2012 Annual Report of the U. S. Hospital IT Market An industry report provided by and This historical report of the U.S. Hospital IT Market is brought to you as an online resource from the Dorenfest Institute. ▶▶ Table of Contents 2011 Hospital Industry Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2011 Hospital IT Budget and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Financial Decision Support Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Human Resource Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Revenue Cycle Management Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Next Generation Revenue Cycle Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Health Information Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Document Management/Electronic Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Nursing Department Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Ancillary Department Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Laboratory Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Operating Room (Surgery) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Ambulatory (Hospital Owned/Managed) IT Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Radiology PACS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Cardiology PACS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Bar Code Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Electronic Medical Record Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 The EMR Adoption ModelSM: Measuring Clinical IT Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 HIMSS Mission To lead healthcare transformation through the effective use of health information technology. © 2012 by the Healthcare Information and Management Systems Society and HIMSS Analytics. All rights reserved. No part of this publication may be reproduced, adapted, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the U.S.A. 5 4 3 2 1 Requests for permission to reproduce any part of this work should be sent to: Permissions Editor HIMSS 33 W. Monroe St., Suite 1700 Chicago, IL 60603 nvitucci@himss.org ISSN: 1949-0526 ISBN: 978-0-9844577-4-8 For more information about HIMSS, please visit www.himss.org. For more information about HIMSS Analytics, please visit www.himssanalytics.org. ▶▶ A Letter from the EVP and CEO of HIMSS Analytics and HIMSS Dear Healthcare Executive: Welcome to the 2012 Annual Report of the U.S. Hospital IT Market, produced jointly by the Healthcare Information and Management Systems Society (HIMSS) and HIMSS Analytics LLC, the wholly-owned, not for profit market research arm of HIMSS. We are very pleased to present this comprehensive view of the current state of IT adoption in U.S. hospitals in 2012. In 2011, the Department of Health & Human Services (HHS) made incentive payments of well over $2 billion to American hospitals and eligible providers authorized under the HITECH provisions of the 2009 American Recovery and Reinvestment Act (ARRA). We at HIMSS Analytics believe the incentive program is beginning to have some beneficial effect in healthcare IT adoption in U.S. hospitals. In 2011, we saw 102 hospitals achieve Stage 6 on the EMRAM model, up from 80 in 2010. In addition, we saw a 90 percent growth in hospitals achieving Stage 5, which requires closed loop medication administration, a difficult achievement requiring process changes affecting pharmacy, nursing and medical staff. In February 2011, HIMSS Analytics released research that indicated that 25 percent of surveyed hospitals have the capability to meet 10 or more of the process core measures and at least five of the menu items required by the ARRA Meaningful Use program.1 Hospitals in the industry have made some progress since that time as the December 2011 report2 indicates that 27 percent of hospitals are at this level. Additionally, nine percent of hospitals have the capability to meet all 14 core metrics and at least five menu items. HHS has commented that there is a “perfect storm” of impending deadlines facing healthcare CIOs. In autumn, Secretary of HHS, the Honorable Kathleen Sebelius agreed with the recommendation of the new National Coordinator for Health Information Technology, Dr. Farzad Mostashari, that the Meaningful Use Stage 2 requirements deadline should be postponed by one year to 2014. The final regulations for MU Stage 2 are due out in early 2012. Another area that has picked up quite a bit of momentum in 2012 is mobile health. In order to help grow the productive use of mobile health and to identify key barriers to success, HHS formed the Text4Health Task Force. In 2011, HIMSS created an mHealth community and has produced an initial series of surveys and white papers on mobile health.3 In November, the Institute of Medicine (IOM) released its report on Health IT and Patient Safety, Building Safer Systems for Better Care. The report identified recommendations designed to bring about rapid detection and correction of patient safety problems which could have been brought about by the use of IT. Without proper training, support and usability design, healthcare IT can add burden to the healthcare delivery process. Conversely, there are terrific examples of appropriately applied healthcare IT investments which have generated quality and efficiency improvements. In 2011, HIMSS Analytics produced its first in a series of reports on Return on Investment in healthcare IT.4 Future reports will identify additional quality and efficiency improvements identified by healthcare organizations. We believe that 2011 will be seen as the first of several years in which the stimulus provided by ARRA began to make an effect on helping U.S. hospitals reach a “tipping point” in IT investments. You can count on HIMSS Analytics and HIMSS to equip you to stay on top of these changes, and to be your most trusted and comprehensive source of information on the adoption of IT applications and the progress toward implementing those applications in today’s U.S. healthcare provider environment. We hope you find this eighth edition of the Annual Report of the U.S. Hospital IT Market informative, compelling, and stimulating. Best regards, John P. Hoyt Executive Vice President HIMSS Analytics 1 2 3 4 http://www.himssanalytics.org/general/pr_20110222.asp http://www.himssanalytics.org/general/mkt.asp http://www.mhimss.org/ http://www.himss.org/innovators/research.asp H. Stephen Lieber President and CEO HIMSS ▶▶ 2011 Hospital Industry Overview Looking Back; Looking Ahead: The Year in Review At the start of 2012, we sit at a precipice where we could be within a year of significant change due to the 2012 Presidential election this autumn. The economic recovery from the meltdown of 2008 has been unsteady and slow, but not unlike other recoveries since the early 1990s. Unemployment seemed stuck at approximately 9 percent, but showed some downward movement in November, 2011. Because hospitals are typically a “lag indicator,” the effect of the recession with concomitant loss of health insurance hit the hospitals in 2009 and 2010. HIMSS Analytics® data show that the number of hospitals and integrated delivery networks (IDNs) that reported an increase in their IT budgets actually saw a notable decrease in 2009–2010, but had a recovery to previous levels in 2011. Slow economic growth has led to greater than expected deficits through continued transfer payments and less than projected tax revenues at both the federal and state levels. This has added significant pressure to state Medicaid programs and numerous federal programs are being scrutinized for effectiveness. The American Recovery and Reinvestment Act of 2009 (ARRA) funding has been effective in stimulating the industry for further adoption of healthcare IT. The HIMSS Analytics Meaningful Use report of September, 2011 showed that 41 percent of hospitals are ready or most likely to achieve MU Stage 1. ARRA funding has clearly stimulated the acute care IT industry and one sign is the increase rate of progression up the HIMSS Analytics EMR Adoption Model scale. In 2011, we saw 102 hospitals achieve Stage 6, up from 80 in 2010. In addition, we saw a 90 percent growth in hospitals achieving Stage 5, which requires closed loop medication administration, a difficult achievement requiring process changes affecting pharmacy, nursing and attending medical staff. Another sign of certain stimulus of the acute care IT industry is the continued struggle that hospitals have in recruiting and retaining clinical system skills for implementation and support of IT systems. Our Senior IT Executives tell us that consulting firms are offering significant sign-on bonuses to experienced hospital-based implementers and that retaining trained resources at hospital salaries is becoming extremely difficult. The election of 2012 may become pivotal to the ARRA Health Information Technology for Economic and Clinical Health Act (HITECH) program. How the program will be affected is anyone’s guess, but it is clear that it will be scrutinized and proof of successful progress will be sought from every corner. In December, HHS announced that it had awarded $1.38 billion in EHR incentive payments through Medicare and $1.5 billion in EHR incentive payments through Medicaid. Medicare has given payments to 15,255 eligible healthcare providers, 566 hospitals participating in both the Medicare and Medicaid EHR incentive programs, and 38 hospitals participating only in the Medicare EHR incentive program. Medicaid had given payments to 14,089 eligible healthcare providers, and 1,043 hospitals participating either in both EHR incentive programs or only in the Medicaid incentive 2 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. program. Clearly this program has made an impact, but still there are significant issues with this “perfect storm” of burdening requirements on health system chief information officers (CIOs). The Meaningful Use Stage 2 requirements will be delayed one year due to the “perfect storm” facing healthcare IT executives. The unfunded mandate for the new electronic data interchange format 5010 due for implementation on January 1, 2012, plus the massive switch to ICD-10 Procedure Coding System (PCS) along with the drive to achieve Meaningful Use Stage 1 has caused a logjam in the capacity to take on any more change at most hospitals and IDNs. The Healthcare Information Technology (HIT) Policy Committee recommended a one-year delay for the MU Stage 2 requirements. Farzad Mostashari, MD, the new National Coordinator for Health Information Technology, said that he agreed with the recommendation by the HIT Policy Committee to delay Stage 2 to 2014. In the first week of December, 2011, Kathleen Sebelius, U.S. Department of Health and Human Services (HHS) Secretary, stated that HHS also agreed as well and will delay Stage 2, allowing providers more time to adopt health IT in 2011 without meeting the new requirements until 2014. The final rules for the Accountable Care Organizations (ACOs) under the Medicare Shared Savings Program were released in October, 2011. Many provisions in the final rule were more relaxed than first proposed, such as 33 quality measures instead of 65. The final rule specified that ACOs must still meet a minimum threshold of savings, but they can earn back more of the savings they generate from what was originally proposed. With this final rule, the race has begun to succeed as an ACO. We believe this may be the beginning of a new wave of healthcare IT investment for many organizations evolving into an ACO. Following the investments in an EHR, investments in clinical and business intelligence, data warehousing, cost finding and new revenue cycle systems will be needed for many organizations. Additionally, we believe this will stimulate a new wave of mergers and acquisitions which itself will generate a minigrowth of IT investments to standardize on major software suites in clinical, patient financial and back office applications. The effect of this on the vendor side will be continued consolidation. In November, the Institute of Medicine (IOM) released its report on Health IT and Patient Safety, Building Safer Systems for Better Care. The report, commissioned by the Office of the National Coordinator for Health IT, produced a series of recommendations designed to identify the best approaches for surveillance and reporting activities to bring about rapid detection and correction of patient safety problems which could have been brought about by the use of information technology in the directing or documenting of patient care. The IOM also stated that “Continuing to use paper records can place patients at unnecessary risk for harm and substantially constrains the country’s ability to reform health care.” This is not a call to halt or slow down health IT deployment, but a call to initiate the creation of an EHR safety action and surveillance plan while we continue to move ahead with the nations’ goals of making interoperable EHRs pervasive. ▶▶ 2011 Hospital Industry Overview con tinued Last year saw the notable entry into the healthcare delivery and the healthcare IT market by large payers. Aetna purchased Medicity, which has a strong foothold in the Healthcare Information Exchange (HIE) market. Additionally, United Health purchased the 2,300 physician group practice, Monarch Health Care in California. Highmark, another major payer, made a significant investment in West Penn Allegheny Health System. Clearly these types of investments by payers indicate a trend toward payers acquiring source data to drive clinical and business intelligence knowledge for effective quality improvement drivers and to help better position payers to successfully negotiate new levels of bundled payment programs. While federal funding of HIEs continued in 2011, serious questions remain on whether federally funded HIEs will exist in the long run without federal funding; the business case has not become obvious. In early 2012, a new level of standards is to be finalized under the rubric of Nationwide Health Information Network (NwHIN). The NwHIN is a set of standards and policies that enable secure health information exchange over the Internet. It seems clear that a major uptick in activity in the market at this point is the development of private HIEs to serve the increasing number of multi-provider integrated delivery systems and cooperative private exchanges in local and regional markets. We expect to see more payers enter this space as these exchanges are a major source of clinical consumption data that will help develop the next wave of efficacy research and resultant best practices and protocols. The ARRA act also provisioned the Federal Coordinating Council for Comparative Effectiveness Research. Clearly as hospitals implement EHRs, a wealth of data is being collected in a way that we have never had before. The goal of the Comparative Effectiveness Research program is to build the tools and methodologies to utilize this data to support clinical research and develop optimized care protocols which can be incorporated into the clinical decision support capabilities of EMRs and also eventually drive pay for performance. Hospitals and IDNs that invest in clinical and business intelligence tools and resources will be in a better position to succeed in positioning themselves to meet the new quality and efficiency requirements. Included in this research will be pharmaceutical efficacy data that goes beyond Food and Drug Administration (FDA) trials. Acquisition and mergers of acute care providers increased in 2011 to a new level. As IDNs position themselves to succeed as an ACO and gain a stronger market presence, the number of mergers and acquisitions in 2011 outpaced the record 2010. HIMSS Analytics data shows that the number of hospitals per IDN continued to grow by 4.5 percent in 2011. We see no force to prevent this trend from continuing. The desire of the Federal Government, notably the White House and HHS to have the ACO program succeed, may result in a confrontation with the anti-trust watch dogs in the Justice Department. No doubt, more clarity here is needed in the market. Long-time HIS vendor, McKesson Provider Technologies, announced in mid-December that it is going to focus their continued development on the Paragon platform because it is an integrated platform not composed of numerous subsystems that were acquired through acquisitions. This major announcement in the health IT market will take several years to have an effect. Clearly the market has spoken that the preferred solution is for integrated clinical suites and that the best of breed environment glued together by difficultto-support interfaces may clearly become a thing of the past. So, looking ahead, where are we going in 2012 and beyond? It is clear that federal policy has stimulated the adoption of healthcare IT and that the drive to develop a successful ACO, patient-centered medical home and bundled payment reform has picked up steam. Will this be derailed or significantly curtailed after the 2012 election? At this point, many political analysts are predicting that the Senate will stay with a conservative majority and that the House may switch from a liberal majority or that the existing liberal majority may be significantly reduced. Clearly such an outcome will have some affect on these programs. One fact is clear—healthcare providers will none the less be expected to improve quality care coordination across care settings, while simultaneously reducing costs and improving efficiency. Once healthcare providers demonstrate compliance with Stage 1 meaningful use, they will have little time to rest on their laurels. Instead, they will be faced in rapid succession with several other major IT challenges: • Complying with unfunded government mandates for the new version 5010 electronic data interchange (EDI) transactions by January 1, 2012. • Complying with unfunded government mandates to convert to ICD-10 diagnosis coding by October 1, 2013. • Meeting the EHR-related Stage 2 meaningful use requirements by 2014 • Meeting, by 2014, the anticipated external connectivity requirements of Stage 2 meaningful use related to the electronic exchange of patient information with other providers, local, statewide and national HIEs, public health agencies and other entities, including patients. • Addressing the organizational and process changes required to meet the higher mandated levels of compliance with computerized practitioner order entry (CPOE) and clinical decision support (CDS) usage in order to secure continued meaningful use payments. At the same time another healthcare IT wave has emerged as almost unaffected by the “perfect storm” of federal mandates. The growth of mobile health both for providers and consumers is gaining Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 3 ▶▶ 2011 Hospital Industry Overview con tinued unforeseen momentum. According to a recent study by the World Health Organization, the use of mobile and wireless technologies to support healthcare has the potential to transform the face of health service delivery, driven by rapid advances in the development of mobile technologies and applications, growth in cellular networks and new opportunities to integrate mobile health into currently delivered services.1 In order to identify ongoing mHealth initiatives and future projects that would promote mhealth, HHS has formed the Text4Health Task Force.2 “Basic research is what I’m doing when I don’t know what I’m doing.” –Werhner von Braun The challenges associated with a multi-year EMR implementation process can often cause organizations to lose sight of a critical guiding IT principle: technology is simply a means to the end, not an end unto itself. As we enter 2012, we see much of the industry’s attention focused on implementing EMRs, yet the experience of early adopters has clearly and repeatedly demonstrated that implementing an EMR alone will not achieve cost savings, quality improvements or revenue enhancements unless it is a component of a broader plan with clearly defined organizational and operational improvement objectives. The most successful organizations are those that have used their EMR as a foundation for implementing process change and complementary technologies, such as business analytics and clinical decision support, to achieve improved outcomes and reduced costs. A growing body of literature in respected journals and conference proceedings supports the idea that quality improvements truly can be derived from appropriately adopted healthcare IT concomitant with process redesign. HIMSS Analytics published the first in a series of reports this year on the return on investment (ROI) of clinical IT investments. There are clear examples of medication safety improvements, cost savings when CPOE is supported by evidence-based best practice alerts, and savings to health plans through reduced healthcare consumption, just to name a few. Naysayers who say that healthcare IT investments do not drive quality and efficiency benefits are clearly wrong. However, can healthcare IT be inappropriately applied? Certainly, inadequate training and poor usability design can feed an error-prone environment. Providers and software developers alike must be on guard to optimize the tremendous power of healthcare it appropriately. Does healthcare IT reduce costs immediately? Certainly not. HIMSS Analytics data suggests that the percent of total operating expenses spent on IT increases as hospitals move up the HIMSS Analytics Electronic Medical Record Adoption Model (EMRAM) scale. But a more detailed look indicated that the most “expensive stages,” where the percent of total expenses spent on IT are the highest, are Stages 4 and 6. Stage 4 is where CPOE is deployed, and Stage 6 is where physician documentation is deployed. Both of these stages are intense in medical staff education which requires significant skilled resources. HIMSS Analytics data shows that Stage 7 hospitals actually spend a slightly smaller percent of total expenses on IT than Stage 6 hospitals. Also, HIMSS Analytics data shows that the operating margins of Stage 7 hospitals are significantly higher than any other Stage. The payoff has begun. Let us continue this progression. “I was brought up to believe that the only thing worth doing was to add to the sum of accurate information in the world.” –Margaret Mead As the pace of change quickens, even legacy applications can be expected to enjoy a renaissance. We believe that as the ACO program and payment reform gain momentum, there will be significant provider mergers and acquisitions. This will stimulate three major activities: First, a consolidation on clinical, revenue cycle and enterprise resource planning (ERP) platforms, thus decommissioning of systems in the acquired entities which will require a new wave of consultants to help data conversion and implementations of some legacy systems. Second, the legacy revenue cycle systems will need significant enhancements to meet the needs of a bundled payment environment. Closely adjacent to this, cost accounting will take on a new key role. Third, to drive down costs, we see a consolidation of patient accounting and supply chain operations, again requiring a new wave of revenue cycle management (RCM) and ERP solutions. Finally, as hospitals accumulate unprecedented levels of digital data, we see two major derivatives. First, clinical and business intelligence will take on a central role to help direct the hospital to the most effective care protocols and efficiency. Second, hospital data centers themselves will become increasingly taxed to support and hold all this data. Manageability and physical space become key issues for providers. Outsourced data centers or entire hosting of systems in an application service provider (ASP) model will clearly grow, harking back to the beginning of our industry when shared models were the norm. It is a delight to see that HIMSS Analytics has identified eight critical access hospitals as Stage 6, and five of those eight utilize an ASP model. “The way of progress is neither swift nor easy.” –Marie Curie Years from now, health IT history buffs will likely look back on 2011 as a year when acute care IT adoption gained momentum, spurred on by federal stimulus dollars. But the past is merely a prologue, as we expect the pace of change that characterized 2011 to accelerate in 2012 and beyond unless the stimulus funds are stopped entirely, which is unlikely. Should the ARRA incentive program continue, we expect a number of significant provider mergers and a new wave of investment in financial systems to support payment reform to commence by the middle of this decade? As Confucius once said, “May we live in interesting times.” 1 Mhealth: New Horizons for Health Through Mobile Technologies. World Health Organization. 2011 http://www.himss.org/content/files/Code%20491%20-%20mHealth-New%20horizons%20for%20health%20through%20mobile%20technologies_WHO_2011.pdf Accessed November 22, 2011 2 HHS.gov website on mhealth. http://www.hhs.gov/open/initiatives/mhealth/ Accessed November 22, 2011 4 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. ▶▶ 2011 Hospital Industry Overview con tinued HIMSS Analytics Stage 7 Awards HIMSS Analytics launched the EMR Adoption ModelSM (EMRAM) in 2005 to track adoption of EMR applications within hospitals and health systems. The EMRAM scores hospitals in the HIMSS Analytics® Database on their progress in completing 8 Stages (0–7), with the goal of reaching Stage 7, an environment in which paper charts are no longer used to document the delivery of patient care. In 2009, HIMSS Analytics honored 38 Stage 7 hospitals, the first hospitals to reach Stage 7. By 2011, the number of hospitals swelled to 66, including the two international Stage 7 hospitals. Stage 7 hospitals are positioned to share clinical information via standard electronic transactions with all entities within health information exchange networks (i.e., other hospitals, ambulatory clinics, sub-acute environments, employers, payers and patients). This stage allows the healthcare organization to support the true sharing and use of health and wellness information by consumers and providers alike. Also at this stage, healthcare organizations use data warehousing and mining techniques to capture and analyze care data for performance improvement and advancing the use of clinical decision support protocols. As such, it is these organizations that are best positioned to reach Stage 1 meaningful use. “The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends upon the unreasonable man.” –George Bernard Shaw The following is a list of healthcare organizations that have achieved Stage 7 of EMR Adoption model (as of December, 2011). These hospitals exemplify organizations that are using IT as the supporting infrastructure for their advances. In 2011, 14 new hospitals were validated as Stage 7, including one from Germany. They are listed below: Name Alfred I. DuPont Hospital for Children Children’s Medical Center at Legacy Deaconess Cross Point Center Deaconess Gateway Hospital Deaconess Hospital Florida Hospital – Flagler The Heart Hospital Kaiser Permanente - Moanalua Medical Center Rochester Methodist Hospital St. Mary’s Hospital of Rochester Tucson Medical Center UC San Diego Medical Center – Hillcrest UC San Diego Medical Center – Thornton Hospital Universitätsklinikum Hamburg-Eppendorf City Wilmington Plano Evansville Newburgh Evansville Winter Park Newburgh Honolulu Rochester Rochester Tucson San Diego La Jolla Hamburg State DE TX IN IN IN FL IN HI MN MN AZ CA CA GER Hospitals validated as Stage 7 prior to 2011. Name American Family Children’s Hospital Children’s Hospital Boston Children’s Hospital of Pittsburgh Children’s Medical Center of Dallas Citizens Memorial Healthcare Evanston Hospital Glenbrook Hospital Highland Park Hospital Kaiser Permanente – Anaheim Medical Center Kaiser Permanente – Antioch Medical Center Kaiser Permanente – Baldwin Park Medical Center Kaiser Permanente – Bellflower Medical Center Kaiser Permanente – Fontana Medical Center Kaiser Permanente – Fremont Medical Center Kaiser Permanente – Fresno Medical Center Kaiser Permanente – Hayward Medical Center Kaiser Permanente – Los Angeles Medical Center Kaiser Permanente – Manteca Medical Center Kaiser Permanente – Modesto Medical Center Kaiser Permanente – Moreno Valley Community Hospital Kaiser Permanente – Oakland Medical Center Kaiser Permanente – Orange County/Irvine Medical Center Kaiser Permanente – Panorama City Medical Center Kaiser Permanente – Richmond Medical Center Kaiser Permanente – Riverside Medical Center Kaiser Permanente – Redwood City Medical Center Kaiser Permanente – Roseville Medical Center Kaiser Permanente – Sacramento Medical Center Kaiser Permanente – San Diego Medical Center Kaiser Permanente – San Francisco Medical Center–Geary Kaiser Permanente – San Jose Medical Center Kaiser Permanente – San Rafael Medical Center Kaiser Permanente – Santa Clara Homestead Medical Center Kaiser Permanente – Santa Rosa Medical Center Kaiser Permanente – South Bay Medical Center Kaiser Permanente – South Sacramento Medical Center Kaiser Permanente – South San Francisco Medical Center Kaiser Permanente – Sunnyside Medical Center Kaiser Permanente – Vacaville Medical Center Kaiser Permanente – Walnut Creek Medical Center Kaiser Permanente – West Los Angeles Medical Center Kaiser Permanente – Woodland Hills Medical Center Sentara Bayside Sentara CarePlex Sentara Leigh Hospital Sentara Norfolk General Hospital Sentara Virginia Beach General Hospital Sentara Williamsburg Regional Medical Center Skokie Hospital Stanford Hospital & Clinics University of Wisconsin – Hospital & Clinics Seoul National University Bundang Hospital City Madison Boston Pittsburgh Dallas Bolivar Evanston Glenview Highland Park Anaheim Antioch Baldwin Park Bellflower Fontana Fremont Fresno Hayward Los Angeles Manteca Modesto Moreno Valley Oakland Irvine Panorama City Richmond Riverside Redwood City Roseville Sacramento San Diego San Francisco San Jose San Rafael Santa Clara Santa Rosa Harbor City Sacramento San Francisco Clackamas Vacaville Walnut Creek Los Angeles Woodland Hills Virginia Beach Hampton Norfolk Norfolk Virginia Beach Williamsburg Skokie Stanford Madison Seoul State WI MA PA TX MO IL IL IL CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA OR CA CA CA CA VA VA VA VA VA VA IL CA WI KOR This is the eighth edition of the Annual Report of the U.S. Hospital IT Market, and we hope you find it thought-provoking, stimulating, and informative. The HIMSS Analytics Research Team John Hoyt Lorren Pettit Jennifer Horowitz Roger Park Aviva Zupancic Nikita Macklin Bobby Maslowski Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 5 ▶▶ 2011 Hospital IT Budget and Expenses As in past years, this section of the report highlights financial benchmarks which provide a glimpse into information technology (IT)-related spending as a percentage of organizations’ overall spending. Analyses are presented from three different perspectives. The first set of ratios shows the mean and median IT operating expense (OPEX) as a percentage of total hospital operating expense. In this view, capital expenses are excluded from both the numerator and the denominator. The second set of ratios shows the average and median spending ratios for the total IT budget, including both operating and capital expense (CAPEX) for this fiscal year, as a percentage of the organizations’ overall operating and capital expenses. The third set of ratios focuses on the IT department capital expenses for this fiscal year, as a percentage of the hospital’s total capital expense. Each set of ratios are examined by bed-size range, hospital type and region. In our opinion, the sharp and pervasive downward trend in these ratios from 2009 to 2010 clearly reflects the impact of the economic crisis. This trend was more pronounced among larger hospitals and is more evident in the ratios which include capital expense. Although the start of financial crisis can be traced back to September, 2007, the rise in unemployment and the worst of the economic news did not begin to reveal itself until the latter part of 2008 and it was not until the early months of 2009 that the bottom of the stock market was reached. This period coincides with the time that the crisis began to directly affect healthcare provider organizations (HCOs). According to data from HIMSS Analytics, the percent of hospitals stating that their IT operating budgets were increasing continued to fall each quarter in 2010, until the 4th quarter when a return to a normalcy for that statistic occurred. According to an annual analysis by the Centers for Medicare and Medicaid Services (CMS), national healthcare spending rose at a rate of 3.9 percent in 2010, slightly lower than 2009’s record low growth of 4 percent. The recession and its resulting decline in the number of people covered by health insurance have been slowing the rate of healthcare spending since 2007. In 2010, according to CMS projections, healthcare spending will stay at 17.6 percent of GDP, the same rate for two years. Healthcare spending slowed across all sources, including the federal government, state governments, private employers and individuals. The impact on hospitals was largely attributable to two factors— a drop in utilization, which generally tracked to unemployment, and the 3.4 percent reduction in Medicare’s private health plan payments. By early 2011, lingering unemployment and the expiration of COBRA benefits continued to slow elective admissions in many hospitals. In November and December of 2011, we began to see some growth in national employment such that the unemployment rate began to tick down below the 9 percent range where it had been stuck for most of 2011. The number of layoffs in U.S. hospitals in 2011 was below the levels in 2009 and 2010 respectively according to the Bureau of Labor Statistics (BLS). IN 2011, there were an estimated 120 “mass layoffs” at U.S. hospitals (affecting 50 or more employees at once, a BLS definition) compared to 152 in 2009 and 137 in 2010. With the growth of employment beginning a new economic cycle, we believe the number of mass layoffs will continue to decelerate for the next few years. 6 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Table hB1 % of Total IT Operating Expense/Total Hospital Operating Expense–Overall Avg Median N 2009 2.67% 2.08% 383 2010 2.40% 1.93% 471 2011 2.39% 2.11% 475 2009 4.45% 3.46% 381 2010 2.77% 2.26% 469 2011 4.87% 3.92% 436 2009 20.10% 14.27% 284 2010 17.32% 10.27% 211 2011 17.89% 12.14% 300 Table hB2 % of Total IT Budget/Total Hospital Expense–Overall Avg Median N Table hB 3 % IS Capital Expense Last Year/ Total Hospital Capital Expense–Overall Avg Median N Some evidence exists to point to an increase in hospital capital spending, possibly spurred on by the assumption of a decrease in cash flow after 2014 when planned Medicare reductions take place due to the Affordable Care Act. Of course, increased admissions from increased coverage availability may offset that decrease from Medicare. That remains to be seen. In 2011, the average ratio of IT department operating expense to total hospital operating expense remained relatively the same while the median ratio indicated a slight increase (see Table HB1). Evaluating the average and median numbers for the ratio of the total IT budget (includes operating and capital expenses for this year) to total hospital operating expense, the 2011 data compared more directly with the 2009 data than 2010. When compared to 2009, the 2011 data indicated an increase in the average and median ratios. The average ratio increased 0.42 percent from 2009 to 2011 while the median ratio increased by 0.46 percent. The 2010 data should be interpreted as an anomaly for this particular ratio due to the recession since hospitals are generally considered a lag indicator (see Table HB2). In regard to the ratio of IS department capital expense (from last fiscal year) to the hospital’s overall capital expense, the average and median percentage increased from 2010 to 2011. The average ratio increased by 0.57 percent while the median percentage jumped by almost two percent (see Table HB3). The general increase in these ratios appears to be modest; however, this is a good indicator that the economy has recovered to a point where hospitals are beginning to feel more at ease with spending and/or budgeting more in 2011. IT OPEX as a Percentage of Hospital Total OPEX From 2009 to 2010, the hospitals in the mid-sized bed range (301–400 beds and 401–500 beds) showed an increase in IT OPEX as a percentage of the hospital total OPEX spending, but in 2011, the increase of IT OPEX spending ratio shifted to smaller (0–100 beds and 101–200 beds) and larger (501–600 and 600+ beds) segments (see Table HB4). The 501–600 bed segment showed the most increase at 0.63 percent while the bed segment that indicated the most decline was in the 201–300 bed segment—a negative 0.45 percent. Segments larger than 200 beds but smaller than 500 beds demonstrated a slight decrease in average ratio from 2010 to 2011. ▶▶ 2011 Hospital IT Budget and Expenses con tinued In our opinion, this correlates with the general patterns we have seen with respect to the acquisition and implementation of electronic medical records (EMRs)—where hospitals in the higher bed ranges, particularly academic medical centers, implemented EMRs in larger numbers earlier than those in the middle and lower bed-size categories. However, these earlier deployments in larger institutions, notably academic medical centers (AMCs), were often more “best of breed-like” in their deployments and many with now Table HB 4 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All 2009 2010 2011 Avg % Total Avg % Total Avg % Total IT Operating IT Operating IT Operating Expense/ Expense/ Expense/ Total Hospital Total Hospital Total Hospital Operating Operating Operating Expense N Expense N Expense 1.92% 136 1.82% 183 1.97% 2.72% 76 2.09% 77 2.17% 3.40% 63 2.97% 78 2.52% 2.82% 39 3.08% 55 2.81% 3.12% 44 3.43% 41 3.35% 2.88% 8 2.53% 13 3.16% 4.17% 17 2.54% 24 2.73% 2.67% 383 2.40% 471 2.39% N 171 91 74 60 37 17 25 475 Table HB5 Type Academic/Teaching Non-Academic General Med/Surg Others Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System 2009 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 3.78% 2.55% 2.69% 2.62% 1.91% 2.84% 2.08% 2.77% 3.45% 2.21% N 39 344 259 124 68 315 54 329 143 240 2010 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 3.20% 2.33% 2.45% 2.31% 1.76% 2.57% 1.69% 2.56% 2.55% 2.32% N 68 22 53 17 31 45 61 46 40 2010 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 2.60% 2.82% 2.35% 2.41% 3.20% 2.80% 2.26% 2.41% 1.46% N 39 432 304 167 102 369 88 383 160 311 2011 Avg % Total IT Operating Expense/ Total Hospital Operating Expense N 2.89% 37 2.35% 438 2.35% 321 2.48% 154 1.79% 84 2.52% 391 1.79% 66 2.49% 409 2.52% 187 2.31% 288 Table HB6 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 2009 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 3.23% 2.46% 3.03% 3.04% 2.70% 2.77% 2.60% 2.26% 1.66% N 77 14 49 25 46 53 77 58 72 2011 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 2.34% 3.28% 2.44% 2.34% 2.43% 2.46% 2.36% 2.62% 1.86% N 72 15 57 18 49 67 82 59 56 State Key for Regions: New England . