Annual Report of the US Hospital IT Market
Transcription
Annual Report of the US Hospital IT Market
2013 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 Looking Back; Looking Ahead: The Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2012 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Nursing Department Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Ancillary Department Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Laboratory Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Surgical Information System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Radiology PACS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Cardiology PACS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Bar Code Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Electronic Medical Record Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 The EMR Adoption ModelSM: Measuring Clinical IT Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Ambulatory (Hospital Owned/Managed) IT Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 HIMSS Mission To lead healthcare transformation through the effective use of health information technology. © 2013 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 [email protected] ISSN: 1949-0526 ISBN: 978-1-938904-27-1 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 CEO and EVP of HIMSS and HIMSS Analytics Dear Healthcare Executive: Welcome to the 2013 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, and hospital-owned, managed and/or leased ambulatory practices. From government incentives to planning a major investment in new technologies, a healthcare professional faces numerous challenges in wading through the complicated healthcare environment. Since the program beginning (in 2009) until November 2012, the Department of Health and Human Services (HHS) has made incentive payments of over $9 billion to American hospitals and eligible providers authorized under the The Health Information Technology for Economic and Clinical Health Act (HITECH). As part of the provisions of the 2009 American Recovery and Reinvestment Act (ARRA),1 the incentive payments more than double the amount paid out from the program at the same time in 2011. We at HIMSS Analytics believe the incentive program is having an accelerating effect on healthcare IT adoption in U.S. hospitals. In 2012, 205 hospitals achieve Stage 6 on the Electronic Medical Record Adoption ModelSM (EMRAM), up from 102 in 2011 and 80 in 2010. Moreover, in response to questions surrounding the efficacy of the HITECH program by certain members of Congress, HIMSS mobilized to demonstrate how the ARRA incentive program was fueling an acceleration of IT adoption in U.S. hospitals. By profiling the acute care EMRAM scores over five quarters from time of the initial stimulus payments in Q2 of 2011 through Q3 of 2012, we showed that Stages 5 and 6 had in excess of an 80 percent growth while Stage 7 had grown 66 percent. Stage 2 Meaningful Use regulations were finalized in September of 2012. In general, the bar set by Stage 1 has been raised for Stage 2, although the onset of criteria was pushed out to 2014. Meaningful Use Stage 2, ICD-10 adoption, clinical and business intelligence to support payment reform, and Meaningful Use Stages 1 and 2 quality reporting are still in effect working to maintain the “perfect storm” of regulatory compliance facing healthcare CIOs. From HIMSS Analytics data, we see that the number of hospitals per IDN continues to increase slightly from 6.9 to 7.0, though at decreasing rate from previous years. We perceive that the economic uncertainty for hospitals with looming significant Medicare reimbursement cuts may be cooling down the acquisition frenzy. However, the reductions of Medicare may be offset by new revenue from patients with health insurance in 2014 and beyond now that the Affordable Care Act (ACA) has been substantially accepted by the Supreme Court. Clearly, these are uncertain times for hospital CFOs. In 2012, HIMSS Analytics produced another report in our series regarding return on investment (ROI) for healthcare IT.2 Numerous examples of efficiency, quality and safety improvements were identified from Davies Award winners and Stage 7 hospitals. Clearly, the naysayers who believe that healthcare IT does not have a payoff are incorrect. We anticipate that 2012 will be seen as a year of acceleration where the stimulus provided by ARRA began to make an increasing affect in 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 ninth 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 H. Stephen Lieber President and CEO HIMSS 1 http://www.cms.gov/Regulations-and-Guidance/Legislation/EHRIncentivePrograms/Downloads/Nov_Medicare_Incentive_Payments.pdf 2 http://www.himss.org/transformation/docs/December2012ResearchPaper.pdf ▶▶ Looking Back; Looking Ahead: The Year in Review Years from now, historians may look back at the year 2012 and cast it as a pivotal moment in the evolution of healthcare in the U.S. With the Supreme Court’s five to four decision to uphold the