himss12 annual conference and exhibition: top takeaways and health it focus for 2012
TRANSCRIPT
HIMSS12 Annual Conference and HIMSS12 Annual Conference and Exhibition: Exhibition:
Top Takeaways and Health IT Focus for 2012Top Takeaways and Health IT Focus for 2012
Excerpts from Frost & Sullivan Market Insight ReportExcerpts from Frost & Sullivan Market Insight Report
May 2012May 2012
98379837--4848
Contents (Full Report)
Section Slide Numbers
Executive Summary 3
Conference Overview and Highlights 6
Excerpts from the HIMSS 2012 Leadership Survey 12
Top Ten Industry Trends 21
Top Ten Featured Companies 32
Top Takeaways and Health IT Focus for 2012 43
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Appendix 49
The Frost & Sullivan Story 51
Conference Overview and Highlights
Summary Statistics
The HIMSS12 conference was the best-attended ever, attracting 37,032 attendees, an 18 percent increase
from last year, as well as 1,100 exhibitors who offered a broad spectrum of health IT products and related
services. The conference also provided a robust selection of educational content, with more than 300
sessions spanning 23 topic categories selected by a peer-review panel.
Notable Speeches
Farzad Mostashari, M.D., the head of the Office of the National Coordinator for Health Information
Technology (ONC), gave an upbeat keynote address that focused strongly on the impressive uptick in the
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Technology (ONC), gave an upbeat keynote address that focused strongly on the impressive uptick in the
adoption of EHRs among hospitals and physician practices seen in the past few years and also provided
perspectives on ONC’s future plans to build on the momentum around health IT, including what to look for
in Stage 2 Meaningful Use. Mostashari described interest in Meaningful Use as “sky high” among providers
and hospitals.
Biz Stone, co-founder of the wildly popular social media platform Twitter, provided perspectives on how
social media will come to significantly influence healthcare by re-defining how providers and others share
information.
Carolyn Clancy, M.D., director of the Agency for Healthcare Research & Quality, spoke of how the use of
health IT has now reached critical mass across the provider landscape, thus continuously enabling quality
improvements for a wide range of patients.Source: Frost & Sullivan analysis.
Conference Overview and Highlights (continued)
Special Exhibitions
The Interoperability Showcase—offered in collaboration with Integrating the Healthcare Enterprise (IHE),
the exhibit featured vendors, solutions, and educational sessions focused on enabling connectivity.
The Intelligent Hospital Pavilion—offered in collaboration with the RFID in Healthcare Consortium. The
exhibit provided simulated inpatient settings (ICU, step down, ED, etc.) featuring various technologies used
in improving patient care, safety, and operating efficiencies, including auto-ID/Bar code scanning systems,
RFID/RTLS, and sensors and wireless solutions.
Knowledge Centers—a first at HIMSS, these were six subject-specific exhibits designed to bring together
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Knowledge Centers—a first at HIMSS, these were six subject-specific exhibits designed to bring together
educational sessions, vendor case studies, exhibition booths, and various HIMSS resources in one
convenient location. Subject areas reflected some of the most critical focus areas in the health IT industry
and consisted of Accountable Care Organizations, value-based purchasing, mobile health, medical devices
integration, business and clinical analytics/intelligence, cloud computing, and ICD-10.
HIMSS Social Media Center—designed to provide various types of activities including educational sessions
and networking with experts around how best to leverage social media in healthcare, including advice on
strategies and tactics for branding, business development, mobility, and driving consumer engagement.
Source: Frost & Sullivan analysis.
Conference Overview and Highlights (continued)
Major Announcements
Proposed Rules for Stage 2 Meaningful Use—The proposed rules were announced toward the end of the
conference. Although there was little time for review or discussion, the initial general consensus seemed to
be positive, as the rules seemed to a logical continuation of Stage 1. Although the total number of required
core and menu items has been reduced from Stage 1, the measures associated with these requirements
have been strengthened, particularly around CDS, CPOE, HIE, reporting clinical quality measures, and
patient engagement. The proposed Stage 2 rules stipulate that physicians need to meet at least 17 core
objectives in addition to three of five menu objectives while hospitals are expected to meet 16 core
objectives in addition to two of four menu objectives. The final Stage 2 rules are due out around June 2012.
