EMR Sales Show Explosive Growth

Propelled by government incentives, a desire to improve patient outcomes, and the bottom line, sales of electronic medical records (EMRs) increased sharply in 2011. These are the latest findings of Kalorama Information (New York, NY, USA), an independent medical market research firm.

According to Kalorama information, sales in the EMR market grew 14.2% in 2011, culminating in a USD 17.9 billion global market, with revenue growth mirroring increased physician and institutional usage. Revenue estimate reflect monies earned by hundreds of companies, though a few top healthcare IT firms dominate the market. US federal incentives have been a major factor in the increased usage and growth of EMR systems. Statistics from the US National Ambulatory Medical Care Survey (NAMCS) indicate that 56.9% of office-based physicians used partial or full EMR systems in 2011, an increase from 2010.

The first incentives were paid in 2011 based on 2010 performance, with more than USD 1.3 billion in Medicare EMR Incentive Program payments made between May 2011 and the end of December 2011, and more than USD 1.1 billion in Medicaid EMR Incentive Program payments made between January 2011 and the end of December 2011. But Kalorama Information states that the market growth is not merely the result of the incentives; part of the revenues are a result of accounting, software, consulting, training, and service fees sold as part of EMR software purchases, which are an important part of business models.

“The incentives and the potential penalty are important, but so is getting the health record to the provider when he or she is in front of a patient,” said Bruce Carlson, publisher of Kalorama Information. “Paperless medicine is no longer a concept in a few model hospitals; it’s something that hospitals and physicians are really incorporating into their workflows. And that is showing up in budgets and increased vendor sales.”

The American Recovery and Reinvestment Act (ARRA) of 2009 was a direct response to the economic crisis, with three immediate goals: creating new jobs and saving existing ones; spurring economic activity and investing in long-term growth; and fostering unprecedented levels of accountability and transparency in government spending. The ARRA set aside nearly USD 20 billion in incentives for hospitals and physicians who adopt qualified, certified, EMRs with the ability to exchange information with other sources. The legislation also includes USD 2 billion for grants for telemedicine projects.

Related Links:
Kalorama Information