Affordable Care Act (ACA) or “Obamacare” and its individual mandate requiring individuals to obtain health insurance or pay a fine, the ruling has the potential to greatly change the healthcare industry. Additional evidence regarding the significance of the Supreme Court’s decision played out later in the year with the re-election of Barack Obama. Challenged by a Republican presidential candidate, Mitt Romney, who vowed to repeal the ACA, Americans affirmed the move to change healthcare in the U.S. as we know it. So as we stand on the precipice of a new era in healthcare, 2013 will no doubt prove to be interesting, as regulations are unfurled to support the law that begins to take effect in 2014. The past year also saw unemployment in the U.S. steadily decrease from the nine percent level it had stubbornly fixated itself to beginning in late 2011, landing at 7.7 percent by November 2012.1 Concurrent with that gradual improvement in unemployment, the bellwether “housing starts” (number of new housing constructions) statistics from the Federal government’s Housing and Urban Development (HUD) Department showed signs of a reviving economy. Housing starts for new residential construction increased by 46.6 percent when comparing November 2012 with November 2011.2 Clearly there is some gradual improvement in the U.S. economy, albeit slower than everyone would like. The U.S. economy though, does not operate within a vacuum. Our economic affairs influence and are influenced by those in other parts of the world. The troubles within the European financial markets for example, are believed to be having a detrimental effect on the demand for U.S. goods and services, and may slow the revitalization of the U.S. economy. Despite these external downward pressures, the NASDAQ index, where many of the publicly held healthcare information technology (IT) companies are traded, showed a healthy 13.6 percent gain in 2012, while the Dow Jones Industrial Average only eked out 7.2 percent growth. The challenges to the U.S. economy did not let up even as the year closed. The federal government struggled mightily to avoid a selfimposed “fiscal cliff” that would have severely cut select governmental services and automatically instituted tax increases for many U.S. residents. The “fiscal cliff” remedies, which were mostly resolved at the last minute on December 31, with some key issues being deferred two months, served to highlight the discord among lawmakers. The closely watched consumer confidence index took a six percent drop in December as the fiscal cliff edged closer.3 This drop could have an effect on elective medical consumption in 2013, and is a metric many within the healthcare community will want to watch. Hospitals are typically a “lag indicator” of the economy as the effects of a recession tend to hit hospitals at the end of the recessive cycle. HIMSS AnalyticsTM data shows that in 2012 the number of hospitals and integrated delivery networks (IDNs) that reported an increase in their IT budgets was stable with 2011 levels. Clearly hospitals are investing in IT, but not necessarily at an increasing rate, according to HIMSS Analytics data through Autumn 2012. 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. These deficits have added significant pressure to state Medicaid programs, and in response, numerous federal programs are being scrutinized for effectiveness. Efforts to reach a compromise over the automatic tax increases from the repeal of the Bush-era tax cuts have generally included some effort to extend unemployment benefits. But as unemployment continues to decrease, the appetite for continued extensions may be lessened. Again, this could have a detrimental effect on elective medical consumption in 2013. The ARRA funding continues to be effective in stimulating the adoption of healthcare IT. In November 2012, more than 176,000 health care eligible providers received payment for participating in the Medicare and Medicaid Electronic Health Record (EHR) Incentive Programs, up from 100,000 healthcare providers in June of 2012.4 All told, over 3,300 hospitals have received $6.05B in Medicare incentive payments through November 2012, since the program began issuing incentive payments in May 2011.5 ARRA funding has clearly stimulated the acute care IT industry. Evidence of this growth can be found in the increased rate of progression up the EMRAM scale. In 2012, HIMSS Analytics recognized 205 hospitals achieving Stage 6, double the number (102) that achieved Stage 6 in 2011, and 2.5 times greater than the number achieved in 2010 (80). In October 2012, in response to questions surrounding the efficacy of the HITECH program by certain members of Congress, HIMSS produced an acute care EMRAM score table detailing five quarters of data from the initial stimulus payment in Q2 of 2011 through Q3 of 2012. Astonishingly, that table showed that Stages 5 and 6 grew by more than 80 percent while Stage 7 grew by 66 percent. Another sign of the acute care IT industry’s growth is the continued struggle healthcare providers