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MA, ME, VT, RI, CT, NH Middle Atlantic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NY, NJ, PA South Atlantic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MD, DE, DC, WV, VA, NC, SC, GA, FL East North Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MI, OH, IN, IL, WI East South Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KY, TN, MS, AL West North Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MN, IA, MO, KS, ND, SD, NE West South Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TX, LA, AR, OK Mountain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ID, CO, WY, MT, NV, UT, AZ, NM Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WA, CA, OR, AK, HI aging architectures. With the growth of the integrated clinical systems offerings and the need for ARRA compliance and reporting, some of these larger institutions have begun replacing legacy pieces which may be driving this growth. As these larger institutions progress further into the operational phase of their EMR deployments, the increase in expenses typically associated with the implementation phase declines as does the depreciation expense associated with these capital-intensive projects, which generally have front-loaded depreciation schedules. During this same period, the most significant increases in the sales of enterprise EMR systems were among medium-sized hospitals, i.e., those in the 301–500 bed range. Here, we found modest increases in the expense ratios. Consistent with the findings from the bed segments, an evaluation of the IT OPEX by hospital type showed that critical access hospitals, non-general medical/surgical, or those in rural areas were the only segments to demonstrate growth from 2010 to 2011 (see Table HB5). This is somewhat consistent with the findings from the bed-size segment since most of the smaller bed-sized hospitals fall under the category of hospitals that are critical access, or not general medical/surgical or located in rural areas. All other hospital types reported a decline in the average ratio percentage. Examining the IT OPEX ratio on a U.S. regional basis shows that five of the nine regions indicated increases, with East South Central and West South Central demonstrating the largest year-over-year growth (0.46 percent and 0.40 percent, respectively) from 2010 to 2011 (see Table HB6). Government and private entities in Vermont, Maine and Rhode Island also actively contributed to large-scale coordinated HIE and EMR initiatives in 2009 that began to take shape in 2010. However, the increase seen for the average percentage between 2009 and 2010 in the New England region was more pronounced than the median increase (see Table HB9), suggesting that the rising tide did not lift all boats, but rather was characteristic of spending by the larger, more IT-mature institutions. Also, our EMRAM median scores show that the top six states in the U.S. are all the six New England states (MA, ME, VT, RI, CT, NH). An evaluation of the median total IT operating expense to total hospital operating expense ratios for hospital bed-size segments shows virtually all of the segments have increased from 2010 to 2011 except the 401–500 bed segment (see Table HB7). The largest growth occurred for the 501–600 bed segment at 0.75 percent. The 401–500 bed segmentation showed a slight decrease (0.10 percent). Table HB7 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All 2009 2010 2011 Median % Total Median % Total Median % Total IT Operating IT Operating IT Operating Expense/Total Expense/Total Expense/Total Hospital Hospital Hospital Oper­ating Oper­ating Oper­ating Expense N Expense N Expense N 1.47% 136 1.56% 183 1.70% 171 2.17% 76 1.73% 77 1.98% 91 2.36% 63 2.13% 78 2.20% 74 2.37% 39 2.74% 55 2.75% 60 2.73% 44 3.23% 41 3.13% 37 2.32% 8 2.43% 13 3.17% 17 3.37% 17 2.32% 24 2.53% 25 2.08% 383 1.93% 471 2.11% 475 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 7 ▶▶ 2011 Hospital IT Budget and Expenses con tinued Table HB8 Table HB12 2009 Median % Total IT Operating Expense/Total Hospital Oper­ating Type Expense Academic 2.96% Non-Academic 1.94% General Med/Surg 2.11% Others 1.92% Critical Access 1.44% Non-Critical Access 2.24% Rural 1.38% Urban 2.19% Multi-Hospital System 2.53% Single Hospital System 1.93% N 39 344 259 124 68 315 54 329 143 240 2010 Median % Total IT Operating Expense/Total Hospital Oper­ating Expense 2.78% 1.86% 2.00% 1.86% 1.53% 2.12% 1.34% 2.12% 1.92% 1.93% N 68 22 53 17 31 45 61 46 40 2010 Median % Total IT Operating Expense/Total Hospital Oper­ating Expense 1.75% 2.28% 1.97% 1.93% 2.58% 2.24% 2.12% 2.04% 1.00% N 39 432 304 167 102 369 88 383 160 311 2011 Median % Total IT Operating Expense/Total Hospital Oper­ating Expense 2.80% 2.01% 2.13% 1.99% 1.52% 2.21% 1.53% 2.21% 2.16% 2.07% N 37 438 321 154 84 391 66 409 187 288 N 77 14 49 25 46 53 77 58 72 2011 Median % Total IT Operating Expense/Total Hospital Oper­ating Expense 2.14% 1.83% 2.29% 2.05% 2.38% 2.25% 1.89% 1.88% 1.25% N 72 15 57 18 49 67 82 59 56 Table HB9 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 2009 Median % Total IT Operating Expense/Total Hospital Oper­ating Expense 2.07% 1.66% 2.14% 2.53% 2.44% 2.37% 2.02% 2.01% 1.33% Table HB10 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All 2009 2010 2011 Median % Median % Median % Total IT Budget Total IT Budget Total IT Budget as % of Total as % of Total as % of Total Hospital Hospital Hospital Expense N Expense N Expense N 4.08% 122 2.04% 179 4.44% 149 4.05% 79 2.39% 72 4.92% 78 4.77% 65 3.59% 79 4.85% 78 5.14% 38 3.22% 57 5.22% 52 4.55% 44 3.80% 41 6.00% 38 4.20% 12 3.20% 13 5.47% 16 5.89% 21 3.47% 28 4.52% 25 4.45% 381 2.77% 469 4.87% 436 Table HB11 2009 2010 2011 Median % Median % Median % Total IT Budget Total IT Budget Total IT Budget as % of Total as % of Total as % of Total Hospital Hospital Hospital Type Expense N Expense N Expense N Academic 5.43% 45 3.34% 46 4.80% 40 Non-Academic 4.32% 336 2.71% 423 4.88% 396 General Med/Surg 4.34% 257 2.84% 300 4.85% 290 Others 4.68% 124 2.64% 169 4.92% 146 Critical Access 4.24% 66 3.06% 148 4.57% 79 Non-Critical Access 4.50% 315 2.63% 321 4.94% 357 Rural 4.71% 51 2.16% 99 4.69% 68 Urban 4.41% 330 2.93% 370 4.91% 368 Multi-Hospital System 5.46% 140 2.02% 86 5.71% 148 Single Hospital System 3.87% 241 2.94% 383 4.44% 288 8 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 2009 Median % Total IT Budget as % of Total Hospital Expense 5.50% 2.87% 4.26% 4.11% 3.52% 5.72% 4.40% 4.25% 3.38% N 77 21 60 19 36 35 64 43 26 2010 Median % Total IT Budget as % of Total Hospital Expense 2.70% 3.02% 2.72% 2.76% 3.25% 3.22% 2.95% 2.71% 1.73% N 87 20 60 21 50 43 77 63 48 2011 Median % Total IT Budget as % of Total Hospital Expense 4.96% 4.28% 4.64% 7.66% 3.73% 4.92% 6.02% 4.94% 3.69% N 75 19 59 20 53 39 63 62 46 Upon evaluating the median operating expense ratio by hospital type, only one segment, critical access hospitals, showed a very slight decrease (0.01 percent), while all other hospital-type segments indicated an increase from 0.02 percent to 0.24 percent (hospitals part of the multi-hospital system) (see Table HB8). U.S. regions demonstrating growth from 2010 to 2011 were the East North Central, Middle Atlantic, Mountain, Pacific and West South Central regions. The growth in each region was relatively modest, ranging from 0.01 percent to 0.39 percent (see Table HB9). Growth was largest in the East North Central (0.39 percent). All other segments indicated a decline from 2010 to 2011 with East South Central indicating the greatest year-over-year decline (0.45 percent). IT Spending as a Percentage of Hospital Total Spending Including CAPEX An evaluation of the average of total IT budget as a percent of the total hospital operating expense (the average budget ratio) in the various hospital segments is shown in Tables HB10–HB12. Overall, the market saw a dramatic decrease from 2009 to 2010 for this ratio. Based on the 2011 data, it is more likely that the 2010 data was a data anomaly and that the 2011 and 2009 data are more comparable than 2011 and 2010 data. In subsequent analysis of this section, we will compare the average percentage of 2009 with the average percentage in 2011. Among the bed segmentation, the average ratio of virtually all of the bed size segmentation indicated an increase from 2009 to 2011, ranging from 0.07 percent to 1.45 percent (401–500 beds). The 600+ bed segment is the only exception, declining by 1.37 percent within the same time frame (see Table HB10). Most of the hospital types have also indicated an increase in IT spending to total hospital spending ratio with the exception of academic and rural hospitals (see Table HB11). As for the region, East North Central and Pacific are the only areas to indicate a decline in spending ration from 2009 to 2011. All other regions indicated an increase in the spending ratio with the largest year-over-year spending ratio occurring in the Mountain region with a 3.55 percent increase (see Table HB12). An evaluation of the median of total IT budget as a percent of the total hospital operating expense (median budget ratio) in the various hospital segments is shown in Tables HB13–HB15. Four of the seven bed segment categories indicated an increase from 2009 to 2011 with the 401–500 bed segment demonstrating the largest increase at 1.24 percent. The bed segment with the largest decline in the same time period is the 600+ bed segment (0.68 percent) (see Table HB13). Almost all of the hospital-type market segments indicated an increase from 2009 to 2011, ranging from 0.30 percent to 0.98 percent. Academic medical centers are the ▶▶ 2011 Hospital IT Budget and Expenses con tinued Table HB13 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All Table HB16 2009 2010 2011 Median % Median % Median % Total IT Budget Total IT Budget Total IT Budget as % of Total as % of Total as % of Total Hospital Hospital Hospital Expense N Expense N Expense N 2.76% 122 1.77% 179 3.30% 149 3.61% 79 2.15% 72 4.08% 78 4.12% 65 2.77% 79 3.98% 78 4.06% 38 2.98% 57 4.29% 52 3.88% 44 4.12% 41 5.11% 38 4.30% 12 3.41% 13 4.19% 16 4.82% 21 2.93% 28 4.14% 25 3.46% 381 2.26% 469 3.92% 436 Table HB14 2009 2010 2011 Median % Median % Median % Total IT Budget Total IT Budget Total IT Budget as % of Total as % of Total as % of Total Hospital Hospital Hospital Type Expense N Expense N Expense N Academic 4.48% 45 3.06% 46 4.09% 40 Non-Academic 3.39% 336 2.16% 423 3.90% 396 General Med/Surg 3.57% 257 2.28% 300 3.87% 290 Others 3.19% 124 2.26% 169 4.09% 146 Critical Access 2.66% 66 1.89% 99 3.64% 79 Non-Critical Access 3.73% 315 2.53% 370 3.96% 357 Rural 2.66% 51 1.71% 86 3.47% 68 Urban 3.64% 330 2.54% 383 4.03% 368 Multi-Hospital System 3.93% 140 2.52% 148 4.58% 148 Single Hospital System 3.23% 241 2.20% 321 3.74% 288 Table HB15 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 2009 Median % Total IT Budget as % of Total Hospital Expense 3.57% 2.50% 3.69% 3.61% 3.23% 4.98% 3.36% 3.46% 2.62% N 77 21 60 19 36 35 64 43 26 2010 Median % Total IT Budget as % of Total Hospital Expense 2.23% 2.11% 2.61% 2.49% 2.73% 3.02% 2.32% 2.18% 1.19% N 87 20 60 21 50 43 77 63 48 2011 Median % Total IT Budget as % of Total Hospital Expense 4.04% 3.03% 4.32% 4.72% 3.48% 4.24% 3.74% 4.25% 2.74% Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All 2009 2010 Avg % Total Avg % Total IT Capital IT Capital Expense Last Expense Last Year/Total Year/Total Hospital Hospital Capital Expense N Capital Expense 17.82% 79 17.26% 20.87% 61 18.78% 17.83% 52 16.19% 24.32% 33 15.85% 25.65% 35 19.51% 14.14% 7 25.26% 17.74% 17 13.87% 20.10% 284 17.32% N 74 33 36 26 22 5 15 211 2011 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense N 17.77% 99 18.01% 54 16.50% 51 17.52% 41 24.73% 27 13.16% 11 15.40% 17 17.89% 300 Table HB17 2009 2010 2011 Avg % Total Avg % Total Avg % Total IT Capital IT Capital IT Capital Expense Last Expense Last Expense Last Year/Total Year/Total Year/Total Hospital Hospital Hospital Type Capital Expense N Capital Expense N Capital Expense N Academic 19.23% 36 16.27% 19 14.05% 28 Non-Academic 20.23% 248 17.43% 192 18.28% 272 General Med/Surg 20.82% 201 17.88% 141 18.28% 203 Others 18.37% 83 16.20% 70 17.07% 97 Critical Access 19.42% 39 15.74% 38 18.88% 46 Non-Critical Access 20.21% 245 17.67% 173 17.71% 254 Rural 18.81% 32 17.69% 35 17.60% 38 Urban 20.27% 252 17.25% 176 17.93% 262 Multi-Hospital System 21.61% 87 12.35% 79 16.05% 99 Single Hospital System 19.44% 197 20.30% 132 18.79% 201 Table HB18 N 75 19 59 20 53 39 63 62 46 only hospital type that showed a decrease at negative 0.39 percent (see Table HB14). As for the U.S. regions, the Pacific region is the only area that demonstrated decrease of 0.74 percent from 2009 to 2011. All other regions indicated an increase with their median ratio, with the Mountain demonstrating the largest increase at 1.11 percent (see Table HB15). IT Capital Expenses as a Percentage of Hospital Total Capital Expenses An evaluation of average total IT capital expenses (last fiscal year) to total hospital capital expenses (capital ratios) is shown in Tables HB16–HB18. Overall, the general ratio increased modestly from 2010 to 2011 after a decline was reported from 2009 to 2010; perhaps the economic recovery is a driver behind the increase in capital spending. By bed segments, only the 101–200 and 501–600 bed segments indicated a decrease in the average ratio. The 501–600 bed segment decreased by more than 12 percent, but this decrease is not statistically significant due to the small population size in 2010 and 2011. All other bed segments showed an increase of the average ratio, ranging from 0.31 percent to 1.53 percent (see Table HB16). Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 2009 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense 18.60% 11.04% 20.08% 17.88% 20.80% 25.17% 21.31% 24.43% 16.25% N 56 19 38 15 28 26 47 36 19 2010 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense 19.08% 8.72% 17.53% 22.12% 19.44% 19.75% 13.46% 18.68% 16.31% N 28 7 23 10 15 15 29 37 47 2011 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense 19.38% 25.67% 14.77% 20.97% 19.29% 16.33% 18.92% 17.21% 15.79% N 52 10 41 10 38 22 41 43 43 An evaluation by hospital types shows that academic medical centers, rural hospitals and single hospital systems indicated a decline in capital expenses when compared to the total hospital capital expense. Academic medical centers decreased by 1.51 percent from 2010. All other hospital types showed increased IT capital expense to total hospital capital expense ratio, with critical access hospitals having the highest year-over-year growth at 3.14 percent (see Table HB17). From 2010 to 2011, East South Central, South Atlantic, and East North Central were the regions where growth occurred. The ratio for East South Central increased to 16.95 percent in the same time period (see Table HB18). An evaluation of median total IT capital expenses to total hospital capital expenses (capital ratios) is shown in Tables HB19–HB21. Overall, the median ratio increased by more than two percent from 2010 to 2011. An analysis of hospital bed segments indicates that the larger bed segments (501–600 segment and 600+ bed segment) Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 9 ▶▶ 2011 Hospital IT Budget and Expenses con tinued were the only segments in which there was an decrease for median results (4.48 percent and 0.96 percent, respectively). 401–500 segments demonstrated the largest increase at 8.01 percent. The hospital-type analysis shows a decline in budgets over previous year expenses for rural hospitals and hospitals part of the multisystems. The regional analysis shows that East South Central regions that had the largest year-over-year increase at 11.87 percent. East North Central, West North Central and Middle Atlantic are the only areas that indicated slight to moderate declines. Market Drivers/Future Outlook Despite the declines we saw between 2009 and 2010, we expect the general trend in both average and median ratios to increase as the country continues on its current path towards economic recovery and as federal healthcare policies and subsidies combine to drive IT spending higher. With the growth of the employment numbers, there is evidence that patient volumes are returning to pre-recession levels. Also, as cited above, there is some sense that capital spending in general (for plant and equipment) is seeing an increase in anticipation of tougher cash flow times ahead with planned Medicare reimbursements coincident with the increase in U.S. citizens with coverage as called for by the Affordable Care Act. Hospitals are facing a series of major IT initiatives with significant budgetary and cash flow implications. At the top of this list is the need to continue to acquire, install, expand and optimize EMR applications to meet the Stage 1 and Stage 2 meaningful use criteria. In 2011, hospitals must also begin to ramp up for the implementation of ICD-10-PCS encoding upgrades in 2013, upgrades that will impact a broad range of financial, health information management, and clinical systems. By 2014, hospitals will need to have enhanced their EMRs to meet Stage 2 meaningful use criteria and, by 2015, Stage 3 or they will begin to face financial penalties for non-compliance. For clinicians, the need for ubiquitous access to EMR data of varying data types from inpatient and ambulatory sources, including digital images, will necessitate improved wired and wireless network capacity, higher investments in mobile point-of-care devices, improved security and more robust remote Web access. These upgrades to hospital application portfolios will drive spending on IT infrastructure higher, as well. As more mission-critical patient clinical data is transformed into digital form, system performance and reliability will become even more important, and costly, for those hospitals which host their own data centers. Hospitals will need to spend more on data center upgrades, security, disaster recovery and backup site services. While virtualization of both servers and workstations will help mitigate some of the associated cost increases, much of these anticipated cost increases will be inescapable. Even hospitals which remotely host their applications will see corresponding cost increases as the service partners will also be forced to provide the necessary additional capacity and services. One additional growth area where we are seeing anecdotal evidence is that hospitals are investing heavily in mass storage, as more imaging data is digitized and departmental PACS systems are centralized. We also anticipate an increasing growth of mass storage requirements to the point that many hospitals will begin seeking a secondary or completely outsourced data center. It is also likely that 10 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Table HB19 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ beds All 2009 Median % IT Capital Expense/ Total Hospital Capital Expense N 11.31% 79 15.59% 61 12.26% 52 24.09% 33 19.96% 35 9.31% 7 14.40% 17 14.27% 284 2010 Median % IT Capital Expense/ Total Hospital Capital Expense 10.13% 9.42% 9.16% 10.24% 10.32% 17.45% 12.92% 10.27% N 74 33 36 26 22 5 15 211 2011 Median % IT Capital Expense/ Total Hospital Capital Expense N 12.20% 99 11.04% 54 14.41% 51 11.18% 41 18.33% 27 12.98% 11 11.96% 17 12.14% 300 2009 Median % IT Capital Expense/ Total Hospital Capital Expense N 13.83% 36 14.76% 248 15.73% 201 12.60% 83 11.31% 39 14.87% 245 12.98% 32 14.27% 252 15.46% 87 13.59% 197 2010 Median % IT Capital Expense/ Total Hospital Capital Expense N 10.26% 19 10.34% 192 11.34% 141 9.97% 70 8.93% 38 11.34% 173 11.10% 35 10.26% 176 7.13% 79 13.45% 132 2011 Median % IT Capital Expense/ Total Hospital Capital Expense N 12.39% 28 12.14% 272 11.96% 203 12.32% 97 11.43% 46 12.21% 254 8.99% 38 12.50% 262 10.38% 99 12.96% 201 2009 Median % IT Capital Expense/ Total Hospital Capital Expense 13.40% 9.31% 13.37% 7.68% 14.66% 17.85% 18.24% 19.20% 14.02% 2010 Median % IT Capital Expense/ Total Hospital Capital Expense 14.30% 8.06% 13.24% 14.92% 8.75% 11.10% 9.13% 14.68% 6.64% 2011 Median % IT Capital Expense/ Total Hospital Capital Expense 11.89% 19.92% 11.84% 18.76% 11.84% 12.56% 11.50% 14.18% 9.86% Table HB20 Type Academic Non-Academic General Med/Surg Others Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System Table HB21 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central N 56 19 38 15 28 26 47 36 19 N 28 7 23 10 15 15 29 37 47 N 52 10 41 10 38 22 41 43 43 the virtualization phenomenon that we are seeing with servers and workstations will rapidly spread to storage, as well. However, some of the costs associated with these trends may not necessarily be fully reflected in our metrics. Based on our experience with past initiatives, many of these anticipated expenses will be in the form of increased consulting costs and additional non-IT labor costs, including nursing and other clinical personnel, and specialty personnel in billing, finance and health information management. Although attributable to IT projects, these costs are often not charged back to IT cost centers. Also, increased mass storage costs directly attributable to medical and pathology imaging may be charged to those departments. Our evidence shows that this is more likely in the larger hospital market. ▶▶ Financial Management With a 95 percent or better adoption rate, three applications in this market—accounts payable, general ledger and materials management—represent saturated markets and each application saw growth of less than one percent (see Table FM1). The financial management category also includes the enterprise resource planning (ERP) application. ERP is not as mature as the other three legacybased applications and adoption of this technology is much less widespread. However, market penetration of ERP applications has demonstrated year-over-year growth since 2009, growing almost five percent since 2009. ERP applications typically replace legacy, standalone accounts payable, general ledger and materials management and possibly human resource, solutions. As hospital costs increase and revenues per case decrease, hospitals may begin to increase their acquisitions of ERP systems to generate more operational efficiencies with financial and human resources in their organizations. Table F M1 | Financial Management N=4,289 2009 2010 Accounts Payable 99.86% 99.86% Enterprise Resource Planning 19.56% 22.69% General Ledger 99.86% 99.86% Materials Management 97.09% 96.99% Percentages include installed, contracted or installation in process 2011 99.93% 24.11% 99.91% 97.44% As expected, planned purchases for the financial management category are predominantly replacement purchases. All planned purchases of accounts payable and general ledger will be replacement purchases (see Table FM2). Most of the materials management market and ERP purchases (91 percent for each application) will also replace their current solutions. An evaluation of the financial management application market segment by hospital type in 2011 demonstrates the following: • Accounts payable: this market is almost completely saturated across all hospital types, allowing little opportunity for growth (see Table FM3). • ERP: in 2011, academic medical centers had the highest level of adoption among all hospital types at 46 percent and also demonstrated the most growth from 2010 to 2011 with an increase of almost three percent (see Table FM4). Growth in use among other types of hospitals was less than two percent. • General ledger: this legacy application shows virtual market saturation (99 percent penetration or better) across all types of provider organizations (see Table FM5). This leaves very little room for additional market activity. • Materials management: this application has achieved full saturation for academic medical centers and most other segments are approaching market saturation. Rural hospitals demonstrated the largest growth at more than one percent from 2010 to 2011 (see Table FM6). Table F M2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Accounts Payable 75 100.00% Enterprise Resource Planning 20 90.91% General Ledger 76 100.00% Materials Management 72 91.14% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 0 2 0 7 % of Hospitals Planning to Purchase Software for the First Time 0.00% 9.09% 0.00% 8.86% N = Total Number of Hospitals Planning 75 22 76 79 Table F M3 | Accounts Payable 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 4,091 2,504 1,779 1,152 3,131 1,004 3,279 2,583 1,700 4,283 Percent 100.00% 99.85% 99.88% 99.83% 99.74% 99.90% 99.70% 99.91% 99.88% 99.82% 99.86% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,091 2,505 1,778 1,151 3,132 1,004 3,279 2,582 1,701 4,283 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 84 889 633 340 113 860 80 893 800 173 973 Percent 100.00% 99.85% 99.92% 99.78% 99.65% 99.94% 99.70% 99.91% 99.85% 99.88% 99.86% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 4,095 2,507 1,779 1,153 3,133 1,007 3,279 2,584 1,702 4,286 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 89 945 672 362 119 915 84 950 848 186 1,034 Percent 99.48% 99.95% 100.00% 99.83% 99.83% 99.97% 100.00% 99.91% 99.92% 99.94% 99.93% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table F M4 | Enterprise Resource Planning 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 75 764 552 287 76 763 54 785 684 155 839 Percent 39.06% 18.65% 22.02% 16.11% 6.58% 24.35% 5.36% 23.92% 26.45% 9.10% 19.56% 2010 Percent 43.75% 21.70% 25.25% 19.08% 9.78% 27.44% 7.94% 27.21% 30.94% 10.16% 22.69% 2011 Source: HIMSS Analytics® Database 2011 Percent 46.35% 23.07% 26.80% 20.31% 10.30% 29.20% 8.34% 28.95% 32.79% 10.92% 24.11% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 11 ▶▶ Financial Management con tinued Table F M5 | General Ledger 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 4,091 2,505 1,778 1,151 3,132 1,004 3,279 2,584 1,699 4,283 Percent 100.00% 99.85% 99.92% 99.78% 99.65% 99.94% 99.70% 99.91% 99.92% 99.77% 99.86% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,091 2,506 1,777 1,150 3,133 1,004 3,279 2,583 1,700 4,283 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,968 2,481 1,679 1,058 3,102 917 3,243 2,554 1,606 4,160 Percent 100.00% 99.85% 99.96% 99.72% 99.57% 99.97% 99.70% 99.91% 99.88% 99.82% 99.86% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 4,094 2,507 1,778 1,152 3,133 1,006 3,279 2,584 1,701 4,285 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,987 2,490 1,689 1,068 3,111 932 3,247 2,560 1,619 4,179 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 99.48% 99.93% 100.00% 99.78% 99.74% 99.97% 99.90% 99.91% 99.92% 99.88% 99.91% Table F M6 | Materials Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 3,972 2,486 1,678 1,060 3,104 918 3,246 2,561 1,603 4,164 Percent 100.00% 96.95% 99.16% 94.16% 91.77% 99.04% 91.16% 98.90% 99.03% 94.13% 97.09% 2010 When evaluating the market by bed-size segments, we find the following notable changes from 2010 to 2011: • 0–100 beds: all of the financial management applications demonstrated slight year-over-year growth with ERP showing the largest growth of over one percent (see Table FM7). • 101–200 beds: ERP demonstrated growth of just over one percent while general ledger and accounts payable maintained 100 percent full market saturation from 2010 (see Table FM8). • 201–300 beds: ERP is the only application that demonstrated year-over-year growth (slightly more than one percent). Market penetration of the other financial management applications remained unchanged from 2010, having previously reached 100 percent saturation (see Table FM9). • 301–400 beds: ERP had the highest growth in this segment year-over-year at slightly under three percent; there was no growth for accounts payable and general ledger as these are fully saturated markets (see Table FM10). • 401–500 beds: ERP is the only financial management application that demonstrated year-over-year growth in this bed segment at less than one percent. All other financial management applications are at full market saturation and thus are unchanged from last year (see Table FM11). • 501–600 beds: ERP is the only financial management application that demonstrated a growth from 2010 to 2011 at slightly under two percent; accounts payable and general ledger have decreased by less than one percent in the same time frame (see Table FM12). • Over 600 beds: ERP is the only application to indicate a growth at four percent; all other financial management applications are completely saturated (see Table FM13). 12 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 100.00% 96.85% 98.96% 94.22% 91.60% 98.98% 91.06% 98.81% 98.76% 94.30% 96.99% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 100.00% 97.32% 99.32% 94.78% 92.47% 99.27% 92.55% 98.93% 98.99% 95.07% 97.44% Table F M7 0–100 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 2176 253 2176 2061 99.77% 11.60% 99.77% 94.50% 2010 % of 2,181 Hospitals 2175 99.72% 312 14.31% 2175 99.72% 2059 94.41% 2011 2179 338 2178 2074 99.91% 15.50% 99.86% 95.09% Table F M8 101–200 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 821 172 821 818 99.88% 20.92% 99.88% 99.51% 2010 % of 822 Hospitals 822 100.00% 189 22.99% 822 100.00% 817 99.39% 2011 822 100.00% 199 24.21% 822 100.00% 819 99.64% Table F M9 201–300 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 504 100.00% 138 27.38% 504 100.00% 504 100.00% 2010 % of 504 Hospitals 504 100.00% 155 30.75% 504 100.00% 504 100.00% 2011 504 100.00% 162 32.14% 504 100.00% 504 100.00% Table F M10 301–400 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 328 100.00% 103 31.40% 328 100.00% 328 100.00% 2010 % of 328 Hospitals 328 100.00% 121 36.89% 328 100.00% 326 99.39% 2011 328 100.00% 130 39.63% 328 100.00% 328 100.00% ▶▶ Financial Management con tinued Table F M11 401–500 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 182 100.00% 64 35.16% 182 100.00% 182 100.00% 2010 % of 182 Hospitals 182 100.00% 72 39.56% 182 100.00% 182 100.00% 2011 182 100.00% 73 40.11% 182 100.00% 182 100.00% Table F M12 501–600 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 122 100.00% 51 41.80% 122 100.00% 121 99.18% 2010 % of 122 Hospitals 122 100.00% 55 45.08% 122 100.00% 122 100.00% 2011 121 99.18% 57 46.72% 121 99.18% 122 100.00% Table F M13 600+ Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2009 150 100.00% 58 38.67% 150 100.00% 150 100.00% 2010 % of 150 Hospitals 150 100.00% 69 46.00% 150 100.00% 150 100.00% 2011 150 100.00% 75 50.00% 150 100.00% 150 100.00% Table F M14 2011 Accounts Payable Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Enterprise Resource Planning Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total General Ledger Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 138 288 1,002 891 755 3,074 3,074 3,074 3,074 3,074 3,074 3,074 4.49% 9.37% 32.60% 28.99% 24.56% 100.00% 0 20 214 213 104 551 551 551 551 551 551 551 0.00% 3.64% 38.91% 38.73% 18.91% 100.00% 118 280 997 941 737 3,073 3,073 3,073 3,073 3,073 3,073 3,073 3.84% 9.11% 32.44% 30.62% 23.98% 100.00% # for Contract Range Total Responding % of Total Responding 76 223 758 955 753 2,765 2,765 2,765 2,765 2,765 2,765 2,765 2.75% 8.07% 27.41% 34.54% 27.23% 100.00% Table F M15 2011 Materials Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total A temporal review of contract signing for financial management applications in 2011 depicts a market with the majority of contract activities (more than 60 percent) taking place in the 1995–1999 and 2000–2004 timeframes for all financial management applications (see Tables FM14–FM15). Almost a quarter of the financial management applications contracts have been signed between 2005–2011. We believe that applications purchased prior to 1999 may be nearing the end of their useful lives particularly because of their inability to support the dynamic operational process changes that we expect will take place through 2015. But with the focus on EMR systems, version 5010 electronic data interchange update and ICD-10-PCS coding conversion projects, we believe that organizations will try to extend the useful life of these environments for at least two to three more years. Market Drivers/Future Outlook The financial management IT application market has been and will continue to be impacted through 2013 by: • A focus on electronic medical records, version 5010 electronic data interchange update and ICD-10-PCS coding conversion projects will leave relatively little capital funding or resources available for the upgrade or replacement of financial management applications. • Access to capital for replacing older legacy applications, and budget battles that assign financial management system replacements a lower priority than high profile, governmentmandated clinical and revenue cycle-related applications. • Replacement of legacy general ledger, accounts payable, and materials management application systems by ERP systems, particularly in hospitals over 400 beds. • Beyond 2013, we see potential resurgence in purchasing activity in this area, driven by: • The need to improve supply chain management processes and lower supply costs. • The need to incorporate newer, more automated supply chain workflows. • The need for more accurate and flexible accounting resulting from mergers, acquisitions, and divestitures among hospital systems. • Improved integration with financial decision support and business analytics software. • Satisfying the accounting and financial analysis and reporting requirements associated with ACOs, patient-centered medical home and other bundled payment programs related to healthcare reform. Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 13 ▶▶ Financial Decision Support Environment The financial decision support environment includes the budgeting, business intelligence, cost accounting, data warehousing − financial, executive information system, financial modeling and medical necessity checking content applications. These applications help healthcare organizations evaluate their financial health by providing tools such as real-time evaluation and tracking of key operational metrics and the presentation of these metrics to executives in specifically designed dashboards. Among the financial decision support applications, budgeting had the highest level of adoption with 82 percent in 2011 followed by cost accounting at 70 percent. In the past year, market penetration increased for all financial decision support applications with medical necessity checking content demonstrating the greatest increase by almost five percent, followed by data business intelligence at slightly more than four percent (see Table FDS1). None of the applications in this suite have reached market saturation. Table F DS1 | Financial Decision Support N=4,289 2009 2010 Budgeting 80.81% 82.05% Business Intelligence 34.32% 38.68% Cost Accounting 67.85% 69.36% Data Warehousing/Mining – Financial 37.54% 42.88% Executive Information Systems 60.55% 62.11% Financial Modeling 31.31% 34.25% Medical Necessity Checking Content 37.84% 52.60% Percentage includes installed, contracted or installation in process 2011 82.82% 43.02% 70.04% 46.79% 64.09% 36.23% 57.54% The majority of purchases in this suite—budgeting, cost accounting, data warehousing/mining − financial, executive information systems and medical necessity checking content—will replace existing solutions. Conversely, nearly two thirds of purchases for business intelligence and financial modeling will be made by organizations that are purchasing the solution for the first time (see Table FDS2). Table F DS 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Budgeting 39 95.12% Business Intelligence 6 35.29% Cost Accounting 47 85.45% Data Warehousing/Mining – Financial 16 69.57% Executive Information Systems 35 83.33% Financial Modeling 4 33.33% Medical Necessity Checking Content 10 62.50% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 2 11 8 7 7 8 6 % of Hospitals Planning to Purchase Software for the First Time 4.88% 64.71% 14.55% 30.43% 16.67% 66.67% 37.50% N = Total Number of Hospitals Planning 41 17 55 23 42 12 16 Table F DS 3 | Budgeting 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 181 3,285 2,225 1,241 771 2,695 680 2,786 2,240 1,226 3,466 Percent 94.27% 80.18% 88.75% 69.64% 66.75% 85.99% 67.53% 84.89% 86.62% 71.99% 80.81% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 182 3,337 2,246 1,273 801 2,718 704 2,815 2,264 1,255 3,519 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 113 1,546 1,072 587 215 1,444 165 1,494 1,271 388 1,659 Percent 94.79% 81.45% 89.59% 71.44% 69.35% 86.73% 69.91% 85.77% 87.55% 73.69% 82.05% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 180 3,372 2252 1,300 816 2,736 720 2,832 2,271 1,281 3,552 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 126 1,719 1,203 642 244 1,601 195 1,650 1,397 448 1,845 Percent 93.75% 82.30% 89.83% 72.95% 70.65% 87.30% 71.50% 86.29% 87.82% 75.22% 82.82% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table F DS 4 | Business Intelligence 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 91 1,381 952 520 184 1,288 139 1,333 1,138 334 1,472 Percent 47.40% 33.71% 37.97% 29.18% 15.93% 41.10% 13.80% 40.62% 44.01% 19.61% 34.32% 2010 14 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 58.85% 37.73% 42.76% 32.94% 18.61% 46.08% 16.39% 45.52% 49.15% 22.78% 38.68% 2011 Percent 65.63% 41.96% 47.99% 36.03% 21.13% 51.08% 19.36% 50.27% 54.02% 26.31% 43.02% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Financial Decision Support Environment con tinued Evaluation of hospital-type market segments for the financial decision support applications in 2011 showed the following when comparing 2010 to 2011 data: • Budgeting: the greatest growth for this application was among rural hospitals, stand-alone hospitals and non-general medical/ surgical hospitals. Each of these segments demonstrated growth of more than one percent. There was a slight decline in use among academic medical centers (see Table FDS3). • Business intelligence: academic medical centers had the highest growth from 2010 to 2011 at close to seven percent, although the adoption rate for this segment has slowed when compared to the 11 percent increase from 2009 to 2010. All other segment types showed moderate growth ranging from approximately three to five percent. Growth was slowest among rural and critical access hospitals (see Table FDS4). • Cost accounting: growth in this application was limited across most market segments. The growth of slightly more than one • • • • percent was noted for rural hospitals, critical access hospitals and non-general medical/surgical hospitals (see Table FDS5). Data warehousing/mining (financial): growth of more than five percent occurred in general medical/surgical hospitals, academic medical centers and non-critical access hospitals. Growth of approximately one to four percent was recorded for all other segments (see Table FDS6). Executive information systems: growth across most hospital segments was approximately two percent. The exception is the academic medical center segment, which saw growth of less than one percent (see Table FDS7). Financial modeling: all segments demonstrated growth over the past year of approximately two percent (see Table FDS8). Medical necessity checking content: academic medical centers demonstrated the greatest growth for this application at more than 11 percent. All other segments reported a growth that ranged from four percent to six percent (see Table FDS9). Table F DS 5 | Cost Accounting 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 174 2,736 1,950 960 582 2,328 503 2,407 1,905 1,005 2,910 Percent 90.63% 66.78% 77.78% 53.87% 50.39% 74.28% 49.95% 73.34% 73.67% 59.01% 67.85% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 176 2,799 1,990 985 605 2,370 522 2,453 1,951 1,024 2,975 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 118 1,721 1,187 652 273 1,566 207 1,632 1,392 447 1,839 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 142 2,522 1,686 978 514 2,150 438 2,226 1,761 903 2,664 Percent 91.67% 68.32% 79.38% 55.27% 52.38% 75.62% 51.84% 74.74% 75.44% 60.13% 69.36% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 177 2,827 1,999 1,005 618 2,386 537 2,467 1,969 1,035 3,004 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 128 1,879 1,326 681 281 1,726 228 1,779 1,499 508 2,007 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 143 2,606 1,741 1,008 535 2,214 460 2,289 1,809 940 2,749 Percent 92.19% 69.00% 79.74% 56.40% 53.51% 76.13% 53.33% 75.17% 76.14% 60.78% 70.04% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table F DS6 | Data Warehousing/Mining – Financial 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 99 1,511 1,044 566 221 1,389 168 1,442 1,225 385 1,610 Percent 51.56% 36.88% 41.64% 31.76% 19.13% 44.32% 16.68% 43.94% 47.37% 22.61% 37.54% 2010 Percent 61.46% 42.01% 47.35% 36.59% 23.64% 49.97% 20.56% 49.73% 53.83% 26.25% 42.88% 2011 Percent 66.67% 45.86% 52.89% 38.22% 24.33% 55.07% 22.64% 54.20% 57.97% 29.83% 46.79% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table F DS7 | Executive Information Systems 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 140 2,457 1,656 941 483 2,114 415 2,182 1,722 875 2,597 Percent 72.92% 59.97% 66.06% 52.81% 41.82% 67.45% 41.21% 66.48% 66.59% 51.38% 60.55% 2010 Percent 73.96% 61.56% 67.25% 54.88% 44.50% 68.60% 43.50% 67.82% 68.10% 53.02% 62.11% 2011 Source: HIMSS Analytics® Database 2011 Percent 74.48% 63.61% 69.45% 56.57% 46.32% 70.64% 45.68% 69.74% 69.95% 55.20% 64.09% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 15 ▶▶ Financial Decision Support Environment con tinued Table F DS 8 | Financial Modeling 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 91 1,252 881 462 203 1,140 164 1,179 962 381 1,343 Percent 47.40% 30.56% 35.14% 25.93% 17.58% 36.38% 16.29% 35.92% 37.20% 22.37% 31.31% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 101 1,368 953 516 235 1,234 191 1,278 1,057 412 1,469 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 100 2,156 1,503 753 466 1,790 381 1,875 1,518 738 2,256 Percent 52.60% 33.39% 38.01% 28.96% 20.35% 39.37% 18.97% 38.94% 40.87% 24.19% 34.25% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 105 1,449 998 556 253 1,301 214 1,340 1,107 447 1,554 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 122 2,346 1,634 834 522 1,946 430 2,038 1,635 833 2,468 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 54.69% 35.37% 39.81% 31.20% 21.90% 41.51% 21.25% 40.83% 42.81% 26.25% 36.23% Table F DS9 | Medical Necessity Checking Content 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 69 1,554 1,077 546 329 1,294 280 1,343 1,118 505 1,623 Percent 35.94% 37.93% 42.96% 30.64% 28.48% 41.29% 27.81% 40.92% 43.23% 29.65% 37.84% 2010 An analysis of the financial decision support market by bed-size segment in 2011 reflects budgeting is approaching saturation in all segments over 200 beds (more than 90 percent), while cost accounting is approaching saturation in all segments over 400 beds. The following describe the application growth rates for each bed segment from 2010 to 2011: • 0–100 beds: medical necessity checking content had the highest growth at more than four percent followed by business intelligence at slightly more than three percent (see Table FDS10). • 101–200 beds: in this bed segment, data warehousing/mining – financial, business intelligence and medical necessity checking all had growth of more than four percent (see Table FDS11). • 201–300 beds: medical necessity checking content had the highest growth at more than eight percent while data warehousing/ mining – financial had the second highest growth for this segment at over seven percent, followed by business intelligence at more than five percent. All other applications demonstrated growth of less than two percent, except for cost accounting which had no growth in the past year (see Table FDS12). • 301–400 beds: business intelligence had the highest growth at more than six percent, followed by medical necessity checking content and data warehousing/mining – financial (over five percent each). Cost accounting showed a slight decrease of less than one percent (see Table FDS13). • 401–500 beds: both medical necessity checking content and business intelligence has growth of more than six percent in this bed segment. Budgeting showed a slight decrease in use in the past year (see Table FDS14). 16 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 52.08% 52.62% 59.95% 42.26% 40.35% 57.12% 37.84% 57.13% 58.70% 43.34% 52.60% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 63.54% 57.26% 65.18% 46.80% 45.19% 62.09% 42.70% 62.10% 63.23% 48.91% 57.54% • 501–600 beds: business intelligence, financial modeling and data warehousing/mining – financial all showed growth of more than four percent in the past year. Budgeting and cost accounting both had a slight decrease from 2010 (see Table FDS15). • Over 600 beds: medical necessity checking content and business intelligence each showed growth of at least eight percent in the past year. Budgeting, cost accounting, and executive information system indicated no change from 2010 (see Table FDS16). Table F DS10 0–100 Beds 2009 Budgeting 1,538 Business Intelligence 554 Cost Accounting 1,174 Data Warehousing/Mining – Financial 602 Executive Information Systems 1,144 Financial Modeling 479 Medical Necessity Checking Content 706 2010 2011 % of 2,181 Hospitals 70.52% 1,585 72.67% 1,615 74.05% 25.40% 619 28.38% 688 31.55% 53.83% 1,215 55.71% 1,242 56.95% 27.60% 52.45% 21.96% 699 1,190 534 32.05% 54.56% 24.48% 753 1,231 577 34.53% 56.44% 26.46% 32.37% 977 44.80% 1,067 48.92% Table F DS11 101–200 Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2009 732 337 623 2010 % of 822 Hospitals 89.05% 736 89.54% 41.00% 376 45.74% 75.79% 627 76.28% 2011 738 416 628 89.78% 50.61% 76.40% 369 546 296 44.89% 66.42% 36.01% 402 555 312 48.91% 67.52% 37.96% 443 579 329 53.89% 70.44% 40.02% 366 44.53% 512 62.29% 547 66.55% ▶▶ Financial Decision Support Environment con tinued Table F DS12 201–300 Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content Table F DS17 2009 459 213 421 2010 % of 504 Hospitals 91.07% 458 90.87% 42.26% 240 47.62% 83.53% 426 84.52% 2011 461 268 426 91.47% 53.17% 84.52% 219 353 199 43.45% 70.04% 39.48% 256 353 216 50.79% 70.04% 42.86% 295 360 225 58.53% 71.43% 44.64% 194 38.49% 285 56.55% 328 65.08% Table F DS13 301–400 Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2009 306 148 278 2010 % of 328 Hospitals 93.29% 307 93.60% 45.12% 172 52.44% 84.76% 289 88.11% 2011 307 193 288 93.60% 58.84% 87.80% 169 224 143 51.52% 68.29% 43.60% 195 231 162 59.45% 70.43% 49.39% 212 239 167 64.63% 72.87% 50.91% 148 45.12% 201 61.28% 218 66.46% Table F DS14 401–500 Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2009 170 88 163 2010 % of 182 Hospitals 93.41% 174 95.60% 48.35% 95 52.20% 89.56% 163 89.56% 2011 173 106 166 95.05% 58.24% 91.21% 103 128 86 56.59% 70.33% 47.25% 114 133 96 62.64% 73.08% 52.75% 118 136 100 64.84% 74.73% 54.95% 92 50.55% 115 63.19% 126 69.23% Table F DS15 501–600 Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2009 118 63 114 2010 % of 122 Hospitals 96.72% 118 96.72% 51.64% 72 59.02% 93.44% 116 95.08% 2011 117 77 115 95.90% 63.11% 94.26% 60 87 68 49.18% 71.31% 55.74% 67 85 71 54.92% 69.67% 58.20% 72 87 76 59.02% 71.31% 62.30% 55 45.08% 80 65.57% 83 68.03% 2011 Budgeting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Business Intelligence Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Cost Accounting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 73 218 455 800 648 2,194 2,194 2,194 2,194 2,194 2,194 2,194 3.33% 9.94% 20.74% 36.46% 29.54% 100.00% 4 33 141 254 300 732 719 719 719 719 719 732 0.56% 4.59% 19.61% 35.33% 41.72% 100.00% 86 260 472 515 525 1,858 1,857 1,857 1,857 1,857 1,857 1,858 4.63% 14.00% 25.42% 27.73% 28.27% 100.00% # for Contract Range Total Responding % of Total Responding 7 58 100 320 352 837 821 821 821 821 821 837 0.85% 7.06% 12.18% 38.98% 42.87% 100.00% 50 150 423 438 538 1,599 1,593 1,593 1,593 1,593 1,593 1,599 3.14% 9.42% 26.55% 27.50% 33.77% 100.00% 6 107 107 254 194 668 667 667 667 667 667 668 0.90% 16.04% 16.04% 38.08% 29.09% 100.00% # for Contract Range Total Responding % of Total Responding 3 6 113 82 316 520 520 520 520 520 520 520 0.58% 1.15% 21.73% 15.77% 60.77% 100.00% Table F DS18 2011 Data Warehousing/Mining – Financial Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Executive Information Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Financial Modeling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table F DS16 600+ Beds Budgeting Business Intelligence Cost Accounting Data Warehousing/Mining – Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2009 143 69 137 2010 % of 150 Hospitals 95.33% 141 94.00% 46.00% 85 56.67% 91.33% 139 92.67% 2011 141 97 139 94.00% 64.67% 92.67% 88 115 72 58.67% 76.67% 48.00% 106 117 78 70.67% 78.00% 52.00% 114 117 80 76.00% 78.00% 53.33% 62 41.33% 86 57.33% 99 66.00% An evaluation of hospitals that signed contracts for financial decision support applications demonstrates that at least half of the applications were acquired after 2000 (see Tables FDS17–FDS19). Contracting for medical necessity checking content contracts was strongest between 2005 and 2011, when more than 60 percent of contracts were signed. Applications acquired before 1995 are strong candidates for replacement since newer versions of financial Table F DS19 2011 Medical Necessity Checking Content Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total decision support applications offer better analytical functionality and easier data exchanges with other applications. In particular, stand alone budgeting and cost accounting is a good example of replacement opportunities. We believe that hospitals will have an acute need for new versions of these applications as shared savings programs and bundled payments grow in adoption. Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 17 ▶▶ Financial Decision Support Environment con tinued Market Drivers/Future Outlook The general outlook for the financial decision support IT application market has been (and will continue to be) positive and represents one of the fastest growing market segments. Growth will continue to be driven through 2015 by: • IDNs and AMCs moving aggressively to qualify as an ACO or other paradigm to prosper under the Medicare shared savings program. • Continued focus on quality outcomes measures as driven both by the ARRA regulations and the general trend towards transparency and availability of quality and performance metrics to the public at large. • Higher rates of adoption of EMR applications and broader and deeper enhancements of existing implementations will enhance the value of decision support tools by providing even richer stores of source information in digital form. • A slowly growing economy, with tight capital markets and declining Medicare and Medicaid reimbursements, will continue to place hospitals under great pressure to reduce operating expenses in ways that minimize adverse impacts on operating effectiveness and clinical quality. • Adoption of ICD-10-CM and ICD-10-PCS coding and the upgrades of all applications impacted by this coding will facilitate significantly enhanced cost and quality analyses. • Increased awareness of and movement toward new models of service delivery, such as patient-centered medical homes and ACOs, or other models which may require increased assumption of risk. • Increased competitive environment from physicians for outpatient services and the need to deliver planned operating margins of joint ventures. • Increasing pay-for-performance reimbursement models from private insurers and the government. • Hospital acquisition/divestiture and merger activities. • The need to carefully evaluate contemplated new or enhanced services to ensure viability, and profitability, or to determine closure or divestiture strategies. • More mature users of performance management and decision support tools replacing their earliest efforts—principally data marts—with more integrated, more functional, enterprise-wide data warehouses. • The positive outlook and increased growth in the purchase of ERP applications, which are often bundled with higher-end business intelligence tools and some prebuilt applications. ▶▶ Human Resource Environment The Human Resources (HR) Department IT environment continued to indicate slight growth over the past two years. Of the four applications in this environment, payroll systems are at market saturation (95 percent or better) with benefits administration, personnel management, and time & attendance systems at or near 90 percent (see Table HR1). The slowing of the general growth in HR application adoption could be related to the accelerating growth in ERP purchases, as these applications are typically integral components of ERP application suites. HR IT applications support key staff management operations and as such should be considered mission critical in today’s healthcare environment where staffing shortages exist for many clinical and IT professionals (e.g., nursing, pharmacy). IDNs can alleviate some staff shortages by moving employees between facilities of the IDN. A common HR system is imperative in such an environment. In 2011, most of the planned purchases in the HR market were replacement sales; this is to be expected in a market in which there Table HR1 | Human Resources N=4,289 2009 2010 Benefits Administration 88.13% 88.76% Payroll 98.39% 98.81% Personnel Management 87.67% 88.76% Time & Attendance 91.35% 93.03% Percentage include installed, contracted or installation in process 2011 89.67% 99.04% 89.93% 94.15% 18 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. is such a high rate of penetration across all applications. Time & attendance was the application for which the most first-time purchases were expected; approximately more than one-quarter of all purchases for this application were expected to be first-time purchases (see Table HR2). Analyzing this market using segments for hospital types shows the following year-over-year changes from 2010 to 2011: • Benefits administration: rural hospitals demonstrated the highest year-over-year growth (close to three percent), followed by single hospital systems. Academic hospitals are the only segment to show a decrease from 2010, but this decrease is less than one-half percent (see Table HR3). • Payroll: in general, there is slight growth across all hospital types except the academic medical center segment which has achieved 100 percent market penetration. Rural hospitals showed the largest increase (see Table HR4). • Personnel management: rural hospitals demonstrated the highest year-over-year growth (more than three percent) followed by single hospitals and critical access hospitals at more than two percent each (see Table HR5). • Time & attendance: at approximately two and a half percent, single hospital systems demonstrated the highest growth for this application, followed by rural hospitals and critical access hospitals at slightly over two percent each (see Table HR6). ▶▶ Human Resource Environment con tinued Table HR 2 | 2010 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Benefits Administration 24 92.31% Payroll 32 100.00% Personnel Management 25 89.29% Time & Attendance 8 72.73% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 2 0 3 3 % of Hospitals Planning to Purchase Software for the First Time 7.69% 0.00% 10.71% 27.27% N = Total Number of Hospitals Planning 26 32 28 11 Table HR3 | Benefits Administration 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 190 3,590 2,382 1,398 804 2,976 708 3,072 2,478 1,302 3,780 Percent 98.96% 87.63% 95.01% 78.45% 69.61% 94.96% 70.31% 93.60% 95.82% 76.45% 88.13% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 190 3,617 2,376 1,431 830 2,977 726 3,081 2,485 1,322 3,807 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,046 2,493 1,745 1,129 3,109 983 3,255 2,566 1,672 4,238 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,615 2,397 1,410 806 3,001 711 3,096 2,491 1,316 3,807 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,801 2,431 1,559 952 3,038 840 3,150 2,519 1,471 3,990 Percent 98.96% 88.28% 94.77% 80.30% 71.86% 94.99% 72.10% 93.88% 96.09% 77.63% 88.76% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,657 2,393 1,453 850 2,996 753 3,093 2,491 1,355 3,846 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,056 2,498 1,750 1,131 3,117 987 3,261 2,571 1,677 4,248 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,665 2,419 1,438 833 3,024 743 3,114 2,499 1,358 3,857 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,849 2,452 1,586 977 3,061 862 3,176 2,527 1,511 4,038 Percent 98.44% 89.26% 95.45% 81.54% 73.59% 95.60% 74.78% 94.24% 96.33% 79.57% 89.67% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HR4 | Payroll 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 4,028 2,489 1,731 1,124 3,096 978 3,242 2,556 1,664 4,220 Percent 100.00% 98.32% 99.28% 97.14% 97.32% 98.79% 97.12% 98.78% 98.84% 97.71% 98.39% 2010 Percent 100.0% 98.76% 99.44% 97.92% 97.75% 99.20% 97.62% 99.18% 99.23% 98.18% 98.81% 2011 Percent 100.0% 99.00% 99.64% 98.20% 97.92% 99.46% 98.01% 99.36% 99.42% 98.47% 99.04% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HR5 | Personnel Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 3,568 2,387 1,373 776 2,984 694 3,066 2,473 1,287 3,760 Percent 100.00% 87.09% 95.21% 77.05% 67.19% 95.21% 68.92% 93.42% 95.63% 75.57% 87.67% 2010 Percent 100.0% 88.24% 95.61% 79.12% 69.78% 95.76% 70.61% 94.33% 96.33% 77.28% 88.76% 2011 Percent 100.0% 89.46% 96.49% 80.70% 72.12% 96.49% 73.78% 94.88% 96.64% 79.74% 89.93% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HR6 | Time & Attendance 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 188 3,730 2,407 1,511 911 3,007 813 3,105 2,490 1,428 3,918 Percent 97.92% 91.04% 96.01% 84.79% 78.87% 95.95% 80.73% 94.61% 96.29% 83.85% 91.35% 2010 Percent 98.44% 92.78% 96.97% 87.49% 82.42% 96.94% 83.42% 95.98% 97.41% 86.38% 93.03% 2011 Source: HIMSS Analytics® Database 2011 Percent 98.44% 93.95% 97.81% 89.00% 84.59% 97.67% 85.60% 96.77% 97.72% 88.73% 94.15% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 19 ▶▶ Human Resource Environment con tinued When evaluating the market by bed-size segments, we find the following notable changes from 2010 to 2011: • 0–100 beds: adoption of personnel management application increased the most when compared to the other HR applications from 2010 to 2011 at slightly under two percent; time & attendance and benefits administration increased by little over one percent each (see Table HR7). • 101–200 beds: growth of all HR applications in this bed-size segment was less than one percent; growth was greatest for time & attendance (see Table HR8). • 201–300 beds: growth for all HR applications in hospitals in this bed-size segment was less than one percent; growth was greatest for the benefits administration application (see Table HR9). Table HR7 0–100 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 1,718 2,120 1,688 1,877 78.77% 97.20% 77.40% 86.06% 2010 2011 % of 2,181 Hospitals 1,752 80.33% 1,781 81.66% 2,136 97.94% 2,143 98.26% 1,731 79.37% 1,774 81.34% 1,934 88.67% 1,970 90.33% Table HR8 101–200 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 798 816 798 787 97.08% 99.27% 97.08% 95.74% 2010 % of 822 Hospitals 795 96.72% 819 99.64% 801 97.45% 797 96.96% 2011 800 820 804 804 97.32% 99.76% 97.81% 97.81% Table HR9 201–300 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 497 503 495 485 98.61% 99.80% 98.21% 96.23% 2010 % of 504 Hospitals 494 98.02% 503 99.80% 496 98.41% 492 97.62% 2011 497 503 497 494 98.61% 99.80% 98.61% 98.02% Table HR10 301–400 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 323 98.48% 328 100.00% 327 99.70% 322 98.17% 2010 % of 328 Hospitals 321 97.87% 326 99.39% 325 99.09% 319 97.26% 2011 323 98.48% 328 100.00% 328 100.00% 322 98.17% Table HR11 401–500 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 180 98.90% 182 100.00% 182 100.00% 181 99.45% 2010 % of 182 Hospitals 180 98.90% 182 100.00% 182 100.00% 180 98.90% 2011 180 98.90% 182 100.00% 182 100.00% 180 98.90% Table HR12 501–600 Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 119 121 120 119 97.54% 99.18% 98.36% 97.54% 2010 % of 122 Hospitals 120 98.36% 122 100.00% 122 100.00% 120 98.36% 2011 120 98.36% 122 100.00% 122 100.00% 119 97.54% Table HR13 600+ Beds Benefits Administration Payroll Personnel Management Time & Attendance 2009 114 76.00% 150 100.00% 150 100.00% 147 98.00% 2010 % of 150 Hospitals 145 96.67% 150 100.00% 150 100.00% 148 98.67% 2011 145 96.67% 150 100.00% 150 100.00% 149 99.33% 20 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. • 301–400 beds: payroll and personnel management reached 100 percent market saturation, while time & attendance and benefits administration demonstrated a slight increase, less than one percent (see Table HR10). • 401–500 beds: market penetration remained unchanged in this segment across all HR applications. Payroll and personnel management are the only applications at 100 percent market saturation in 2011 (see Table HR11). • 501–600 beds: with the exception of time & attendance, all of the applications remained unchanged; time & attendance showed approximately a one percent decrease in market penetration (see Table HR12). • 600+ beds: time & attendance increased by approximately one percent in the past year, while the other applications remained unchanged (see Table HR13). Nearly one-quarter of HR contracts have been signed between 2005 and 2011. As such, many hospitals are using HR applications that may be nearing end of useful life capabilities in their environments and are making efforts to replace these solutions (Table HR14 and HR15). It is a reasonable assumption that the replacement market will continue to be active and some hospitals may elect to replace these applications as part of an ERP suite. Future purchase of HR applications may be deferred as a result of federal initiatives, including ICD-10-PCS and HIPAA 5010 implementations, as well as EMR implementations driven by Medicare and Medicaid incentive funding. For this reason, it’s logical to assume that hospitals will not be replacing older HR applications unless it truly does not meet minimal requirements or has been sunset by the vendor. Table HR14 2011 Benefits Administration Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Payroll Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Personnel Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 117 272 894 787 583 2,653 2653 2653 2653 2653 2653 2,653 4.41% 10.25% 33.70% 29.66% 21.98% 100.00% 124 293 1,007 841 684 2,949 2949 2949 2949 2949 2949 2,949 4.20% 9.94% 34.15% 28.52% 23.19% 100.00% 128 274 920 789 579 2,690 2,689 2,689 2,689 2,689 2,689 2,690 4.76% 10.19% 34.21% 29.34% 21.53% 100.00% # for Contract Range Total Responding % of Total Responding 45 182 827 806 492 2,352 2,352 2,352 2,352 2,352 2,352 2,352 1.91% 7.74% 35.16% 34.27% 20.92% 100.00% Table HR15 2011 Time & Attendance Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total ▶▶ Human Resource Environment con tinued Market Drivers/Future Outlook The HR Department IT application market has been and will continue to be impacted through 2015 by: • A weak economy and higher IT application priorities, such as EMR and RCM applications, should drive most hospitals to extend the useful life of these applications for as long as possible. • The need to track security training and policies for all hospital employees. • Outsourcing services for the HR application suite that reduce capital requirements. • Continued shortages of clinicians, especially pharmacists, nurses, and IT staff will drive interest in manpower planning, skills training and enhanced recruiting tools. • The need for a centralized HR capability in a growing IDN where employees are internally mobile. • Acquisitions and mergers of healthcare IT vendors; the current economy will drive this activity. • Service as a Software (SaaS)/Application solutions provider (ASP) products which will appeal to smaller hospitals that don’t have the IT staff to support a large portfolio of IT applications. • Potential government regulations (e.g., nurse staffing ratios, healthcare savings accounts, public insurance options). • Innovative benefits packages crafted to attract and retain skilled clinicians. • The necessity to track clinician credentials and continuing education for all hospital employees. • The need to drive efficiencies in HR departments through the expanded use of e-HR functions such as e-recruiting, HR Portals, etc. ▶▶ Revenue Cycle Management Environment A successful healthcare revenue cycle management (RCM) environment enables a healthcare organization to accelerate revenue cycles by reducing the number of denied claims, avoiding insurance underpayments, eliminating billing errors, improving operational efficiencies and reducing the number of days in accounts receivable (A/R). Eight RCM applications are tracked in this report: ADT/registration, bed management, contract management, credits/collections, electronic data interchangeclearinghouse vendor (EDI), enterprise master person index (EMPI), patient billing and patient scheduling. As one of the most mature of hospital applications, ADT/ registration, patient billing and patient scheduling continue to be at market saturation (over 95 percent) in 2011. Use of credit/collection solutions is also approaching market saturation (92 percent). Bed management and EDI–clearinghouse both showed growth of over four percent in the last year; growth of EMPI was also at nearly four percent. All other applications demonstrated growth, although the Table RCM1 | Revenue Cycle Management N=4,289 2009 2010 ADT/Registration 99.46% 99.63% Bed Management 29.63% 33.46% Contract Management 64.63% 66.24% Credit/Collections 89.88% 90.93% EDI – Clearinghouse Vendor 74.33% 80.02% Enterprise Master Person Index (EMPI) 44.30% 48.40% Patient Billing 99.30% 99.35% Patient Scheduling 94.99% 96.01% Percentages include installed, contracted or installation in process 2011 99.72% 37.96% 67.68% 91.68% 84.36% 51.95% 99.88% 96.85% growth is relatively small (see Table RCM1). It is important to note that EMPI capabilities are seen as essential for provider organizations seeking higher levels of integration in care delivery either within their own enterprises or in their relationships with their attending physicians’ private practices and other provider organizations in their communities—capabilities that will be essential to comply with meaningful use. We also sense an increase in the merger and acquisition rate which will also drive EMPI and related consulting services. The majority of reported purchasing plans for the RCM applications tracked in this report were replacement purchases. All purchase plans for ADT/registration, credit/collections, EDI and patient billing will be made by hospitals that plan to replace their current solutions. EMPI is the market that is most likely to hospitals purchasing a solution for the first time; approximately one quarter of the EMPI purchase plans will be first-time purchases (see Table RCM2). High replacement purchases indicate that many installed RCM applications are reaching the end of their product life cycles (e.g., patient billing, ADT/registration, patient scheduling, and credit/collections). We expect that replacement purchasing will continue to grow significantly for RCM applications through 2015 due to impending federal regulation implementation dates that will require significant changes for the RCM environment such as ICD-10 coding adoption and the looming bundled payment revolution. This market will also be impacted by the healthcare reform legislative provisions and other information and process changes demanded of hospitals by both public and private insurers. Table RCM2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing ADT/Registration 75 100.00% Bed Management 33 84.62% Contract Management 42 89.36% Credit/Collections 44 100.00% EDI – Clearinghouse Vendor 16 100.00% Enterprise Master Person Index (EMPI) 33 76.74% Patient Billing 72 100.00% Patient Scheduling 74 96.10% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 0 6 5 0 0 10 0 3 % of Hospitals Planning to Purchase Software for the First Time 0.00% 15.38% 10.64% 0.00% 0.00% 23.26% 0.00% 3.90% Source: HIMSS Analytics® Database 2011 N = Total Number of Hospitals Planning 75 39 47 44 16 43 72 77 ©2012 HIMSS Analytics. 21 ▶▶ Revenue Cycle Management Environment con tinued An evaluation of hospital type market segments for RCM applications for 2010–2011 shows: • ADT/Registration: the ADT/registration market is virtually saturated (99 percent or better) for all segments. As such, there is very little room for increased market penetration and no segment showed growth of more than one percent (see Table RCM3). • Bed management: academic medical centers have nearly eight percent growth for this application in the past year. All other segments indicated an increase ranging from three to five percent (see Table RCM4). • Contract management: none of the hospitals segments showed growth of more than two percent for this application (see Table RCM5). • Credit/collections: many market segments are at or near market saturation for this application. At slightly less than two percent, critical access and rural hospitals showed the best growth in the past year (see Table RCM6). • EDI: this application demonstrated consistent growth across all market segments, ranging from three to five percent (see Table RCM7). • EMPI: hospitals across all segments reported growth ranging from three to four percent; academic medical centers demonstrating the highest growth in 2011 at slightly more than four percent (see Table RCM8). • Patient billing: all market segments have installation rates of at least 99 percent. The only segment to demonstrate growth of more than one percent was non-general medical/surgical facilities (see Table RCM9). • Patient scheduling: the market has achieved (or is approaching) market segmentation across all hospital segments. The strongest growth (at nearly three percent) was among rural hospitals (see Table RCM10). Table RCM3 | ADT/Registration 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 4,074 2,500 1,766 1,140 3,126 994 3,272 2,578 1,688 4,266 Percent 100.00% 99.44% 99.72% 99.10% 98.70% 99.74% 98.71% 99.70% 99.69% 99.12% 99.46% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,081 2,503 1,770 1,144 3,129 998 3,275 2,580 1,693 4,273 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 129 1,306 1,047 388 177 1,258 134 1,301 974 461 1,435 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 161 2,680 1,863 978 482 2,359 418 2,423 1,986 855 2,841 Percent 100.00% 99.61% 99.84% 99.33% 99.05% 99.84% 99.11% 99.79% 99.77% 99.41% 99.63% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,085 2,504 1,773 1,146 3,131 1,001 3,276 2,581 1,696 4,277 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 144 1,484 1,151 477 227 1,401 171 1,457 1,103 525 1,628 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 162 2,741 1,903 1,000 492 2,411 433 2,470 2,025 878 2,903 Percent 100.00% 99.71% 99.88% 99.49% 99.22% 99.90% 99.40% 99.82% 99.81% 99.59% 99.72% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RCM4 | Bed Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 101 1,041 848 294 125 1,017 104 1,038 781 361 1,142 Percent 52.60% 25.41% 33.83% 16.50% 10.82% 32.45% 10.33% 31.63% 30.20% 21.20% 26.63% 2010 Percent 67.19% 31.88% 41.76% 21.77% 15.32% 40.14% 13.31% 39.64% 37.66% 27.07% 33.46% 2011 Percent 75.00% 36.22% 45.91% 26.77% 19.65% 44.70% 16.98% 44.39% 42.65% 30.83% 37.96% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RCM5 | Contract Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 152 2,620 1,829 943 460 2,312 403 2,369 1,934 838 2,772 Percent 79.17% 63.95% 72.96% 52.92% 39.83% 73.77% 40.02% 72.18% 74.79% 49.21% 64.63% 2010 22 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 83.85% 65.41% 74.31% 54.88% 41.73% 75.27% 41.51% 73.83% 76.80% 50.21% 66.24% 2011 Percent 84.38% 66.90% 75.91% 56.12% 42.60% 76.93% 43.00% 75.26% 78.31% 51.56% 67.68% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Revenue Cycle Management Environment con tinued Table RCM6 | Credit/Collections 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 179 3,676 2,382 1,473 918 2,937 796 3,059 2,421 1,434 3,855 Percent 93.23% 89.72% 95.01% 82.66% 79.48% 93.71% 79.05% 93.21% 93.62% 84.20% 89.88% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 3,717 2,387 1,513 944 2,956 821 3,079 2,431 1,469 3,900 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 168 3,264 2,047 1,385 864 2,568 741 2,691 2,084 1,348 3,432 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 138 1,938 1,358 718 444 1,632 357 1,719 1,383 693 2,076 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,069 2,506 1,755 1,150 3,111 1,004 3,257 2,562 1,699 4,261 Percent 95.31% 90.72% 95.21% 84.90% 81.73% 94.32% 81.53% 93.81% 94.01% 86.26% 90.93% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 184 3,748 2,406 1,526 962 2,970 837 3,095 2,448 1,484 3,932 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 174 3,444 2,154 1,464 912 2,706 779 2,839 2,204 1,414 3,618 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 146 2,082 1,458 770 482 1,746 388 1,840 1,485 1,840 2,228 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,092 2,506 1,778 1,151 3,133 1,006 3,278 2,582 1,702 4,284 Percent 95.83% 91.48% 95.97% 85.63% 83.29% 94.77% 83.12% 94.30% 94.66% 87.14% 91.68% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RCM7 | EDI – Clearinghouse Vendor 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 154 3,034 1,914 1,274 777 2,411 665 2,523 1,967 1,221 3,188 Percent 80.21% 74.05% 76.35% 71.49% 67.27% 76.93% 66.04% 76.87% 76.06% 71.70% 74.33% 2010 Percent 87.50% 79.67% 81.65% 77.72% 74.81% 81.94% 73.58% 81.99% 80.59% 79.15% 80.02% 2011 Percent 90.63% 84.06% 85.92% 82.15% 78.96% 86.34% 77.36% 86.50% 85.23% 83.03% 84.36% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RCM8 | Enterprise Master Person Index (EMPI) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 121 1,779 1,243 657 398 1,502 323 1,577 1,273 627 1,900 Percent 63.02% 43.42% 49.58% 36.87% 34.46% 47.93% 32.08% 48.05% 49.23% 36.82% 44.30% 2010 Percent 71.88% 47.30% 54.17% 40.29% 38.44% 52.07% 35.45% 52.38% 53.48% 40.69% 48.40% 2011 Percent 76.04% 50.82% 58.16% 43.21% 41.73% 55.71% 38.53% 56.06% 57.42% 43.63% 51.95% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RCM9 | Patient Billing 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 4,067 2,505 1,754 1,149 3,110 1,001 3,258 2,563 1,696 4,259 Percent 100.00% 99.27% 99.92% 98.43% 99.48% 99.23% 99.40% 99.27% 99.11% 99.59% 99.30% 2010 Percent 100.00% 99.32% 99.96% 98.48% 99.57% 99.27% 99.70% 99.24% 99.07% 99.77% 99.35% 2011 Source: HIMSS Analytics® Database 2011 Percent 100.00% 99.88% 99.96% 99.78% 99.65% 99.97% 99.90% 99.88% 99.85% 99.94% 99.88% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 23 ▶▶ Revenue Cycle Management Environment con tinued Table RCM10 | Patient Scheduling 2009 Segment Count 191 3,883 2,463 1,611 994 3,080 879 3,195 2,512 1,562 0 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 99.48% 94.78% 98.24% 90.40% 86.06% 98.28% 87.29% 97.35% 97.14% 91.72% 0.00% The analysis of this market by bed size in 2011 showed that ADT/ registration, patient billing, and patient scheduling are at, or near, saturation for all bed segments; therefore, the growth opportunities are limited for these applications. Bed management, EDI, and EMPI share the top three growth rates across all segments from 2010 to 2011 (see Tables RCM11–RCM17) as follows: • 0–100 beds: bed management and EDI showed the most growth, at more than four percent each (see Table RCM11). • 101–200 beds: the largest growth was demonstrated by EMPI at about five percent. EDI also had growth of more than four percent (see Table RCM12). • 201–300 beds: EDI demonstrated a growth of more than five percent while bed management and EMPI grew by more than four percent. Patient billing reported a slight decrease from last year (see Table RCM13). • 301–400 beds: bed management demonstrated a growth of more than six percent for this bed segment, followed by EDI at more than five percent (see Table RCM14). ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling 2009 2,160 317 1,127 1,833 1,543 99.04% 14.53% 51.67% 84.04% 70.75% 760 2,152 1,986 34.85% 98.67% 91.06% 2010 2011 % of 2,181 Hospitals 2,166 99.31% 2,170 99.50% 412 18.89% 506 23.20% 1,159 53.14% 1,198 54.93% 1,879 86.15% 1,901 87.16% 1,686 77.30% 1,775 81.38% 829 2,154 2,025 38.01% 98.76% 92.85% 901 2,177 2,059 41.31% 99.82% 94.41% ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling Segment Count 192 3,962 2,485 1,669 1,049 3,105 921 3,233 2,547 1,607 0 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 100.00% 96.70% 99.12% 93.66% 90.82% 99.07% 91.46% 98.51% 98.49% 94.36% 0.00% • 401–500 beds: bed management and EDI have the largest growth in this segment at more than three percent (see Table RCM15). • 501–600 beds: more than four percent growth was reported for bed management and EMPI. EDI had a growth of three percent in this segment (see Table RCM16). • Over 600 beds: there was an eight percent increase for bed management, while EDI utilization grew by more than four percent (see Table RCM17). Table rcm13 201–300 Beds ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling 2009 504 100.00% 182 36.11% 387 76.79% 482 95.63% 379 75.20% 2010 % of 504 Hospitals 504 100.00% 239 47.42% 399 79.17% 480 95.24% 407 80.75% 2011 259 51.39% 504 100.00% 498 98.81% 288 57.14% 504 100.00% 500 99.21% 2009 328 100.00% 149 45.43% 268 81.71% 313 95.43% 265 80.79% 2010 % of 328 Hospitals 328 100.00% 183 55.79% 272 82.93% 312 95.12% 278 84.76% 328 100.00% 205 62.50% 274 83.54% 316 96.34% 295 89.94% 184 56.10% 328 100.00% 327 99.70% 202 61.59% 328 100.00% 327 99.70% 211 64.33% 328 100.00% 327 99.70% 2009 2011 182 100.00% 96 52.75% 155 85.16% 175 96.15% 138 75.82% 2010 % of 182 Hospitals 182 100.00% 112 61.54% 156 85.71% 175 96.15% 147 80.77% 182 100.00% 119 65.38% 157 86.26% 176 96.70% 153 84.07% 106 58.24% 182 100.00% 182 100.00% 116 63.74% 182 100.00% 182 100.00% 117 64.29% 182 100.00% 182 100.00% 504 100.00% 263 52.18% 407 80.75% 482 95.63% 435 86.31% 310 503 501 61.51% 99.80% 99.40% 301–400 Beds ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling 2011 Table rcm15 Table rcm12 101–200 Beds Percent 100.00% 95.83% 98.64% 92.31% 88.74% 98.69% 88.88% 98.20% 97.91% 93.13% 0.00% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table rcm14 Table rcm11 0–100 Beds Segment Count 192 3,926 2,473 1,645 1,025 3,093 895 3,223 2,532 1,586 0 2009 820 240 614 794 646 99.76% 29.20% 74.70% 96.59% 78.59% 417 821 811 50.73% 99.88% 98.66% 2010 % of 822 Hospitals 821 99.88% 300 36.50% 627 76.28% 793 96.47% 675 82.12% 453 821 813 55.11% 99.88% 98.91% 2011 821 328 635 795 711 99.88% 39.90% 77.25% 96.72% 86.50% 492 59.85% 822 100.00% 813 98.91% 24 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 401–500 Beds ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling ▶▶ Revenue Cycle Management Environment con tinued Table rcm16 501–600 Beds ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling Table RCM18 2009 122 100.00% 66 54.10% 102 83.61% 116 95.08% 97 79.51% 2010 % of 122 Hospitals 122 100.00% 78 63.93% 103 84.43% 117 95.90% 107 87.70% 2011 122 100.00% 83 68.03% 103 84.43% 117 95.90% 111 90.98% 75 61.48% 122 100.00% 121 99.18% 75 61.48% 122 100.00% 121 99.18% 80 65.57% 122 100.00% 122 100.00% 2009 2011 150 100.00% 92 61.33% 119 79.33% 142 94.67% 120 80.00% 2010 % of 150 Hospitals 150 100.00% 111 74.00% 125 83.33% 144 96.00% 132 88.00% 150 100.00% 124 82.67% 129 86.00% 145 96.67% 138 92.00% 99 66.00% 150 100.00% 149 99.33% 113 75.33% 150 100.00% 150 100.00% 117 78.00% 150 100.00% 150 100.00% Table rcm17 600+ Beds ADT/Registration Bed Management Contract Management Credit/Collections EDI–Clearinghouse Vendor Enterprise Master Person Index (EMPI) Patient Billing Patient Scheduling In evaluating the contract purchasing timeframes for RCM applications in 2010, more than 85 percent of the bed management purchases were completed in 2000 or later, with the majority of these purchases (61 percent) occurring since 2005 (see Tables RCM18 to RCM20). Close to half of the contracts for EDI occurred between 2005 and 2011. Since the legacy-based RCM applications such as ADT/ registration, credits/collections, patient scheduling and patient billing have reached or are on the verge of achieving market saturation, these applications are most likely subject to replacement over the next three to five years. Market Drivers/Future Outlook The RCM IT application market has been and will continue to be impacted through 2015 by: • The conversion to ICD-10 coding; currently scheduled for October 1, 2013. • The need of many organizations to update or replace their legacy RCM environments to effectively meet ICD-10 upgrade and conversion requirements. • The emergence of shared savings bundled reimbursement models, in response to pay-for-performance initiatives from federal programs as well as private insurers. • Tight capital markets and limited capital budgets. • The focus on consumer/patient satisfaction (e.g., pricing transparency, consumer friendly billing formats, on-line bill paying, self-scheduling, pre-registration and other Web-based, self-service applications). • The need to more effectively integrate financial and clinical data for business analysis and government reporting. • The need to more effectively integrate financial decision support into the RCM environment. 2011 ADT/Registration Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Bed Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Contract Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 153 406 851 866 886 3,162 3,162 3,162 3,162 3,162 3,162 3,162 4.84% 12.84% 26.91% 27.39% 28.02% 100.00% 8 25 45 132 328 538 538 538 538 538 538 538 1.49% 4.65% 8.36% 24.54% 60.97% 100.00% 57 112 427 607 539 1,742 1,742 1,742 1,742 1,742 1,742 1,742 3.27% 6.43% 24.51% 34.85% 30.94% 100.00% # for Contract Range Total Responding % of Total Responding 133 412 774 727 778 2,824 2,824 2,824 2,824 2,824 2,824 2,824 4.71% 14.59% 27.41% 25.74% 27.55% 100.00% 16 46 260 336 536 1,194 1,194 1,194 1,194 1,194 1,194 1,194 1.34% 3.85% 21.78% 28.14% 44.89% 100.00% 13 71 210 463 460 1,217 1,217 1,217 1,217 1,217 1,217 1,217 1.07% 5.83% 17.26% 38.04% 37.80% 100.00% # for Contract Range Total Responding % of Total Responding 170 408 865 837 856 3,136 3,136 3,136 3,136 3,136 3,136 3,136 5.42% 13.01% 27.30% 26.69% 27.30% 100.00% 53 269 614 861 857 2,654 2,654 2,654 2,654 2,654 2,654 2,654 2.00% 10.14% 23.13% 32.44% 32.29% 100.00% Table RCM19 2011 Credit/Collections Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total EDI–Clearinghouse Vendor Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Enterprise Master Person Index (EMPI) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table RCM20 2011 Patient Billing Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Patient Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 25 ▶▶ Next Generation Revenue Cycle Management Next generation revenue cycle management (NGRCM) functions are intended to reflect trends in the adoption of the latest generation of RCM solutions designed to complement and enhance core legacy RCM applications. These are solutions that focus on improving collection rate, business office workflows, productivity and the overall efficiency of the RCM process, while also improving patient satisfaction and convenience. This index is based on five NGRCM components that improve both upstream and downstream processes in the RCM environment. Each component contains several solutions and this report will focus on 13 different solutions across the five NGRCM components: • Consumer focus: this NGRCM environment provides the ability to extend B2C (Business to Consumer) Web services to patients to facilitate on-line pre-registration, self-scheduling, and bill payment to enhance patient service efficiency and convenience. • Eligibility verification: this NGRCM environment supports realtime insurance eligibility verification transactions to mitigate the risk of providing services that are not covered by the patient’s insurance. • Rules capability for billing and payment processing: this NGRCM environment includes rules engines which facilitate medical necessity checking during patient scheduling and registration functions; determine self-pay patient liability prior to or at the point of registration; and compare submitted, allowed and paid claims against contractual terms to identify and facilitate claims resubmissions. It also allows business office personnel to edit bills on-line prior to submission, if needed, to improve billing accuracy and compliance with contractual terms and to provide the necessary updates to all billing and accounts receivable files related to those edits. NGRCM tools can also accommodate the autoencoding of clinical information from the EMR system, determine claims attachment requirements and automatically create required attachments (when such supporting data exists in digital form, such as in the EMR) prior to claim submission to avoid denied or pended claims and improve the efficiency and accuracy of the billing process. • Claims processing: this NGRCM environment provides the ability to submit claims directly to payers, eliminating the need for third-party clearinghouse intermediary, accepts direct electronic claims remittance transactions from payers and directly posts third-party payments against patient specific receivables from bundled remittance transactions. Table NGRCM1 | Next Generation Revenue Cycle Management N=4,289 2009 2010 Biller’s Dash Board 18.00% 22.48% Claims Attachment Rules 18.86% 25.95% Claims Remittance Updates AR 12.50% 15.43% Denial Rules 17.04% 26.67% Direct Payer Claims 10.73% 12.38% EFT Transaction 17.00% 24.20% Eligibility Transaction with Payer 12.31% 15.55% EMR Documentation for Claims 8.39% 4.08% Necessity Alert @ Registration 23.57% 35.60% Necessity Alert @ Scheduling 13.94% 21.31% Web PreRegister 16.90% 16.85% Web Schedule 7.53% 6.81% Web Self Pay 28.35% 26.77% Percentage include installed, contracted or installation in process 2011 25.46% 28.54% 16.93% 30.12% 13.10% 26.00% 16.97% 2.96% 37.93% 22.94% 19.21% 6.95% 32.41% 26 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. • Treasury functions: this NGRCM environment provides electronic funds transfers (EFT) from third-party payers directly to the provider organization’s bank accounts to improve cash flow and facilitate financial reconciliation processes for the organization. • In general, most of the NGRCM solutions indicated an increased adoption rate from 2010 to 2011 except for EMR documentation for claims and necessity alert at scheduling. The growth ranged from slightly less than six percent for Web self pay to less than one percent for Web scheduling and direct payer claims. The decrease reported by EMR documentation for claims and necessity alert at scheduling were minimal (slightly over one percent). One reason for the decline in EMR documentation for claims could be attributed to the change in data collection that occurred in 2010. The method of collecting changed after 2009 as the definition was updated that narrowly defined this market. The highest market penetration for the next generation RCM applications tracked in this report is necessity alert at registration at 38 percent, followed by Web self pay (see Table NGRCM1). Hospital requirements for adoption will be based on business needs, strategies and their competitive environment. Hospitals must be aware of the impact that ICD-10 coding upgrades will have on many of these applications and, with the deadline approaching in October of 2013, they should be implementing their upgrade strategies now. The NGRCM index is designed to allow hospitals to compare their use of NGRCM capabilities against the market and their peers. Unlike the other sections of the annual report, planned purchase data is not available for NGRCM applications. An evaluation of this market in 2011 by hospital type shows the following trends: Consumer Focus • Web pre-registration: from 2010 to 2011, the adoption rate increased the highest for the general medical/surgical segment at slightly under four percent. Most of the other segments with the exception of academic medical centers indicated an increase over the same timeframe. The adoption rate for the academic medical center segment decreased by three percent (see Table NGRCM2). • Web scheduling: growth for this application across all market segments is limited; there was a slight decrease in utilization in the academic medical center and single hospital segments (see Table NGRCM3). • Web self pay: growth across most of the key hospital segments for this application was between four and six percent, with the exception of medical/surgical hospitals and critical access hospitals which exceeded six percent. There was a slight decrease in use among academic medical centers (see Table NGRCM4). Eligibility Verification • Medical necessity alerts at the point of scheduling: the highest growth in adoption occurred in the academic medical center segment at more than three percent. Growth in most of the other market segments was two percent or less (see Table NGRCM5). • Medical necessity alerts at point of registration: every segment indicated low to moderate growth from 2010 to 2011; ranging from one percent to more than six percent. Academic medical center segments demonstrated an increase of more than six percent (see Table NGRCM6). ▶▶ Next Generation Revenue Cycle Management con tinued Rules and Billing Capabilities • Claims attachment rules: the academic medical center segment has the highest growth in adoption rates at close to five percent, followed by the single hospital system segment at nearly four percent (see Table NGRCM7). • Denials rules: the academic medical center segment indicated the largest growth at slightly more than six percent while the single hospital system segment has growth of more than five percent. Growth among the remaining segments was between two and three percent (see Table NGRCM8). • Biller’s dashboard: the single hospital segment has the highest growth rate at more than four percent followed by academic medical centers at nearly three percent. Growth for the remaining markets was between two and three percent (see Table NGRCM9). • EMR documentation for claims: there was a decline in utilization for this application across all market segments. The greatest decline was among academic medical centers at slightly more than three percent (see Table NGRCM10). Claims Processing • Direct payer claims (no clearinghouse): very little growth was reported for this solution across all the hospital segments. Academic medical centers have the highest growth in the past year (more than two percent) followed by the single hospital system segment (more than one percent). All other segments indicated growth of less than one percent (see Table NGRCM11). • Claims remittance with accounts receivable update: the academic medical center segment demonstrated the highest growth rate in the past year at more than five percent. Growth in all remaining segments was less than two percent (see Table NGRCM12). • Eligibility transaction with payer (no clearinghouse): the single hospital systems segment has the highest growth from 2010 to 2011 at more than two percent (see Table NGRCM13). Treasury Funds • Electronic funds transfer transactions (direct to organization’s bank): this application demonstrated growth of more than five percent at academic medical centers. All other segments reported growth between one to two percent (see Table NGRCM14). Table NGRCM2 | Web Pre-Register 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 38 687 561 164 89 636 81 644 610 115 725 Percent 19.79% 16.77% 22.38% 9.20% 7.71% 20.29% 8.04% 19.62% 23.59% 6.75% 16.90% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 38 687 552 170 99 623 84 638 609 113 723 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 40 252 203 89 28 264 21 271 250 42 292 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 66 1,082 830 318 198 950 174 974 885 263 1,148 Percent 19.79% 16.77% 22.02% 9.54% 8.57% 19.88% 8.34% 19.44% 23.55% 6.64% 16.85% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 32 792 650 174 104 720 106 718 701 123 824 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 33 265 213 85 30 268 27 271 262 36 298 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 65 1,325 1,002 388 270 1,120 234 1,156 1,033 357 1,390 Percent 16.67% 19.33% 25.93% 9.76% 9.00% 22.97% 10.53% 21.88% 27.11% 7.22% 19.21% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM3 | Web Schedule 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 41 282 221 102 38 285 27 296 272 51 323 Percent 21.35% 6.88% 8.82% 5.72% 3.29% 9.09% 2.68% 9.02% 10.52% 2.99% 7.53% 2010 Percent 20.83% 6.15% 8.10% 4.99% 2.42% 8.42% 2.09% 8.26% 9.67% 2.47% 6.81% 2011 Percent 17.19% 6.47% 8.50% 4.77% 2.60% 8.55% 2.68% 8.26% 10.13% 2.11% 6.95% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM4 | Web Self Pay 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 68 1,148 915 301 175 1,041 172 1,044 980 236 1,216 Percent 35.42% 28.02% 36.50% 16.89% 15.15% 33.22% 17.08% 31.81% 37.90% 13.86% 28.35% 2010 Percent 34.38% 26.41% 33.11% 17.85% 17.14% 30.31% 17.28% 29.68% 34.22% 15.44% 26.77% 2011 Source: HIMSS Analytics® Database 2011 Percent 33.85% 32.34% 39.97% 21.77% 23.38% 35.74% 23.24% 35.22% 39.95% 20.96% 32.41% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 