particular, the UK market is expected to grow annually by 4.3 percent a year to $2.1 billion by the end of 2015. Asia Pacific (APAC), with a smaller addressable market but faster expected growth rate of 7.7 percent annually, will close the gap, reaching $4 billion in value over the same period.

New markets in Latin America and APAC may have better growth rates. Brazil, for example, is poised to break out with annual growth estimated as high as 9.7 percent due to federal investment of the Unified Health system (SUS) for Brazil.

Americas include North America and South America; EMEA includes Europe, Middle East and Africa; Asia Pac includes Australia and Asia

Analysis

A select mix of market forces has impacted the rate of growth of the addressable EMR/EHR markets. These include economic challenges in many markets, a shortage of government funding and incentives, competing priorities for healthcare leaders and the inconsistent returns on investment achieved by EMR/EHR solutions compared to what they originally promised. Moreover, health systems often have difficulty quantifying monetary return, pushing stakeholders to further question vendor’s total cost of ownership.

Although these factors have slowed the momentum for the EMR/EHR market, Accenture believes that mitigation of these forces will not be enough for the EMR/EHR global market to reignite growth. In the time that EMR/EHR growth has steadied, buyer values and patient demands, as well as care delivery and management methods have changed.

While health systems, and to a certain extent, government agencies, have been able to collect data, the next wave of data collection is the ability to capitalize on digital information to make better decisions within healthcare. Patients expect ownership of as well as access and greater transparency to their health information but through web and mobile-based products, similar to other industries. Health systems will need new solutions to address the diverse and changing needs of the marketplace.

Recommendation

As the needs of local markets change, regional stakeholders increasingly will demand innovative and new solutions that can better adapt and scale to suit the needs of their population and patient mix, both in terms of finances and operations. New solutions are likely to fall into three categories:

  • Broad EMR/EHR solutions: These are the traditional solutions already employed in mature markets such as the US by large vendors, offering the broadest range of functionality through large-scale implementation exercises.

  • EMR as a service: Cloud-based solutions represent a growing opportunity, particularly for providers who cannot make large up-front investments, and are willing to trade off other benefits of traditional systems.

  • Population health management: This more holistic approach integrates EMR/EHR within a care management platform and emphasizes data-driven population health across the care continuum.

Structured and unstructured data sources, such as biometric, behavioral and genomic data, are standardized and inform personalized care plans through robust analytics capabilities.

In practice, health systems may require elements of all three models. Vendors need to build disruptive solutions that combine the best of the current proposition with new funding and delivery mechanisms. All stakeholders in the marketplace will need to embrace new ways of working – and often forge new partnerships/alliances – as they develop innovative models for securely sharing patient data and implementing or augmenting EMR/EHR solutions. The status quo is no longer an option for any player in this space.

Global EMR / EHR Market—Chart

Accenture research estimates that the size of the global EMR/EHR addressable market will grow at an annual rate of 5.5 percent (CAGR) over the next three years. Accenture forecasts that the global market will increase from $18.8 billion (USD) in 2012 to $22.3 billion by the end of 2015.

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