have in recruiting and retaining clinical system skills for the implementation and support of IT systems. According to the U.S. Department of Labor Bureau of Labor Statistics (BLS), the healthcare industry is expected to grow rapidly between 2008 and 2018 in large part due to a continued growth of our elderly population. Additionally, the national effort to effectively deal with chronic diseases such as obesity is becoming more prevalent and thus will continue to stoke the demand for clinical labor. The BLS indicates that the social services and healthcare employment sector will be the fastest growing sector from 2008 through 2018 at 2.3 percent per year, with a clear majority of this growth coming from the ambulatory care settings. When providers are competing with vendors for the same clinical IT skills, the pressure will be on the providers to be able to retain the skills necessary to support the systems that have been deployed and meet the growing demand of the medical staffs, nursing staff and other clinician users. Consolidation continues in the hospital provider market. Acquisition and mergers of acute care providers increased slightly in 2012 compared to 2011. We perceive that access to large capital may be constrained in this uncertain economy due to the anticipated 1 http://data.bls.gov/timeseries/LNS14000000 2 http://www.census.gov/construction/nrc/pdf/newresconst.pdf 3 http://money.cnn.com/2012/12/30/news/economy/payroll-tax-consumer/index.html?hpt=hp_t1 4 https://www.cms.gov/Regulations-and-Guidance/Legislation/EHRIncentivePrograms/DataAndReports.html 5 http://www.cms.gov/Regulations-and-Guidance/Legislation/EHRIncentivePrograms/Downloads/Nov_IncentiveProgramPayment_Registration_SummaryReport.pdf 2 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. ▶▶ Looking Back; Looking Ahead: The Year in Review con tinue d reductions in Medicare and Medicaid reimbursements. However, the ACA will also provide a new source of revenue to hospitals as we begin our national effort to reduce the number of uninsured consumers. These two countervailing pressures make for uncertainty, and thus diminished appetite for debt as well as a diminished appetite to loan. HIMSS Analytics data shows that the number of hospitals per IDN continued to grow, however at a much slower rate in 2012 (1.5 percent), when compared to 2011 levels (4.5 percent). HIMSS Analytics also uncovered an interesting anomaly in the data on the number of hospitals per IDN. The median number has stayed at 3.0 for several years, but the arithmetic mean average is now 7.0 compared to 6.9 in 2011. The large disparity between the median of 3.0 and the mean of 7.0 tells us that there are significant numbers of very large IDNs but that their growth rate has slowed in 2012. We see no force to prevent this trend from continuing as hospitals choose to consolidate to weather the storm of reduced reimbursements, Accountable Care Organizations (ACOs) and bundled payments. The desire of the Federal Government, notably the White House and Health and Human Services Department (HHS), to have the ACO program succeed, may result in a confrontation with anti-trust watch dogs in the Justice Department. No doubt, more clarity here is needed in the market. The NPRM (notice of proposed rule making) for Meaningful Use Stage 2 regulations were released in February with the final rule being published on September 4, 2012. The extensive regulations also modified rules for Meaningful Use Stage 1. In general, the bar for criteria to satisfy Meaningful Use Stage 1 was raised, with the onset of criteria pushed back to 2014, the first year of applicability and the time when a 90-day EHR reporting period is allowed. The Stage 1 hospital requirement of 14 core measures and five of ten menu measures has been replaced with 16 core measures and three of six menu measures in Stage 2 for eligible hospitals. According to the Office of the National Coordinator for Health Information Technology (ONC), the total Federal cost of the Medicare and Medicaid EHR Incentive Programs between 2014 and 2019 is estimated to be $15.4 billion (these estimates include net payments adjustments for Medicare providers who do not achieve Meaningful Use in 2015 and subsequent years in the amount of $2.1 billion) The Medicare ACO program continued to grow in 2012. On July 9, 2012, the Center for Medicare and Medicaid Services (CMS) announced that 89 new organizations had been selected to participate in the Shared Savings Program via the ACO construct. In addition, CMS also announced 106 new organizations had been selected to participate on January 10, 2013. ACOs are driving hospitals to enter new partnerships with competitors in order to manage the health of a defined population. We believe these pilot programs will, by necessity, develop strengths in clinical and business intelligence (C&BI) in order to analyze the quality of their care and to drive efficiencies to meet the payment and incentive goals. One clear objective of the ACO program is to find a much better way of managing chronic