27 ▶▶ Next Generation Revenue Cycle Management con tinued Table NGRCM5 | Necessity Alert @ Scheduling 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 19 579 447 151 108 490 82 516 418 180 598 Percent 9.90% 14.13% 17.83% 8.47% 9.35% 15.63% 8.14% 15.72% 16.16% 10.57% 13.94% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 33 881 1,003 524 177 737 137 777 618 296 941 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 62 1,465 1,003 524 310 1,217 269 1,258 1,048 479 1,527 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 56 1,057 716 397 199 914 173 940 671 442 1,113 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 66 1,078 723 421 207 937 182 962 675 469 1,144 Percent 17.19% 21.50% 26.69% 13.75% 15.32% 23.52% 13.60% 23.67% 23.90% 17.38% 21.31% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 39 945 721 263 184 800 145 839 643 341 984 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 74 1,553 1,069 558 327 1,300 286 1,341 1,098 529 1,627 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 65 1,159 783 441 231 993 192 1,032 717 507 1,224 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 78 1,214 810 482 248 1,044 210 1,082 728 564 1,292 Percent 20.31% 23.07% 28.76% 14.76% 15.93% 25.53% 14.40% 25.56% 24.86% 20.02% 22.94% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM6 | Necessity Alert @ Registration 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 34 977 652 359 199 812 174 837 710 301 1,011 Percent 17.71% 23.85% 26.01% 20.15% 17.23% 25.91% 17.28% 25.50% 27.46% 17.67% 23.57% 2010 Percent 32.29% 35.76% 40.01% 29.41% 26.84% 38.83% 26.71% 38.33% 40.53% 28.13% 35.60% 2011 Percent 38.54% 37.91% 42.64% 31.31% 28.31% 41.48% 28.40% 40.86% 42.46% 31.06% 37.93% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM7 | Claims Attachment Rules 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 40 769 513 296 129 680 113 696 526 283 809 Percent 20.83% 18.77% 20.46% 16.61% 11.17% 21.70% 11.22% 21.21% 20.34% 16.62% 18.86% 2010 Percent 29.17% 25.80% 28.56% 22.28% 17.23% 29.16% 17.18% 28.64% 25.95% 25.95% 25.95% 2011 Percent 33.85% 28.29% 31.23% 24.75% 20.00% 31.68% 19.07% 31.44% 27.73% 29.77% 28.54% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM8 | Denial Rules 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 44 687 446 285 118 613 101 630 465 266 731 Percent 22.92% 16.77% 17.79% 15.99% 10.22% 19.56% 10.03% 19.20% 17.98% 15.62% 17.04% 2010 28 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 34.38% 26.31% 28.84% 23.63% 17.92% 29.90% 18.07% 29.31% 26.10% 27.54% 26.67% 2011 Percent 40.63% 29.63% 32.31% 27.05% 21.47% 33.31% 20.85% 32.97% 28.15% 33.12% 30.12% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Next Generation Revenue Cycle Management con tinued Table NGRCM9 | Biller’s Dashboard 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 42 730 457 315 155 617 152 620 480 292 772 Percent 21.88% 17.82% 18.23% 17.68% 13.42% 19.69% 15.09% 18.89% 18.56% 17.15% 18.00% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 53 911 570 394 207 757 190 774 558 406 964 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 17 158 123 52 26 149 27 148 85 90 175 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 36 495 337 194 125 406 105 426 287 244 531 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 43 619 371 291 125 537 102 560 388 274 662 Percent 27.60% 22.24% 22.74% 22.11% 17.92% 24.15% 18.87% 23.58% 21.58% 23.84% 22.48% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 60 1,032 652 440 238 854 216 876 612 480 1,092 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 11 116 88 39 20 107 18 109 68 59 127 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 41 521 352 210 128 434 108 454 293 269 562 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 53 673 418 308 128 598 104 622 423 303 726 Percent 31.25% 25.19% 26.01% 24.69% 20.61% 27.25% 21.45% 26.69% 23.67% 28.19% 25.46% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM10 | EMR Documentation for Claims 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 31 329 246 114 66 294 62 298 210 150 360 Percent 16.15% 8.03% 9.81% 6.40% 5.71% 9.38% 6.16% 9.08% 8.39% 8.81% 8.39% 2010 Percent 8.85% 3.86% 4.91% 2.92% 2.25% 4.75% 2.68% 4.51% 4.12% 5.28% 4.08% 2011 Percent 5.73% 2.83% 3.51% 2.19% 1.73% 3.41% 1.79% 3.32% 2.96% 3.46% 2.96% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM11 | Direct Payer Claims 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 29 431 300 160 104 356 93 367 270 190 460 Percent 15.10% 10.52% 11.97% 8.98% 9.00% 11.36% 9.24% 11.18% 10.44% 11.16% 10.73% 2010 Percent 18.75% 12.08% 13.44% 10.89% 10.82% 12.95% 10.43% 12.98% 11.10% 14.33% 12.38% 2011 Percent 21.35% 12.72% 14.04% 11.78% 11.08% 13.85% 10.72% 13.83% 11.33% 15.80% 13.10% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM12 | Claims Remittance Updates AR 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 34 502 294 242 95 441 79 457 344 192 536 Percent 17.71% 12.25% 11.73% 13.58% 8.23% 14.07% 7.85% 13.92% 13.30% 11.27% 12.50% 2010 Percent 22.40% 15.11% 14.80% 16.33% 10.82% 17.13% 10.13% 17.06% 15.00% 16.09% 15.43% 2011 Source: HIMSS Analytics® Database 2011 Percent 27.60% 16.43% 16.67% 17.28% 11.08% 19.08% 10.33% 18.95% 16.36% 17.79% 16.93% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 29 ▶▶ Next Generation Revenue Cycle Management con tinued Table NGRCM13 | Eligibility Transaction with Payer 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 23 505 289 239 104 424 82 446 330 198 528 Percent 11.98% 12.33% 11.53% 13.41% 9.00% 13.53% 8.14% 13.59% 12.76% 11.63% 12.31% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 36 631 370 297 142 525 109 558 386 281 667 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 60 978 619 419 226 812 192 846 600 438 1,038 Percent 18.75% 15.40% 14.76% 16.67% 12.29% 16.75% 10.82% 17.00% 14.93% 16.50% 15.55% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 39 689 406 322 156 572 121 607 406 322 728 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 70 1,045 654 461 250 865 208 907 625 490 1,115 Percent 20.31% 16.82% 16.19% 18.07% 13.51% 18.25% 12.02% 18.49% 15.70% 18.91% 16.97% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table NGRCM14 | EFT Transaction 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 41 688 407 322 158 571 140 589 429 300 729 Percent 21.35% 16.79% 16.23% 18.07% 13.68% 18.22% 13.90% 17.95% 16.59% 17.62% 17.00% 2010 An evaluation of adoption of NGRCM functions by hospital bedsize segments provides the following insights in adoption from 2010 to 2011 (see Tables NGRCM15–NGRCM21): • 0–100 beds: in this bed segment, Web self pay demonstrated the largest increase in adoption from 2010 to 2011 at more than five percent. Most of the other NGRCM applications, except EMR documentation for claims, showed increases in adoption (see Table NGRCM15). • 101–200 beds: at more than seven percent, Web self pay reported the largest increase from 2010 to 2011. The next highest growth was reported for Web pre-register at slightly less than five percent. EMR documentation for claims is the only solution to indicate a decline, while the adoption rate for the other solutions grew in the same timeframe (see Table NGRCM16). • 201–300 beds: growth for Web self pay, claims attachment rules, denial rules and Web pre-register was more than five percent for each application. With the exception of EMR documentation for claims and Web scheduling, growth for the remaining segments was between two and four percent (see Table NGRCM17). • 301–400 beds: the majority of applications demonstrated growth of one to three percent. However, growth for Web self pay was nearly five percent. A decrease in utilization occurred for EMR documentation for claims and Web pre-register (see Table NGRCM18). • 401–500 beds: Web self pay reported an increase of more than seven percent from 2010 to 2011. Web pre-register, EMR documentation for claims and direct payer claims reported a decline in utilization (see Table NGRCM19). 30 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 31.25% 23.87% 24.69% 23.51% 19.57% 25.91% 19.07% 25.78% 23.20% 25.72% 24.20% 2011 Percent 36.46% 25.51% 26.09% 25.87% 21.65% 27.60% 20.66% 27.64% 24.17% 28.77% 26.00% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 • 501–600 beds: Web self pay, claims attachment rules and claims remittance updates AR had the highest growth at slightly more than four percent. Web scheduling and EMR documentation for claims were two areas that reported a decrease in utilization in the past year (see Table NGRCM20). • 600+ beds: Web schedule and EMR documentation for claims were the only applications to decrease in utilization in the past year. Necessity alert at registration had the highest increase in adoption from 2010 to 2011 at more than seven percent (see Table NGRCM21). Market Drivers/Future Outlook The NGRCM market is still in its infancy, but these applications will become critical solutions for all hospitals within the next few years as indicated in the summary (see Table NGRCM1). This market will continue to be impacted through 2015 by: • In the short run, capital constraints and the intense competition of IT capital funds, which will drive many hospitals to acquire bolt-on NGRCM applications to enhance their existing legacy RCM environments, extending their useful life. • Many NGRCM applications in each of the product categories described are currently marketed by relatively small, specialty vendors. Over time, we expect that the larger RCM vendors will introduce similar capabilities as an integral component of new versions; hospitals upgrading to these new versions will displace these niche products. • In addition, over the longer term, as more small to mid-sized hospitals contract for EMRs, many of these will also to take the ▶▶ Next Generation Revenue Cycle Management con tinued Table NGRCM15 0–100 Beds Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction Table NGRCM18 2009 222 80 406 212 454 358 330 374 128 186 260 263 372 10.18% 3.67% 18.62% 9.72% 20.82% 16.41% 15.13% 17.15% 5.87% 8.53% 11.92% 12.06% 17.06% 2010 % of 2,181 Hospitals 231 10.59% 64 2.93% 430 19.72% 337 15.45% 683 31.32% 499 22.88% 517 23.70% 473 21.69% 60 2.75% 235 10.77% 322 14.76% 338 15.50% 503 23.06% 2011 269 68 542 353 723 540 580 529 42 249 333 368 540 12.33% 3.12% 24.85% 16.19% 33.15% 24.76% 26.59% 24.25% 1.93% 11.42% 15.27% 16.87% 24.76% Table NGRCM16 101–200 Beds Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2009 84 44 119 62 98 70 59 60 37 52 46 40 54 25.61% 13.41% 36.28% 18.90% 29.88% 21.34% 17.99% 18.29% 11.28% 15.85% 14.02% 12.20% 16.46% 2010 % of 328 Hospitals 85 25.91% 40 12.20% 114 34.76% 96 29.27% 145 44.21% 104 31.71% 100 30.49% 84 25.61% 18 5.49% 52 15.85% 53 16.16% 50 15.24% 87 26.52% 2011 83 47 130 100 148 109 109 91 17 56 62 51 93 25.30% 14.33% 39.63% 30.49% 45.12% 33.23% 33.23% 27.74% 5.18% 17.07% 18.90% 15.55% 28.35% Table NGRCM19 2009 175 69 323 156 223 163 145 132 65 83 83 91 126 21.29% 8.39% 39.29% 18.98% 27.13% 19.83% 17.64% 16.06% 7.91% 10.10% 10.10% 11.07% 15.33% 2010 % of 822 Hospitals 179 21.78% 71 8.64% 284 34.55% 219 26.64% 329 40.02% 217 26.40% 227 27.62% 159 19.34% 36 4.38% 88 10.71% 107 13.02% 113 13.75% 187 22.75% 2011 219 72 347 244 350 241 261 188 24 94 125 124 203 26.64% 8.76% 42.21% 29.68% 42.58% 29.32% 31.75% 22.87% 2.92% 11.44% 15.21% 15.09% 24.70% Table NGRCM17 201–300 Beds 301–400 Beds 401–500 Beds Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2009 55 21 73 40 62 51 46 44 33 41 36 30 40 30.22% 11.54% 40.11% 21.98% 34.07% 28.02% 25.27% 24.18% 18.13% 22.53% 19.78% 16.48% 21.98% 2010 % of 182 Hospitals 48 26.37% 17 9.34% 61 33.52% 53 29.12% 82 45.05% 68 37.36% 67 36.81% 56 30.77% 15 8.24% 42 23.08% 43 23.63% 40 21.98% 61 33.52% 2011 44 17 74 59 88 71 71 62 9 37 47 41 62 24.18% 9.34% 40.66% 32.42% 48.35% 39.01% 39.01% 34.07% 4.95% 20.33% 25.82% 22.53% 34.07% Table NGRCM20 2009 120 65 188 83 113 103 86 103 59 61 72 70 83 23.81% 12.90% 37.30% 16.47% 22.42% 20.44% 17.06% 20.44% 11.71% 12.10% 14.29% 13.89% 16.47% 2010 % of 504 Hospitals 106 21.03% 59 11.71% 156 30.95% 137 27.18% 187 37.10% 137 27.18% 138 27.38% 117 23.21% 25 4.96% 62 12.30% 83 16.47% 77 15.28% 124 24.60% 2011 132 60 187 147 205 166 164 136 19 72 94 86 135 26.19% 11.90% 37.10% 29.17% 40.67% 32.94% 32.54% 26.98% 3.77% 14.29% 18.65% 17.06% 26.79% opportunity to acquire complete application suites, including replacement of legacy RCM applications with versions which incorporate these features. In the meantime, it is possible that some previous niche products will be decommissioned by the providers while the newer comprehensive system is being implemented to its fullest capabilities. This could explain the small decreases in utilization of some NGRM features in academic medical centers. • It is also important to keep in mind that electronic insurance eligibility verification and electronic claims submission were requirements in the draft Stage 1 meaningful use requirements originally published in December, 2009. Although these were eliminated from the July, 2010 final rule, look for them to be incorporated into the Stage 2 requirements that will take effect in 2014 with the one-year extension. 501–600 Beds Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2009 32 12 49 22 30 30 31 26 15 18 17 16 24 26.23% 9.84% 40.16% 18.03% 24.59% 24.59% 25.41% 21.31% 12.30% 14.75% 13.93% 13.11% 19.67% 2010 % of 122 Hospitals 38 31.15% 14 11.48% 49 40.16% 33 27.05% 50 40.98% 37 30.33% 40 32.79% 34 27.87% 6 4.92% 23 18.85% 23 18.85% 22 18.03% 30 24.59% 2011 38 12 54 34 51 42 44 38 5 24 28 25 32 31.15% 9.84% 44.26% 27.87% 41.80% 34.43% 36.07% 31.15% 4.10% 19.67% 22.95% 20.49% 26.23% Table NGRCM21 600+ Beds Web PreRegister Web Schedule Web Self Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dash Board EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2009 37 32 58 23 31 34 34 33 23 19 22 18 30 24.67% 21.33% 38.67% 15.33% 20.67% 22.67% 22.67% 22.00% 15.33% 12.67% 14.67% 12.00% 20.00% 2010 % of 150 Hospitals 35 23.33% 27 18.00% 54 36.00% 39 26.00% 51 34.00% 51 34.00% 55 36.67% 41 27.33% 15 10.00% 29 19.33% 31 20.67% 27 18.00% 46 30.67% Source: HIMSS Analytics® Database 2011 2011 39 22 56 47 62 55 63 48 11 30 37 33 50 26.00% 14.67% 37.33% 31.33% 41.33% 36.67% 42.00% 32.00% 7.33% 20.00% 24.67% 22.00% 33.33% ©2012 HIMSS Analytics. 31 ▶▶ Health Information Management Eleven different applications comprise the Health Information Management (HIM) IT market segment. Two of these applications, abstracting and encoder, have reached the market saturation threshold (at least 95 percent market penetration) in 2011. With installation rates of at least 90 percent, chart deficiency, chart tracking/locator and dictation are approaching market saturation (see Table HIM1). Over time, it is expected that chart deficiency and chart tracking/locator applications will become obsolete as the adoption of EMR applications become more prevalent. However, until dependence on paper documentation is completely eliminated, these applications will maintain a healthy market presence. With the exception of in-house transcription, all other HIM applications demonstrated an increase from 2010 to 2011, ranging from one to seven percent. The HIM applications with the best growth potential are computer-assisted coding, dictation with speech recognition and data warehousing/mining – clinical. An increasing trend towards more highly integrated, enterprise-wide architectures to support business and clinical intelligence, quality and outcomes reporting can be expected to lead to a corresponding de-emphasis of (and decline in) specialized, department-specific data marts. There may be significant portions of the growth reported in the adoption of the data warehousing/mining – clinical and outcomes and quality management applications in this market segment since they complement the growth numbers highlighted previously in the Financial Decision Support section of this report. Although more than 96 percent of hospitals have adopted encoders, upgrades or replacement of encoders as a result of ICD-10 upgrade requirements may yield additional market activity. Outcomes and quality also represents an application with good growth opportunity due to the ARRA meaningful use reporting. Hospitals will continue Table HIM1 | Health Information Management N=4,289 2009 2010 Abstracting 95.29% 95.80% Case Mix Management 77.15% 78.83% Chart Deficiency 89.86% 91.00% Chart Tracking/Locator 87.99% 89.76% Computer-Assisted Coding N/A 14.57% Data Warehousing/Mining – Clinical 27.14% 32.83% Dictation 87.62% 89.02% Dictation with Speech Recognition 12.78% 33.62% Encoder 95.50% 96.06% Outcomes and Quality Management 65.96% 68.83% In-House Transcription 74.19% 77.55% Percentages include installed, contracted or installation in process 2011 96.78% 79.95% 92.52% 91.33% 17.09% 38.07% 91.51% 40.69% 96.69% 70.39% 76.73% to rely heavily on dictation/ transcription processes to capture clinical information and will continue to move toward increasingly virtual transcription services, a model in which transcriptionists work remotely from their homes. Standardization of the document templates for transcribed documents will improve the ability of hospitals to share standard patient information with one another (see www.HealthStory.com). Six of eleven HIM applications in this report represent predominately replacement markets for the future. The majority of purchase plans for computer-assisted coding, dictation, dictation with speech recognition and encoder applications will primarily be first-time purchases. Purchase plans for data warehousing/mining – clinical are almost split evenly between replacements and first-time purchases in 2011 (see Table HIM2). As already noted, two government mandates will significantly impact this market through 2015. The first is the requirement to upgrade encoding systems to use ICD-10-PCS codes by October 1, 2013. The other is the requirement to report on clinical outcomes as part of the ARRA meaningful use requirements in 2011, 2014 and 2015. Health reform, and changes in reimbursement methods demanded by both public and private insurers, will increase the need for hospitals to report on process and outcomes measures in order to justify reimbursement or qualify for pay-for-performance bonus payments. These mandates will drive increased HIM application upgrades, if not outright system replacements. An evaluation of hospital-type market segments for highest growth per segment from 2010–2011 shows the following: • Abstracting: there was one percent to a little fewer than three percent year-over-year growth for abstracting across all hospitaltype segments. The largest growth was among critical access hospitals (see Table HIM3) • Case mix: all hospital segments indicated a growth of approximately one percent. Non-critical access hospitals and those that are part of a multi-hospital system had the greatest growth (see Table HIM4). • Chart deficiency: critical access and rural hospitals had the highest increase in the past year, each with growth of slightly more than three percent (see Table HIM5). • Chart tracking/locator: at three percent each, rural and critical access demonstrated the highest increase for the implementation of this application from 2010 to 2011. There was a very slight decrease in the use of this technology at academic medical centers (see Table HIM6). Table hiM2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Abstracting 60 98.36% Case Mix Management 35 92.11% Chart Deficiency 58 95.08% Chart Tracking/Locator 56 93.33% Computer-Assisted Coding 0 0.00% Data Warehousing/Mining – Clinical 7 46.67% Dictation 12 25.53% Dictation with Speech Recognition 7 16.28% Encoder 7 38.89% Outcomes and Quality Management 9 75.00% In-House Transcription 17 65.38% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated 32 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 1 3 3 4 35 8 35 36 11 3 9 % of Hospitals Planning to Purchase Software for the First Time 1.64% 7.89% 4.92% 6.67% 100.00% 53.33% 74.47% 83.72% 61.11% 25.00% 34.62% N = Total Number of Hospitals Planning 61 38 61 60 35 15 47 43 18 12 26 ▶▶ Health Information Management con tinued • Computer-assisted coding: academic medical centers demonstrated the largest year-over-year growth at slightly more than three percent. All other segments reported growth ranging from two to three percent (see Table HIM7). • Data warehousing-clinical: growth a number of segments was greater than six percent. These include academic medical centers, general medical/surgical, hospitals from multi-hospital systems, non-critical access hospitals and urban hospitals at more than six percent (see Table HIM8). • Dictation: the greatest growth was in the rural and critical access hospital segments (nearly four percent). All other hospital segments reported an increase ranging from approximately one percent to three percent (see Table HIM9). • Dictation with speech recognition: general medical/surgical hospitals demonstrated the highest year-over-year growth at more than eight percent. The urban segment is the only other segment to demonstrate an increase of more than eight percent. All other segments reported an increase between three and seven percent (see Table HIM10). • Encoder: the academic medical center has reached full market saturation. Critical access hospitals and rural hospitals are the only hospital segments that have not exceeded 90 percent adoption. Growth across most market segments was less than two percent (see Table HIM11). • Outcomes and quality management: this segment experienced one percent to two percent growth from 2010 to 2011 for all segments. Critical access and rural hospitals had the highest growth at slightly more than two percent (see Table HIM12). • In-house transcription: most of the segments demonstrated slight decline from 2010 to 2011, with the exception of critical access hospitals and other non-general medical/surgical hospitals (see Table HIM13). Academic medical centers reported a decline of more than five percent. Table HIM3 | Abstracting 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 190 3,897 2,477 1,610 1,001 3,086 876 3,211 2,532 1,555 4,087 Percent 98.96% 95.12% 98.80% 90.35% 86.67% 98.47% 86.99% 97.84% 97.91% 91.31% 95.29% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 190 3,919 2,480 1,629 1,019 3,090 891 3,218 2,534 1,575 4,109 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 181 3,200 2,181 1,200 669 2,712 590 2,791 2,214 1,167 3,381 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,712 2,444 1,459 854 3,049 755 3,148 2,475 1,428 3,903 Percent 98.96% 95.66% 98.92% 91.41% 88.23% 98.60% 88.48% 98.05% 97.99% 92.48% 95.80% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,960 2,486 1,665 1,049 3,102 914 3,237 2,548 1,603 4,151 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 182 3,247 2,210 1,219 675 2,754 598 2,831 2,248 1,181 3,429 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,777 2,460 1,508 895 3,073 790 3,178 2,501 1,467 3,968 Percent 99.48% 96.66% 99.16% 93.43% 90.82% 98.98% 90.76% 98.63% 98.53% 94.13% 96.78% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM4 | Case Mix Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 178 3,131 2,149 1,160 636 2,673 563 2,746 2,173 1,136 3,309 Percent 92.71% 76.42% 85.72% 65.10% 55.06% 85.29% 55.91% 83.67% 84.03% 66.71% 77.15% 2010 Percent 94.27% 78.11% 87.00% 67.34% 57.92% 86.53% 58.59% 85.04% 85.61% 68.53% 78.83% 2011 Percent 94.79% 79.25% 88.15% 68.41% 58.44% 87.87% 59.38% 86.26% 86.93% 69.35% 79.95% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM5 | Chart Deficiency 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 191 3,663 2,428 1,426 821 3,033 725 3,129 2,463 1,391 3,854 Percent 99.48% 89.41% 96.85% 80.02% 71.08% 96.78% 72.00% 95.34% 95.24% 81.68% 89.86% 2010 Percent 99.48% 90.60% 97.49% 81.87% 73.94% 97.29% 74.98% 95.92% 95.71% 83.85% 91.00% 2011 Source: HIMSS Analytics® Database 2011 Percent 99.48% 92.19% 98.13% 84.62% 77.49% 98.05% 78.45% 96.83% 96.71% 86.14% 92.52% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 33 ▶▶ Health Information Management con tinued Table HIM6 | Chart Tracking/Locator 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 190 3,584 2,393 1,381 786 2,988 700 3,074 2,426 1,348 3,774 Percent 98.96% 87.48% 95.45% 77.50% 68.05% 95.34% 69.51% 93.66% 93.81% 79.15% 87.99% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 190 3,660 2,418 1,432 836 3,014 740 3,110 2,457 1,393 3,850 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 43 582 425 200 123 502 99 526 386 239 625 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 102 1,306 929 479 210 1,198 177 1,231 1,015 393 1,408 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 3,630 2,384 1,434 931 2,887 819 2,999 2,353 1,465 3,818 Percent 98.96% 89.33% 96.45% 80.36% 72.38% 96.17% 73.49% 94.76% 95.01% 81.80% 89.76% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,728 2,432 1,485 876 3,041 775 3,142 2,485 1,432 3,917 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 50 683 486 247 148 585 114 619 461 272 733 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 115 1,518 1,095 538 232 1,401 200 1,433 1,185 448 1,633 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,736 2,433 1,492 974 2,951 858 3,067 2,417 1,508 3,925 Percent 98.44% 90.99% 97.01% 83.33% 75.84% 97.03% 76.96% 95.73% 96.09% 84.09% 91.33% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM7 | Computer-Assisted Coding 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Percent 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 Percent 22.40% 14.21% 16.95% 11.22% 10.65% 16.02% 9.83% 16.03% 14.93% 14.03% 14.57% 2011 Percent 26.04% 16.67% 19.39% 13.86% 12.81% 18.67% 11.32% 18.86% 17.83% 15.97% 17.09% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM8 | Data Warehousing/Mining – Clinical 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 89 1,075 774 390 157 1,007 129 1,035 837 327 1,164 Percent 46.35% 26.24% 30.87% 21.89% 13.59% 32.13% 12.81% 31.54% 32.37% 19.20% 27.14% 2010 Percent 53.13% 31.88% 37.06% 26.88% 18.18% 38.23% 17.58% 37.51% 39.25% 23.08% 32.83% 2011 Percent 59.90% 37.05% 43.68% 30.19% 20.09% 44.70% 19.86% 43.66% 45.82% 26.31% 38.07% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM9 | Dictation 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 186 3,572 2,373 1,385 885 2,873 783 2,975 2,350 1,408 3,758 Percent 96.88% 87.19% 94.65% 77.72% 76.62% 91.67% 77.76% 90.65% 90.87% 82.68% 87.62% 2010 34 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 97.92% 88.60% 95.09% 80.47% 80.61% 92.12% 81.33% 91.38% 90.99% 86.02% 89.02% 2011 Percent 98.44% 91.19% 97.05% 83.73% 84.33% 94.16% 85.20% 93.45% 93.46% 88.55% 91.51% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Health Information Management con tinued Table HIM10 | Dictation with Speech Recognition 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 91 1,005 768 328 158 938 124 972 779 317 548 Percent 47.40% 24.53% 30.63% 18.41% 13.68% 29.93% 12.31% 29.62% 30.12% 18.61% 12.78% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 121 1,321 1,026 416 193 1,249 158 1,284 1,030 412 1,442 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,928 2,496 1,624 1,013 3,107 888 3,232 2,553 1,567 4,120 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 165 2,787 1,952 1,000 468 2,484 429 2,523 2,086 866 2,952 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 148 3,178 2,000 1,326 900 2,426 802 2,524 1,983 1,343 3,326 Percent 63.02% 32.24% 40.93% 23.34% 16.71% 39.85% 15.69% 39.12% 39.83% 24.19% 33.62% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 136 1,609 1,244 501 267 1,478 197 1,548 1,221 524 1,745 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,955 2,498 1,649 1,031 3,116 906 3,241 2,558 1,589 4,147 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 167 2,852 1,986 1,033 494 2,525 451 2,568 2,123 896 3,019 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 138 3,153 1,962 1,329 902 2,389 800 2,491 1,977 1,314 3,291 Percent 70.83% 39.27% 49.62% 28.11% 23.12% 47.16% 19.56% 47.17% 47.22% 30.77% 40.69% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM11 | Encoder 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 3,904 2,491 1,605 996 3,100 872 3,224 2,546 1,550 4,096 Percent 100.00% 95.29% 99.36% 90.07% 86.23% 98.92% 86.59% 98.23% 98.45% 91.02% 95.50% 2010 Percent 100.00% 95.88% 99.56% 91.13% 87.71% 99.14% 88.18% 98.48% 98.72% 92.01% 96.06% 2011 Percent 100.0% 96.53% 99.64% 92.54% 89.26% 99.43% 89.97% 98.75% 98.92% 93.31% 96.69% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM12 | Outcomes and Quality Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 159 2,670 1,900 929 417 2,412 395 2,434 1,996 833 2,829 Percent 82.81% 65.17% 75.79% 52.13% 36.10% 76.96% 39.23% 74.16% 77.18% 48.91% 65.96% 2010 Percent 85.94% 68.03% 77.86% 56.12% 40.52% 79.26% 42.60% 76.87% 80.67% 50.85% 68.83% 2011 Percent 86.98% 69.61% 79.22% 57.97% 42.77% 80.57% 44.79% 78.24% 82.10% 52.61% 70.39% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table HIM13 | In-House Transcription 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 142 3,040 1,971 1,211 833 2,349 739 2,443 1,919 1,263 3,182 Percent 73.96% 74.20% 78.62% 67.96% 72.12% 74.95% 73.39% 74.44% 74.21% 74.16% 74.19% 2010 Percent 77.08% 77.57% 79.78% 74.41% 77.92% 77.41% 79.64% 76.90% 76.68% 78.86% 77.55% 2011 Source: HIMSS Analytics® Database 2011 Percent 71.88% 76.96% 78.26% 74.58% 78.10% 76.23% 79.44% 75.90% 76.45% 77.16% 76.73% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 35 ▶▶ Health Information Management con tinued The analysis of this HIM market by bed-size segments from 2010 to 2011 showed dictation with speech recognition had the highest year-over-year growth across all bed segments. The analysis also indicated the following (see Tables HIM14–HIM20): • 0–100 beds: dictation with speech recognition had the highest growth in this segment at slightly more than five percent. Data warehouse/mining – clinical and dictation each had growth of more than three percent (see Table HIM14). • 101–200 beds: dictation with speech recognition and data warehousing/mining – clinical each showed growth of more than seven percent in the past year. Use of in-house transcription decreased by more than two percent (see Table HIM15). • 201–300 beds: dictation with speech recognition showed the highest growth at slightly under 10 percent followed by data warehouse/mining – clinical at more than eight percent. Chart tracking/locater and in-house transcription are the only two applications to report a decrease (see Table HIM16). Table HIM14 Table HIM17 0–100 Beds 2009 2010 2011 % of 2,181 hospitals 91.33% 2,013 92.30% 2,050 93.99% 65.61% 1,483 68.00% 1,508 69.14% 81.11% 1,814 83.17% 1,875 85.97% 79.00% 1,780 81.61% 1,844 84.55% 0.00% 250 11.46% 295 13.53% 18.57% 502 23.02% 579 26.55% 79.83% 1,784 81.80% 1,859 85.24% 15.86% 429 19.67% 542 24.85% 91.43% 2,018 92.53% 2,045 93.76% 52.09% 1,216 55.75% 1,256 57.59% 71.39% 1,675 76.80% 1,686 77.30% Abstracting 1,992 Case Mix Management 1,431 Chart Deficiency 1,769 Chart Tracking/Locator 1,723 Computer-Assisted Coding N/A Data Warehousing/Mining – Clinical 405 Dictation 1,741 Dictation with Speech Recognition 346 Encoder 1,994 Outcomes and Quality Management 1,136 In-House Transcription 1,557 Table HIM15 2009 815 723 805 793 N/A 256 780 232 818 645 626 99.15% 87.96% 97.93% 96.47% 0.00% 31.14% 94.89% 28.22% 99.51% 78.47% 76.16% 2010 % of 822 hospitals 815 99.15% 736 89.54% 806 98.05% 802 97.57% 124 15.09% 304 36.98% 784 95.38% 327 39.78% 818 99.51% 664 80.78% 625 76.03% 2011 818 743 810 808 140 366 800 390 818 671 605 99.51% 90.39% 98.54% 98.30% 17.03% 44.53% 97.32% 47.45% 99.51% 81.63% 73.60% Table HIM16 Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription 2009 325 284 327 325 N/A 130 315 122 327 261 253 99.09% 86.59% 99.70% 99.09% 0.00% 39.63% 96.04% 37.20% 99.70% 79.57% 77.13% 2010 % of 328 hospitals 325 99.09% 288 87.80% 328 100.00% 326 99.39% 66 20.12% 153 46.65% 321 97.87% 175 53.35% 327 99.70% 269 82.01% 255 77.74% 2011 326 99.39% 296 90.24% 328 100.00% 325 99.09% 75 22.87% 176 53.66% 325 99.09% 209 63.72% 327 99.70% 276 84.15% 248 75.61% 401–500 Beds Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription 2009 182 100.00% 167 91.76% 182 100.00% 177 97.25% N/A 0.00% 76 41.76% 178 97.80% 76 41.76% 182 100.00% 145 79.67% 136 74.73% 2010 % of 182 hospitals 182 100.00% 168 92.31% 182 100.00% 177 97.25% 36 19.78% 86 47.25% 179 98.35% 94 51.65% 182 100.00% 148 81.32% 142 78.02% 2011 182 100.00% 169 92.86% 182 100.00% 177 97.25% 42 23.08% 94 51.65% 180 98.90% 115 63.19% 182 100.00% 154 84.62% 137 75.27% Table HIM19 201–300 Beds Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription 301–400 Beds Table HIM18 101–200 Beds Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription • 301–400 beds: the greatest grown in this segment was for dictation with speech recognition (more than 10 percent). Use of both in-house transcription and chart tracking/locator declined in the past year (see Table HIM17). • 401–500 beds: at slightly more than 11 percent, dictation with speech recognition had the greatest growth from 2010 to 2011. Use of in-house transcription decreased by more than two percent (see Table HIM18). • 501–600 beds: dictation with speech recognition showed growth of more than six percent in the past year. Use of in-house transcription, outcomes and quality management, dictation and case mix management all declined in the past year (see Table HIM19). • 600+ beds: dictation with speech recognition indicated the most increase in implementation from 2010 to 2011 at 10 percent; use of case mix management decreased by four percent (see Table HIM20). 2009 502 456 499 491 N/A 174 480 182 503 412 399 99.60% 90.48% 99.01% 97.42% 0.00% 34.52% 95.24% 36.11% 99.80% 81.75% 79.17% 2010 % of 504 hospitals 503 99.80% 455 90.28% 501 99.40% 497 98.61% 92 18.25% 215 42.66% 486 96.43% 245 48.61% 503 99.80% 416 82.54% 402 79.76% 2011 503 462 501 496 112 258 496 294 503 423 395 99.80% 91.67% 99.40% 98.41% 22.22% 51.19% 98.41% 58.33% 99.80% 83.93% 78.37% 36 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 501–600 Beds Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription 2009 121 99.18% 108 88.52% 122 100.00% 118 96.72% N/A 0.00% 47 38.52% 120 98.36% 58 47.54% 122 100.00% 102 83.61% 97 79.51% 2010 % of 122 hospitals 121 99.18% 109 89.34% 122 100.00% 121 99.18% 24 19.67% 56 45.90% 119 97.54% 76 62.30% 122 100.00% 104 85.25% 104 85.25% 2011 122 100.00% 108 88.52% 122 100.00% 121 99.18% 27 22.13% 60 49.18% 118 96.72% 84 68.85% 122 100.00% 101 82.79% 97 79.51% ▶▶ Health Information Management con tinued Table HIM20 600+ Beds Abstracting Case Mix Management Chart Deficiency Chart Tracking/Locator Computer-Assisted Coding Data Warehousing/Mining – Clinical Dictation Dictation with Speech Recognition Encoder Outcomes and Quality Management In-House Transcription Table HIM22 2009 150 100.00% 140 93.33% 150 100.00% 147 98.00% N/A 0.00% 76 50.67% 144 96.00% 80 53.33% 150 100.00% 128 85.33% 114 76.00% 2010 % of 150 hospitals 150 100.00% 149 99.33% 150 100.00% 147 98.00% 33 22.00% 92 61.33% 145 96.67% 96 64.00% 150 100.00% 135 90.00% 123 82.00% 2011 150 100.00% 143 95.33% 150 100.00% 146 97.33% 42 28.00% 100 66.67% 147 98.00% 111 74.00% 150 100.00% 138 92.00% 123 82.00% Evaluating the contracting activity for HIM applications, the majority of contracts signed for computer-assisted coding and dictation with speech recognition occurred between 2005 and 2011, showing that these applications are beginning to become more accepted in the market. More than half of the legacy HIM applications (abstracting, case mix, chart deficiency, chart locator/ tracking, dictation, encoding, outcomes and quality management and in-house transcription) had the highest contracting activity from 1995 to 2004. It is likely that chart deficiency and chart locator/ tracking will be displaced as more hospitals continue to complete their EMR system implementations. (Table HIM6 shows there was a slight decrease in this application in the Academic Medical Center market.) Encoding upgrade activity will generate significant contracting activity through the next few years in anticipation of the transition to ICD-10. The data warehousing/mining – clinical and dictation with speech recognition applications have had their highest contracting activity since 2000 (see Tables HIM21–HIM24). Table HIM21 2011 Abstracting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Case Mix Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Chart Deficiency Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 147 269 815 809 837 2,877 2,877 2,877 2,877 2,877 2,877 2,877 5.11% 9.35% 28.33% 28.12% 29.09% 100.00% 134 298 613 750 574 2,369 2,369 2,369 2,369 2,369 2,369 2,369 5.66% 12.58% 25.88% 31.66% 24.23% 100.00% 83 246 665 903 846 2,743 2,743 2,743 2,743 2,743 2,743 2,743 3.03% 8.97% 24.24% 32.92% 30.84% 100.00% 2011 Chart Tracking/Locator Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Computer-Assisted Coding Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Data Warehousing/Mining – Clinical Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 88 247 698 870 773 2,676 2,676 2,676 2,676 2,676 2,676 2,676 3.29% 9.23% 26.08% 32.51% 28.89% 100.00% 1 1 5 13 31 51 51 51 51 51 51 51 1.96% 1.96% 9.80% 25.49% 60.78% 100.00% 5 102 55 243 325 730 730 730 730 730 730 730 0.68% 13.97% 7.53% 33.29% 44.52% 100.00% # for Contract Range Total Responding % of Total Responding 32 85 300 693 752 1,862 1,862 1,862 1,862 1,862 1,862 1,862 1.72% 4.49% 15.86% 36.63% 39.75% 100.00% 0 7 7 122 401 537 537 537 537 537 537 537 0.00% 1.30% 1.30% 22.72% 74.67% 100.00% 239 334 771 580 348 2,272 2,272 2,272 2,272 2,272 2,272 2,272 10.52% 14.70% 33.93% 25.53% 15.32% 100.00% # for Contract Range Total Responding % of Total Responding 41 164 479 659 458 1,801 1,801 1,801 1,801 1,801 1,801 1,801 2.28% 9.11% 26.60% 36.39% 25.43% 100.00% 39 187 372 526 532 1,656 1,656 1,656 1,656 1,656 1,656 1,656 2.36% 11.29% 22.46% 31.76% 32.13% 100.00% Table HIM23 2011 Dictation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Dictation with Speech Recognition Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Encoder Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table HIM24 2011 Outcomes and Quality Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total In-House Transcription Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 37 ▶▶ Health Information Management con tinued Market Drivers/Future Outlook The HIM Department IT applications market will be significantly impacted through 2015 by several factors: • Preparations for conversation to ICD-10 by the later part of 2013. This includes mapping several applications that rely on encoded data to the new ICD-10 formats (also significantly affecting interfaces) by October 1, 2013. • Negotiating the contractual commitments between hospitals and vendors for federal, state and other regulatory upgrades relative to ICD-10 encoding upgrades. • Increased demands from the government (ARRA) and payers for reporting quality and outcomes data. • Increased conversion of the medical record from paper to a digital format; the mixed format providing some special challenges for security and operational management, as well as patient care challenges. • Increase focus on quality outcomes for participating in outcomesbased reimbursement models (e.g., pay for performance, ACOs). • Increased adoption of nomenclature coding standards such as SNOMED and LOINC. • Consistent with the above, increasingly stringent claims coding and supporting documentation requirements mandated by federal regulations and public and private reimbursement requirements. • The introduction of new software technologies to analyze, structure and codify transcribed free text. • The drive to reduce transcription costs by implementing speech recognition software that will require cooperation of key medical staff users such as in radiology, pathology and emergence medicine. • Continued constraints in capital markets and intense internal competition for the capital required to acquire or upgrade HIM applications. • Continued implementation of EMR applications which may make obsolete some of these applications (chart tracking in particular as evidenced by academic medical centers this year). • The increasing trend towards more highly integrated, enterprisewide architectures to support business and clinical intelligence, quality and outcomes reporting, and a corresponding de-emphasis of, and decline in, specialized, department-specific data marts. ▶▶ Document Management/Electronic Forms The healthcare IT document management and electronic forms application market in 2011 has seen steady growth since 2009 and has the potential to continue growing in the next few years (see Table DMEF1). Both document management and electronic forms management demonstrated growth of more than four percent from 2010 to 2011. These applications will continue to be an important component of the EMR environment at hospitals as they move toward paperless environments. Technologies which can extract discrete data elements from these document management and electronic forms management solutions and reformat them in a manner suitable for analysis, research and reporting will also see market adoption increases over the next five years as health systems reach for a higher level of cost and quality analytics. A majority of hospitals purchasing electronic forms management applications in 2011 did so for the first time. Conversely, approximately two thirds of planned purchases for document management will be among hospitals that are planning to replace their current solution (see Table DMEF2). Table DME F1 | Document Management and Electronic Forms N=4,289 2009 2010 Document Management 61.74% 67.27% Electronic Forms Management 42.88% 51.06% Percentage include installed, contracted or installation in process 2011 71.58% 56.05% An evaluation of hospital market segments for document management and electronic forms management applications in 2011 shows academic medical centers have the highest adoption rate for both applications. The data also shows: • Document management: growth for all market segments was between three and five percent. Growth was greatest among critical access hospitals (see Table DMEF3). • Electronic forms management: critical access hospitals also demonstrated the largest growth for electronic forms management at more than six percent. Growth for all remaining market segments was between four and six percent (see Table DMEF4). The analysis of the document management and electronic forms management market in 2011 by bed-size segments provides additional insight into this application environment (see Tables DMEF5–DMEF11). The increase in adoption for both technologies grew in every bed-size category. In our opinion, the adoption of these technologies, particularly electronic forms management, continues to be heavily influenced by the increases in EMR adoption seen across all bed-size ranges. While, historically, the adoption of document management grew faster among larger hospitals, the rate of adoption has slowed for larger hospitals, while the rate of adoption for small and mediumsized hospitals is increasing year after year. This may be attributed to the fact that as the price of these solutions has declined, they have Table DME F 2 | 2010 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Document Management 49 69.01% Electronic Forms Management 6 16.67% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated 38 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 22 30 % of Hospitals Planning to Purchase Software for the First Time 30.99% 83.33% N = Total Number of Hospitals Planning 71 36 ▶▶ Document Management/Electronic Forms con tinued Table DME F 3 | Document Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 157 2,491 1,688 960 467 2,181 421 2,227 1,776 872 2,648 Percent 81.77% 60.80% 67.33% 53.87% 40.43% 69.59% 41.81% 67.85% 68.68% 51.20% 61.74% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 161 2,724 1,839 1,046 540 2,345 483 2,402 1,913 972 2,885 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 129 2,061 1,396 794 444 1,746 378 1,812 1,417 773 2,190 Percent 83.85% 66.49% 73.35% 58.70% 46.75% 74.82% 47.96% 73.19% 73.98% 57.08% 67.27% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 168 2,902 1,950 1,120 598 2,472 532 2,538 2,023 1,047 3,070 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 139 2,265 1,511 893 518 1,886 435 1,969 1,539 865 2,404 Percent 87.50% 70.83% 77.78% 62.85% 51.77% 78.88% 52.83% 77.33% 78.23% 61.48% 71.58% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table DME F4 | Electronic Forms Management 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 120 1,719 1,147 692 366 1,473 309 1,530 1,183 656 1,839 Percent 62.50% 41.96% 45.75% 38.83% 31.69% 47.00% 30.69% 46.62% 45.75% 38.52% 42.88% 2010 become more affordable to smaller institutions. The data shows that the highest growth rates between 2010 and 2011 were in bed-range categories fewer than 300 beds. • 0–100 beds: growth for these applications in this bed segment was between four and five percent (see Table DMEF5). • 101–200 beds: document management demonstrated a growth of more than four percent from 2010 to 2011, while electronic forms management adoption grew by nearly four percent (see Table DMEF6). • 201–300 beds: both document management and electronic forms management application indicated growth of approximately six percent (see Table DMEF7). • 301–400 beds: nearly five percent growth was reported for electronic forms management in this segment from 2010 to 2011, while document management’s growth was nearly four percent (see Table DMEF8). • 401–500 beds: document management adoption has increased by more than two percent in 2011 and the market is close to saturation with a market penetration of 89 percent (see Table DMEF9). Electronic forms management demonstrated an increase of more than four percent in the past year. • 501–600 beds: both document management and electronic forms management indicated an increase in adoption of nearly two percent 2010 to 2011 (see Table DMEF10). • Over 600 beds: electronic forms management’s adoption grew from 2010 to 2011 at approximately five percent, while document management also indicated growth of six percent (see Table DMEF11). Percent 67.19% 50.31% 55.68% 44.56% 38.44% 55.71% 37.54% 55.21% 54.80% 45.39% 51.06% 2011 Percent 72.40% 55.28% 60.27% 50.11% 44.85% 60.18% 43.20% 59.99% 59.51% 50.79% 56.05% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table DME F5 0–100 Beds Document Management Electronic Forms Management 2009 1,118 772 2010 2011 % of 2,181 hospitals 51.26% 1,246 57.13% 1,336 61.26% 35.40% 919 42.14% 1,036 47.50% Table DME F6 101–200 Beds Document Management Electronic Forms Management 2009 546 387 2010 2011 % of 822 hospitals 66.42% 593 72.14% 630 76.64% 47.08% 463 56.33% 494 60.10% Table DME F 7 201–300 Beds Document Management Electronic Forms Management 2009 356 240 2010 2011 % of 504 hospitals 70.63% 393 77.98% 424 84.13% 47.62% 300 59.52% 332 65.87% Table DME F 8 301–400 Beds Document Management Electronic Forms Management 2009 256 178 2010 2011 % of 328 hospitals 78.05% 264 80.49% 276 84.15% 54.27% 207 63.11% 223 67.99% Table DME F 9 401–500 Beds Document Management Electronic Forms Management 2009 148 109 2010 2011 % of 182 hospitals 81.32% 158 86.81% 162 89.01% 59.89% 123 67.58% 131 71.98% Table DME F10 501–600 Beds Document Management Electronic Forms Management 2009 100 74 2010 2011 % of 122 hospitals 81.97% 102 83.61% 104 85.25% 60.66% 84 68.85% 86 70.49% Table DME F11 600+ Beds Document Management Electronic Forms Management 2009 124 79 2010 2011 % of 150 hospitals 82.67% 129 86.00% 138 92.00% 52.67% 94 62.67% 102 68.00% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 39 ▶▶ Document Management/Electronic Forms con tinued A review of temporal contract signing for document management applications in 2011 shows that more than half of the contracting activity took place from 2005 to 2011 (see Table DMEF12). We believe this can be attributed to the pursuit of these technologies as an initial step in increasing process efficiencies by improving access to information by electronic formats, especially with regard to patient medical record information. Table DME F12 2011 Document Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Electronic Forms Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 3 37 73 360 732 1,205 1,199 1,199 1,199 1,199 1,199 1,205 0.25% 3.09% 6.09% 30.03% 61.05% 100.00% 1 26 44 282 426 779 779 779 779 779 779 779 0.13% 3.34% 5.65% 36.20% 54.69% 100.00% Market Drivers/Future Outlook The document management IT application market has been and will continue to be impacted through 2015 by: • Access to capital, which could impact the excellent growth rates seen for most document management applications over the last three years. • Compliance with ARRA meaningful use criteria, which is expected to drive more rapid adoption of both document management and electronic forms management to reduce dependency on paper and enhance the ability to capture more discrete data for analysis and submission to payers. • The need to remove paper from the care delivery and operations processes to improve hospital efficiency. • The need to eliminate or significantly reduce paper document storage and filing processes. • The need to improve access to information that is still captured on paper documents. • The need to make medical record information more secure. ▶▶ Nursing Department Environment The number of nurse IT applications tracked in past annual reports has grown, as HIMSS Analytics began collecting data for infection surveillance system, medication reconciliation and nurse call system. These new applications were added to electronic medication administration record (EMAR), patient acuity (formerly nurse acuity), nursing documentation and nurse staffing/scheduling. Table N A1 | Nursing Department Applications N=4,289 2009 2010 Electronic Medication Administration Record (EMAR) 64.44% 72.16% Infection Surveillance System* 0.00% 23.01% Medication Reconciliation* 0.00% 36.61% Nurse Acuity 26.04% 28.91% Nurse Call System* 0.00% 36.65% Nurse Staffing/Scheduling 62.35% 64.72% Nursing Documentation 72.74% 77.50% Percentage include installed, contracted or installation in process *Application is tracked for the first time in 2010. 