Electronic Health Record Market Overview
The global electronic health record market generated $22.3 billion revenue in 2017 and is predicted to progress at a CAGR of 5.4% during 2018–2023. Increasing need for advanced healthcare information system, growing investments by healthcare IT players, rising demand for better healthcare facilities, and increasing government initiatives are the factors driving the market growth.
GLOBAL ELECTRONIC HEALTH RECORD (EHR) MARKET, BY COMPONENT, $M (2013-2023)
Based on delivery mode, the electronic health record market has been categorized into web/cloud-based server, and on-premise. Among these, web/cloud-based server held the largest share in this market, with 51% contribution in 2017. This is attributed to its increasing number of benefits that include low licensing and start-up cost, low maintenance and infrastructure requirements, and wider accessibility. In addition, a web-based EHR system provides enhanced productivity and faster and smoother implementation.
On the basis of component, the electronic health record market has been categorized into practice management, patient management, e-prescription, referral management, population health management and others. Of these, the fastest growth during the forecast period is expected from the e-prescription category, with a CAGR of 5.9%. This growth is attributed to the increasing adoption of e-prescriptions by the healthcare providers. Several medical and surgical specialty organizations have made the use of these prescriptions mandatory.
Based on end user, the electronic health record market has been classified into inpatient facilities, ambulatory care centers, physician offices, and others. Inpatient facilities held the largest share as an end-user category in this market, with 52.6% contribution in 2017. The growth in this end-user category is attributed to the increasing number of hospitals, globally, and several advantages associated with using EHR and easy availability of patient-centric data.
Geographically, the market for electronic health record observed the fastest growth in Asia-Pacific (APAC), with a CAGR of 5.7% during the forecast period. This growth is attributed to the growing geriatric population, upsurge in the occurrence of different chronic diseases, and development of healthcare infrastructure in the region.
Electronic Health Record Market Dynamics
Increasing need for advanced healthcare information system, growing investments by healthcare IT players, rising demand for better healthcare facilities, and increasing government initiatives are the major factors driving the growth of electronic health record market. EHRs help to improve the ability to diagnose diseases, reduce and even prevent medical errors; thus, improving patient outcomes. When healthcare providers have access to complete and accurate information, patients receive better medical care.
Switching from traditional data record systems to EHR reduces the cost involved in storing the data. Earlier, the data was stored on paper and a lot of care was required to handle it, due to which the healthcare providers are switching to EHR systems. According to the data published in 2016, by the Office of the National Coordinator for Health IT analysis, an organization that implements the use of advanced health information technology and electronic exchange of health information, around 95% of regional extension center (REC) enrolled for Priority Primary Care Providers (PPCPs) (136,726 providers) have an EHR installed and are routinely using the technology, over 78% of all REC-enrolled PPCPs (112,804 providers) had demonstrated Meaningful Use (MU) of certified EHR technology (CEHRT) and provided richer functionality of MU, including clinical quality reporting, e-prescribing, and medication reconciliation.
Globally, governments have advised hospitals and clinics to convert traditional health records into an electronic format for better storage of patient data. For instance, the U.S. government is taking initiatives to increase the use of EHR. The Health Information Technology for Economic and Clinical Health (HITECH) Act was authorized as a component of the American Recovery and Reinvestment Act (ARRA). This act was passed in 2009 to advance the utilization of EHR systems, with a specific end goal for modernizing and improving the healthcare system. Further, hospitals and physicians adopting EHR systems get incentives under this system.
Electronic Health Record Market - Competitive Landscape
Key players in the electronic health record industry are actively participating in the development of new platform for the patient records. For instance, in May 2018, Cerner Corporation announced the agreement with Cerner Government Services Inc., a wholly owned subsidiary of Cerner Corporation, a healthcare technology provider, transitioning service members and their care providers access to a single electronic health record system.
In April 2018, eClinicalWorks announced the partnership with Waverly Health Center (WHC), a 25-bed independent community hospital located in Waverly. The partnership aimed to transformed the WHC, Paragon Inpatient EHR system to the eClinicalWorks cloud-centric Acute Care EHR and Revenue Cycle Management platform. The new platform reduced the overall implementation costs while creating patients records in inpatient and outpatient communities.
Some of the other key players in the electronic health record industry are General Electric Company, McKesson Corporation, Allscripts Healthcare Solutions Inc., athenahealth Inc., Epic Systems Corporation, Computer Programs & Systems Inc., Medical Information Technology Inc., and Quality Systems Inc.