diseases. According to Kaiser Permanente data, five percent of their covered population consumes fifty percent of the healthcare dollars. Clearly, we need to find ways, through patient engagement and best-practice modeling, to reduce consumption and the prevalence of chronic disease. We see a continued strong growth in software, hardware and services to meet the needs for C&BI. The industry tension between privately funded and federally funded health information exchanges (HIEs) remained the same in 2012. Federally funded HIEs remain challenged to find long-term sustainable business models and revenue services outside of state and federal funding mechanisms. However, significant inroads have been made by many of these regional and state public HIEs in the development of sustainability models as well as forming relationships working alongside private HIEs. The Nationwide Health Information Network (NwHIN) saw many changes in 2012. The NwHIN name changed to eHealth Exchange and oversight transitioned from ONC to Healtheway, a nonprofit– public, private partnership. Healtheway is chartered to support the eHealth Exchange and focus on cross-industry collaboration to advance HIEs across the country. eHealth Exchange continues to be a set of standards and polices that enable secure HIEs over the Internet through a common trust agreement by the community of eHealth Exchange participants. Continued market growth is anticipated with all HIE initiatives. The private market anticipates accelerated growth as private HIEs continue to develop and open up new business channels working with other private as well as public HIEs in their local and regional markets. We expect to continue seeing payers and other private organizations enter this space, as exchanges are valued as a major source of clinical consumption data that facilitates development of the next wave of efficacy research and resultant best practices and protocols. In addition, we expect to see more incorporation of financial and business information with clinical data by the HIEs. The ARRA also provisioned the Federal Coordinating Council for Comparative Effectiveness Research. ARRA authorized $300 million for the Agency for Healthcare Research and Quality (AHRQ), $400 million for the National Institutes of Health, and $400 million for the Secretary of Health and Human Services to support comparative effectiveness research. 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, 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 C&BI tools and resources will be in a better position to succeed, 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. So, looking ahead, where are we going in 2013 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 payment reform has picked up steam. The ACA to extend healthcare access to millions was substantially upheld by the Supreme Court. The Democratic Party picked up eight seats in the House of Representatives, narrowing the Republican majority to 33 (234 to 201). The Democratic majority in the Senate was strengthened with the addition of two seats, and two Senators serving as Independents. Dealing with the deficits and the aftermath of the “fiscal cliff” will clearly drive both parties to find ways of reducing spending and the inexorable growth of healthcare’s portion of the gross domestic product (GDP), which now stands at 17.6 percent. One fact remains clear—healthcare providers will continue to be Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 3 ▶▶ Looking Back; Looking Ahead: The Year in Review con tinue d expected to improve quality care coordination across care settings, while simultaneously reducing costs and improving efficiency. tasks as consolidating around a common supply chain system is temporarily a low priority. Now that a significant proportion of hospital providers have demonstrated compliance with Stage 1 Meaningful Use, they 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 to convert to ICD-10 diagnosis coding by October 1, 2014. • Meeting the EHR-related Stage 2 Meaningful Use requirements beginning in 2014. • Addressing the organizational and process changes required to meet the higher mandated levels of compliance with computerized provider order entry (CPOE) and clinical decision support (CDS) usage, as well as electronic reporting in order to secure continued Meaningful Use payments. We also believe we are not too far away from an uptick in revenue cycle system replacements to meet the new demands of payment reform. Maybe that is the next “bubble” to come after 2015. 