2011 78.90% 29.54% 50.03% 30.59% 46.54% 64.82% 82.37% The nursing IT application market that demonstrated the highest growth from 2010 to 2011 was medication reconciliation, at more than 13 percent. The growth for nurse call system was also high, at nine percent. All other nursing applications demonstrated growth ranging from less than one percent (nurse staffing/scheduling) to seven percent (see Table NA1). For most of the nursing applications in this report, more than half of planned purchases will be to replace existing solutions. EMAR is the exception, as slightly more than half of the planned purchases are regarded as first-time purchases (see Table NA2). It is likely that the trend in use of EMAR solutions will continue, driven by goals of patient safety and reduction of medication errors. We believe the need towards integrated software solutions is a driver for this change. Table N A 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Electronic Medication Administration Record (EMAR) 53 44.54% Infection Surveillance System 38 66.67% Medication Reconciliation 46 50.55% Nurse Acuity 44 86.27% Nurse Call System 23 82.14% Nurse Staffing/Scheduling 16 55.17% Nursing Documentation 54 55.10% Replacing = Statuses of Live & Operational, Contracted/Not Yet Installed and Installation In Process First time = Status of Not Automated 40 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 66 19 45 7 5 13 44 % of Hospitals Planning to Purchase Software for the First Time 55.46% 33.33% 49.45% 13.73% 17.86% 44.83% 44.90% N = Total Number of Hospitals Planning 119 57 91 51 28 29 98 ▶▶ Nursing Department Environment con tinued An evaluation of hospital-type market segments in 2011 shows the following trends: • EMAR: all hospital-type segments continue to demonstrate slight to strong growth. Double-digit growth is expected among rural hospitals, critical access hospitals and hospitals that are part of a single hospital system. Academic medical centers were the segment with the lowest growth, at slightly under two percent. This is the only area that is approaching market saturation (see Table NA3). • Infection surveillance systems: academic medical centers showed the highest increase in the use of infection surveillance systems at more than 14 percent. This is not surprising, as academic medical centers have always been early adopters of new technology. All other segments indicated a growth ranging from four to seven percent (see Table NA4). • Medication reconciliation: another new addition to this report, this application indicated a growth of more than 10 percent across all hospital types. Single hospital systems showed the greatest increase from 2010 at more than 17 percent (see Table NA5). • Nurse call system: included for the first time in this report, this solution’s growth from 2010 was highest for non-academic hospitals (12 percent), followed by general medical/surgical facilities at 11 percent. All other segments showed increase ranging from six percent to ten percent (see Table NA6). • Nurse staffing/scheduling: overall, the growth from 2010 to 2011 for this application is slight. Single hospital systems had the greatest growth of slightly less than two percent. Hospitals from multi-system organizations, critical access hospitals and general medical/surgical facilities indicated a slight decrease from 2010 (see Table NA7). • Nursing documentation: rural hospitals and critical access hospitals indicated an increase of more than eight percent from 2010 to 2011, followed by single hospital systems at seven percent (see Table NA8). • Patient acuity: growth for this application ranged from one to two percent across all market segments. The largest growth was among critical access hospitals, at nearly three percent. (see Table NA9). Table N A 3 | Electronic Medication Administration Record (EMAR) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 161 2,603 1,785 979 494 2,270 399 2,365 1,870 894 2,764 Percent 83.85% 63.53% 71.20% 54.94% 42.77% 72.43% 39.62% 72.06% 72.31% 52.50% 64.44% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 175 2,920 1,950 1,145 618 2,477 540 2,555 2,027 1,068 3,095 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 73 914 700 287 139 848 132 855 716 271 987 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 107 1,463 1,062 508 311 1,259 273 1,297 1,013 557 1,570 Percent 91.15% 71.27% 77.78% 64.25% 53.51% 79.04% 53.62% 77.85% 78.38% 62.71% 72.16% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 178 3,206 2,102 1,282 756 2,628 662 2,722 2,130 1,254 3,384 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 100 1,167 882 385 192 1,075 173 1094 883 384 1,267 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 136 2,010 1,398 748 470 1,676 408 1,738 1,289 857 2,146 Percent 92.71% 78.25% 83.85% 71.94% 65.45% 83.85% 65.74% 82.94% 82.37% 73.63% 78.90% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table N A 4 | Infection Surveillance System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Percent 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 Percent 38.02% 22.31% 27.92% 16.11% 12.03% 27.06% 13.11% 26.05% 27.69% 15.91% 23.01% 2011 Percent 52.08% 28.48% 35.18% 21.60% 16.62% 34.30% 17.18% 33.33% 34.15% 22.55% 29.54% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table N A5 | Medication Reconciliation 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Percent 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 Percent 55.73% 35.71% 42.36% 28.51% 26.93% 40.17% 27.11% 39.52% 39.17% 32.71% 36.61% 2011 Source: HIMSS Analytics® Database 2011 Percent 70.83% 49.06% 55.76% 41.98% 40.69% 53.48% 40.52% 52.96% 49.85% 50.32% 50.03% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 41 ▶▶ Nursing Department Environment con tinued Table N A6 | Nurse Call System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Percent 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 107 1,465 1,032 540 318 1,254 267 1,305 990 582 1,572 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 178 2,598 1,931 845 416 2,360 363 2,413 1,920 856 2,776 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 182 3,142 2,085 1,239 705 2,619 609 2,715 2,133 1,191 0 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 88 1,152 834 406 159 1,081 151 1,089 849 391 1,240 Percent 55.73% 33.76% 41.16% 30.30% 27.53% 40.01% 26.51% 39.76% 38.28% 34.17% 36.65% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 118 1,878 1,313 683 409 1,587 358 1,638 1,270 726 1,996 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 179 2,601 1,930 850 414 2,366 364 2,416 1,895 885 2,780 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 3,350 2,178 1,355 806 2,727 690 2,843 2,217 1,316 0 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 92 1,220 868 444 189 1,123 170 1,142 883 429 1,312 Percent 61.46% 45.84% 52.37% 38.33% 35.41% 50.64% 35.55% 49.91% 49.11% 42.63% 46.54% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table N A7 | Nurse Staffing/Scheduling 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 175 2,499 1,885 789 379 2,295 321 2,353 1,861 813 2,674 Percent 91.15% 61.00% 75.19% 44.28% 32.81% 73.23% 31.88% 71.69% 71.96% 47.74% 62.35% 2010 Percent 92.71% 63.41% 77.02% 47.42% 36.02% 75.30% 36.05% 73.52% 74.25% 50.26% 64.72% 2011 Percent 93.23% 63.49% 76.98% 47.70% 35.84% 75.49% 36.15% 73.61% 73.28% 51.97% 64.82% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table N A 8 | Nursing Documentation 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 173 2,947 1,993 1,127 614 2,506 520 2,600 2039 1,081 0 Percent 90.10% 73.91% 79.50% 63.24% 53.16% 79.96% 51.64% 79.22% 78.85% 63.48% 0.00% 2010 Percent 94.79% 76.69% 83.17% 69.53% 61.04% 83.57% 60.48% 82.72% 82.48% 69.94% 0.00% 2011 Percent 95.31% 81.77% 86.88% 76.04% 69.78% 87.01% 68.52% 86.62% 85.73% 77.28% 0.00% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table N A9 | Patient Acuity 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 74 1,043 763 354 128 989 109 1,008 778 339 1,117 Percent 38.54% 25.46% 30.43% 19.87% 11.08% 31.56% 10.82% 30.71% 30.09% 19.91% 26.04% 2010 42 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 45.83% 28.12% 33.27% 22.78% 13.77% 34.49% 15.00% 33.18% 32.83% 22.96% 28.91% 2011 Percent 47.92% 29.78% 34.62% 24.92% 16.36% 35.83% 16.88% 34.80% 34.15% 25.19% 30.59% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Nursing Department Environment con tinued The analysis of this market by bed size activity from 2010 to 2011 provided the following observations (see Tables NA10–NA16): • 0–100 beds: medication reconciliation (13 percent) had the highest year-over-year growth in this segment, followed by EMAR and nurse call at nine percent each (see Table NA10). • 101–200 beds: medication reconciliation (11 percent) had the highest growth from 2010 to 2011, followed by nurse call system at slightly under 10 percent. Infection surveillance systems were the only other area with a growth of more than five percent (see Table NA11). • 201–300 beds: three nursing applications indicated a growth in double digits from 2010 to 2011. These applications are medication reconciliation (16 percent), nurse call system (12 percent) and infection surveillance system (12 percent). Nurse staffing/scheduling showed a slight decline in use in the past year (see Table NA12). Table N A10 0–100 Beds Table N A14 2009 Electronic Medication Administration Record (EMAR) 1,138 Infection Surveillance System N/A Medication Reconciliation N/A Nurse Call System N/A Nurse Staffing/Scheduling 918 Nursing Documentation 1,333 Patient Acuity 380 52.18% 0.00% 0.00% 0.00% 42.09% 61.12% 17.42% 2010 % of 2,181 hospitals 1,345 334 618 629 986 1,481 426 61.67% 15.31% 28.34% 28.84% 45.21% 67.90% 19.53% 2011 1,549 430 906 823 999 1,630 479 71.02% 19.72% 41.54% 37.73% 45.80% 74.74% 21.96% Table N A11 101–200 Beds Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 401–500 Beds Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2009 156 N/A N/A N/A 167 160 81 2010 % of 182 hospitals 85.71% 0.00% 0.00% 0.00% 91.76% 87.91% 44.51% 170 72 102 77 166 164 90 93.41% 39.56% 56.04% 42.31% 91.21% 90.11% 49.45% 2011 173 87 128 98 163 170 88 95.05% 47.80% 70.33% 53.85% 89.56% 93.41% 48.35% Table N A15 2009 572 N/A N/A N/A 605 659 260 69.59% 0.00% 0.00% 0.00% 73.60% 80.17% 31.63% 2010 % of 822 hospitals 630 211 328 360 625 677 284 76.64% 25.67% 39.90% 43.80% 76.03% 82.36% 34.55% 2011 661 259 421 442 626 707 290 80.41% 31.51% 51.22% 53.77% 76.16% 86.01% 35.28% Table N A12 201–300 Beds • 301–400 beds: medication reconciliation and nurse call systems had the highest year-over-year growth at 15 percent and 12 percent, respectively. Nurse staffing/scheduling is the only application to decrease in the same timeframe (see Table NA13). • 401–500 beds: EMAR is close to reaching full market saturation at 95 percent in 2011. Medication reconciliation and nurse call systems experienced double digit growth, at 14 and 12 percent respectively (see Table NA14). • 501–600: overall, the nursing IT applications had slight to moderate increase in this bed segment (two to seven percent) from 2010 to 2011. EMAR and nurse staffing have achieved market saturation (95 percent or better) and nurse staffing/ scheduling is close to market saturation (see Table NA15). • Over 600 beds: the largest growth in this bed segment was medication reconciliation at nearly 19 percent followed closely by infection surveillance systems (18 percent). Nurse staffing/ scheduling did not show growth over the past year and nursing documentation has reached market saturation (see Table NA16). 501–600 Beds Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2009 108 N/A N/A N/A 114 116 48 2010 % of 122 hospitals 88.52% 0.00% 0.00% 0.0% 93.44% 95.08% 39.34% 116 52 75 64 115 119 54 95.08% 42.62% 61.48% 52.46% 94.26% 97.54% 44.26% 2011 118 59 84 73 115 119 56 96.72% 48.36% 68.85% 59.84% 94.26% 97.54% 45.90% Table N A16 2009 398 N/A N/A N/A 435 429 174 78.97% 0.00% 0.00% 0.00% 86.31% 85.12% 34.52% 2010 % of 504 hospitals 426 150 220 231 444 446 194 84.52% 29.76% 43.65% 45.83% 88.10% 88.49% 38.49% 2011 449 210 302 292 438 461 199 89.09% 41.67% 59.92% 57.94% 86.90% 91.47% 39.48% 600+ Beds Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2009 129 N/A N/A N/A 138 133 63 2010 % of 150 hospitals 86.00% 0.00% 0.00% 0.00% 92.00% 88.67% 42.00% 133 59 76 73 140 141 69 88.67% 39.33% 50.67% 48.67% 93.33% 94.00% 46.00% 2011 138 86 104 91 140 143 71 92.00% 57.33% 69.33% 60.67% 93.33% 95.33% 47.33% Table N A13 301–400 Beds Electronic Medication Administration Record (EMAR) Infection Surveillance System Medication Reconciliation Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2009 263 N/A N/A N/A 297 290 111 80.18% 0.00% 0.00% 0.00% 90.55% 88.41% 33.84% 2010 % of 328 hospitals 275 109 151 138 300 296 123 83.84% 33.23% 46.04% 42.07% 91.46% 90.24% 37.50% 2011 296 136 201 177 299 303 129 90.24% 41.46% 61.28% 53.96% 91.16% 92.38% 39.33% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 43 ▶▶ Nursing Department Environment con tinued An evaluation of the contract purchasing timeframes for these nursing applications reveals that more than half of the EMAR and nursing documentation contracts were signed between 2005 and 2011, while most (80 percent or more) of the new applications (infection surveillance, medication reconciliation and nurse call system) were signed in that same time period (see Tables NA17 to NA19). Table N A17 # for Contract 2011 Range Electronic Medication Administration Record (EMAR) Prior to 1990 4 1990 to 1994 85 1995 to 1999 77 2000 to 2004 650 2005 to 2011 1,207 Total 2,023 Infection Surveillance System Prior to 1990 0 1990 to 1994 3 1995 to 1999 8 2000 to 2004 31 2005 to 2011 219 Total 261 Total Responding % of Total Responding 2,023 2,023 2,023 2,023 2,023 2,023 0.20% 4.20% 3.813% 32.13% 59.66% 100.00% 261 261 261 261 261 261 0.00% 1.15% 3.07% 11.88% 83.91% 100.00% # for Contract Range Total Responding % of Total Responding 4 5 30 96 583 718 718 718 718 718 718 718 0.56% 0.70% 4.18% 13.37% 81.20% 100.00% 2 2 3 21 121 149 149 149 149 149 149 149 1.34% 1.34% 2.01% 14.09% 81.21% 100.00% 100 101 242 385 740 1,568 1,568 1,568 1,568 1,568 1,568 1,568 6.38% 6.44% 15.43% 24.55% 47.19% 100.00% Table N A18 2011 Medication Reconciliation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Nurse Call System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Nurse Staffing/Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total 44 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Table N A19 2011 Nursing Documentation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Patient Acuity Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 10 127 176 726 1,078 2,117 2,117 2,117 2,117 2,117 2,117 2,117 0.47% 6.00% 8.31% 34.29% 50.92% 100.00% 7 24 56 334 326 747 746 746 746 746 746 746 0.94% 3.22% 7.51% 44.77% 43.70% 100.00% Market Drivers/Future Outlook The nursing application IT application market has been and will continue to be impacted by: • The need to improve, and be able to report on, quality outcomes and ARRA measures to meet increasingly detailed claims documentation requirements and qualify for performance-based reimbursement bonus payment. • The need to improve patient safety and eliminate medical errors. • Intense competition for limited capital for purchasing nursing IT solutions. • In this competition, nursing documentation purchases should fare better, since they include functions which are essential for hospitals to meet the ARRA meaningful use criteria, measurements and reporting requirements. • These systems, especially nursing documentation and EMAR, have proven to be nurse satisfiers, thus aid in recruiting and retention. • The need to create an effective support foundation for CPOE as most hospitals implement nursing documentation before CPOE. • The need to effectively and efficiently determine nurse staffing levels and assignments to meet minimum staffing requirements and help reduce the impact of the nursing shortage. • The need to couple EMAR applications with pharmacy management and dispensing solutions to facilitate the closed loop medication administration process for improving patient safety—a requirement that we believe will be an integral part of Stage 2 meaningful use requirements in some manner. ▶▶ Ancillary Department Environment All the ancillary department applications showed slight to moderate growth from 2010 to 2011. For the past several years, respiratory care information systems indicated the highest growth of the applications included in the ancillary care report. This trend continues this year, with an increase of slightly more than six percent. Laboratory information systems and pharmacy management systems have achieved market saturation (95 percent or better), and radiology information systems is very close to reaching this threshold (see Table AD1). Table A D1 | Ancillary Departments N=4,289 2009 2010 Cardiology Information System 41.04% 43.13% Emergency Department Systems 69.83% 72.88% Intensive Care 48.08% 50.55% Laboratory Information System 96.88% 97.55% Obstetrical Systems (Labor and Delivery) 47.42% 48.45% Pharmacy Management System 94.03% 94.73% Radiology Information System 92.77% 93.96% Respiratory Care Information System 38.80% 43.55% Percentage include installed, contracted or installation in process 2011 45.51% 77.55% 53.30% 98.34% 50.83% 96.04% 94.85% 49.92% The majority of purchases across the applications in ancillary departments will be replacement purchases (see Table AD2). Hospitals were most likely to indicate that purchases would be first-time purchases for emergency department (ED) applications; 40 percent of hospitals reporting a purchase in this area would do so for the first time. The drive for integrated clinical systems, especially the requirement for a tight data coupling with pharmacy systems and CPOE systems continues to drive the replacement of legacy pharmacy systems with the organization’s EMR vendor’s pharmacy system. Replacement purchases for laboratory systems are being driven by the need for laboratories to function as both hospital laboratories and as reference laboratories for their local and/or regional markets. As hospitals continue to move forward to achieve meaningful use requirements, both for Stage One and in preparation for Stage Two, hospital laboratories will be required to integrate laboratory results associated with their own external reference labs into the EMRs of their hospital patients. They will also be required to integrate results with the EMRs of providers for whom they act as a reference laboratory. High volumes of molecular biologic testing (e.g., genetic and proteomic testing) may also induce laboratories to evaluate replacing their current systems if current vendors do not support these testing environments. ED systems continue to grow in the smaller hospital market where installations are overwhelmingly first-time purchases. The need for continuity of care documentation including the emergency department is driving this growth into the smaller hospital market. Intensive care system purchase growth is being driven by the need for quality and safety improvements, the desire to directly capture medical device data into the EMR. An evaluation of hospital-type market segments for each ancillary department system from 2010 to 2011 shows the highest growth in the following hospital-type segments: • Cardiology information systems: single hospital systems and general medical/surgical hospitals have the greatest growth, at more than three percent (see Table AD3). • Emergency department systems: growth among critical access hospitals and rural hospitals was strongest, at approximately ten percent for each segment. Growth in all other segments ranged from one to eight percent (see Table AD4). • Intensive care: growth was strongest among academic medical centers. Growth for the remaining segments ranged from one to four percent (see Table AD5). • Laboratory information systems: as expected, the growth in this market is small, as all of the hospital segments have reached market saturation (95 percent or better). All academic medical centers utilize a laboratory information system (see Table AD6). • Obstetrical systems: rural and single hospital systems reported the greatest increase (more than four percent) in the past year. Growth in the other segments was between one and three percent (see Table AD7). • Pharmacy management systems: critical access hospitals and rural hospitals demonstrated the highest growth of approximately three percent. All academic medical centers use pharmacy management systems (see Table AD8). • Radiology information systems: very little activity is reported for radiology information systems since most of the segments are approaching or have reached market saturation. The greatest growth is among critical access and rural hospitals, at three percent each (see Table AD9). • Respiratory care information systems: the growth for this application ranged from three to eight percent. Critical access hospitals and rural hospitals reported the largest growth while academic medical centers demonstrated the smallest growth at slightly under four percent (see Table AD10). Table A D2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Cardiology Information System 33 94.29% Emergency Department Systems 48 60.00% Intensive Care 32 80.00% Laboratory Information System 94 94.00% Obstetrical Systems (Labor and Delivery) 8 80.00% Pharmacy Management System 78 86.67% Radiology Information System 79 87.78% Respiratory Care Information System 37 75.51% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 2 32 8 6 2 12 11 12 % of Hospitals Planning to Purchase Software for the First Time 5.71% 40.00% 20.00% 6.00% 20.00% 13.33% 12.22% 24.49% Source: HIMSS Analytics® Database 2011 N = Total Number of Hospitals Planning 35 80 40 100 10 90 90 49 ©2012 HIMSS Analytics. 45 ▶▶ Ancillary Department Environment con tinued Table A D3 | Cardiology Information Systems 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 162 1598 1,422 338 90 1,670 68 1,692 1,243 517 1,760 Percent 84.38% 39.00% 56.72% 18.97% 7.79% 53.29% 6.75% 51.55% 48.07% 30.36% 41.04% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 170 1,680 1,507 343 95 1,755 80 1,770 1,290 560 1,850 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 2,943 2,214 912 631 2,495 551 2,575 2,009 1,117 3,126 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 155 2,013 1,568 600 266 1,902 221 1,947 1,468 700 2,168 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,992 2,498 1,686 1,080 3,104 949 3,235 2,545 1,639 4,184 Percent 88.54% 41.01% 60.11% 19.25% 8.23% 56.00% 7.79% 53.93% 49.88% 32.88% 43.13% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 171 1,781 1,585 367 118 1,834 93 1,859 1,332 620 1,952 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 185 3,141 2,295 1,031 744 2,582 656 2,670 2,060 1,266 3,326 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 164 2,122 1,664 622 275 2,011 238 2,048 1,519 767 2,286 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 4,026 2,500 1,718 1,100 3,118 962 3,256 2,565 1,653 4,218 Percent 89.06% 43.47% 63.22% 20.59% 10.22% 58.52% 9.24% 56.64% 51.51% 36.41% 45.51% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D 4 | Emergency Department Systems 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 179 2,816 2,168 827 546 2,449 472 2,523 1,956 1,039 2,995 Percent 93.23% 68.73% 86.48% 46.41% 47.27% 78.14% 46.87% 76.87% 75.64% 61.01% 69.83% 2010 Percent 95.31% 71.83% 88.31% 51.18% 54.63% 79.61% 54.72% 78.46% 77.69% 65.59% 72.88% 2011 Percent 96.35% 76.67% 91.54% 57.86% 64.42% 82.39% 65.14% 81.35% 79.66% 74.34% 77.55% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D5 | Intensive Care 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 147 1,915 1,476 586 258 1,804 222 1,840 1,410 652 2,062 Percent 76.56% 46.74% 58.88% 32.88% 22.34% 57.56% 22.05% 56.06% 54.52% 38.29% 48.08% 2010 Percent 80.73% 49.13% 62.54% 33.67% 23.03% 60.69% 21.95% 59.32% 56.77% 41.10% 50.55% 2011 Percent 85.42% 51.79% 66.37% 34.90% 23.81% 64.17% 23.63% 62.40% 58.74% 45.04% 53.30% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D6 | Laboratory Information System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 3,963 2,493 1,662 1,063 3,092 930 3,225 2,535 1,620 4,155 Percent 100.00% 96.73% 99.44% 93.27% 92.03% 98.66% 92.35% 98.26% 98.03% 95.13% 96.88% 2010 46 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 100.00% 97.44% 99.64% 94.61% 93.51% 99.04% 94.24% 98.57% 98.41% 96.24% 97.55% 2011 Percent 100.00% 98.27% 99.72% 96.41% 95.24% 99.49% 95.53% 99.21% 99.19% 97.06% 98.34% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Ancillary Department Environment con tinued Table A D7 | Obstetrical Systems (Labor and Delivery) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 144 1,890 1,613 421 231 1,803 197 1,837 1,372 662 2,034 Percent 75.00% 46.13% 64.34% 23.63% 20.00% 57.53% 19.56% 55.97% 53.05% 38.87% 47.42% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 149 1,929 1,667 411 228 1,850 205 1,873 1,366 712 2,078 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,871 2,492 1,571 968 3,095 847 3,216 2,529 1,534 4,063 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,838 2,468 1,562 974 3,056 852 3,178 2,503 1,527 4,030 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 117 1,751 1,282 586 302 1,566 263 1,605 1,199 669 1,868 Percent 77.60% 47.08% 66.49% 23.06% 19.74% 59.03% 20.36% 57.07% 52.82% 41.81% 48.45% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 151 2,029 1,735 445 261 1,919 249 1,931 1,394 786 2,180 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,927 2,497 1,622 1,006 3,113 880 3,239 2,547 1,572 4,119 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 192 3,876 2,476 1,592 1,006 3,062 882 3,186 2,503 1,565 4,068 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 124 2,017 1,446 695 395 1,746 344 1,797 1,343 798 2,141 Percent 78.65% 49.52% 69.21% 24.97% 22.60% 61.23% 24.73% 58.84% 53.91% 46.15% 50.83% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D8 | Pharmacy Management System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 192 3,841 2,490 1,543 940 3,093 822 3,211 2,518 1,515 4,033 Percent 100.00% 93.75% 99.32% 86.59% 81.39% 98.69% 81.63% 97.84% 97.37% 88.96% 94.03% 2010 Percent 100.00% 94.48% 99.40% 88.16% 83.81% 98.76% 84.11% 97.99% 97.80% 90.08% 94.73% 2011 Percent 100.00% 95.85% 99.60% 91.02% 87.10% 99.33% 87.39% 98.69% 98.49% 92.31% 96.04% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D9 | Radiology Information System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 191 3,788 2,459 1,520 936 3,043 815 3,164 2,490 1,489 3,979 Percent 99.48% 92.46% 98.09% 85.30% 81.04% 97.10% 80.93% 96.40% 96.29% 87.43% 92.77% 2010 Percent 100.00% 93.68% 98.44% 87.65% 84.33% 97.51% 84.61% 96.83% 96.79% 89.67% 93.96% 2011 Percent 100.00% 94.61% 98.76% 89.34% 87.10% 97.70% 87.89% 97.07% 96.79% 91.90% 94.85% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table A D10 | Respiratory Care Information System 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 106 1,558 1,144 520 264 1,400 217 1,447 1,075 589 1,664 Percent 55.21% 38.03% 45.63% 29.18% 22.86% 44.67% 21.55% 44.09% 41.57% 34.59% 38.80% 2010 Percent 60.94% 42.74% 51.14% 32.88% 26.15% 49.97% 26.12% 48.90% 46.37% 39.28% 43.55% 2011 Source: HIMSS Analytics® Database 2011 Percent 64.58% 49.23% 57.68% 39.00% 34.20% 55.71% 34.16% 54.75% 51.93% 46.86% 49.92% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 47 ▶▶ Ancillary Department Environment con tinued The analysis of the ancillary market by bed size from 2009–2011 is shown in Tables AD11–AD17. Examining recent activities from 2010 to 2011, the top three highest application growth segments by bed segment are as follows: • 0–100 beds: respiratory care information systems and emergency department systems each demonstrated a growth of more than seven percent (see Table AD11). • 101–200 beds: respiratory care reported the highest growth at more than five percent, followed by intensive care and cardiology information systems at three percent each (see Table AD12). • 201–300 beds: the greatest growth was for intensive care and respiratory care information systems at five and four percent respectively (see Table AD13). • 301–400 beds: respiratory care information systems had the highest year-over-year growth at close to six percent. There was no growth for laboratory information systems, pharmacy management systems and radiology information systems, each of which are universally used (see Table AD14). • 401–500 beds: respiratory care information systems had the highest growth at nearly four percent. Despite reaching market saturation, growth for emergency department systems still topped two percent (see Table AD15). • 501–600 beds: respiratory systems, intensive care and cardiology systems indicated increase from 2010 to 2011. All other applications remain unchanged from last year. Laboratory information systems, pharmacy management systems and radiology information systems have achieved market saturation (see Table AD16). • Over 600 beds: respiratory care and intensive care each had nearly seven percent growth in the past year. A number of applications have reached market saturation (see Table AD17). Table A D11 0–100 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 2010 2011 % of 2,181 hospitals 314 14.40% 357 16.37% 1,212 55.57% 1,371 62.86% 719 32.97% 754 34.57% 2,077 95.23% 2,110 96.74% 287 1,095 694 2,049 13.16% 50.21% 31.82% 93.95% 566 1,928 1,894 25.95% 88.40% 86.84% 576 1,957 1,936 26.41% 89.73% 88.77% 631 2,012 1,972 28.93% 92.25% 90.42% 611 28.01% 697 31.96% 862 39.52% Table A D12 101–200 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 469 57.06% 704 85.64% 487 59.25% 822 100.00% 2010 % of 822 hospitals 497 60.46% 708 86.13% 521 63.38% 821 99.88% 2011 525 63.87% 729 88.69% 549 66.79% 822 100.00% 522 819 805 63.50% 99.64% 97.93% 538 820 810 65.45% 99.76% 98.54% 556 821 813 67.64% 99.88% 98.91% 381 46.35% 422 51.34% 468 56.93% 48 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Table A D13 201–300 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 2010 % of 504 hospitals 371 73.61% 469 93.06% 347 68.85% 504 100.00% 391 77.58% 478 94.84% 374 74.21% 504 100.00% 338 67.06% 504 100.00% 500 99.21% 343 68.06% 504 100.00% 503 99.80% 363 72.02% 504 100.00% 502 99.60% 247 275 296 354 467 329 503 70.24% 92.66% 65.28% 99.80% 49.01% 54.56% 2011 58.73% Table A D14 301–400 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 254 77.44% 303 92.38% 208 63.41% 328 100.00% 2010 % of 328 hospitals 267 81.40% 305 92.99% 223 67.99% 328 100.00% 270 82.32% 310 94.51% 235 71.65% 328 100.00% 251 76.52% 328 100.00% 326 99.39% 251 76.52% 328 100.00% 327 99.70% 257 78.35% 328 100.00% 327 99.70% 164 179 198 50.00% 54.57% 2011 60.37% Table A D15 401–500 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 158 86.81% 168 92.31% 129 70.88% 182 100.00% 2010 % of 182 hospitals 157 86.26% 171 93.96% 135 74.18% 182 100.00% 158 86.81% 175 96.15% 137 75.27% 182 100.00% 138 75.82% 182 100.00% 182 100.00% 143 78.57% 182 100.00% 182 100.00% 144 79.12% 182 100.00% 182 100.00% 103 117 124 56.59% 64.29% 2011 68.13% Table A D16 501–600 Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 103 113 95 121 84.43% 92.62% 77.87% 99.18% 98 80.33% 122 100.00% 122 100.00% 67 54.92% 2010 % of 122 hospitals 105 86.07% 114 93.44% 101 82.79% 122 100.00% 108 88.52% 114 93.44% 105 86.07% 122 100.00% 101 82.79% 122 100.00% 122 100.00% 101 82.79% 122 100.00% 122 100.00% 77 63.11% 2011 82 67.21% Table A D17 600+ Beds Cardiology Information System Emergency Department Systems Intensive Care Laboratory Information System Obstetrical Systems (Labor and Delivery) Pharmacy Management System Radiology Information System Respiratory Care Information System 2009 135 90.00% 145 96.67% 120 80.00% 150 100.00% 2010 % of 150 hospitals 139 92.67% 147 98.00% 122 81.33% 150 100.00% 143 95.33% 149 99.33% 132 88.00% 150 100.00% 121 80.67% 150 100.00% 150 100.00% 126 84.00% 150 100.00% 150 100.00% 128 85.33% 150 100.00% 150 100.00% 101 111 91 60.67% 67.33% 2011 74.00% ▶▶ Ancillary Department Environment con tinued An evaluation of contract purchasing timeframes for ancillary department applications shows that the majority of applications was purchased between 2000 and 2011 (see Tables AD18–AD20). Purchasing for cardiology information systems and ED systems was particularly strong between 2005 and 2011, when half of all contracts was signed. Ancillary department systems contracted before 1995 will have the highest probability for replacement purchases through 2015. Table A D18 # for Contract Range Total Responding % of Total Responding 4 18 66 291 423 802 802 802 802 802 802 802 0.50% 2.24% 8.23% 36.28% 52.74% 100.00% 13 51 185 714 979 1,942 1,942 1,942 1,942 1,942 1,942 1,942 0.67% 2.63% 9.53% 36.77% 50.41% 100.00% 8 133 167 549 585 1,452 1,452 1,452 1,452 1,452 1,452 1,452 0.55% 9.16% 11.50% 37.82% 40.98% 100.00% # for Contract 2011 Range Laboratory Information System Prior to 1990 141 1990 to 1994 262 1995 to 1999 578 2000 to 2004 788 2005 to 2011 815 Total 2,584 Obstetrical Systems (Labor and Delivery) Prior to 1990 0 1990 to 1994 33 1995 to 1999 110 2000 to 2004 359 2005 to 2011 391 Total 893 Pharmacy Management System Prior to 1990 48 1990 to 1994 247 1995 to 1999 399 2000 to 2004 1,001 2005 to 2011 1,074 Total 2,769 Total Responding % of Total Responding 2,584 2,584 2,584 2,584 2,584 2,584 5.46% 10.14% 22.37% 30.50% 31.54% 100.00% 893 893 893 893 893 893 0.00% 3.70% 12.32% 40.28% 43.78% 100.00% 2,769 2,769 2,769 2,769 2,769 2,769 1.73 % 8.92% 14.41% 36.15% 38.79% 100.00% 2011 Cardiology Information Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Emergency Department Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Intensive Care Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table A D19 Table A D20 2011 Radiology Information System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Respiratory Care Information System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 58 164 379 916 1,137 2,654 2,654 2,654 2,654 2,654 2,654 2,654 2.19% 6.18% 14.28% 34.51% 42.84% 100.00% 11 123 150 404 514 1,202 1,202 1,202 1,202 1,202 1,202 1,202 0.92% 10.23% 12.48% 33.61% 42.76% 100.00% Market Drivers/Future Outlook The ancillary department IT application market has been and will continue to be impacted through 2015 by: • The need to reduce or eliminate medical and medication errors. • The continued hospital focus on patient safety. • The need to capture more clinical data electronically to support meaningful use, health information exchange (HIE) and personal health record (PHR) initiatives. • Increased pressures on hospitals by federal and state authorities to participate in HIE and public health reporting activities, or the desire of IDNs to actively participate in private HIEs. • The continued move toward integrated clinical systems and away from “best of breed” will drive some replacement purchases of essentially stand-alone ancillary systems. • Intense competition for limited capital funds in a period when government-mandated initiatives will determine the applications that receive the highest priority. • The need to create improved data sharing/integration between clinical and financial systems to support improved claims processing accuracy and for performance analysis and reporting under bundled payment contracts. • The need to reduce turn-around times for producing diagnostic results that are accessible from the EMR. • The need to have CPOE systems tightly coupled with pharmacy systems. • The need to have pharmacy systems tightly coupled with electronic medication administration systems. • The push by the government to improve the capture, management, and sharing of electronic health information in summary data formats between all healthcare stakeholders. • The push by the government for pay-for-performance and the continued need of hospitals to have discrete data with which to report against ARRA meaningful use criteria by 2011 and beyond. • The need to provide a higher level of integration of order communications and results reporting with external providers and reference laboratories. • Complex molecular and genomics testing in laboratories to deliver “personalized medicine.” Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 49 ▶▶ Laboratory Environment The laboratory environment is included in the Annual Report for the first time. This environment focuses on solutions that provide automation and efficiency in laboratory operations. The five laboratory applications included in this report are anatomical pathology, blood bank, laboratory–molecular diagnostics, laboratory–outreach services, and microbiology. Although laboratory information system solution is also part of this environment, laboratory information system has historically appeared in the ancillary section of the annual report. At least for 2011, laboratory information system will continue to be included in the ancillary environment section of this report. In 2011, microbiology showed the highest market penetration at 79 percent, followed by blood bank (68 percent) and anatomical pathology (60 percent). The lowest rate of adoption is laboratory– molecular diagnostics at 14 percent. Laboratory–outreach services demonstrated the largest year-over-year growth from 2010 to 2011 at close to five percent (see Table LAB1). The majority of purchasing plans in this market will be to replace existing systems. Laboratory–molecular diagnostics is an exception; the majority of the handful of hospitals that will purchase this solution in the future will do so for the first time (see Table LAB2). Table L A B1 | Laboratory N=4,289 2009 2010 2011 Anatomical Pathology 57.82% 59.20% 59.59% Blood Bank 65.89% 67.94% 67.85% Laboratory–Molecular Diagnostics 6.34% 11.87% 13.92% Laboratory–Outreach Services 13.71% 21.38% 26.18% Microbiology 74.61% 77.52% 79.46% Percentages include installed, contracted or installation in process NOTE: installed does not necessarily indicate full usage across all patient units or by all categories of clinician An evaluation of hospital-type market segment growth from 2010 to 2011 shows the highest growth by application occurred as follows: • Anatomical pathology: while there was a very slight decrease in the use of this technology among academic medical centers, this market is saturated (95 percent adoption). At nearly two percent, the greatest growth was demonstrated in the critical access, rural and single hospital system markets (see Table LAB3). • Blood bank: the academic medical center segment is saturated, with 98 percent adoption. Rural hospitals and critical access hospitals indicated the most growth at slightly under two percent. The single hospital system reported an increase of one percent. Most other segments reported a decrease in adoption of less than one percent in the past year (see Table LAB4). • Laboratory–molecular diagnostics: the highest growth for this application occurred in the academic medical center segment (more than four percent). Growth of one to two percent was noted in the remaining market segments (see Table LAB5). • Laboratory–outreach services: the highest increase in adoption for this application was reported by the academic medical center segment at six percent. The remaining segments saw growth of three to five percent (see Table LAB6). • Microbiology: academic medical center has almost reached full market penetration (98 percent) followed by general medical/surgical hospitals (93 percent). All hospital segments demonstrated growth of one percent to four percent with rural hospitals demonstrating the largest year-over-year increase (see Table LAB7). Table L A B2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Anatomical Pathology 38 95.00% Blood Bank 38 79.17% Laboratory–Molecular Diagnostics 1 20.00% Laboratory–Outreach Services 24 80.00% Microbiology 43 95.56% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 2 10 4 6 2 % of Hospitals Planning to Purchase Software for the First Time 5.00% 20.83% 80.00% 20.00% 4.44% N = Total Number of Hospitals Planning 40 48 5 30 45 Table L A B 3 | Anatomical Pathology 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 188 2,292 1,901 579 244 2,236 204 2,276 1,722 758 2,480 Percent 97.92% 55.94% 75.83% 32.49% 21.13% 71.35% 20.26% 69.35% 66.59% 44.51% 57.82% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 50 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Segment Count 190 2,349 1,927 612 271 2,268 234 2,305 1,740 799 2,539 Percent 98.96% 57.33% 76.86% 34.34% 23.46% 72.37% 23.24% 70.23% 67.29% 46.92% 59.20% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 2,368 1,927 629 294 2,262 251 2,305 1,724 832 2,556 Percent 97.92% 57.80% 76.86% 35.30% 25.45% 72.18% 24.93% 70.23% 66.67% 48.85% 59.59% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Laboratory Environment con tinued Table L A B 4 | Blood Bank 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 188 2,638 2,132 694 355 2,471 308 2,518 1,974 852 2,826 Percent 97.92% 64.39% 85.04% 38.95% 30.74% 78.84% 30.59% 76.72% 76.33% 50.03% 65.89% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 2,725 2,155 759 404 2,510 350 2,564 1,991 923 2,914 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 79 430 365 144 25 484 24 485 395 114 509 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 85 832 674 243 86 831 65 852 642 275 917 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 187 3,138 2,306 1,019 566 2,759 496 2,829 2,159 1,166 3,325 Percent 98.44% 66.51% 85.96% 42.59% 34.98% 80.09% 34.76% 78.12% 76.99% 54.20% 67.94% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 2,722 2,139 771 424 2,486 368 2,542 1,968 942 2,910 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 88 509 420 177 43 554 36 561 461 136 597 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 97 1,026 808 315 129 994 98 1,025 793 330 1,123 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,219 2,333 1,075 611 2,797 541 2,867 2,190 1,218 3,408 Percent 97.92% 66.44% 85.32% 43.27% 36.71% 79.32% 36.54% 77.45% 76.10% 55.31% 67.85% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table L A B5 | Laboratory–Molecular Diagnostics 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 44 228 195 77 12 260 15 257 194 78 272 Percent 22.92% 5.57% 7.78% 4.32% 1.04% 8.30% 1.49% 7.83% 7.50% 4.58% 6.34% 2010 Percent 41.15% 10.50% 14.56% 8.08% 2.16% 15.44% 2.38% 14.78% 15.27% 6.69% 11.87% 2011 Percent 45.83% 12.42% 16.75% 9.93% 3.72% 17.68% 3.57% 17.09% 17.83% 7.99% 13.92% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table L A B6 | Laboratory–Outreach Services 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 54 534 448 140 56 532 43 545 409 179 588 Percent 28.13% 13.03% 17.87% 7.86% 4.85% 16.98% 4.27% 16.61% 15.82% 10.51% 13.71% 2010 Percent 44.27% 20.31% 26.88% 13.64% 7.45% 26.52% 6.45% 25.96% 24.83% 16.15% 21.38% 2011 Percent 50.52% 25.04% 32.23% 17.68% 11.17% 31.72% 9.73% 31.23% 30.67% 19.38% 26.18% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table L A B7 | Microbiology 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 184 3,016 2,275 925 501 2,699 436 2,764 2,120 1,080 3,200 Percent 95.83% 73.61% 90.75% 51.91% 43.38% 86.12% 43.30% 84.22% 81.98% 63.42% 74.61% 2010 Percent 97.40% 76.59% 91.98% 57.18% 49.00% 88.03% 49.26% 86.20% 83.49% 68.47% 77.52% 2011 Source: HIMSS Analytics® Database 2011 Percent 98.44% 78.57% 93.06% 60.33% 52.90% 89.25% 53.72% 87.36% 84.69% 71.52% 79.46% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 51 ▶▶ Laboratory Environment con tinued The analysis of the laboratory market by bed size in 2011 indicates the following (see Tables LAB8–LAB14): • 0–100 beds: laboratory–outreach services demonstrated the highest growth for this segment (more than four percent), followed by microbiology at slightly more than three percent (see Table LAB8). • 101–200 beds: the largest growth in this segment was for laboratory–outreach services, with growth of nearly four percent. Use of blood bank and anatomical pathology solutions decreased in the past year (see Table LAB9). • 201–300 beds: laboratory–outreach services had a more than five percent growth in this market; growth for laboratory–molecular diagnostics was two percent (see Table LAB10). • 301–400 beds: the greatest growth in this segment was for laboratory–outreach services and laboratory–molecular diagnostics, at six and three percent respectively (see Table LAB11). • 401–500 beds: laboratory–molecular diagnostics and laboratory– outreach services demonstrated the best growth in this segment, as four and six percent respectively. Blood bank and microbiology remained unchanged from last year (see Table LAB12). • 501–600 beds: this bed segment has almost reached complete market saturation for anatomical pathology, microbiology and blood bank (95 percent or better) in 2011 and there was no additional growth for these applications during the past year. Laboratory–outreach services and laboratory–molecular diagnostics showed growth of seven percent and two percent respectively (see Table LAB13). • 600+ beds: laboratory–outreach services demonstrated the most growth in this segment at more than eight percent, followed by laboratory–molecular diagnostics at seven percent. There was minimal to no growth for the remaining applications (see Table LAB14). More than half of the contracting for laboratory–molecular diagnostics and laboratory–outreach services took place during 2005 to 2011 (see Tables LAB15–LAB16). One-third of the contracts for the remaining applications were signed during the same period. Market Drivers/Future Outlook The laboratory environment market has been or will likely be impacted through 2016 by: • An increased focus on complying with ARRA meaningful use process and reporting criteria in order to qualify for EMR adoption incentives and avoid Medicare reimbursement penalties. • Increased pressures on hospitals by federal and state authorities to participate in HIE and public health reporting activities for disease indexes and syndromic reporting. • Intense competition for capital funding, and staff resources between financial (e.g., version 5010 EDI transaction mandate, ICD-10-PCS coding mandate) and clinical (e.g., ARRA meaningful use measurements) IT projects. • Accelerated mergers and acquisitions in the provider market which will drive some laboratory and pathology service consolidation. • With increased mergers and the continued growth of IDNs there will be an increase in demand from the medical staff for leadingedge molecular diagnostics capabilities to develop a personalized medicine program. • Tight capital markets may continue to impact the acquisition and installation of EMR products through 2015, especially for small community and critical access hospitals, in spite of the availability of ARRA incentives. • The increased need to acquire, manage, and analyze clinical data for business intelligence, outcomes improvement, pay-for-performance incentive programs and government compliance reporting. 52 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Table L A B8 0–100 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 683 875 42 139 1,189 2010 2011 % of 2,181 hospitals 31.32% 723 33.15% 745 34.16% 40.12% 953 43.70% 977 44.80% 1.93% 6.37% 54.52% 84 235 1,295 3.85% 10.77% 59.38% 123 329 1,373 5.64% 15.08% 62.95% Table L A B9 101–200 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 614 714 2010 % of 822 hospitals 74.70% 630 76.64% 86.86% 719 87.47% 624 699 75.91% 85.04% 68 143 763 8.27% 17.40% 92.82% 124 239 773 15.09% 29.08% 94.04% 117 205 772 14.23% 24.94% 93.92% 2011 Table L A B10 201–300 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 444 476 2010 % of 504 hospitals 88.10% 448 88.89% 94.44% 480 95.24% 453 478 89.88% 94.84% 40 91 486 7.94% 18.06% 96.43% 94 187 493 18.65% 37.10% 97.82% 83 160 492 16.47% 31.75% 97.62% 2011 Table L A B11 301–400 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 303 321 2010 % of 328 hospitals 92.38% 303 92.38% 97.87% 323 98.48% 301 317 91.77% 96.65% 33 79 320 10.06% 24.09% 97.56% 89 139 323 27.13% 42.38% 98.48% 79 120 321 24.09% 36.59% 97.87% 2011 Table L A B12 401–500 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 171 176 2010 % of 182 hospitals 93.96% 170 93.41% 96.70% 176 96.70% 168 176 92.31% 96.70% 27 55 178 14.84% 30.22% 97.80% 54 84 180 29.67% 46.15% 98.90% 47 73 180 25.82% 40.11% 98.90% 2011 Table L A B13 501–600 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 119 119 2010 % of 122 hospitals 97.54% 119 97.54% 97.54% 120 98.36% 119 120 97.54% 98.36% 20 38 117 16.39% 31.15% 95.90% 36 58 118 29.51% 47.54% 96.72% 33 50 118 27.05% 40.98% 96.72% 2011 Table L A B14 600+ Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2009 146 145 2010 % of 150 hospitals 97.33% 146 97.33% 96.67% 143 95.33% 146 143 97.33% 95.33% 42 43 147 28.00% 28.67% 98.00% 77 87 148 51.33% 58.00% 98.67% 66 74 147 44.00% 49.33% 98.00% 2011 ▶▶ Laboratory Environment con tinued Table L A B15 2011 Anatomical Pathology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Blood Bank Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Laboratory–Molecular Diagnostics Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table L A B16 # for Contract Range Total Responding % of Total Responding 49 138 259 521 450 1,417 1,417 1,417 1,417 1,417 1,417 1,417 3.46% 9.74% 18.28% 36.77% 31.76% 100.00% 74 160 249 436 584 1,503 1,503 1,503 1,503 1,503 1,503 1,503 4.92% 10.65% 16.57% 29.01% 38.86% 100.00% 8 7 21 24 81 141 141 141 141 141 141 141 5.67% 4.96% 14.89% 17.02% 57.45% 100.00% 2011 Laboratory–Outreach Services Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Microbiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 6 12 49 58 188 313 313 313 313 313 313 313 1.92% 3.83% 15.65% 18.53% 60.06% 100.00% 89 198 422 606 617 1,932 1,931 1,931 1,931 1,931 1,931 1,932 4.61% 10.25% 21.85% 31.38% 31.95% 100.00% ▶▶ Operating Room (Surgery) In 2011, more than two thirds of U.S. hospitals have implemented all of the operating room (OR) suite of applications covered in this report—OR scheduling systems, peri-operative systems, pre-operative and post-operative systems (see Table OR1). The OR IT application market for U.S. hospitals showed growth of approximately three to four percent across all applications in this suite. The majority of hospitals that reported plans to purchase OR solutions will replace their existing solutions, driven by the availability of new products and upgraded versions of existing solutions (see Table OR2). Table OR1 | Operating Room N=4,289 2009 2010 Operating Room (Surgery) – Peri-Operative 57.64% 59.73% Operating Room (Surgery) – Post-Operative 58.14% 60.62% Operating Room (Surgery) – Pre-Operative 63.04% 64.75% OR Scheduling 65.54% 67.54% Percentage include installed, contracted or installation in process 2011 63.56% 64.84% 67.82% 70.44% An evaluation of hospital-type market segments in 2011 indicates that the highest growth by application is as follows: • Peri-operative: the rural hospital segment had the best year-overyear growth in 2011 at close to seven percent followed by critical access and single hospital systems (more than five percent each). The academic medical center segment continues to approach market saturation (more than 94 percent) (see Table OR3). • Post-operative: rural and critical access hospitals had the highest year-over-year growth for this segment in 2011; both had growth of almost seven percent. Single hospital systems closely followed at nearly six percent (see Table OR4). • Pre-operative: as with the peri-operative and post-operative applications, rural hospitals in the pre-operative market demonstrated the largest year-over-year growth at more than six percent, followed by critical access and single hospital systems (see Table OR5). • OR scheduling: rural hospitals, single hospitals and critical access hospitals showing the highest increases at more than five percent. Use of this technology is saturated among academic medical centers (see Table OR6). Table OR 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Operating Room (Surgery) – Peri-Operative 56 75.68% Operating Room (Surgery) – Post-Operative 57 77.03% Operating Room (Surgery) – Pre-Operative 58 79.45% OR Scheduling 58 82.86% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 18 17 15 12 % of Hospitals Planning to Purchase Software for the First Time 24.32% 22.97% 20.55% 17.14% Source: HIMSS Analytics® Database 2011 N = Total Number of Hospitals Planning 74 74 73 70 ©2012 HIMSS Analytics. 53 ▶▶ Operating Room (Surgery) con tinued Table OR3 | Operating Room (Surgery) – Peri-Operative 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 168 2,304 1,857 615 327 2,145 260 2,212 1,661 811 2,472 Percent 87.05% 56.24% 74.07% 34.51% 28.31% 68.44% 25.82% 67.40% 64.23% 47.62% 57.64% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 177 2,385 1,897 665 373 2,189 301 2,261 1,687 875 2,562 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 175 2,425 1,910 690 399 2,201 328 2,272 1,698 902 2,600 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 2,594 2,032 745 438 2,339 355 2,422 1,802 975 2,777 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 2,708 2,110 787 470 2,427 371 2,526 1,898 999 2,897 Percent 92.19% 58.21% 75.67% 37.32% 32.29% 69.85% 29.89% 68.89% 65.24% 51.38% 59.73% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 182 2,544 1,982 744 441 2,285 369 2,357 1,763 963 2,726 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 180 2,601 2,004 777 475 2,306 398 2,383 1,777 1,004 2,781 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 185 2,724 2,099 810 500 2,409 418 2,491 1,847 1,062 2,909 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 190 2,831 2,178 843 530 2,491 435 2,586 1,930 1,091 3,021 Percent 94.79% 62.09% 79.06% 41.75% 38.18% 72.91% 36.64% 71.82% 68.17% 56.55% 63.56% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table OR4 | Operating Room (Surgery) – Post-Operative 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 165 2,329 1,859 635 349 2,145 279 2,215 1,665 829 2,494 Percent 85.94% 56.85% 74.15% 35.63% 30.22% 68.44% 27.71% 67.49% 64.39% 48.68% 58.15% 2010 Percent 91.15% 59.19% 76.19% 38.72% 34.55% 70.23% 32.57% 69.23% 65.66% 52.97% 60.62% 2011 Percent 93.75% 63.49% 79.94% 43.60% 41.13% 73.58% 39.52% 72.61% 68.72% 58.95% 64.84% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table OR5 | Operating Room (Surgery) – Pre-Operative 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 181 2,523 2,005 699 388 2,316 310 2,394 1,792 912 2,704 Percent 94.27% 61.58% 79.98% 39.23% 33.59% 73.90% 30.78% 72.94% 69.30% 53.55% 63.04% 2010 Percent 95.31% 63.31% 81.05% 41.81% 37.92% 74.63% 35.25% 73.80% 69.68% 57.25% 64.75% 2011 Percent 96.35% 66.49% 83.73% 45.45% 43.29% 76.87% 41.51% 75.90% 71.42% 62.36% 67.82% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table OR6 | OR Scheduling 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 184 2,627 2,065 746 431 2,380 334 2,477 1,874 937 2,811 Percent 95.83% 64.12% 82.37% 41.86% 37.32% 75.94% 33.17% 75.47% 72.47% 55.02% 65.54% 2010 54 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 98.44% 66.10% 84.16% 44.16% 40.69% 77.44% 36.84% 76.97% 73.40% 58.66% 67.54% 2011 Percent 98.96% 69.10% 86.88% 47.31% 45.89% 79.48% 43.20% 78.79% 74.63% 64.06% 70.44% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Operating Room (Surgery) con tinued The analysis of the OR market by bed size in 2011 suggests growth in the following areas (see Tables OR7–OR13): • 0–100 beds: all OR applications showed a growth of four to five percent in this bed segment, most likely driven by the general increased number of OR applications implemented in critical access hospitals (see Table OR7). • 101–200 beds: all OR applications indicated a growth of two to nearly four percent in this bed segment. OR scheduling and postoperative demonstrated the largest growth at more than three percent (see Table OR8). • 201–300 beds: growth of all OR applications in this bed segment was less than one percent between 2010 and 2011; the exception was OR scheduling, where there was no growth (see Table OR9). • 301–400 beds: the percent of post-operative implementation increased by four percent from 2010 to 2011. All other OR applications indicated a growth of one percent to three percent in the same timeframe (see Table OR10). Table OR7 0–100 Beds OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 776 799 883 925 35.58% 36.63% 40.49% 42.41% 2010 2011 % of 2,181 Hospitals 834 38.24% 948 43.47% 869 39.84% 995 45.62% 948 43.47% 1,047 48.01% 997 45.71% 1,085 49.75% OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 612 616 654 679 74.45% 74.94% 79.56% 82.60% 2010 % of 822 hospitals 608 73.97% 617 75.06% 651 79.20% 679 82.60% 2011 633 646 673 709 77.01% 78.59% 81.87% 86.25% 2009 403 403 444 463 79.96% 79.96% 88.10% 91.87% 2010 % of 504 hospitals 421 83.53% 424 84.13% 449 89.09% 469 93.06% 2011 425 426 451 469 84.33% 84.52% 89.48% 93.06% Table OR10 301–400 Beds OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 2009 276 279 297 313 84.15% 85.06% 90.55% 95.43% 2010 % of 328 hospitals 277 84.45% 278 84.76% 297 90.55% 310 94.51% 2011 288 292 305 313 87.80% 89.02% 92.99% 95.43% Table OR11 401–500 Beds OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 2009 157 152 169 172 86.26% 83.52% 92.86% 94.51% 2010 % of 182 hospitals 167 91.76% 161 88.46% 171 93.96% 175 96.15% 2011 168 163 170 177 92.31% 89.56% 93.41% 97.25% Table OR12 501–600 Beds OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 600+ Beds OR (Surgery) – Peri-Operative OR (Surgery) – Post-Operative OR (Surgery) – Pre-Operative OR Scheduling 2009 137 136 141 142 91.33% 90.67% 94.00% 94.67% 2010 % of 150 hospitals 141 94.00% 139 92.67% 144 96.00% 148 98.67% 2011 146 144 146 149 97.33% 96.00% 97.33% 99.33% Table OR14 2009 Table OR9 201–300 Beds Evaluating the contract purchasing timeframes that include 2011 data, more than 80 percent of the contracts were signed between 2000 and 2011 across all OR applications (see Tables OR14 and OR15). Table OR13 2009 Table OR8 101–200 Beds • 401–500 beds: post-operative and OR scheduling applications indicated the highest year-over-year growth from 2010 to 2011, at approximately one percent. Pre-operative applications are the only OR application to indicate a decrease from 2010 (less than one percent) (see Table OR11). • 501–600 beds: peri-operative and post-operative applications indicated a two to three percent growth in this bed segment with post-operative and OR scheduling remaining unchanged from the 2010 (see Table OR12). • Over 600 beds: all OR applications have reached market saturation (95 percent or better) in 2011. Peri-operative and post-operative demonstrated the best year-over-year growth in this segment at more than three percent from 2010 to 2011 (see Table OR13). 2009 111 109 116 117 90.98% 89.34% 95.08% 95.90% 2010 % of 122 hospitals 114 93.44% 112 91.80% 117 95.90% 119 97.54% 2011 118 115 117 119 # for Contract 2011 Range Operating Room (Surgery) – Peri-Operative Prior to 1990 13 1990 to 1994 37 1995 to 1999 179 2000 to 2004 651 2005 to 2011 725 Total 1605 Operating Room (Surgery) – Post-Operative Prior to 1990 7 1990 to 1994 44 1995 to 1999 187 2000 to 2004 654 2005 to 2011 737 Total 1629 Operating Room (Surgery) – Pre-Operative Prior to 1990 22 1990 to 1994 72 1995 to 1999 253 2000 to 2004 733 2005 to 2011 744 Total 1824 Total Responding % of Total Responding 1604 1604 1604 1604 1604 1605 0.81% 2.31% 11.16% 40.59% 45.20% 100.00% 1629 1629 1629 1629 1629 1629 0.43% 2.70% 11.48% 40.15% 45.24% 100.00% 1824 1824 1824 1824 1824 1824 1.21% 3.95% 13.87% 40.19% 40.79% 100.00% # for Contract Range Total Responding % of Total Responding 17 56 216 675 808 1772 1770 1770 1770 1770 1770 1772 0.96% 3.16% 12.20% 38.14% 45.65% 100.00% Table OR15 2010 OR Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2010 Total 96.72% 94.26% 95.90% 97.54% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 55 ▶▶ Operating Room (Surgery) con tinued Market Drivers/Future Outlook The OR IT application market for U.S. hospitals has been and will continue to be impacted by some countervailing forces through 2015 by: • An increased need to capture, share, manage, analyze, and report OR data to improve processes and drive down costs, some of which will be for ARRA measurement reporting and to prepare the organization to price appropriately to accept more bundled pricing risk in an ACO environment. • An increased need to track and report quality outcomes for ARRA measurement reporting, which will likely extend into the OR environment in the later stages of measurement. • A continuing focus on reducing medical and medication errors at point of care and during surgery procedures, which is again likely to be tied to ARRA reporting measures. • A continued need to improve efficiency and optimize surgeons’ time in the highly competitive surgical environment. • One of the last bastions of paper in hospitals is interoperative anesthesia notes. Anesthesiologists are not likely to move to a paperless environment if the rest of the OR suite is not automated. • Increasingly stringent claims coding and supporting documentation requirements mandated by federal regulations and public and private reimbursement requirements. • Intense competition for limited capital funds, which are likely to be allocated to higher priority applications, such as EMR and financial projects (e.g., version 5010 EDI transactions, and ICD-10-PCS encoding conversions), may slow this market through at least 2015. • An increased consumer demand to access and evaluate hospital service performance indicators related to hospital performance scorecards. ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment From 2010 to 2011, the applications tracked in the hospital-owned/ managed ambulatory IT market showed growth of less than one percent to five percent, with the exception of ambulatory PACS which decreased by more than two percent (see Table AH1). It is reasonable to assume that an increase in the use of ambulatory electronic medical records (AEMRs) can be traced to hospitals and clinics having better understanding of the meaningful use metrics released in 2010. Practice management is the only ambulatory IT application that has achieved market saturation (installation rates of 95 percent or better). With respect to purchasing plans, almost all ambulatory EMRs will be first-time purchases; the majority of practice management systems and radiology systems purchases will be replacement purchases (see Table AH2). As only a handful of purchases were Table A H1 | Ambulatory N = 18,335 2009 2010 Ambulatory EMR 53.98% 57.50% Ambulatory Laboratory 15.71% 17.99% Ambulatory PACS* 52.78% 59.41% Ambulatory Pharmacy 5.92% 6.40% Ambulatory Radiology 16.19% 17.63% Practice Management 96.94% 97.08% Percentage include installed, contracted or installation in process *N = 3,354 Based on ambulatory facilities doing imaging on site 2011 62.26% 19.33% 56.54% 6.61% 18.48% 97.46% identified for laboratory, PACS and pharmacy, it is not possible to make an assessment of whether these markets are replacement or first-time purchase markets. The tempered growth in AEMR purchasing by hospitals in 2010 was the lack of clarity around the ARRA provisions which defined the eligibility of “hospital-based physicians” for EMR adoption incentives. Although intended to exclude hospitalists, pathologists, ED physicians and others who used only the hospital’s inpatient EMR, many believed that the restrictive language inadvertently limited the ability of physicians employed in hospital-owned ambulatory practices to qualify for incentives. It was not until the release of the Meaningful Use Stage 1 Final Rule in July that the qualifying criteria were clarified and hospitals were assured that such physicians would qualify. The Stage One of the meaningful use definition was finalized in 2010, thus clarifying the need to purchase AEMRs. It is expected that AEMR purchases will continue to increase over the next few years. As with the acute care side, we are concerned about whether the industry has the number of implementation professionals that will be required to meet the ARRA meaningful use measurements for 2011, 2014 and 2015. Many vendors are reporting many months’ delay to begin an implementation after contract signing. Table A H2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Ambulatory EMR 20 8.37% Ambulatory Laboratory 1 100.00% Ambulatory PACS 1 50.00% Ambulatory Pharmacy 1 100.00% Ambulatory Radiology 10 100.00% Practice Management 52 83.87% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated 56 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 219 0 1 0 0 10 % of Hospitals Planning to Purchase Software for the First Time 91.63% 0.00% 50.00% 0.00% 0.00% 16.13% N = Total Number of Hospitals Planning 239 1 2 1 10 62 ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment con tinued An evaluation of market segments provides the following market insights for 2011. Please note that in this market segment, HIMSS Analytics tracks data in the following categories: urban vs. rural and multi- vs. single hospital system ownership/management of the ambulatory facility: • Ambulatory EMR: ambulatory facilities owned by single hospital systems demonstrated year-over-year growth at more than six percent (see Table AH3). Ambulatory facilities owned/managed in the rural segment had growth of more than five percent. • Ambulatory laboratory: growth is minimal (about one percent) across all segments, except ambulatory facilities owned by single hospital systems; growth in this market was approximately three percent (see Table AH4). • Ambulatory PACS: the adoption of this solution decreased across all segments by one to four percent. Ambulatory facilities owned by multi-hospital systems showed the largest decrease (see Table AH5). • Ambulatory pharmacy: growth among ambulatory facilities that are owned by single hospital systems was approximately one percent; almost all of the remaining segments demonstrated market growth of less than one percent in the past year, except facilities owned by multi-hospital systems, where a slight decrease was noted (see Table AH6). • Ambulatory radiology: all segments indicated growth of two percent or less, with the largest growth among those facilities that are part of a single hospital system (see Table AH7). • Practice management: every segment tracked in this report has market utilization at 95 percent or greater. Therefore, growth was minimal, at less than one percent in each segment (see Table AH8). Table A H3 | Ambulatory EMR 2009 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 1,170 8,727 6,717 3,180 9,897 Percent 46.89% 55.09% 57.36% 48.00% 53.98% 2010 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 1,361 9,182 6,985 3,558 10,543 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 332 2,966 2,156 1,142 3,298 Total Count 320 3,134 2,318 1,136 3,454 Segment Count 136 1,916 1,443 609 2,052 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 85 1,089 858 316 1,174 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 276 2,957 2,150 1,083 3,233 Percent 54.55% 57.97% 59.65% 53.71% 57.50% 2011 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 1,493 9,923 7,446 3,970 11,416 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 368 3,176 2,198 1,346 3,544 Total Count 320 3,134 2,318 1,136 3,454 Segment Count 133 1,820 1,355 598 1,953 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 102 1,110 820 392 1,212 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 305 3,084 2,169 1,220 3,389 Percent 59.84% 61.65% 63.59% 59.92% 62.26% Total Count 2,495 15,840 11,710 6,625 18,335 Table A H4 | Ambulatory Laboratory 2009 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 269 2,612 1,854 1,027 2,881 Percent 10.78% 16.49% 15.83% 15.50% 15.71% 2010 Percent 13.31% 18.72% 18.41% 17.24% 17.99% 2011 Percent 14.75% 20.05% 18.77% 20.32% 19.33% Total Count 2,495 15,840 11,710 6,625 18,335 Table A H5 | Ambulatory PACS 2009 Type Rural Urban Multi-Hospital System Single Hospital System All * Based on ambulatory facilities doing imaging on site Segment Count 115 1,708 1,285 538 1,823 Percent 35.94% 54.50% 55.44% 47.36% 52.78% 2010 Percent 42.50% 61.14% 62.25% 53.61% 59.41% 2011 Percent 41.56% 58.07% 58.46% 52.64% 56.54% Total Count 320 3,134 2,318 1,136 3,454 Table A H6 | Ambulatory Pharmacy 2009 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 90 996 820 266 1,086 Percent 3.61% 6.29% 7.00% 4.02% 5.92% 2010 Percent 3.41% 6.88% 7.33% 4.77% 6.40% 2011 Percent 4.09% 7.01% 7.00% 5.92% 6.61% Total Count 2,495 15,840 11,710 6,625 18,335 Table A H7 | Ambulatory Radiology 2009 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 239 2,730 1,967 1,002 2,969 Percent 9.58% 17.23% 16.80% 15.12% 16.19% 2010 Percent 11.06% 18.67% 18.36% 16.35% 17.63% 2011 Source: HIMSS Analytics® Database 2011 Percent 12.22% 19.47% 18.52% 18.42% 18.48% Total Count 2,495 15,840 11,710 6,625 18,335 ©2012 HIMSS Analytics. 57 ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment con tinued Table A H8 | Practice Management 2009 Segment Count 2,350 15,424 11,442 6,332 17,774 Type Rural Urban Multi-Hospital System Single Hospital System All 2010 Percent 94.19% 97.37% 97.71% 95.58% 96.94% Total Count 2,495 15,840 11,710 6,625 18,335 Nearly three-quarters of ambulatory EMR contracts were signed between 2005 and 2011, as were more than half of the ambulatory PACS contracts. Approximately one third of ambulatory laboratory, ambulatory pharmacy and practice management contracts were signed in the 2000 to 2004 timeframe (see Table AH9–AH10). Applications that were contracted before 2000, such as practice management, would be entering a stage when the hospitals may begin to evaluate them for replacement. Table A H9 # for Contract Range Total Responding % of Total Responding 5,815 5,815 5,815 5,815 5,815 5,815 0.64% 0.60% 3.92% 22.89% 71.89% 100.00% 1,145 1,145 1,145 1,145 1,145 1,145 4.37% 6.46% 14.32% 35.20% 39.65% 100.00% 415 415 415 415 415 415 0.00% 0.00% 4.34% 40.24% 56.14% 100.00% # for Contract Range Total Responding % of Total Responding 2 4 54 118 150 328 328 328 328 328 328 328 0.61% 1.22% 16.46% 35.98% 45.73% 100.00% 4 20 133 642 492 1,291 1,291 1,291 1,291 1,291 1,291 1,291 0.31% 1.55% 10.30% 49.73% 38.11% 100.00% 205 565 1,876 3,078 3,995 9,708 9,708 9,708 9,708 9,708 9,708 9,708 2.11% 5.82% 19.32% 31.71% 41.15% 100.00% 2011 Ambulatory EMR Prior to 1990 37 1990 to 1994 35 1995 to 1999 228 2000 to 2004 1,331 2005 to 2011 4,184 Total 5,815 Ambulatory Laboratory Prior to 1990 50 1990 to 1994 74 1995 to 1999 164 2000 to 2004 403 2005 to 2011 454 Total 1,145 Ambulatory PACS* Prior to 1990 0 1990 to 1994 0 1995 to 1999 18 2000 to 2004 167 2005 to 2011 233 Total 415 * Based on ambulatory facilities doing imaging on site Table A H10 2011 Ambulatory Pharmacy Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Ambulatory Radiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Practice Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total 58 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Segment Count 2,374 15,425 11,427 6,372 17,799 Percent 95.15% 97.38% 97.58% 96.18% 97.08% 2011 Total Count 2,495 15,840 11,710 6,625 18,335 Segment Count 2,392 15,478 11,471 6,399 17,870 Percent 95.87% 97.71% 97.96% 96.59% 97.46% Total Count 2,495 15,840 11,710 6,625 18,335 The impending deadline for conversion to ICD-10 coding will require a major upgrade to these legacy practice management applications. Since many practices now will be selecting their first ambulatory EMR, we foresee that these purchases will be combined for many organizations. Further, the drive toward integrated systems to support continuity of care and possibly a shared savings reimbursement environment will drive many organizations to select an ambulatory EMR, a practice management system and an acute care clinical system from the same vendor. Market Drivers/Future Outlook The hospital-owned/managed ambulatory IT application market has been and will continue to be impacted through 2015 by: • The need to comply with ARRA meaningful use criteria to achieve funding for AEMR implementations or recover AEMR investments already made. • The need to facilitate the interoperable flow of information between the acute care and ambulatory environments, as well as with external HIE entities, which will be essential to receive meaningful use incentive payments beyond Stage 1. • The need to facilitate the interoperable flow of information between the acute care and ambulatory environments for both clinical and financial applications to support a shared savings / bundled payment environment. • Completion of practice management system upgrades in time for the ICD-10 implementation deadline. • Growing efforts of HIE projects, and the ability to create, manage, and exchange patient summary data from all modalities of patient care. • The need to better track episodes of care for quality outcomes and pay-for-performance reimbursement models, especially for the ARRA meaningful use criteria, patient-centered medical home and ACOs. • Access to capital by hospitals to make application purchases for their ambulatory environments (this will be easier for ambulatory facilities owned by hospitals than for stand-alone/independent clinics, which may drive further market consolidation of clinics and ambulatory services and hospitals). • Relaxation of the Stark Laws related to hospital subsidies for ambulatory practice EMR purchases, which are set to expire in 2013. • Ongoing activity with respect to standards adoption and government mandates to ensure interoperability will lead to frequent version upgrades of installed products. • Usability of HIT systems that will accommodate a variety of clinical specialties in addition to primary care clinicians. • Consumer demands for personal health information and patient safety derived from the AEMR. • Increase in consumer demands to have emerging technologies (i.e., mobile health or mHealth) available to communicate with clinicians and manage their healthcare. • Shortages of trained HIT professionals available to assist ambulatory clinics in meeting the implementation and reporting meaningful use requirements. ▶▶ Radiology PACS Growth in the radiology picture archive and communications system (R-PACS) market continued at a slight to moderate pace in 2011 (see Table RP1). Growth was strongest for the digital mammography modality, which increased approximately eight percent over the past year. The lowest growth was for angiography at approximately one percent. Computed radiography (CR), computerized tomography (CT), and ultrasound are approaching market saturation at nearly 90 percent adoption level in 2011. With the exception of orthopedic, the majority of R-PACS modality planned purchases continue to be first-time purchases (see Table RP2). Slightly more than half of planned purchase for orthopedic solutions will replace existing solutions. While this is a market that continues to offer good growth opportunities, it would be expected that replacement purchases for R-PACS will continue to increase due to the consolidation of the market vendors and products. Additionally, new technologies which support 3D imagery will begin to create obsolescence for some of the existing solutions. Generally speaking, academic/teaching hospitals have the highest rates of adoption across all modalities and this segment has achieved market saturation (95 percent of the market or better) for all modalities except digital mammography and orthopedics. Medical/surgical hospitals are also approaching market saturation (90 percent to 95 percent) for computed radiography, magnetic resonance imaging (MRI) and nuclear medicine; and have achieved market saturation for computerized tomography and ultrasound. The top segments that showed the highest growths by modality from 2010 to 2011 are: • Angiography: at slightly more than two percent, rural hospitals demonstrated the highest growth in this market. Other hospital segments indicated a growth of approximately one percent (see Table RP3). • Computed radiography: rural hospitals and critical access hospitals reported growth of more than six percent from in the past year. All other segments indicated growth ranging less than one percent (academic medical centers) to four percent (see Table RP4). • Computerized tomography: the highest growth reported for computerized tomography is among rural hospitals and critical access hospitals; each demonstrated growth of approximately six percent. Market saturation has been reached among academic hospitals and general medical/surgical hospitals (see Table RP5). • Digital fluoroscopy: rural and critical access hospitals reported the two highest increases at more than four percent. Growth among other non-medical/surgical hospitals was slightly more than three percent (see Table RP6). • Digital mammography: all segments showed good growth (more than five percent growth) from 2010 to 2011; nine percent growth was achieved among general medical/surgical hospitals, critical access hospitals, rural hospitals, and single hospitals (see Table RP7). • Digital radiography: rural hospitals indicated a growth of more than five percent followed by critical access hospitals at more than four percent. All other segments indicated growth that ranged from one percent to three percent (see Table RP8). • Magnetic resonance imaging: rural hospitals reported the highest year-over-year increase at six percent followed by critical access hospitals at five percent. Market saturation has been achieved among academic/teaching hospitals (see Table RP9). • Nuclear medicine: rural and critical access hospitals demonstrated the largest increase at more than five percent, each. Academic/teaching hospitals have achieved market saturation and there was no growth in this segment in the past year (see Table RP10). • Orthopedic: with the exception of academic/teaching hospitals, growth for this modality was between four and six percent. Growth in the academic/teaching hospital segment had increased by slightly more than two percent (see Table RP11). • Ultrasound: rural hospitals and critical access hospitals indicated moderate growth (six to seven percent) while the other segments indicated growth from one percent to five percent (see Table RP12). Table RP1 | R-PACS N=4,289 2009 2010 Angiography 63.16% 64.16% Computed Radiography (CR) 79.90% 82.98% Computerized Tomography (CT) 81.02% 84.61% Digital Fluoroscopy (DF) 69.50% 71.79% Digital Mammography 41.80% 50.52% Digital Radiography (DR) 71.65% 74.68% Magnetic Resonance Imaging (MRI) 76.08% 79.25% Nuclear Medicine 71.21% 73.91% Orthopedic 37.09% 42.46% Ultrasound (US) 79.20% 82.96% Percentage include installed, contracted or installation in process 2011 65.45% 86.20% 87.04% 74.33% 58.48% 77.36% 81.60% 75.99% 47.35% 86.17% Table rp 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Angiography 4 26.67% Computed Radiography (CR) 4 33.33% Computerized Tomography (CT) 5 27.78% Digital Fluoroscopy (DF) 4 30.77% Digital Mammography 2 12.50% Digital Radiography (DR) 4 28.57% Magnetic Resonance Imaging (MRI) 3 21.43% Nuclear Medicine 3 20.00% Orthopedic 8 57.14% Ultrasound (US) 3 23.08% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 11 8 13 9 14 10 11 12 6 10 % of Hospitals Planning to Purchase Software for the First Time 73.33% 66.67% 72.22% 69.23% 87.50% 71.43% 78.57% 80.00% 42.86% 76.92% Source: HIMSS Analytics® Database 2011 N = Total Number of Hospitals Planning 15 12 18 13 16 14 14 15 14 13 ©2012 HIMSS Analytics. 