The Shape of the Electronic Medical Record Market

Electronic medical record (EMR) systems are of peripheral interest to the commercial practices of the biopharma industry. Except for clinical investigations, most of the data flow going back to these manufacturers starts from the pharmacy; whereas that is an end point for compiling medical records from the hospital administrator perspective. But in the coming era of healthcare information technology (HIT), there will be numerous overlapping points between EMRs and commercial pharma data; electronic prescribing is one that readily comes to mind. Moreover, as can be seen in examples like product serialization (see p. 23), the IT standards and practices of EMR systems will have an effect on pharma IT protocols.

In a new report, “US EMR Technology Markets,” Kalorama Information (New York) surveys the current state of the industry. It’s worth noting that this is a survey of the information systems to gather and store EMRs, not the value of the information itself. Also, the just-beginning stages of personal EMR storage, using anything from Google Health to newly organized, consumer-oriented businesses like Revolution Health are not yet in the picture.

Clinical vs. administrative

Under HIT, Kalorama distinguishes between the administrative IT systems of hospitals, medical or diagnostic centers and general physician practices, and clinical IT systems, which generate EMRs. The EMR part itself then divides into five categories:

• Pharmacy information systems (PISs)
• Radiology Information systems (RISs)
• Laboratory information systems (LISs)
• Other information systems
• Wireless systems for provider operations and surgical management.

Some specific solutions, such as computerized practitioner order entry (CPOE) cross most or all of these five categories; others, such as picture archiving and communications are specific to one (RIS, in this case).

The overall market for these systems was worth $10.8 billion in 2008, estimates Kalorama, and is growing at a compound rate of 14.1%. It will reach $18.5 billion in 2012 (and this estimate was made prior to the inauguration of the Obama Administration).

The leading players include:

• Cerner
• Computer Programs & Systems
• Eclipsys
• Epic
• GE Healthcare
• McKesson
• Medtech
• MedPlus
• QuadraMed Corp.
• Siemens

And the top four are McKesson (30% of the market); Cerner and Siemens (each with 17%), and GE Healthcare (15%). McKesson’s role as the No. 1 EMR provider, and the No. 1 drug wholesaler, puts it in a unique cross-industry position. PC