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objectives in addition to two of four menu objectives. The final Stage 2 rules are due out around June 2012.
ICD-10 Delay*—Although announced just prior to HIMSS12 rather than at the conference, the potential
delay in implementing ICD-10, originally due to go into effect in October 2013, was much discussed and
there was some grumbling. It is unclear how much leeway will be given on the original deadline, but most
industry insiders thought that HHS would propose a nine- to 12-month delay; some even speculated that
ICD-10 might be delayed indefinitely and passed over until ICD-11 is ready. General comments at HIMSS
indicated that while some vendors and providers are unhappy about this disruption given the considerable
time and expense they have already invested in changeover to ICD-10, a potential delay will provide many
hospitals and physician practices much-needed time to focus on getting their core EHR projects in line for
Meaningful Use.
Source: Frost & Sullivan analysis.*On April 9, 2012 HHS announced a proposed rule to postpone the compliance date for ICD-10 to Oct. 1, 2014
Conference Overview and Highlights (continued)
Key Themes
Meaningful Use and EHR Adoption Trends—the most important them for HIMSS12. As noted by
Mostashari in his keynote speech, EHR adoption has been quite robust since the passing of the HITECH Act
three years ago. Statistics supporting this trend were repeatedly noted in various conference speeches and
educational sessions. According to CMS, $3.9 billion in Stage 1 EHR incentive funds had been paid out
through the end of February 2012, consisting of almost $1.2 billion to 84,000 physicians and $2.7 billion to
2,355 hospitalsaround 10 to 15 percent of providers (both physicians and hospitals). In addition, recent
figures from the National Center for Health Statistics (NCHS) show that 35 percent of U.S. physicians in
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ambulatory practices now are using either a basic or comprehensive EHR, the same percent of EHR
adoption by U.S. hospitals according to a recent announcement by HHS secretary Kathleen Sebelius.*
Connectivity and Interoperability—The concept of connecting systems and people for coordinated care
was ubiquitous, and many vendors are incorporating this concept into their marketing messages: Connected
HealthWorking Better Together (Cisco); Connecting People to Connect Care (Siemens); Health
Connections Brought to Life (RelayHealth); A Connected Community of Health (Allscripts); Enlightened
Action. Connected Care (InterSystems); Connected and Cool (Epic).
Source: CMS, NCHS, and Frost & Sullivan analysis.
*Data on the CMS Medicare and Medicaid EHR Incentive Program can be found at data.gov. The data set merges information about the CMS EHR Incentive
Programs attestations with the ONC Certified Health IT Products List, enabling systematic analysis of the distribution of certified EHR vendors and products among
those providers that have attested to meaningful use within the CMS EHR Incentive Programs. The data set can be analyzed by state, provider type, provider
specialty, and practice setting.
Conference Overview and Highlights (continued)
Payment Reform—Payment reform, namely moving away from fee-for-service to reimbursement based on
value and outcomes, was strongly evident in the messages that many vendors were using to promote their
“next-generation” revenue cycle management solutions. The notion of “accountable care” continues as a
key focus, although diminished somewhat from the enthusiasm seen at HIMSS11, where Accountable Care
Organizations as defined by the Medicare Shared Savings Program generated substantial buzz.
Health Insurance Transformation—Another topic of interest related to payment reform was the idea that
health insurers need to brace for a completely new way of doing business, as dramatically noted by Aetna
president Mark Bertolini in a speech where he talked about “the end of insurance companies.” This attitude is
mostly brought on by changes due to PPACA, like the new rule around the minimum medical loss ratio,
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mostly brought on by changes due to PPACA, like the new rule around the minimum medical loss ratio,
which requires insurers to spend 80 to 85 percent of all premiums received on claims.
Mobility—Once again, mobility was a prominent theme, with almost every vendor featuring an iPhone or
iPad app and hospital chief information officers (CIOs) talking about the need to manage the “BYOD” (bring
your own device) trend.