59 ▶▶ Radiology PACS con tinued Table RP 3 | Angiography 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 185 2,524 2,003 706 383 2,326 333 2,376 1,833 876 2,709 Percent 96.35% 61.61% 79.90% 39.62% 33.16% 74.22% 33.07% 72.39% 70.88% 51.44% 63.16% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 185 2,567 2,033 719 396 2,356 340 2,412 1,851 901 2,752 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 3,371 2,284 1,275 830 2,729 703 2,356 2,165 1,394 3,559 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,438 2,356 1,273 902 2,727 763 2,866 2,154 1,475 3,629 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 184 2,895 2,177 902 554 2,525 470 2,609 1,973 1,106 3,079 Percent 96.35% 62.66% 81.09% 40.35% 34.29% 75.18% 33.76% 73.49% 71.58% 52.91% 64.16% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 186 2,621 2,078 729 418 2,389 365 2,442 1,894 913 2,807 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 2,508 2,339 1,358 903 2,794 772 2,925 2,247 1,450 3,697 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,542 2,407 1,326 970 2,763 828 2,905 2,209 1,524 3,733 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 185 3,003 2,231 957 603 2,585 513 2,675 2,037 1,151 3,188 Percent 96.88% 63.97% 82.89% 40.91% 36.19% 76.23% 36.25% 74.41% 73.24% 53.61% 65.45% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP4 | Computed Radiography (CR) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 188 3,239 2,224 1,203 760 2,667 654 2,773 2,114 1,313 3,427 Percent 97.92% 79.06% 88.71% 67.51% 65.80% 85.10% 64.95% 84.49% 81.75% 77.10% 79.90% 2010 Percent 97.92% 82.28% 91.10% 71.55% 71.86% 87.08% 69.81% 87.02% 83.72% 81.86% 82.98% 2011 Percent 98.44% 85.62% 93.30% 76.21% 78.18% 89.15% 76.66% 89.12% 86.89% 85.14% 86.20% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP5 | Computerized Tomography (CT) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 190 3,285 2,286 1,189 824 2,651 708 2,767 2,092 1,385 3,475 Percent 98.96% 80.18% 91.18% 66.72% 71.34% 84.59% 70.31% 84.31% 80.82% 81.33% 81.02% 2010 Percent 99.48% 83.92% 93.98% 71.44% 78.10% 87.01% 75.77% 87.32% 83.29% 86.61% 84.61% 2011 Percent 99.48% 86.45% 96.01% 74.41% 83.98% 88.16% 82.22% 88.51% 85.42% 89.49% 87.04% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP 6 | Digital Fluoroscopy (DF) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 183 2,798 2,112 869 522 2,459 452 2,529 1,923 1,058 2,981 Percent 95.31% 68.29% 84.24% 48.77% 45.19% 78.46% 44.89% 77.06% 74.36% 62.13% 69.50% 2010 60 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 95.83% 70.66% 86.84% 50.62% 47.97% 80.57% 46.67% 79.49% 76.30% 64.94% 71.79% 2011 Percent 96.35% 73.30% 88.99% 53.70% 52.21% 82.48% 50.94% 81.51% 78.77% 67.59% 74.33% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Radiology PACS con tinued Table RP7 | Digital Mammography 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 129 1,664 1,302 491 304 1,489 242 1,551 1,166 627 1,793 Percent 67.19% 40.62% 51.93% 27.55% 26.32% 47.51% 24.03% 47.26% 45.09% 36.82% 41.80% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 138 2,029 1,556 611 414 1,753 327 1,840 1,375 792 2,167 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 186 3,017 2,179 1,024 608 2,595 519 2,684 2,046 1,157 3,203 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 3,211 2,294 1,105 762 2,637 640 2,759 2,071 1,328 3,399 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 2,987 2,255 915 588 2,582 509 2,661 1,993 1,177 3,170 Percent 71.88% 49.52% 62.07% 34.29% 35.84% 55.93% 32.47% 56.06% 53.17% 46.51% 50.52% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 149 2,359 1,785 723 526 1,982 426 2,082 1,561 947 2,508 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 187 3,131 2,237 1,081 661 2,657 571 2,747 2,105 1,213 3,318 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,311 2,350 1,150 820 2,680 703 2,797 2,130 1,370 3,500 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 183 3,076 2,301 958 647 2,612 563 2,696 2,041 1,218 3,259 Percent 77.60% 57.58% 71.20% 40.57% 45.54% 63.24% 42.30% 63.44% 60.36% 55.61% 58.48% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP 8 | Digital Radiography (DR) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 185 2,888 2,105 968 552 2,521 479 2,594 1,983 1,090 3,073 Percent 96.35% 70.49% 83.96% 54.32% 47.79% 80.44% 47.57% 79.04% 76.68% 64.00% 71.65% 2010 Percent 96.88% 73.64% 86.92% 57.46% 52.64% 82.80% 51.54% 81.78% 79.12% 67.94% 74.68% 2011 Percent 97.40% 76.42% 89.23% 60.66% 57.23% 84.78% 56.70% 83.70% 81.40% 71.23% 77.36% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP 9 | Magnetic Resonance Imaging (MRI) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 187 3,076 2,234 1,029 693 2,570 594 2,669 2,014 1,249 3,263 Percent 97.40% 75.08% 89.11% 57.74% 60.00% 82.00% 58.99% 81.32% 77.88% 73.34% 76.08% 2010 Percent 97.92% 78.37% 91.50% 62.01% 65.97% 84.14% 63.56% 84.06% 80.09% 77.98% 79.25% 2011 Percent 98.44% 80.82% 93.74% 64.53% 71.00% 85.51% 69.81% 85.22% 82.37% 80.45% 81.60% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP10 | Nuclear Medicine 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 182 2,872 2,195 859 535 2,519 476 2,578 1,944 1,110 3,054 Percent 94.79% 70.10% 87.55% 48.20% 46.32% 80.38% 47.27% 78.55% 75.17% 65.18% 71.21% 2010 Percent 95.31% 72.91% 89.95% 51.35% 50.91% 82.39% 50.55% 81.08% 77.07% 69.11% 73.91% 2011 Source: HIMSS Analytics® Database 2011 Percent 95.31% 75.08% 91.78% 53.76% 56.02% 83.34% 55.91% 82.15% 78.92% 71.52% 75.99% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 61 ▶▶ Radiology PACS con tinued Table RP11 | Orthopedic 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 123 1,468 1,115 476 256 1,335 204 1,387 1,025 566 1,591 Percent 64.06% 35.83% 44.48% 26.71% 22.16% 42.60% 20.26% 42.26% 39.64% 33.24% 37.09% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 134 1,687 1,276 545 304 1,517 237 1,584 1,156 665 1,821 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 189 3,369 2,336 1,222 861 2,697 726 2,832 2,124 1,434 3,558 Percent 69.79% 41.18% 50.90% 30.58% 26.32% 48.40% 23.54% 48.26% 44.70% 39.05% 42.46% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 139 1,892 1,416 615 364 1,667 293 1,738 1,268 763 2,031 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 190 3,506 2,390 1,306 938 2,758 799 2,897 2,209 1,487 3,696 Percent 72.40% 46.18% 56.48% 34.51% 31.52% 53.19% 29.10% 52.96% 49.03% 44.80% 47.35% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table RP12 | Ultrasound (US) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 188 3,209 2,270 1,127 771 2,626 662 2,735 2,054 1,343 3,397 Percent 97.92% 78.33% 90.55% 63.24% 66.75% 83.79% 65.74% 83.33% 79.43% 78.86% 79.20% 2010 When looking at bed-size growth in the R-PACS market, growth will be greater among smaller hospitals; a higher percent of hospitals with 100 beds or fewer adopted technology in the past year, compared to larger hospitals. It is likely that the higher level of adoption in this bed segment is being driven primarily by adoption of this technology among rural and critical access hospitals. The following list represents the modalities with the greatest implementation growth by bed segment: • 0–100 beds: digital mammography reported the highest year-overyear increase (nine percent). Growth for the remaining modalities is between three and five percent, with the exception being angiography, at one percent (see Table RP13). • 101–200 beds: the largest growth was among the digital mammography and orthopedic modalities (almost ten and six percent respectively) in the past year (see Table RP14). • 201–300 beds: digital mammography and orthopedics are the only modalities to indicate a substantial increase (more than five percent), while the adoption of other modalities was less than two percent (see Table RP15). 62 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 98.44% 82.23% 93.18% 68.57% 74.55% 86.06% 72.10% 86.29% 82.13% 84.20% 82.96% 2011 Percent 98.96% 85.57% 95.33% 73.29% 81.21% 88.00% 79.34% 88.27% 85.42% 87.32% 86.17% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 • 301–400 beds: digital mammography indicated an increase of nearly six percent, followed orthopedics at three percent. Computerized tomography, MRI, nuclear medicine and ultrasound did not show any growth in this segment in the past year (see Table RP16). • 401–500 beds: digital mammography and orthopedics each showed a growth of approximately four percent. Use of angiography, computed radiography and digital fluoroscopy declined in this segment in the past year (see Table RP17). • 501–600 beds: digital mammography and orthopedic are the only modalities that showed significant increases in this segment in the past year (see Table RP18). • Over 600 beds: orthopedic and digital mammography each reported the highest year-over-year growth at approximately seven percent. Growth among the remaining modalities was negligible (see Table RP19). ▶▶ Radiology PACS con tinued Table RP13 0–100 Beds Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) Table RP18 2009 882 1,482 1,516 1,120 593 1,199 1,330 1,136 525 1,445 40.44% 67.95% 69.51% 51.35% 27.19% 54.97% 60.98% 52.09% 24.07% 66.25% 2010 2011 % of 2,181 hospitals 904 41.45% 931 42.69% 1,577 72.31% 1,693 77.62% 1,622 74.37% 1,711 78.45% 1,176 53.92% 1,254 57.50% 778 35.67% 966 44.29% 1,282 58.78% 1,371 62.86% 1,426 65.38% 1,504 68.96% 1,210 55.48% 1,283 58.83% 616 28.24% 716 32.83% 1,562 71.62% 1,682 77.12% Table RP14 101–200 Beds Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) 649 729 727 681 409 684 712 707 380 720 78.95% 88.69% 88.44% 82.85% 49.76% 83.21% 86.62% 86.01% 46.23% 87.59% 2010 % of 822 hospitals 653 79.44% 750 91.24% 753 91.61% 701 85.28% 493 59.98% 715 86.98% 733 89.17% 731 88.93% 424 51.58% 745 90.63% 2011 669 767 765 722 571 733 752 745 472 760 81.39% 93.31% 93.07% 87.83% 69.46% 89.17% 91.48% 90.63% 57.42% 92.46% 2009 443 460 468 447 282 451 466 461 237 472 87.90% 91.27% 92.86% 88.69% 55.95% 89.48% 92.46% 91.47% 47.02% 93.65% 2010 % of 504 hospitals 450 89.29% 469 93.06% 483 95.83% 457 90.67% 324 64.29% 457 90.67% 476 94.44% 473 93.85% 278 55.16% 482 95.63% 2011 458 474 486 464 353 460 479 475 305 485 90.87% 94.05% 96.43% 92.06% 70.04% 91.27% 95.04% 94.25% 60.52% 96.23% Table RP16 301–400 Beds Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) 2009 297 310 315 300 202 303 313 309 173 312 90.55% 94.51% 96.04% 91.46% 61.59% 92.38% 95.43% 94.21% 52.74% 95.12% 2010 % of 328 hospitals 303 92.38% 317 96.65% 321 97.87% 309 94.21% 233 71.04% 308 93.90% 318 96.95% 315 96.04% 194 59.15% 319 97.26% 2011 306 318 321 312 252 312 318 315 205 319 93.29% 96.95% 97.87% 95.12% 76.83% 95.12% 96.95% 96.04% 62.50% 97.26% Table RP17 401–500 Beds Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) 2009 119 121 121 117 81 120 121 119 72 120 97.54% 99.18% 99.18% 95.90% 66.39% 98.36% 99.18% 97.54% 59.02% 98.36% 2010 % of 122 hospitals 119 97.54% 121 99.18% 121 99.18% 118 96.72% 92 75.41% 120 98.36% 121 99.18% 119 97.54% 77 63.11% 121 99.18% 2011 119 121 121 119 101 120 121 119 83 121 97.54% 99.18% 99.18% 97.54% 82.79% 98.36% 99.18% 97.54% 68.03% 99.18% Table RP19 2009 Table RP15 201–300 Beds 501–600 Beds 2009 175 177 178 174 124 172 175 176 113 178 96.15% 97.25% 97.80% 95.60% 68.13% 94.51% 96.15% 96.70% 62.09% 97.80% 2010 % of 182 hospitals 176 96.70% 177 97.25% 179 98.35% 175 96.15% 132 72.53% 174 95.60% 177 97.25% 176 96.70% 124 68.13% 179 98.35% 2011 175 176 179 172 140 175 177 176 131 179 600+ Beds Angiography Computed Radiography (CR) Computerized Tomography (CT) Digital Fluoroscopy (DF) Digital Mammography Digital Radiography (DR) Magnetic Resonance Imaging (MRI) Nuclear Medicine Orthopedic Ultrasound (US) 2009 144 96.00% 148 98.67% 150 100.00% 142 94.67% 102 68.00% 144 96.00% 146 97.33% 146 97.33% 91 60.67% 150 100.00% 2010 % of 150 hospitals 147 98.00% 148 98.67% 150 100.00% 143 95.33% 115 76.67% 147 98.00% 148 98.67% 146 97.33% 108 72.00% 150 100.00% 2011 149 99.33% 148 98.67% 150 100.00% 145 96.67% 125 83.33% 147 98.00% 149 99.33% 146 97.33% 119 79.33% 150 100.00% For most hospitals, R-PACS adoption is a recent phenomenon. More than 90 percent of all R-PACS modalities were purchased since 2000, with more than half of purchases occurring between 2005 and 2011 (see Tables RP20–RP23). No contract activity occurred prior to 1995. Table RP 20 2011 Angiography Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Computed Radiography (CR) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Computerized Tomography (CT) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 0 0 67 836 933 1,836 1,836 1,836 1,836 1,836 1,836 1,836 0.00% 0.00% 3.65% 45.53% 50.82% 100.00% 0 0 69 963 1,306 2,338 2,338 2,338 2,338 2,338 2,338 2,338 0.00% 0.00% 2.95% 41.19% 55.86% 100.00% 0 0 71 989 1,304 2,364 2,364 2,364 2,364 2,364 2,364 2,364 0.00% 0.00% 3.00% 41.84% 55.16% 100.00% 96.15% 96.70% 98.35% 94.51% 76.92% 96.15% 97.25% 96.70% 71.98% 98.35% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 63 ▶▶ Radiology PACS con tinued Table RP 21 2011 Digital Fluoroscopy (DF) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Digital Mammography Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Digital Radiography (DR) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total # for Contract Range Total Responding % of Total Responding 0 0 66 897 1,100 2,063 2,063 2,063 2,063 2,063 2,063 2,063 0.00% 0.00% 3.20% 43.48% 53.32% 100.00% 0 0 22 325 803 1,150 1,150 1,150 1,150 1,150 1,150 1,150 0.00% 0.00% 1.91% 28.26% 69.83% 100.00% 0 0 61 883 1,114 2,058 2,058 2,058 2,058 2,058 2,058 2,058 0.00% 0.00% 2.96% 42.91% 54.13% 100.00% # for Contract Range Total Responding % of Total Responding 0 0 70 956 1,189 2,215 2,215 2,215 2,215 2,215 2,215 2,215 0.00% 0.00% 3.16% 43.16% 53.68% 100.00% 0 0 68 913 1,133 2,114 2,114 2,114 2,114 2,114 2,114 2,114 0.00% 0.00% 3.22% 43.19% 53.60% 100.00% 0 0 25 387 591 1,003 1,003 1,003 1,003 1,003 1,003 1,003 0.00% 0.00% 2.49% 38.58% 58.92% 100.00% # for Contract Range Total Responding % of Total Responding 0 0 69 983 1,279 2,331 2,331 2,331 2,331 2,331 2,331 2,331 0.00% 0.00% 2.96% 42.17% 54.87% 100.00% Table RP 22 2011 Magnetic Resonance Imaging (MRI) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Nuclear Medicine Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Orthopedic Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Table RP 23 2011 Ultrasound (US) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total 64 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Market Drivers/Future Outlook The R-PACS IT application market will likely continue to experience growth, albeit slow, driven by continued first-time purchases among smaller hospitals and the early stages of replacement purchases by the larger hospitals, including academic medical centers and other early adopters. This market segment has been, and will continue to be, impacted through 2015 by: • Tough capital markets through at least 2013 that may slow the growth of R-PACS modalities in hospitals where budget competition between clinical and financial IT projects will be increasingly competitive. • However, this will be offset by increased demand to share medical images between care providers in HIEs, a need that will be driven by ARRA Stage 2 and Stage 3 meaningful use requirements and bundled payment arrangements. • Increased pressures on hospitals by federal and state authorities to participate in HIE and public health reporting activities, or the desire of IDNs to actively participate in private HIEs. • As EMR adoption grows among owned, affiliated and other ambulatory practices for which the hospital provides diagnostic imaging services, demand for the electronic transmittal and integration of images and reports from these practices will also increase, thus driving some purchases to DICOM-compliant products • The increasing adoption of care delivery models that emphasize care coordination, and reward participants for producing improved clinical outcomes, reducing redundant testing, and sharing results electronically. • Ongoing demand to drive down radiology service and storage costs and eliminate film costs for those hospitals that have a minority of digital sourced modalities. • The increasing demand for orthopedic pre-surgical templating to improve quality related to implant surgery for a growing elderly population. • Ongoing market consolidation that will impact vendors and products. • Increasing consumer demands to have access to their medical information and images. ▶▶ Cardiology PACS Growth for the cardiology picture archive and communications system (C-PACS) modalities tracked in this report was between one to three percent in the past year (see Table CP1). While this market continues to grow at a slower pace than the radiology ACS (R-PACS) market, it has grown consistently over the past several years. With the exception of computerized tomography and intravascular ultrasound, the majority of C-PACS modality purchases will be among hospitals that are purchasing the technology for the first time. Computerized tomography and intravascular ultrasound purchase plans in 2011 are evenly split between first-time and replacement purchases (see Table CP2). Most of the C-PACS modalities exhibited slight to moderate growth from 2010 to 2011 across all hospital types, but no segment had Table CP1 | C-PACS N=4,289 2009 2010 Cardiology – Cath Lab 27.07% 31.15% Cardiology – CT (Computerized Tomography) 16.51% 19.93% Cardiology – Echocardiology 26.21% 30.80% Cardiology – Intravascular Ultrasound 15.64% 18.93% Cardiology – Nuclear Cardiology 14.62% 18.16% Percentage include installed, contracted or installation in process 2011 32.43% 22.24% 33.71% 21.38% 21.29% more than five percent growth in the past year. The hospital segments that showed the high growth by C-PACS modality were: • Cath lab: medical/surgical hospitals showed the greatest growth in the past year, at two percent. Declines in installation occurred among academic/teaching hospitals and critical access hospitals (see Table CP3). • Computerized tomography: general medical/surgical hospitals demonstrated the highest year-over-year increase at approximately three percent. The other hospital segments indicated an increase of one percent to two percent (see Table CP4). • Echocardiology: general medical/surgical hospitals had the most growth in the past year, at nearly four percent. The remaining segments showed growth of one to three percent (see Table CP5). • Intravascular ultrasound: general medical/surgical and noncritical access segments are the only two hospitals segments that showed a growth of more than three percent. All other segments reported a growth of less than three percent (see Table CP6). • Nuclear cardiology: the general medical/surgical segment demonstrated the highest growth rate between 2010 and 2011, at nearly five percent. After an increase of 10 percent from 2009 to 2010, the academic medical center segment reported a growth of only one percent during this timeframe (see Table CP7). Table CP 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Cardiology – Cath Lab 4 40.00% Cardiology – CT (Computerized Tomography) 2 50.00% Cardiology – Echocardiology 2 14.29% Cardiology – Intravascular Ultrasound 1 50.00% Cardiology – Nuclear Cardiology 3 37.50% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process First time = Status of not automated # of Hospitals Planning to Purchase Software for the First Time 6 2 12 1 5 % of Hospitals Planning to Purchase Software for the First Time 60.00% 50.00% 85.71% 50.00% 62.50% N = Total Number of Hospitals Planning 10 4 14 2 8 Table CP 3 | Cardiology – Cath Lab 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 133 1,028 955 206 17 1,144 12 1,149 851 310 1,161 Percent 69.27% 25.09% 38.09% 11.56% 1.47% 36.50% 1.19% 35.01% 32.91% 18.20% 27.07% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 151 1,185 1,110 226 20 1,316 19 1,317 969 367 1,336 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 98 757 686 169 41 814 23 832 614 241 855 Percent 78.65% 28.92% 44.28% 12.68% 1.73% 41.99% 1.89% 40.13% 37.47% 21.55% 31.15% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 150 1,241 1,165 226 19 1,372 19 1,372 992 399 1,391 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 103 851 772 182 47 907 29 925 683 271 954 Percent 78.13% 30.29% 46.47% 12.68% 1.65% 43.78% 1.89% 41.80% 38.36% 23.43% 32.43% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table CP4 | Cardiology – CT (Computerized Tomography) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 87 621 558 150 33 675 18 690 516 192 708 Percent 45.31% 15.16% 22.26% 8.42% 2.86% 21.54% 1.79% 21.02% 19.95% 11.27% 16.51% 2010 Percent 51.04% 18.48% 27.36% 9.48% 3.55% 25.97% 2.28% 25.35% 23.74% 14.15% 19.93% 2011 Source: HIMSS Analytics® Database 2011 Percent 53.65% 20.77% 30.79% 10.21% 4.07% 28.94% 2.88% 28.18% 26.41% 15.91% 22.24% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ©2012 HIMSS Analytics. 65 ▶▶ Cardiology PACS con tinued Table CP5 | Cardiology – Echocardiology 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 125 999 889 235 53 1,071 29 1,095 789 335 1,124 Percent 65.10% 24.38% 35.46% 13.19% 4.59% 34.17% 2.88% 33.36% 30.51% 19.67% 26.21% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 144 1,177 1,053 268 69 1,252 46 1,275 913 408 1,321 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 102 710 656 156 26 786 20 792 567 245 812 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 99 680 616 163 35 744 26 753 532 247 779 Percent 75.00% 28.73% 42.00% 15.04% 5.97% 39.95% 4.57% 38.85% 35.31% 23.96% 30.80% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 145 1,301 1,151 295 89 1,357 64 1,382 983 463 1,446 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 106 811 745 172 33 884 28 889 638 279 917 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 101 812 735 178 46 867 39 874 616 297 913 Percent 75.52% 31.75% 45.91% 16.55% 7.71% 43.30% 6.36% 42.11% 38.01% 27.19% 33.71% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table CP 6 | Cardiology – Intravascular Ultrasound 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 86 585 532 139 24 647 12 659 471 200 671 Percent 44.79% 14.28% 21.22% 7.80% 2.08% 20.64% 1.19% 20.08% 18.21% 11.74% 15.64% 2010 Percent 53.13% 17.33% 26.17% 8.75% 2.25% 25.08% 1.99% 24.13% 21.93% 14.39% 18.93% 2011 Percent 55.21% 19.79% 29.72% 9.65% 2.86% 28.21% 2.78% 27.09% 24.67% 16.38% 21.38% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table CP7 | Cardiology – Nuclear Cardiology 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 79 548 492 135 26 601 13 614 441 186 627 Percent 41.15% 13.38% 19.63% 7.58% 2.25% 19.18% 1.29% 18.71% 17.05% 10.92% 14.62% 2010 The evaluation of the C-PACS market by bed-size segments for 2011 shows that the C-PACS modalities with the highest year-over-year growth for each bed segment are outlined below (see Tables CP8–CP14): • 0–100 beds: there was very little growth among these hospitals; echocardiology indicated the highest year-over-year growth at almost two percent (see Table CP8). • 101–200 beds: echocardiology and nuclear cardiology indicated growth at more than three percent from 2010 to 2011 (see Table CP9). • 201–300 beds: all C-PACS modalities in this bed category indicated a moderate increase (five to seven percent) in the past year (see Table CP10). • 301–400 beds: growth for the modalities in this bed-size category was between three and four percent; the greatest growth was for the echocardiology modality (see Table CP11). • 401–500 beds: intravascular ultrasound and nuclear cardiology each had growth of nearly five percent; the remaining modalities grew at a rate of less than four percent (see Table CP12). 66 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 51.56% 16.60% 24.57% 9.15% 3.03% 23.74% 2.58% 22.94% 20.57% 14.50% 18.16% 2011 Percent 52.60% 19.82% 29.32% 9.99% 3.98% 27.66% 3.87% 26.63% 23.82% 17.44% 21.29% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 • 501–600 beds: growth for all modalities in this bed segment was between three and four percent, with the exception of cath lab, which demonstrated growth of less than one percent (see Table CP13). • Over 600 beds: the largest year-over-year growth in this bed segment was demonstrated by the nuclear cardiology and computerized tomography modalities, each at more than six percent (see Table CP14). Two-thirds of the C-PACS growth took place between 2005 and 2011, suggesting that this market has entered the rapid adoption stage of purchasing activity (see Tables CP15–CP16). Digital imaging modalities of all types will continue to multiply over the next several years as the industry embraces various forms of health information exchange. The highly competitive market of cardiology and cardiac surgery along with an aging population with heart disease will continue to drive this market for the foreseeable future. In addition, as EMR deployments continue the current growth in all market segments, the need to have all images accessible to the EMR will continue to drive the market for C-PACS. ▶▶ Cardiology PACS con tinued Table CP 8 0–100 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology Table CP15 2009 96 2010 2011 % of 2,181 Hospitals 4.40% 126 5.78% 129 5.91% 90 150 4.13% 6.88% 106 192 4.86% 8.80% 125 234 5.73% 10.73% 73 77 3.35% 3.53% 89 100 4.08% 4.59% 111 137 5.09% 6.28% Table CP 9 101–200 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 279 2010 % of 822 hospitals 33.94% 328 39.90% 2011 338 41.12% 164 262 19.95% 31.87% 215 321 26.16% 39.05% 239 348 29.08% 42.34% 155 138 18.86% 16.79% 190 185 23.11% 22.51% 210 215 25.55% 26.16% Table CP10 201–300 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 242 2010 % of 504 hospitals 48.02% 284 56.35% 2011 311 61.71% 134 207 26.59% 41.07% 167 252 33.13% 50.00% 194 280 38.49% 55.56% 127 113 25.20% 22.42% 158 144 31.35% 28.57% 190 179 37.70% 35.52% Table CP11 301–400 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 203 2010 % of 328 hospitals 61.89% 225 68.60% 2011 234 71.34% 110 189 33.54% 57.62% 133 210 40.55% 64.02% 143 224 43.60% 68.29% 111 111 33.84% 33.84% 139 132 42.38% 40.24% 149 141 45.43% 42.99% Table CP12 401–500 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 134 2010 % of 182 hospitals 73.63% 144 79.12% 2011 147 80.77% 82 124 45.05% 68.13% 90 131 49.45% 71.98% 96 138 52.75% 75.82% 78 71 42.86% 39.01% 89 79 48.90% 43.41% 98 87 53.85% 47.80% Table CP13 501–600 Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 94 2010 % of 122 hospitals 77.05% 105 86.07% 58 89 47.54% 72.95% 65 96 57 56 46.72% 45.90% 64 66 2011 106 86.89% 53.28% 78.69% 69 99 56.56% 81.15% 52.46% 54.10% 68 71 55.74% 58.20% Table CP14 600+ Beds Cardiology – Cath Lab Cardiology – CT (Computerized Tomography) Cardiology – Echocardiology Cardiology – Intravascular Ultrasound Cardiology – Nuclear Cardiology 2009 113 2010 % of 150 hospitals 75.33% 124 82.67% 2011 126 84.00% 70 103 46.67% 68.67% 79 119 52.67% 79.33% 88 123 58.67% 82.00% 70 61 46.67% 40.67% 83 73 55.33% 48.67% 91 83 60.67% 55.33% # for Contract 2011 Range Cardiology – Cath Lab Prior to 1990 0 1990 to 1994 1 1995 to 1999 12 2000 to 2004 163 2005 to 2011 345 Total 521 Cardiology – CT (Computerized Tomography) Prior to 1990 0 1990 to 1994 0 1995 to 1999 8 2000 to 2004 93 2005 to 2011 205 Total 306 Cardiology – Echocardiology Prior to 1990 0 1990 to 1994 1 1995 to 1999 11 2000 to 2004 143 2005 to 2011 364 Total 519 Total Responding % of Total Responding 521 521 521 521 521 521 0.00% 0.19% 2.30% 31.29% 66.22% 100.00% 306 306 306 306 306 306 0.00% 0.00% 2.61% 30.39% 66.99% 100.00% 519 519 519 519 519 519 0.00% 0.19% 2.12% 27.55% 70.13% 100.00% # for Contract Range Total Responding % of Total Responding 0 0 8 95 219 322 322 322 321 321 321 322 0.00% 0.00% 2.48% 29.50% 68.01% 100.00% 0 0 7 95 213 315 315 315 315 315 315 315 0.00% 0.00% 2.22% 30.16% 67.62% 100.00% Table CP16 2011 Cardiology – Intravascular Ultrasound Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Cardiology – Nuclear Cardiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2011 Total Market Drivers/Future Outlook Despite the near-term mixed outlook for capital budgets, which will tend to moderate demand, the prospects for long-term growth in this market segment are very positive. The C-PACS IT application market has been and will continue to be impacted in the future by: • The demand to increase medical image sharing among providers in an EMR environment. • The demand to share medical images within emerging healthcare information exchanges. • The highly competitive landscape for cardiology and cardiac surgery and the ability to recruit recent residency graduates who have been users of C-PACS. • The demand to decrease costs for medical imaging services. • The increased acceptance and adoption of standards that will facilitate the capture, rendering, and transmission of medical images across digital imaging modalities and between vendor PACS solutions. • Continued favorable cost trends for on-line and archival storage, including the impact of storage virtualization technologies. Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 67 ▶▶ Bar Code Technology In the past year, all of the bar code technologies tracked in this report showed at least some growth. In 2011, the adoption of bar coding technologies in laboratory was highest at 84 percent, followed by pharmacy administration (67 percent) and radiology (50 percent). The increase in adoption of bar coding technology was greatest for medication administration and pharmacy administration. Each of these areas experienced five percent growths in the past year (see Table BC1). At less than one percent, growth was smallest for the use of technology for radiology. Patient registration applications will continue to grow as bar coding at patient registration is essential for, and directly related to, growth in the use of bar coding to support point-of-care medication administration. Future adoption of bar coding technologies is projected to be greatest for the use of medication administration (see Table BC2). Use of these bar coding technologies will continue to be implemented for the purpose of the “five rights” of medication administration (right patient, right dose, right drug, right time and right route) in order to improve patient safety. The closed loop Table BC1 | Bar Coding (Current) N=4,289 Fixed Assets/Equipment Tracking Laboratory Materials Management Medication Administration Patient Registration Pharmacy Administration Radiology 2009 Count Percent Count 2010 Percent Count 2011 Percent 109 3387 1867 1725 289 2343 2002 163 3514 2020 1897 394 2642 2124 3.80% 81.93% 47.10% 44.23% 9.19% 61.60% 49.52% 210 3591 2144 2133 503 2874 2154 4.90% 83.73% 49.99% 49.73% 11.73% 67.01% 50.22% 2009 Count Percent Count 2010 Percent Count 2011 Percent 41 209 298 1464 78 1017 129 62 194 326 1580 93 928 139 1.45% 4.52% 7.60% 36.84% 2.17% 21.64% 3.24% 96 209 353 1490 122 866 145 2.24% 4.87% 8.23% 34.74% 2.84% 20.19% 3.38% 2.54% 78.97% 43.53% 40.22% 6.74% 54.63% 46.68% Table BC 2 | Bar Coding (Planned) N=4,289 Fixed Assets/Equipment Tracking Laboratory Materials Management Medication Administration Patient Registration Pharmacy Administration Radiology 0.96% 4.87% 6.95% 34.13% 1.82% 23.71% 3.01% 68 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. medication administration process is included in Stage 5 of the HIMSS Analytics EMR Adoption ModelSM. This is the most complex and demanding level of hospital IT transformation as it requires the tight coupling of data between CPOE systems, pharmacy, and nursing documentation applications, along with integrated bar code processing of medication transactions at the point of care. We believe some attributes associated with automated medication administration can be expected to appear in the Stage 2 meaningful use requirements, as the ARRA law calls for “advanced clinical processes.” Market Drivers/Future Outlook The bar code technology market has been and will continue to be impacted through 2015 by: • The drive for hospitals to implement the “five rights” of medication administration and to improve patient safety through information technology. • The drive for hospitals to implement the “five rights” of medication administration and to improve nurse satisfaction and patient and family confidence. • Anticipated Stage 2 ARRA meaningful use requirements which are expected to require some aspects of closed loop medication administration processes. • The need to more effectively manage patient tracking and patient flows. • The desire to improve supply chain management functions throughout the hospital to reduce inventory and management costs. • Though a nascent market now, asset tracking and real-time location tracking with also drive some bar code technology adoption. • The lack of consistent standards for the technology of materials packaging and medication packaging. • The integration overhead of integrating bar code technology with healthcare IT applications if the technology is purchased separately from the underlying application it supports. • However, the adoption of RFID technologies in patient tracking and material management may begin to reduce some growth of bar code technologies in these applications over the next several years. ▶▶ Electronic Medical Record Environment The electronic medical record environment includes six applications. These applications have the ability to significantly impact clinical outcomes, cost and patient safety for hospitals if implemented as part of a comprehensive change management process and used directly by all clinicians, including physicians. While nursing applications are also part of the EMR suite, we have broken them out for separate analysis (please refer to the Nursing IT section for additional information). In 2011, order entry and clinical data repository are approaching market saturation (between 90 percent and 95 percent). The order entry application may become obsolete as hospitals continue to replace legacy order entry applications with new generation CPOE applications that can accommodate patient orders from all clinicians supported by clinical decision support. In support of this, all of the EMR applications showed growth, with the highest increases for CPOE (11 percent for the second year in a row), physician documentation (eight percent) and physician portal (nearly eight percent). The remaining three applications indicated growth ranging from one percent to three percent (see Table EMR1). The EMR environment is a mix of first-time and replacement purchases; the majority of purchasing plans for clinical decision support, clinical data repository and order entry will replace existing solutions. Future purchases of CPOE, physician documentation and physician portal will largely be done by hospitals that are purchasing the applications for the first time (see Table EMR2). An evaluation of hospital-type market segment growth from 2010 to 2011 shows the highest growth by application occurred as follows: • Clinical data repository: the greatest growth in this application from 2010 to 2011 was among the rural hospitals and critical access hospitals that are adopting this technology for the first time, mostly; each segment saw approximately six percent growth in the past year (see Table EMR3). All other segments, except academic medical centers, reported low to moderate growth, ranging from one percent to more than five percent. The academic medical centers’ adoption rate remained unchanged over the past year. • Clinical decision support: the critical access and rural segments each demonstrated an increase of more than six percent from • • • • 2010 to 2011 (see Table EMR4). There was a slight decrease in the use of this technology among academic medical centers; however, this decrease was not statistically relevant. CPOE: over the past year, the implementation of CPOE increased by approximately 10 percent in all segments with the exception of academic medical centers and hospitals from multi-hospital systems (see Table EMR5). Hospitals from single hospital systems reported the most growth at nearly 17 percent. Order entry: order entry is a saturated market in nearly all of the segments tracked in this report (see Table EMR6). The highest growth in the past year was among critical access hospitals, at slightly more than four percent. With the exception of academic medical centers in which no growth was demonstrated, growth among the other market segments was between one and three percent. Physician documentation: all hospital segments demonstrated moderate to healthy growth with more than 10 percent growth for critical access hospitals, single hospital systems, and rural hospitals (see Table EMR7). The segment that demonstrated the least growth was academic medical centers, at four percent. Physician portal: academic medical center segment is the only hospital segment that indicated growth less than seven percent (see Table EMR8). All other segments indicated moderate growth with rural hospitals demonstrating the largest year-over-year growth at slightly less than 10 percent. In 2011, hospitals that are generally smaller and located in rural areas are adopting physician-focused applications (e.g., CPOE, physician documentation, physician portal) at a higher rate. Most of this is due to the ARRA meaningful use and the access to the incentives by meeting the meaningful criteria, allowing for these segments to “catch up” to the higher market penetration rates in academic medical centers and multi-hospital systems. Table E MR1 | Electronic Medical Record N=4,289 2009 2010 Clinical Data Repository 87.06% 88.32% Clinical Decision Support 80.74% 85.80% Computerized Practitioner Order Entry (CPOE) 45.63% 56.45% Order Entry (includes Order Communication) 90.81% 91.68% Physician Documentation 43.04% 52.88% Physician Portal 28.40% 42.78% Percentages include installed, contracted or installation in process 2011 91.09% 88.62% 67.59% 93.61% 61.25% 50.55% Table E MR 2 | 2011 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Clinical Data Repository 65 67.01% Clinical Decision Support 70 67.96% Computerized Practitioner Order Entry (CPOE) 51 30.00% Order Entry (includes Order Communications) 67 70.53% Physician Documentation 50 33.33% Physician Portal 8 25.81% Replacing = Statuses of live & operational, contracted/not yet installed and installation in process # of Hospitals Planning to Purchase Software for the First Time 32 33 119 28 100 23 % of Hospitals Planning to Purchase Software for the First Time 32.99% 32.04% 70.00% 29.47% 66.67% 74.19% Source: HIMSS Analytics® Database 2011 N = Total Number of Hospitals Planning 97 103 170 95 150 31 ©2012 HIMSS Analytics. 69 ▶▶ Electronic Medical Record Environment con tinued Table emr3 | Clinical Data Repository 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 190 3,544 2,372 1,362 777 2,957 677 3,057 2,418 1,316 3,734 Percent 98.96% 86.50% 94.62% 76.43% 67.27% 94.35% 67.23% 93.14% 93.50% 77.28% 87.06% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,597 2,385 1,403 815 2,973 722 3,066 2,426 1,362 3,788 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 188 3,492 2,349 1,331 814 2,866 727 2,953 2,339 1,341 3,680 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 172 2,249 1,465 956 452 1,969 382 2,039 1,635 786 2,421 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,741 2,423 1,509 910 3,022 817 3,115 2,469 1,463 3,932 Percent 99.48% 87.80% 95.13% 78.73% 70.56% 94.86% 71.70% 93.42% 93.81% 79.98% 88.32% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,716 2,413 1,494 891 3,016 790 3,117 2,457 1,450 3,907 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 187 3,614 2,394 1,407 885 2,916 788 3,013 2,376 1,425 3,801 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 177 2,722 1,748 1,151 629 2,270 523 2,376 1,826 1,073 2,899 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 191 3,824 2,449 1,566 959 3,056 851 3,164 2,503 1,512 4,015 Percent 99.48% 90.70% 96.25% 83.84% 77.14% 96.23% 78.45% 94.97% 95.01% 85.14% 91.09% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table emr4 | Clinical Decision Support 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 184 3,279 2,250 1,213 715 2,748 630 2,833 2,250 1,213 3,463 Percent 95.83% 80.03% 89.75% 68.07% 61.90% 87.68% 62.56% 86.32% 87.01% 71.23% 80.74% 2010 Percent 97.92% 85.23% 93.70% 74.69% 70.48% 91.45% 72.19% 89.98% 90.45% 78.74% 85.80% 2011 Percent 97.40% 88.21% 95.49% 78.96% 76.62% 93.04% 78.25% 91.80% 91.88% 83.68% 88.62% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table emr5 | Computerized Practitioner Order Entry (CPOE) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 160 1,797 1,262 695 319 1,638 248 1,709 1,378 579 1,957 Percent 83.33% 43.86% 50.34% 39.00% 27.62% 52.27% 24.63% 52.07% 53.29% 34.00% 45.63% 2010 Percent 89.58% 54.89% 58.44% 53.65% 39.13% 62.83% 37.93% 62.13% 63.23% 46.15% 56.45% 2011 Percent 92.19% 66.44% 68.72% 64.59% 54.46% 72.43% 51.94% 72.39% 70.61% 63.01% 67.59% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Table emr6 | Order Entry (Includes Order Communication) 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 191 3,704 2,432 1,463 867 3,028 775 3,120 2,466 1,429 3,895 Percent 99.48% 90.41% 97.01% 82.10% 75.06% 96.62% 76.96% 95.06% 95.36% 83.91% 90.81% 2010 70 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Percent 99.48% 91.31% 96.65% 84.68% 78.79% 96.43% 81.13% 94.91% 95.48% 85.91% 91.68% 2011 Percent 99.48% 93.34% 97.69% 87.88% 83.03% 97.51% 84.51% 96.40% 96.79% 88.78% 93.61% Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 ▶▶ Electronic Medical Record Environment con tinued Table emr7 | Physician Documentation 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 133 1,713 1,220 626 302 1,544 245 1,601 1,284 562 1,846 Percent 69.27% 41.81% 48.66% 35.13% 26.15% 49.27% 24.33% 48.78% 49.65% 33.00% 43.04% 2010 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 157 2,111 1,405 863 391 1,877 337 1,931 1,557 711 2,268 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 127 1,708 1,313 522 281 1,554 250 1,585 1,260 575 1,835 Percent 81.77% 51.53% 56.04% 48.43% 33.85% 59.89% 33.47% 58.84% 60.21% 41.75% 52.88% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 165 2,462 1,639 988 512 2,115 441 2,186 1,731 896 2,627 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Segment Count 136 2,032 1,509 659 382 1,786 349 1,819 1,456 712 2,168 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 85.94% 60.09% 65.38% 55.44% 44.33% 67.49% 43.79% 66.61% 66.94% 52.61% 61.25% Table emr8 | Physician Portal 2009 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 81 1,137 884 334 171 1,047 131 1,087 862 356 1,218 Percent 42.19% 27.75% 35.26% 18.74% 14.81% 33.41% 13.01% 33.12% 33.33% 20.90% 28.40% 2010 The analysis of the EMR market by bed size in 2011 indicates the following (see Tables EMR9–EMR15): • 0–100 beds: at nearly 13 percent, CPOE demonstrated the highest growth for this segment, followed by physician documentation and physician portal, both at more than eight percent (see Table EMR9). • 101–200 beds: this segment reported growth across all EMR applications, with CPOE indicating the highest year-over-year increase at more than 10 percent followed by physician documentation at slightly under 10 percent (see Table EMR10). • 201–300 beds: CPOE, physician portal, and physician documentation demonstrated the strongest growth in the past year; each demonstrated growth of more than seven percent. All other EMR applications showed growth under one percent (see Table EMR11). • 301–400 beds: more than 11 percent growth was reported for CPOE in this bed segment. Growth for physician portal and physician documentation was also strong, at six and seven percent respectively (see Table EMR12). • 401–500 beds: physician documentation had the highest growth at seven percent while clinical data repository, clinical decision support, and order entry remained unchanged from last year. Physician portal and CPOE reported changes from five to seven percent (see Table EMR13). • 501–600 beds: CPOE had a growth of more than five percent in this segment, followed by physician documentation (four percent) and physician portal (three percent) (see Table EMR 14). • 600+ beds: physician portal demonstrated the most growth in this segment at nearly nine percent, followed by physician documentation (seven percent) and CPOE at nearly five percent. All other applications remained unchanged from 2010 (see Table EMR15). Percent 66.15% 41.69% 52.37% 29.29% 24.33% 49.59% 24.83% 48.29% 48.72% 33.76% 42.78% 2011 Total Count 192 4,097 2,507 1,782 1,155 3,134 1,007 3,282 2,586 1,703 4,289 Percent 70.83% 49.60% 60.19% 36.98% 33.07% 56.99% 34.66% 55.42% 56.30% 41.81% 50.55% Table E MR9 0–100 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 2009 1680 1,521 2010 2011 % of 2,181 Hospitals 77.03% 1,731 79.37% 1,842 84.46% 69.74% 1,672 76.66% 1,774 81.34% 729 33.43% 1,024 46.95% 1,299 59.56% 1,821 694 390 83.49% 31.82% 17.88% 1,868 934 633 85.65% 42.82% 29.02% 1,941 1,120 817 89.00% 51.35% 37.46% Table E MR10 101–200 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 2009 780 738 2010 % of 822 hospitals 94.89% 779 94.77% 89.78% 761 92.58% 2011 786 772 95.62% 93.92% 384 46.72% 456 55.47% 546 66.42% 797 389 278 96.96% 47.32% 33.82% 790 455 404 96.11% 55.35% 49.15% 797 535 466 96.96% 65.09% 56.69% Table E MR11 201–300 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 2009 493 466 2010 % of 504 hospitals 97.82% 496 98.41% 92.46% 487 96.63% 497 497 98.61% 97.62% 297 58.93% 345 68.45% 393 77.98% 498 301 185 98.81% 59.72% 36.71% 495 341 279 98.21% 67.66% 55.36% 498 380 321 98.81% 75.40% 63.69% Source: HIMSS Analytics® Database 2011 2011 ©2012 HIMSS Analytics. 71 ▶▶ Electronic Medical Record Environment con tinued Table E MR12 301–400 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal Table E MR16 2009 327 301 2010 % of 328 hospitals 99.70% 328 100.00% 91.77% 314 95.73% 2011 328 100.00% 317 96.65% 206 62.80% 231 70.43% 270 82.32% 326 174 145 99.39% 53.05% 44.21% 327 202 206 99.70% 61.59% 62.80% 326 227 225 99.39% 69.21% 68.80% Table E MR13 401–500 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 2009 2010 % of 182 hospitals 182 100.00% 182 100.00% 179 98.35% 179 98.35% 2011 182 100.00% 179 98.35% 123 67.58% 138 75.82% 150 82.42% 181 105 94 99.45% 57.69% 51.65% 180 118 130 98.90% 64.84% 71.43% 181 131 139 99.45% 71.98% 76.37% Table E MR14 501–600 Beds Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 2009 2010 % of 122 hospitals 122 100.00% 122 100.00% 114 93.44% 121 99.18% 96 78.69% 122 100.00% 81 66.39% 59 48.36% 99 81.15% 122 100.00% 96 78.69% 85 69.67% Clinical Data Repository Clinical Decision Support Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communications) Physician Documentation Physician Portal 106 86.89% 122 100.00% 101 82.79% 89 72.95% 2010 % of 150 hospitals 150 100.00% 150 100.00% 144 96.00% 146 97.33% 150 100.00% 146 97.33% 122 135 150 100.00% 102 68.00% 67 44.67% 128 85.33% 150 100.00% 122 81.33% 98 65.33% % of Total Responding 2,637 2,637 2,637 2,637 2,637 2,637 0.83% 6.48% 17.56% 34.17% 40.96% 100.00% 2,328 2,328 2,328 2,328 2,328 2,328 0.86% 6.66% 16.37% 30.93% 45.19% 100.00% 1,808 1,808 1,808 1,808 1,808 1,808 0.11% 4.81% 3.37% 28.48% 63.22% 100.00% Total Responding % of Total Responding 2,932 2,932 2,932 2,932 2,932 2,932 1.84% 11.05% 18.45% 32.30% 36.36% 100.00% 1,651 1,651 1,651 1,651 1,651 1,651 0.30% 8.84% 3.45% 26.89% 60.51% 100.00% 598 598 598 598 598 598 0.00% 0.84% 3.51% 17.39% 78.26% 100.00% Table E MR17 122 100.00% 121 99.18% 2009 81.33% Total Responding 2011 Table E MR15 600+ Beds # for Contract 2011 Range Clinical Data Repository Prior to 1990 22 1990 to 1994 171 1995 to 1999 463 2000 to 2004 901 2005 to 2011 1,080 Total 2,637 Clinical Decision Support Prior to 1990 20 1990 to 1994 155 1995 to 1999 381 2000 to 2004 720 2005 to 2011 1,052 Total 2,328 Computerized Practitioner Order Entry (CPOE) Prior to 1990 2 1990 to 1994 87 1995 to 1999 61 2000 to 2004 515 2005 to 2011 1,143 Total 1,808 2011 90.00% 150 100.00% 133 88.67% 111 74.00% More than two thirds of the contracting for all applications in this suite took place in 2000 or later (see Tables EMR16–EMR17). However, the majority of CPOE, physician documentation and physician portals (60 percent or more) took place in 2005 or later. The availability of meaningful use incentives will continue to drive higher rates of adoption for applications in this suite over the next several years, as hospitals strive to meet meaningful use Stage 1 and Stage 2 criteria. Market Drivers/Future Outlook The EMR environment market has been or will likely be impacted through 2015 by: • An increased focus on complying with ARRA meaningful use Stage 1 and Stage 2 requirements and reporting criteria in order to qualify for EMR adoption incentives and avoid Medicare reimbursement penalties. • The increased need to acquire, manage, and analyze clinical data for business intelligence, outcomes improvement, pay for performance incentive programs and government compliance reporting. • Increased hiring of hospitalists who are expected to use CPOE and physician documentation applications as a condition of employment. 