Population Health—Many vendors promoted new solutions around the growing need to manage
populations. Web or “cloud”-based solutions that aggregate patient data in electronic data repositories and
warehouses and use predictive analytics to improve quality and efficiency were featured. Solutions demo’d
by vendors like eClinicalWorks, Optum, and others were specifically designed to appeal to emerging
coordinated care models like Accountable Care Organizations and Patient-Centered Medical Homes.
Source: HIMSS and Frost & Sullivan analysis.
Top Takeaways
Dynamic Health IT Market Presents Opportunities and Threats
As of early 2012, we find the status of the U.S. health IT market to be in a dynamic, transformative period,
presenting a high degree of opportunities and threats for both legacy market participants and new market
entrants. One of the most compelling issues to consider at this juncture is the degree of near-term
displacement opportunities in the EHR market as providers seek advanced integrated solutions to meet
Meaningful Use requirements as stipulated by the CMS EHR Incentive Program and/or to prepare for
coming changes related to the growing complexities of value-based reimbursement, coordinated care, and,
eventually, personalized medicine.
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Source: Frost & Sullivan analysis.
EHRs Continue to Dominate the Health IT Market
The key health IT focus continues to be on implementing EHRs and related applications. Even those
providers who do not intend to attest for Meaningful Use (e.g., ambulatory providers who do not participate
in Medicare or Medicaid or who do not find the government incentives compelling) increasingly understand
that EHRs are inevitable and that eventually all healthcare providers will be using them - and all payers will
require them. Over the next couple of years, we foresee a robust but highly competitive EHR market.
Ambulatory EHR adoption will continue at a brisk pace through 2014, especially in small practices. However,
small niche ambulatory EHR vendors will increasingly exit the market due to increasing provider
consolidation and increasing costs associated with Meaningful Use certification.
Top Takeaways (continued)
Stage 1 Meaningful Use is Still the Primary Focus
While EHR sales have been robust and adoption continues at a steady pace, the market is still at the
formative stages and will remain so for the next 18−24 months. We see that the majority of the market is not
yet ready to move beyond Stage 1 Meaningful Use. The timing of overlapping initiatives like Meaningful Use,
ACOs, ICD-10, and PPACA-related changes have been too aggressive for most providers. Predictably,
physicians and small hospitals are bearing the brunt of the burden, as witnessed by increasing realignment
and changes in ownership among these market segments, as well as the calls to push back on ICD-10 and
HIPAA 5010 timelines. As Meaningful Use and EHR deadlines have been pushed back, we think most
providers and vendors will benefit. Vendors have more time to design, develop, and test new functionality,
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Source: Frost & Sullivan analysis.
providers and vendors will benefit. Vendors have more time to design, develop, and test new functionality,
and providers have more time to implement their EHR systems.
Most Providers Will Upgrade Financial IT Systems but Uncertainty Prevails
For non-clinical IT systems, vendor focus on payment reform and next-generation RCM as demonstrated at
HIMSS12 may be ahead of strong market demand given political uncertainty, the pushback on ICD-10
timing, and the ultimate fate of PPACA and payment reform. Once these issues are clarified, we expect to
see RCM gaining speed across the market.
Health IT Focus for 2012
Opportunities/Product FocusMarket Needs
Electronic Health RecordsElectronic Health Records
Health Information
Exchange/Data Integration
Health Information
Exchange/Data Integration
Potential displacement
opportunities as providers look to
Stage 2 Meaningful Use
Potential displacement
opportunities as providers look to
Stage 2 Meaningful Use
Exchange and integration of
disparate data sources to enable
single view of patient information
Exchange and integration of
disparate data sources to enable
single view of patient information
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Clinical Decision SupportClinical Decision Support
Patient EngagementPatient Engagement
Population HealthPopulation Health
Comprehensive, evidence-based
solutions seamlessly integrated
with clinician workflow
Comprehensive, evidence-based
solutions seamlessly integrated
with clinician workflow
Innovative, web-based solutions
designed for ease of use and
sustained engagement
Innovative, web-based solutions
designed for ease of use and
sustained engagement
Real-time analytics at the point of
care; robust reporting capabilities
for bundled payments
Real-time analytics at the point of
care; robust reporting capabilities
for bundled payments
Source: Frost & Sullivan analysis.
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