72 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. # for Contract 2011 Range Order Entry (includes Order Communications) Prior to 1990 54 1990 to 1994 324 1995 to 1999 541 2000 to 2004 947 2005 to 2011 1,066 Total 2,932 Physician Documentation Prior to 1990 5 1990 to 1994 146 1995 to 1999 57 2000 to 2004 444 2005 to 2011 999 Total 1,651 Physician Portal Prior to 1990 0 1990 to 1994 5 1995 to 1999 21 2000 to 2004 104 2005 to 2011 468 Total 598 • Increased purchasing of physician practices who are expected to use CPOE and physician documentation applications as a condition of purchase and employment. • Increased pressures on hospitals by federal and state authorities to participate in HIE and public health reporting activities, or the desire of IDNs to actively participate in private HIEs. • Intense competition for capital funding, and staff resources between financial (e.g., version 5010 EDI transaction mandate, ICD-10-PCS coding mandate) and clinical (e.g., ARRA meaningful use measurements) IT projects. • Tight capital markets may continue to impact the acquisition and installation of EMR products through 2015, especially for small community and critical access hospitals, in spite of the availability of ARRA incentives. • The continued resistance of attending physicians in a competitive community hospital environment to the adoption and use of CPOE and physician documentation applications. ▶▶ The EMR Adoption ModelSM: Measuring Clinical IT Transformation The terms electronic medical record (EMR) and electronic health record (EHR) are frequently used interchangeably. Despite the government’s preferred use of the term EHR, these terms, while similar, are not synonymous. It is our opinion that these terms describe completely different concepts, both of which are crucial to the success of local, regional, and national goals to improve patient safety, improve the quality and efficiency of patient care, and reduce healthcare delivery costs. This will continue to be of utmost importance through 2015, the timeframe during which the HITECH provisions in the American Recovery and Reinvestment Act (ARRA) will be available to subsidize EMR implementations across many different care settings. The International Organization for Standardization Technical Committee 215 (ISO/TC 215) has created an EHR classification document that uses three terms to differentiate these environments in order to bring some clarity to the use of this terminology in the industry. These three terms are the Local EHR, the Shared EHR and the Integrated Care EHR. The Local EHR is defined as the EMR within a hospital or clinic that is the legal medical record for that entity (LEHR). The Shared EHR is an EMR that supports both inpatient and outpatient environments (SEHR). The Integrated Care EHR refers to the ability to share summary patient information between and across all healthcare modalities (ICEHR). ICEHRs rely on the presence of LEHRs and SEHRs to create and share patient information in order to be able to support emerging health information exchange (HIE) environments. Because of the rapid evolution and deployment of these applications, it is critically important to understand the differences, and to reduce confusion in the market. ISO defines an EHR as “a healthcare record in computer processable format.” The LEHR is the legal record created in hospitals or ambulatory environments and the SEHR is an enterprise EMR that supports both inpatient and outpatient environments for multiple provider settings under one enterprise umbrella. In various combinations, both LEHRs and SEHRs can be the source of data for ICEHRs. An ICEHR provides the ability to readily share summary medical information among stakeholders from multiple provider enterprises and to have a patient’s information precede and follow him or her through the various modalities of care providing care to that individual. as the lack of a standard CMV to define the data within the CCD. If history is any indicator, the government will need to continue to drive adoption and use of CCD and a CMV through a combination of federal mandates, regulatory penalties and incentives, and the underwriting of demonstration and pilot projects. Provisions to encourage the exchange of patient information across the healthcare delivery ecosystem and funding to create and propagate the standards to facilitate that exchange are well-defined in the HITECH sections of ARRA. The impending standard, due in early 2012, for the Nationwide Health Information Exchanges (NwHIN) is a step in the right direction. The beginnings of such initiatives are already a part of Stage 1 meaningful use and are expected to become an even stronger focus of the Stage 2 and Stage 3 of meaningful use criteria. Such initiatives have also been evident in the grant awards made by the Office of the National Coordinator for Health Information Technology (ONC), the National Institute of Standards and Technology (NIST) and other, similar federal agencies in 2010 and in 2011. We believe this type of activity will increase over the next one to five years to facilitate the ultimate goal of clinical results information exchange to reduce consumption. Before we can start sharing encounter summary information among providers and consumers, care delivery organizations must implement complete EMR solutions so that they possess the discrete electronic data required to create patient summaries to share with the other stakeholders which conform to standards of interoperability. At this point, HIMSS Analytics data shows that there is increasing momentum in the upper levels of the EMRAM, Stages 5 and 6, so that hospitals will have EMR solutions that can share information with other stakeholders in the manner envisioned, and articulated, by the government. The EMR Adoption ModelSM (EMRAM) was developed by HIMSS Analytics to assess the status of clinical system/EMR implementations in care delivery organizations (CDOs), specifically hospitals. This model, which uses an algorithm to score more than 5,300 hospitals in the U.S., demonstrates consistent upward momentum among U.S. hospitals (see Figure EMRAM1). Figure EMRAM1: US EMR Adoption Model SM Stage Cumulative Capabilities 2010 Final 2011 Q3 HIEs will serve as the conduit for sharing summary records of care between all modalities of patient care. Stakeholders are composed of patients/consumers, healthcare providers, employers, and/or payers/insurers/quality reviewers, including the government. A key enabler for the sharing of secure patient information among stakeholders is the ability of the industry to adopt the continuum of care document (CCD) transaction standard in a way that also uses a controlled medical vocabulary (CMV) so that discrete data in the CCD transaction can be instantly recognized by any receiving LEHR. Stage 7 Complete EMR; CCD transactions to share data; Data warehousing; Data continuity with ED, ambulatory, OP 1.0% 1.1% Stage 6 Physician documentation (structured templates), full CDSS (variance & compliance), full R-PACS 3.2% 4.4% Stage 5 Closed loop medication administration 4.5% 7.1% Stage 4 CPOE, Clinical Decision Support (clinical protocols) 10.5% 13.2% Stage 3 Nursing/clinical documentation (flow sheets), CDSS (error checking), PACS available outside Radiology 49.0% 46.1% Stage 2 CDR, Controlled Medical Vocabulary, CDS, may have Document Imaging; HIE capable 14.6% 12.6% We appear to be three to five years away from these capabilities, not because of the technologies, but because of the industry’s rate of adoption of both EMRs and the CCD transaction standard, as well Stage 1 Ancillaries - Lab, Rad, Pharmacy - All Installed 7.1% 5.9% Stage 0 All Three Ancillaries Not Installed 10.1% 9.6% N = 5,281 N = 5,299 Data from HIMSS Analytics® Database ©2011 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 73 ▶▶ The EMR Adoption ModelSM: Measuring Clinical IT Transformation con tinued EMR Adoption ModelSM: An EMR Market Transformation Assessment Tool The stages of the model are as follows: Stage 0: Some clinical automation may be present, but all three of the major ancillary department systems for laboratory, pharmacy, and radiology are not implemented. Stage 1: All three of the major ancillary clinical systems (pharmacy, laboratory, radiology) are installed. Stage 2: Major ancillary clinical systems feed orders and results data to a clinical data repository (CDR) that provides physician access for retrieving and reviewing results. The CDR contains a controlled medical vocabulary (CMV), and the clinical decision support/rules engine (CDSS) for rudimentary conflict checking such as duplicate orders. Information from document imaging systems may be linked to the CDR at this stage. Stage 3: Nursing/clinical documentation (e.g., vital signs, flow sheets, nursing notes, eMAR) is required and is implemented and integrated with the CDR for at least one inpatient service in the hospital; care plan charting is scored with extra points. The electronic medication administration record application (EMAR) is implemented. The first level of clinical decision support is implemented to conduct error checking with order entry (i.e., drug/ drug, drug/ food, drug/lab conflict checking normally found in the pharmacy information system). Medical image access from picture archive and communication systems (PACS) is available for access by physicians outside the radiology department via the organization’s intranet. Stage 4: Computerized practitioner/physician order entry (CPOE) for use by any clinician is added to the nursing and CDR environment along with the second level of clinical decision support capabilities related to evidence-based medicine protocols and order sets. An organization is given credit for having achieved this stage if one patient service area (excluding the emergency department) has implemented CPOE and completed the previous stages. Stage 5: The closed-loop medication administration environment is fully implemented in at least one patient care service area. The EMAR and bar coding or other auto identification technology, such as radio frequency identification (RFID), are implemented and integrated with CPOE and pharmacy to support the five rights of medication administration (right patient, right drug, right dose, right route, right time), thereby maximizing point-of-care patient safety processes. Stage 6: Full physician documentation/charting (using structured templates) is implemented for at least one patient care service area supported by CDSS. Level three of clinical decision support is implemented, which provides guidance for all clinician activities related to protocols and outcomes in the form of variance and compliance alerts. A full complement of radiology PACS systems provides medical images to physicians via an intranet and displaces all film-based images. Stage 7: The hospital has a paperless EMR environment to support patient care delivery. Patient data/information is easily exchanged between the inpatient, out-patient, and emergency department domains. All radiology images are digital and easily accessed by all authorized clinicians. Clinical information can be readily analyzed and reported on for quality and patient safety initiatives, and shared via standardized electronic transactions with all entities within a 74 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. health information exchange (i.e., other hospitals, ambulatory clinics, sub-acute environments, employers, payers and patients). This stage allows the healthcare organization to support the true sharing and use of health and wellness information by consumers and providers alike using CCD, CCR, or state required transaction formats. Scoring Format An EMR score is represented by the following format – S.nnnn, where “S” equals the current stage achieved for the model, and the “.nnnn” represents the weighted score representing the implementation of higher stage clinical applications that have been implemented before the higher stage has been fully achieved. In this model all applications in previous stages and the current stage must be achieved before the current stage score is achieved. For example, if a hospital has installed CPOE (Stage 4), but has not yet implemented all of the components required for clinical documentation used by nursing (Stage 3), then the hospital would be scored as a Stage 2 hospital and the four digits after the stage designation would identify the weighted points that had been achieved for implementing CPOE (2.nnnn). An overall evaluation of the U.S. hospital market for the EMR Adoption Model scores by individual stage for the third quarter of 2011 as compared to 2010 final numbers is shown in Figure EMRAM1. Hospitals in Stages 4–6 increased from end of year 2010 to the Q3 of 2011, while the percentage of hospitals in Stages 0 to 3 have decreased in the same timeframe, continuing the trend that was reported last year. The increase in the percentage of hospitals in Stages 4 to 6 can largely be attributed directly to the ARRA incentive and meeting the meaningful use criteria. The percentage of Stage 5 hospitals has almost doubled since the end of 2010, providing a significant increase in medication safety. There was minor increase in the percent of U.S. hospitals that have reached Stage 7. A little less than half of U.S. hospitals are in Stage 3, a proportion which has decreased by almost three percent, due to hospitals moving up the scale. Stage 3 provides the foundation for advancing to more advanced stages of clinical information system capabilities (e.g., CPOE, closed-loop medication administration, and physician documentation). An evaluation of U.S. hospitals by type, bed size, and region (see Table EMR1) with 2011 data shows that: • Academic/teaching hospitals had the highest mean and median EMRAM scores, among all hospital types; they are also the only group that has both a median and mean score of four. This is followed by general medical/surgical and urban hospitals. This is unchanged from previous annual reports. • There is a positive correlation between larger bed hospitals and high EMRAM average and median scores. Hospitals in the 600 or more bed segment had the highest mean score and median score across all bed size categories; hospitals with fewer than 100 beds have the lowest mean and median scores. • As in previous annual reports, the New England region had the highest mean and median score by region. Hospitals in the Mountain and West South Central regions have the lowest average and median scores. An evaluation of the EMRAM scores by individual U.S. state shows that Rhode Island, Maine and Connecticut all have median scores above 4.0000. Montana is the only state to have a mean and median score under 2.0000 and is ranked 50th of all the U.S. states and District of Columbia (see Tables EMR2 and EMR3). ▶▶ The EMR Adoption ModelSM: Measuring Clinical IT Transformation con tinued Table E MR A M1 Table E MR A M3 Segment Hospital Type Segment Academic/Teaching Non-Academic General Medical/Surgical Others Rural Urban IDS Independent Hospital Critical Access Bed Segment 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds 600+ Beds Regions (U.S. Census Defined) East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central All Hospitals Total Mean Min Max Median Number 4.2111 3.0901 3.4286 2.7056 2.3608 3.3767 3.3029 2.8615 2.3872 1.2860 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 7.0710 7.0710 7.0710 7.0710 7.0390 7.0710 7.0710 7.0630 6.0550 4.2470 3.2600 3.3310 3.1350 3.0400 3.3200 3.3030 3.1990 3.0720 221 5,078 3,161 2,138 1,251 4,048 3,306 1,993 1,323 2.6328 3.3981 3.7498 3.8064 3.8185 4.0942 4.2120 0.0000 0.0000 0.0100 0.1900 2.0150 2.1700 2.1020 7.0630 7.0710 7.0710 7.0710 7.0390 7.0710 7.0710 3.1200 3.3150 3.4080 3.4150 3.4410 3.5090 4.2235 2,759 973 610 405 215 149 188 3.3991 2.8580 3.4383 2.7394 3.8923 3.3311 3.3794 2.9378 2.6678 0.0000 0.0000 0.0050 0.0000 0.1110 0.0000 0.0000 0.0000 0.0000 7.0710 6.0710 7.0390 7.0630 7.0630 7.0710 7.0710 7.0630 7.0390 3.3160 3.2000 3.3150 3.1560 3.4595 3.2710 3.3350 3.2350 3.1390 839 442 486 419 200 584 787 708 834 3.1369 0.0000 7.0710 3.2750 5,299 Region Key for States: New England . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MA, ME, VT, RI, CT, NH Middle Atlantic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . NY, NJ, PA South Atlantic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MD, DE, DC, WV, VA, NC, SC, GA, FL East North Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MI, OH, IN, IL, WI East South Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KY, TN, MS, AL West North Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MN, IA, MO, KS, ND, SD, NE West South Central . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TX, LA, AR, OK Mountain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ID, CO, WY, MT, NV, UT, AZ, NM Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . WA, CA, OR, AK, HI Table E MR A M2 Segment Rhode Island Maine Connecticut Delaware Vermont Massachusetts Virginia Maryland Missouri South Carolina Utah Iowa Illinois Washington Indiana Georgia Oregon Pennsylvania Florida Wisconsin North Carolina New Jersey Ohio Minnesota New York Mean 4.3605 3.9510 3.9343 4.1829 4.0035 4.0049 3.9711 3.8939 3.4470 3.4575 3.2554 3.4053 3.5352 3.3992 3.4674 3.1888 3.3854 3.4214 3.2695 3.5267 3.3421 3.4309 3.2535 3.4272 3.4579 Min 1.3230 2.0950 1.0790 2.4580 1.0710 0.1250 0.0790 1.0710 0.0050 0.1300 0.0000 0.0050 0.0450 0.0050 0.0050 0.0000 0.0420 0.0050 0.0000 0.0000 0.0100 0.0550 0.0000 0.0000 0.0050 Max 6.0710 6.0480 6.0710 7.0470 6.0710 7.0630 7.0710 6.0630 7.0310 6.0710 6.0710 6.0710 7.0710 6.0710 6.0710 6.0710 7.0230 7.0390 6.0710 7.0710 6.0710 6.0710 6.0710 7.0630 6.0710 Median 4.2610 4.1550 4.0960 3.6050 3.5250 3.4870 3.4190 3.4155 3.4000 3.3910 3.3750 3.3680 3.3600 3.3590 3.3390 3.3350 3.3350 3.3350 3.3320 3.3250 3.3220 3.3150 3.3120 3.2980 3.2870 Number 11 35 34 9 14 81 84 48 133 71 49 121 199 93 137 155 61 198 239 136 122 85 207 133 203 Segment Alaska Tennessee Arizona New Hampshire Alabama Colorado Kentucky California Michigan West Virginia Texas Idaho Nevada Wyoming South Dakota Louisiana Nebraska New Mexico District of Columbia Arkansas Kansas Oklahoma Mississippi Hawaii North Dakota Montana Mean 3.3329 3.0614 3.1642 3.1196 2.9664 2.7713 3.0084 3.3571 3.2511 3.0150 2.7711 2.7576 2.4048 2.8278 2.5621 2.5083 2.5447 2.8459 2.4858 2.6313 2.2425 2.4634 2.3038 2.5397 2.0412 1.7363 Min 0.0050 0.0000 0.0250 0.1110 0.0000 0.0150 0.0580 0.0000 0.0050 0.0100 0.0000 0.0000 0.0000 0.0150 0.0000 0.0050 0.0000 0.0000 0.0050 0.0050 0.0000 0.0000 0.0050 0.0050 0.0000 0.0000 Max 6.0710 6.0710 7.0630 6.0470 5.1190 6.0470 6.0710 7.0710 6.0710 6.0470 7.0390 6.0150 4.2670 6.0310 6.0470 6.0710 6.0550 6.0310 4.2770 6.0710 6.0480 6.0710 6.0710 6.0480 5.1350 6.0240 Median 3.2750 3.2720 3.2615 3.2600 3.2520 3.2495 3.2350 3.2305 3.2195 3.2000 3.1870 3.1840 3.1550 3.1470 3.1435 3.1395 3.1240 3.1240 3.0970 3.0750 3.0750 3.0750 2.1620 2.1510 2.1470 1.7300 Number 17 140 82 25 99 84 104 388 160 49 486 43 41 27 52 144 87 37 10 86 137 118 99 25 45 56 For additional information about EMRAM, go to the link shown below: http://www.himssanalytics.org/hc_providers/emr_adoption.asp 2011 marked the beginning of the period of payout for ARRA’s EMR adoption incentives, and measures of activity during the latter half of 2010 suggest that the rate of EMR acquisition and implementation is escalating. We anticipate this trend will further accelerate in 2011. However, while the rate of progress is commendable and vital to the long term “health” of healthcare, much more work remains to be accomplished if the government’s goal of 70 percent of the U.S. healthcare providers are to achieve meaningful criteria by the end of 2015. Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 75 ▶▶ Appendix ▶▶ 0–100 Beds Applications 101–200 Beds 201–300 Beds 2010 2011 2010 2011 2010 2011 % of 2,181 Hospitals % of 2,181 Hospitals % of 822 hospitals % of 822 hospitals % of 504 hospitals % of 504 hospitals Abstracting 2,013 92.30% 2,050 93.99% 815 99.15% 818 99.51% 503 99.80% 503 99.80% Accounts Payable 2,175 99.72% 2,179 99.91% 822 100.00% 822 100.00% 504 100.00% 504 100.00% ADT/Registration 2,166 99.31% 2,170 99.50% 821 99.88% 821 99.88% 504 100.00% 504 100.00% Anatomical Pathology 723 33.15% 745 34.16% 630 76.64% 624 75.91% 448 88.89% 453 89.88% Bed Management 412 18.89% 506 23.20% 300 36.50% 328 39.90% 239 47.42% 263 52.18% 1,752 80.33% 1,781 81.66% 795 96.72% 800 97.32% 494 98.02% 497 98.61% 953 43.70% 977 44.80% 719 87.47% 699 85.04% 480 95.24% 478 94.84% 1,585 72.67% 1,615 74.05% 736 89.54% 738 89.78% 458 90.87% 461 91.47% Business Intelligence 619 28.38% 688 31.55% 376 45.74% 416 50.61% 240 47.62% 268 53.17% Cardiology – Cath Lab 126 5.78% 129 5.91% 328 39.90% 338 41.12% 284 56.35% 311 61.71% Cardiology – CT (Computerized Tomography) 106 4.86% 125 5.73% 215 26.16% 239 29.08% 167 33.13% 194 38.49% Cardiology – Echocardiology 192 8.80% 234 10.73% 321 39.05% 348 42.34% 252 50.00% 280 55.56% 89 4.08% 111 5.09% 190 23.11% 210 25.55% 158 31.35% 190 37.70% Cardiology – Nuclear Cardiology 100 4.59% 137 6.28% 185 22.51% 215 26.16% 144 28.57% 179 35.52% Cardiology Information System 314 14.40% 357 16.37% 497 60.46% 525 63.87% 371 73.61% 391 77.58% Case Mix Management 1,483 68.00% 1,508 69.14% 736 89.54% 743 90.39% 455 90.28% 462 91.67% Chart Deficiency 1,814 83.17% 1,875 85.97% 806 98.05% 810 98.54% 501 99.40% 501 99.40% Chart Tracking/Locator 1,780 81.61% 1,844 84.55% 802 97.57% 808 98.30% 497 98.61% 496 98.41% Clinical Data Repository 1,731 79.37% 1,842 84.46% 779 94.77% 786 95.62% 496 98.41% 497 98.61% Clinical Decision Support 1,672 76.66% 1,774 81.34% 761 92.58% 772 93.92% 487 96.63% 497 98.61% Computer Assisted Coding 250 11.46% 295 13.53% 124 15.09% 140 17.03% 92 18.25% 112 22.22% Computerized Practitioner Order Entry (CPOE) 1,024 46.95% 1,299 59.56% 456 55.47% 546 66.42% 345 68.45% 393 77.98% 638 29.25% 802 36.77% 416 50.61% 502 61.07% 261 51.79% 314 62.30% Contract Management 1,159 53.14% 1,198 54.93% 627 76.28% 635 77.25% 399 79.17% 407 80.75% Cost Accounting 1,215 55.71% 1,242 56.95% 627 76.28% 628 76.40% 426 84.52% 426 84.52% Credit/Collections 1,879 86.15% 1,901 87.16% 793 96.47% 795 96.72% 480 95.24% 482 95.63% Data Warehousing/Mining – Financial 699 32.05% 753 34.53% 402 48.91% 443 53.89% 256 50.79% 295 58.53% Data Warehousing/Mining – Clinical 502 23.02% 579 26.55% 304 36.98% 366 44.53% 215 42.66% 258 51.19% DBMS 1,138 52.18% 1,162 53.28% 616 74.94% 627 76.28% 384 76.19% 392 77.78% Dictation 1,784 81.80% 1,859 85.24% 784 95.38% 800 97.32% 486 96.43% 496 98.41% Dictation with Speech Recognition 429 19.67% 542 24.85% 327 39.78% 390 47.45% 245 48.61% 294 58.33% Disaster Recovery 633 29.02% 726 33.29% 304 36.98% 363 44.16% 193 38.29% 227 45.04% Document Management 1,246 57.13% 1,336 61.26% 593 72.14% 630 76.64% 393 77.98% 424 84.13% EDI – Clearinghouse Vendor 1,686 77.30% 1,775 81.38% 675 82.12% 711 86.50% 407 80.75% 435 86.31% 919 42.14% 1,036 47.50% 463 56.33% 494 60.10% 300 59.52% 332 65.87% Electronic Medication Administration Record (EMAR) 1,345 61.67% 1,549 71.02% 630 76.64% 661 80.41% 426 84.52% 449 89.09% Emergency Department Systems 1,212 55.57% 1,371 62.86% 708 86.13% 729 88.69% 469 93.06% 478 94.84% Encoder 2,018 92.53% 2,045 93.76% 818 99.51% 818 99.51% 503 99.80% 503 99.80% 915 41.95% 999 45.80% 482 58.64% 536 65.21% 312 61.90% 346 68.65% Benefits Administration Blood Bank Budgeting Cardiology – Intravascular Ultrasound Consumer Portal Electronic Forms Management Encryption 76 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 301–400 Beds 401–500 Beds 501–600 Beds 600+ Beds 2010 2011 2010 2011 2010 2011 2010 2011 % of 328 hospitals % of 328 hospitals % of 182 hospitals % of 182 hospitals % of 122 hospitals % of 122 hospitals % of 150 hospitals % of 150 hospitals 325 99.09% 326 99.39% 182 100.00% 182 100.00% 121 99.18% 122 100.00% 150 100.00% 150 100.00% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 121 99.18% 150 100.00% 150 100.00% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 303 92.38% 301 91.77% 170 93.41% 168 92.31% 119 97.54% 119 97.54% 146 97.33% 146 97.33% 183 55.79% 205 62.50% 112 61.54% 119 65.38% 78 63.93% 83 68.03% 111 74.00% 124 82.67% 321 97.87% 323 98.48% 180 98.90% 180 98.90% 120 98.36% 120 98.36% 145 96.67% 145 96.67% 323 98.48% 317 96.65% 176 96.70% 176 96.70% 120 98.36% 120 98.36% 143 95.33% 143 95.33% 307 93.60% 307 93.60% 174 95.60% 173 95.05% 118 96.72% 117 95.90% 141 94.00% 141 94.00% 172 52.44% 193 58.84% 95 52.20% 106 58.24% 72 59.02% 77 63.11% 85 56.67% 97 64.67% 225 68.60% 234 71.34% 144 79.12% 147 80.77% 105 86.07% 106 86.89% 124 82.67% 126 84.00% 133 40.55% 143 43.60% 90 49.45% 96 52.75% 65 53.28% 69 56.56% 79 52.67% 88 58.67% 210 64.02% 224 68.29% 131 71.98% 138 75.82% 96 78.69% 99 81.15% 119 79.33% 123 82.00% 139 42.38% 149 45.43% 89 48.90% 98 53.85% 64 52.46% 68 55.74% 83 55.33% 91 60.67% 132 40.24% 141 42.99% 79 43.41% 87 47.80% 66 54.10% 71 58.20% 73 48.67% 83 55.33% 267 81.40% 270 82.32% 157 86.26% 158 86.81% 105 86.07% 108 88.52% 139 92.67% 143 95.33% 288 87.80% 296 90.24% 168 92.31% 169 92.86% 109 89.34% 108 88.52% 149 99.33% 143 95.33% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 326 99.39% 325 99.09% 177 97.25% 177 97.25% 121 99.18% 121 99.18% 147 98.00% 146 97.33% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 314 95.73% 317 96.65% 179 98.35% 179 98.35% 121 99.18% 121 99.18% 146 97.33% 146 97.33% 66 20.12% 75 22.87% 36 19.78% 42 23.08% 24 19.67% 27 22.13% 33 22.00% 42 28.00% 231 70.43% 270 82.32% 138 75.82% 150 82.42% 99 81.15% 106 86.89% 128 85.33% 135 90.00% 177 53.96% 208 63.41% 107 58.79% 123 67.58% 74 60.66% 84 68.85% 99 66.00% 107 71.33% 272 82.93% 274 83.54% 156 85.71% 157 86.26% 103 84.43% 103 84.43% 125 83.33% 129 86.00% 289 88.11% 288 87.80% 163 89.56% 166 91.21% 116 95.08% 115 94.26% 139 92.67% 139 92.67% 312 95.12% 316 96.34% 175 96.15% 176 96.70% 117 95.90% 117 95.90% 144 96.00% 145 96.67% 195 59.45% 212 64.63% 114 62.64% 118 64.84% 67 54.92% 72 59.02% 106 70.67% 114 76.00% 153 46.65% 176 53.66% 86 47.25% 94 51.65% 56 45.90% 60 49.18% 92 61.33% 100 66.67% 267 81.40% 269 82.01% 150 82.42% 152 83.52% 103 84.43% 104 85.25% 128 85.33% 131 87.33% 321 97.87% 325 99.09% 179 98.35% 180 98.90% 119 97.54% 118 96.72% 145 96.67% 147 98.00% 175 53.35% 209 63.72% 94 51.65% 115 63.19% 76 62.30% 84 68.85% 96 64.00% 111 74.00% 128 39.02% 146 44.51% 70 38.46% 78 42.86% 58 47.54% 60 49.18% 73 48.67% 83 55.33% 264 80.49% 276 84.15% 158 86.81% 162 89.01% 102 83.61% 104 85.25% 129 86.00% 138 92.00% 278 84.76% 295 89.94% 147 80.77% 153 84.07% 107 87.70% 111 90.98% 132 88.00% 138 92.00% 207 63.11% 223 67.99% 123 67.58% 131 71.98% 84 68.85% 86 70.49% 94 62.67% 102 68.00% 275 83.84% 296 90.24% 170 93.41% 173 95.05% 116 95.08% 118 96.72% 133 88.67% 138 92.00% 305 92.99% 310 94.51% 171 93.96% 175 96.15% 114 93.44% 114 93.44% 147 98.00% 149 99.33% 327 99.70% 327 99.70% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 205 62.50% 224 68.29% 115 63.19% 124 68.13% 76 62.30% 84 68.85% 93 62.00% 104 69.33% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 77 ▶▶ Appendix con tinued 0–100 Beds Applications 101–200 Beds 201–300 Beds 2010 2011 2010 2011 2010 2011 % of 2,181 Hospitals % of 2,181 Hospitals % of 822 hospitals % of 822 hospitals % of 504 hospitals % of 504 hospitals Enterprise Master Person Index (EMPI) 829 38.01% 901 41.31% 453 55.11% 492 59.85% 288 57.14% 310 61.51% Enterprise Resource Planning 312 14.31% 338 15.50% 189 22.99% 199 24.21% 155 30.75% 162 32.14% 1,190 54.56% 1,231 56.44% 555 67.52% 579 70.44% 353 70.04% 360 71.43% 534 24.48% 577 26.46% 312 37.96% 329 40.02% 216 42.86% 225 44.64% Firewall 1,243 56.99% 1,350 61.90% 564 68.61% 625 76.03% 353 70.04% 397 78.77% General Ledger 2,175 99.72% 2,178 99.86% 822 100.00% 822 100.00% 504 100.00% 504 100.00% 334 15.31% 430 19.72% 211 25.67% 259 31.51% 150 29.76% 210 41.67% 1,216 55.75% 1,256 57.59% 664 80.78% 671 81.63% 416 82.54% 423 83.93% Intensive Care 719 32.97% 754 34.57% 521 63.38% 549 66.79% 347 68.85% 374 74.21% Interface Engines 913 41.86% 972 44.57% 541 65.82% 560 68.13% 359 71.23% 378 75.00% 84 3.85% 123 5.64% 117 14.23% 124 15.09% 83 16.47% 94 18.65% Laboratory – Outreach Services 235 10.77% 329 15.08% 205 24.94% 239 29.08% 160 31.75% 187 37.10% Laboratory Information System 2,077 95.23% 2,110 96.74% 821 99.88% 822 100.00% 504 100.00% 504 100.00% Materials Management 2,059 94.41% 2,074 95.09% 817 99.39% 819 99.64% 504 100.00% 504 100.00% Medical Necessity Checking Content 977 44.80% 1,067 48.92% 512 62.29% 547 66.55% 285 56.55% 328 65.08% Medication Reconciliation 618 28.34% 906 41.54% 328 39.90% 421 51.22% 220 43.65% 302 59.92% 1,295 59.38% 1,373 62.95% 772 93.92% 773 94.04% 492 97.62% 493 97.82% Nurse Call System 629 28.84% 823 37.73% 360 43.80% 442 53.77% 231 45.83% 292 57.94% Nurse Staffing/Scheduling 986 45.21% 999 45.80% 625 76.03% 626 76.16% 444 88.10% 438 86.90% 1,481 67.90% 1,630 74.74% 677 82.36% 707 86.01% 446 88.49% 461 91.47% Obstetrical Systems (Labor and Delivery) 576 26.41% 631 28.93% 538 65.45% 556 67.64% 343 68.06% 363 72.02% Operating Room (Surgery) – Peri-Operative 834 38.24% 948 43.47% 608 73.97% 633 77.01% 421 83.53% 425 84.33% Operating Room (Surgery) – Post-Operative 869 39.84% 995 45.62% 617 75.06% 646 78.59% 424 84.13% 426 84.52% Operating Room (Surgery) – Pre-Operative 948 43.47% 1,047 48.01% 651 79.20% 673 81.87% 449 89.09% 451 89.48% OR Scheduling 997 45.71% 1,085 49.75% 679 82.60% 709 86.25% 469 93.06% 469 93.06% Order Entry (includes Order Communications) 1,868 85.65% 1,941 89.00% 790 96.11% 797 96.96% 495 98.21% 498 98.81% Outcomes and Quality Management 1,675 76.80% 1,686 77.30% 625 76.03% 605 73.60% 402 79.76% 395 78.37% 426 19.53% 479 21.96% 284 34.55% 290 35.28% 194 38.49% 199 39.48% Patient Billing 2,154 98.76% 2,177 99.82% 821 99.88% 822 100.00% 504 100.00% 503 99.80% Patient Scheduling 2,025 92.85% 2,059 94.41% 813 98.91% 813 98.91% 500 99.21% 501 99.40% Payroll 2,136 97.94% 2,143 98.26% 819 99.64% 820 99.76% 503 99.80% 503 99.80% Personnel Management 1,731 79.37% 1,774 81.34% 801 97.45% 804 97.81% 496 98.41% 497 98.61% Pharmacy Management System 1,957 89.73% 2,012 92.25% 820 99.76% 821 99.88% 504 100.00% 504 100.00% Physician Documentation 934 42.82% 1,120 51.35% 455 55.35% 535 65.09% 341 67.66% 380 75.40% Physician Portal 633 29.02% 817 37.46% 404 49.15% 466 56.69% 279 55.36% 321 63.69% Radiology – Angiography 904 41.45% 931 42.69% 653 79.44% 669 81.39% 450 89.29% 458 90.87% Radiology – Computerized Tomography (CT) 1,622 74.37% 1,711 78.45% 753 91.61% 765 93.07% 483 95.83% 486 96.43% Radiology – Computed Radiography (CR) 1,577 72.31% 1,693 77.62% 750 91.24% 767 93.31% 469 93.06% 474 94.05% Radiology – Digital Fluoroscopy (DF) 1,176 53.92% 1,254 57.50% 701 85.28% 722 87.83% 457 90.67% 464 92.06% 778 35.67% 966 44.29% 493 59.98% 571 69.46% 324 64.29% 353 70.04% Executive Information Systems Financial Modeling Infection Surveillance System In-House Transcription Laboratory – Molecular Diagnostics Microbiology Nursing Documentation Patient Acuity (formerly Nurse Acuity) Radiology – Digital Mammography 78 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 301–400 Beds 401–500 Beds 501–600 Beds 600+ Beds 2010 2011 2010 2011 2010 2011 2010 2011 % of 328 hospitals % of 328 hospitals % of 182 hospitals % of 182 hospitals % of 122 hospitals % of 122 hospitals % of 150 hospitals % of 150 hospitals 202 61.59% 211 64.33% 116 63.74% 117 64.29% 75 61.48% 80 65.57% 113 75.33% 117 78.00% 121 36.89% 130 39.63% 72 39.56% 73 40.11% 55 45.08% 57 46.72% 69 46.00% 75 50.00% 231 70.43% 239 72.87% 133 73.08% 136 74.73% 85 69.67% 87 71.31% 117 78.00% 117 78.00% 162 49.39% 167 50.91% 96 52.75% 100 54.95% 71 58.20% 76 62.30% 78 52.00% 80 53.33% 236 71.95% 254 77.44% 139 76.37% 145 79.67% 86 70.49% 93 76.23% 108 72.00% 118 78.67% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 121 99.18% 150 100.00% 150 100.00% 109 33.23% 136 41.46% 72 39.56% 87 47.80% 52 42.62% 59 48.36% 59 39.33% 86 57.33% 269 82.01% 276 84.15% 148 81.32% 154 84.62% 104 85.25% 101 82.79% 135 90.00% 138 92.00% 223 67.99% 235 71.65% 135 74.18% 137 75.27% 101 82.79% 105 86.07% 122 81.33% 132 88.00% 255 77.74% 262 79.88% 154 84.62% 154 84.62% 105 86.07% 108 88.52% 129 86.00% 135 90.00% 79 24.09% 89 27.13% 47 25.82% 54 29.67% 33 27.05% 36 29.51% 66 44.00% 77 51.33% 120 36.59% 139 42.38% 73 40.11% 84 46.15% 50 40.98% 58 47.54% 74 49.33% 87 58.00% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 326 99.39% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 201 61.28% 218 66.46% 115 63.19% 126 69.23% 80 65.57% 83 68.03% 86 57.33% 99 66.00% 151 46.04% 201 61.28% 102 56.04% 128 70.33% 75 61.48% 84 68.85% 76 50.67% 104 69.33% 321 97.87% 323 98.48% 180 98.90% 180 98.90% 118 96.72% 118 96.72% 147 98.00% 148 98.67% 138 42.07% 177 53.96% 77 42.31% 98 53.85% 64 52.46% 73 59.84% 73 48.67% 91 60.67% 300 91.46% 299 91.16% 166 91.21% 163 89.56% 115 94.26% 115 94.26% 140 93.33% 140 93.33% 296 90.24% 303 92.38% 164 90.11% 170 93.41% 119 97.54% 119 97.54% 141 94.00% 143 95.33% 251 76.52% 257 78.35% 143 78.57% 144 79.12% 101 82.79% 101 82.79% 126 84.00% 128 85.33% 277 84.45% 288 87.80% 167 91.76% 168 92.31% 114 93.44% 118 96.72% 141 94.00% 146 97.33% 278 84.76% 292 89.02% 161 88.46% 163 89.56% 112 91.80% 115 94.26% 139 92.67% 144 96.00% 297 90.55% 305 92.99% 171 93.96% 170 93.41% 117 95.90% 117 95.90% 144 96.00% 146 97.33% 310 94.51% 313 95.43% 175 96.15% 177 97.25% 119 97.54% 119 97.54% 148 98.67% 149 99.33% 327 99.70% 326 99.39% 180 98.90% 181 99.45% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 255 77.74% 248 75.61% 142 78.02% 137 75.27% 104 85.25% 97 79.51% 123 82.00% 123 82.00% 123 37.50% 129 39.33% 90 49.45% 88 48.35% 54 44.26% 56 45.90% 69 46.00% 71 47.33% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 327 99.70% 327 99.70% 182 100.00% 182 100.00% 121 99.18% 122 100.00% 150 100.00% 150 100.00% 326 99.39% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 325 99.09% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 328 100.00% 328 100.00% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 202 61.59% 227 69.21% 118 64.84% 131 71.98% 96 78.69% 101 82.79% 122 81.33% 133 88.67% 206 62.80% 225 68.60% 130 71.43% 139 76.37% 85 69.67% 89 72.95% 98 65.33% 111 74.00% 303 92.38% 306 93.29% 176 96.70% 175 96.15% 119 97.54% 119 97.54% 147 98.00% 149 99.33% 321 97.87% 321 97.87% 179 98.35% 179 98.35% 121 99.18% 121 99.18% 150 100.00% 150 100.00% 317 96.65% 318 96.95% 177 97.25% 176 96.70% 121 99.18% 121 99.18% 148 98.67% 148 98.67% 309 94.21% 312 95.12% 175 96.15% 172 94.51% 118 96.72% 119 97.54% 143 95.33% 145 96.67% 233 71.04% 252 76.83% 132 72.53% 140 76.92% 92 75.41% 101 82.79% 115 76.67% 125 83.33% Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. 79 ▶▶ Appendix con tinued 0–100 Beds Applications 101–200 Beds 201–300 Beds 2010 2011 2010 2011 2010 2011 % of 2,181 Hospitals % of 2,181 Hospitals % of 822 hospitals % of 822 hospitals % of 504 hospitals % of 504 hospitals Radiology – Digital Radiography (DR) 1,282 58.78% 1,371 62.86% 715 86.98% 733 89.17% 457 90.67% 460 91.27% Radiology – Magnetic Resonance Imaging (MRI) 1,426 65.38% 1,504 68.96% 733 89.17% 752 91.48% 476 94.44% 479 95.04% Radiology – Nuclear Medicine 1,210 55.48% 1,283 58.83% 731 88.93% 745 90.63% 473 93.85% 475 94.25% 616 28.24% 716 32.83% 424 51.58% 472 57.42% 278 55.16% 305 60.52% Radiology – Ultrasound (US) 1,562 71.62% 1,682 77.12% 745 90.63% 760 92.46% 482 95.63% 485 96.23% Radiology Information System 1,936 88.77% 1,972 90.42% 810 98.54% 813 98.91% 503 99.80% 502 99.60% Respiratory Care Information System 697 31.96% 862 39.52% 422 51.34% 468 56.93% 275 54.56% 296 58.73% Single Sign-On 445 20.40% 506 23.20% 312 37.96% 359 43.67% 218 43.25% 252 50.00% Spam Filter/ Spyware N/A 0.00% 1,247 57.18% N/A 0.00% 586 71.29% N/A 0.00% 379 75.20% Staff Scheduling 633 29.02% 666 30.54% 436 53.04% 451 54.87% 308 61.11% 321 63.69% Telemedicine 478 21.92% 581 26.64% 162 19.71% 212 25.79% 92 18.25% 133 26.39% 1,934 88.67% 1,970 90.33% 797 96.96% 804 97.81% 492 97.62% 494 98.02% 518 23.75% 674 30.90% 276 33.58% 353 42.94% 189 37.50% 255 50.60% Radiology – Orthopedic Time & Attendance Virtualization Software 0–100 Beds Next Generation RCM 101–200 Beds 201–300 Beds 2010 2011 2010 2011 2010 2011 % of 2,181 Hospitals % of 2,181 Hospitals % of 822 hospitals % of 822 hospitals % of 504 hospitals % of 504 hospitals Biller’s Dash Board 473 21.69% 529 24.25% 159 19.34% 188 22.87% 117 23.21% 136 26.98% Claims Attachment Rules 499 22.88% 540 24.76% 217 26.40% 241 29.32% 137 27.18% 166 32.94% Claims Remittance Updates AR 322 14.76% 333 15.27% 107 13.02% 125 15.21% 83 16.47% 94 18.65% Denial Rules 517 23.70% 580 26.59% 227 27.62% 261 31.75% 138 27.38% 164 32.54% Direct Payer Claims 235 10.77% 249 11.42% 88 10.71% 94 11.44% 62 12.30% 72 14.29% EFT Transaction 503 23.06% 540 24.76% 187 22.75% 203 24.70% 124 24.60% 135 26.79% Eligibility Transaction with Payer 338 15.50% 368 16.87% 113 13.75% 124 15.09% 77 15.28% 86 17.06% EMR Documentation for Claims 60 2.75% 42 1.93% 36 4.38% 24 2.92% 25 4.96% 19 3.77% Necessity Alert @ Registration 683 31.32% 723 33.15% 329 40.02% 350 42.58% 187 37.10% 205 40.67% Necessity Alert @ Scheduling 337 15.45% 353 16.19% 219 26.64% 244 29.68% 137 27.18% 147 29.17% Web PreRegister 231 10.59% 269 12.33% 179 21.78% 219 26.64% 106 21.03% 132 26.19% Web Schedule 64 2.93% 68 3.12% 71 8.64% 72 8.76% 59 11.71% 60 11.90% Web Self Pay 430 19.72% 542 24.85% 284 34.55% 347 42.21% 156 30.95% 187 37.10% A mbulat ory A mbulat ory 2010 % of 18,335 Ambulatory Facilities Ambulatory EMR 10,543 57.50% 2011 % of 18,335 Ambulatory Facilities 11,416 62.26% Ambulatory Laboratory 3,298 17.99% 3,544 19.33% Ambulatory Pharmacy 1,174 6.40% 1,212 6.61% Ambulatory Radiology 3,233 17.63% 3,389 18.48% Practice Management 17,799 97.08% 17,870 97.46% 80 Source: HIMSS Analytics® Database 2011 ©2012 HIMSS Analytics. Ambulatory PACS* 2010 % of 3,454 Ambulatory Facilities 2011 % of 3,354 Ambulatory Facilities 2,052 1,953 59.41% *Only includes ambulatory facilities doing imaging on site 56.54% 301–400 Beds 401–500 Beds 501–600 Beds 600+ Beds 2010 2011 2010 2011 2010 2011 2010 2011 % of 328 hospitals % of 328 hospitals % of 182 hospitals % of 182 hospitals % of 122 hospitals % of 122 hospitals % of 150 hospitals % of 150 hospitals 308 93.90% 312 95.12% 174 95.60% 175 96.15% 120 98.36% 120 98.36% 147 98.00% 147 98.00% 318 96.95% 318 96.95% 177 97.25% 177 97.25% 121 99.18% 121 99.18% 148 98.67% 149 99.33% 315 96.04% 315 96.04% 176 96.70% 176 96.70% 119 97.54% 119 97.54% 146 97.33% 146 97.33% 194 59.15% 205 62.50% 124 68.13% 131 71.98% 77 63.11% 83 68.03% 108 72.00% 119 79.33% 319 97.26% 319 97.26% 179 98.35% 179 98.35% 121 99.18% 121 99.18% 150 100.00% 150 100.00% 327 99.70% 327 99.70% 182 100.00% 182 100.00% 122 100.00% 122 100.00% 150 100.00% 150 100.00% 179 54.57% 198 60.37% 117 64.29% 124 68.13% 77 63.11% 82 67.21% 101 67.33% 111 74.00% 144 43.90% 159 48.48% 75 41.21% 81 44.51% 61 50.00% 66 54.10% 83 55.33% 90 60.00% N/A 0.00% 249 75.91% N/A 0.00% 138 75.82% N/A 0.00% 91 74.59% N/A 0.00% 118 78.67% 222 67.68% 228 69.51% 124 68.13% 125 68.68% 86 70.49% 88 72.13% 114 76.00% 116 77.33% 83 25.30% 100 30.49% 55 30.22% 58 31.87% 38 31.15% 49 40.16% 48 32.00% 64 42.67% 319 97.26% 322 98.17% 180 98.90% 180 98.90% 120 98.36% 119 97.54% 148 98.67% 149 99.33% 136 41.46% 167 50.91% 85 46.70% 100 54.95% 52 42.62% 64 52.46% 74 49.33% 88 58.67% 301–400 Beds 401–500 Beds 501–600 Beds 600+ Beds 2010 2011 2010 2011 2010 2011 2010 2011 % of 328 hospitals % of 328 hospitals % of 182 hospitals % of 182 hospitals % of 122 hospitals % of 122 hospitals % of 150 hospitals % of 150 hospitals 84 25.61% 91 27.74% 56 30.77% 62 34.07% 34 27.87% 38 31.15% 41 27.33% 48 32.00% 104 31.71% 109 33.23% 68 37.36% 71 39.01% 37 30.33% 42 34.43% 51 34.00% 55 36.67% 53 16.16% 62 18.90% 43 23.63% 47 25.82% 23 18.85% 28 22.95% 31 20.67% 37 24.67% 100 30.49% 109 33.23% 67 36.81% 71 39.01% 40 32.79% 44 36.07% 55 36.67% 63 42.00% 52 15.85% 56 17.07% 42 23.08% 37 20.33% 23 18.85% 24 19.67% 29 19.33% 30 20.00% 87 26.52% 93 28.35% 61 33.52% 62 34.07% 30 24.59% 32 26.23% 46 30.67% 50 33.33% 50 15.24% 51 15.55% 40 21.98% 41 22.53% 22 18.03% 25 20.49% 27 18.00% 33 22.00% 18 5.49% 17 5.18% 15 8.24% 9 4.95% 6 4.92% 5 4.10% 15 10.00% 11 7.33% 145 44.21% 148 45.12% 82 45.05% 88 48.35% 50 40.98% 51 41.80% 51 34.00% 62 41.33% 96 29.27% 100 30.49% 53 29.12% 59 32.42% 33 27.05% 34 27.87% 39 26.00% 47 31.33% 85 25.91% 83 25.30% 48 26.37% 44 24.18% 38 31.15% 38 31.15% 35 23.33% 39 26.00% 40 12.20% 47 14.33% 17 9.34% 17 9.34% 14 11.48% 12 9.84% 27 18.00% 22 14.67% 114 34.76% 130 39.63% 61 33.52% 74 40.66% 49 40.16% 54 44.26% 54 36.00% 56 37.33% Home Health 2010 % of 1,821 Home Health Facilities 2011 % of 1,821 Home Health Facilities Home Health Administrative 1,747 95.94% 1,761 96.71% Home Health Clinical 1,595 87.59% 1,659 91.10% About HIMSS HIMSS is a cause-based, not-for-profit organization exclusively focused on providing global leadership for the optimal use of information technology (IT) and management systems for the betterment of healthcare. Founded 50 years ago, HIMSS and its related organizations are headquartered in Chicago with additional offices in the United States, Europe and Asia. HIMSS represents more than 38,000 individual members, of which more than two thirds work in healthcare provider, governmental and not-for-profit organizations. HIMSS also includes over 540 corporate members and more than 120 not-for-profit organizations that share our mission of transforming healthcare through the effective use of information technology and management systems. HIMSS frames and leads healthcare practices and public policy through its content expertise, professional development, research initiatives, and media vehicles designed to promote information and management systems’ contributions to improving the quality, safety, access, and cost-effectiveness of patient care. To learn more about HIMSS and to find out how to join us and our members in advancing our cause, please visit our website at www.himss.org. About HIMSS Analytics HIMSS Analytics supports improved decision-making for healthcare organizations, healthcare IT companies and consulting firms by delivering high quality data and analytical expertise. The company collects and analyzes healthcare organization data relating to IT processes and environments, products, IS department composition and costs, IS department management metrics, healthcare delivery trends and purchasing-related decisions. HIMSS Analytics is a wholly-owned, not for profit subsidiary of HIMSS. HIMSS Analytics 33 W. Monroe St., Suite 1700 Chicago, IL 60603-5616 www.himssanalytics.org HIMSS 33 W. Monroe St., Suite 1700 Chicago, IL 60603-5616 312-915-9295 www.himss.org ISBN: 978-1-938904-23-3 ISSN: 1949-0526 Order Code: 600