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 2013, we see that the industry’s attention is 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 which 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 deployed healthcare IT concomitant with process redesign. The literature base and the HIMSS Analytics Stage 7 award winner case studies, as well as the HIMSS Davies Award winner case studies, are replete with 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 believe that healthcare IT investments do not drive quality and efficiency benefits are clearly wrong. The payoff has begun. Let us continue this progression. However, can healthcare IT be inappropriately applied? Certainly, inadequate training and poor usability design can feed an errorprone environment. Providers and software developers alike must be on guard to optimize the tremendous power of healthcare IT appropriately. EHR safety is a concern and rightly so and it has the attention of key government agencies. This Annual Report also demonstrates areas where healthcare IT market activity is slow, most notably in the supply chain area and revenue cycle. We have been stating that we expect an increase in activity in the supply chain area due to hospital mergers and acquisitions. The data thus far does not support that prediction. CIOs tell us that their primary focus is to implement the systems necessary to earn their Meaningful Use incentive payment and such 4 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Finally, as hospitals accumulate unprecedented levels of digital data, we see two major derivatives. First, C&BI analytics will take on a central role to help direct hospitals toward the most effective care protocols and efficiency. Second, hospital data centers themselves will become increasingly taxed to support and hold all this data. Hospitals will begin to move quickly to vendor-neutral archiving in secure data centers off campus. Manageability and physical space have 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 where shared models were the norm. Years from now, healthcare IT history buffs will likely look back on 2012 as a year when acute care IT adoption accelerated through the momentum gathered in 2011, and spurred on by federal stimulus dollars. But the past is merely prologue, as we expect the pace of change to continue now that President Obama has been re-elected and the ARRA stimulus program is not likely to be diminished significantly. However, we could see a significant downturn in clinical systems activity once the incentive payments cease after 2016. The interesting question is, will that be replaced by a growth of revenue-cycle system implementations to support payment reform commencing by the middle of this decade? As Confucius once said, “may we live in interesting times.” HIMSS Analytics Stage 7 Awards HIMSS Analytics launched the 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 where 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 two international Stage 7 hospitals. Stage 7 hospitals are positioned to share clinical information via standard electronic transactions with all entities within HIE 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 following is a list of healthcare organizations that have achieved Stage 7 of EMRAM (as of December 2012). These hospitals exemplify organizations that are using IT as the supporting infrastructure for their advances. ▶▶ Looking Back; Looking Ahead: The Year in Review con tinue d In 2012, a record number of 40 hospitals representing 10 different North American IDNs, satisfied the criteria to be validated as an EMRAM Stage 7 facility. Name Banner Baywood Medical Center Banner Boswell Memorial Hospital Banner Churchill Community Hospital Banner Del E. Webb Memorial Hospital Banner Desert Medical Center Banner Estrella Medical Center Banner Gateway Medical Center Banner Good Samaritan Medical Center Banner Heart Hospital Banner Ironwood Medical Center Banner Lassen Medical Center Banner Thunderbird Medical Center Community Hospital East Morgan County Hospital Ellis Fischel Cancer Center Florida Hospital North Pinellas Fort Memorial Hospital Hennepin County Medical Center McKee Medical Center Missouri Orthopedic Institute Missouri Psychiatric Center North Colorado Medical Center Ogallala Community Hospital Page Hospital Platte County Memorial Hospital Sterling Regional MedCenter Texas Health Harris Methodist Alliance The Ohio State University Comprehensive Cancer Center – Arthur G. James Cancer Hospital and Richard J. Solove Research Institute The Ohio State University Harding Hospital The Ohio State University Hospital The Ohio State University Hospital East The Ohio State University Rehabilitation Services at Dodd Hall The Ohio State University Richard M. Ross Heart Hospital Truman Medical Center–Hospital Hill Truman Medical Center–Lakewood UC Davis Medical Center University Hospital University of Iowa Hospitals and Clinics Washakie Medical Center Women’s and Children’s Hospital City Mesa Sun City Fallon Sun City West Mesa Phoenix Gilbert Phoenix Mesa San Tan Valley Susanville Glendale Torrington Brush Columbia Tarpon Springs Fort Atkinson Minneapolis Loveland Columbia Columbia Greeley Ogallala Page Wheatland Sterling Fort Worth State AZ AZ NV AZ AZ AZ AZ AZ AZ AZ CA AZ WY CO MO FL WI MN CO MO MO CO NE AZ WY CO TX Columbus Columbus Columbus Columbus Columbus Columbus Kansas City Kansas City Sacramento Columbia Iowa City Worland Columbia OH OH OH OH OH OH MO MO CA MO IA WY MO This is the eighth edition of the Annual Report of the U.S. Hospital IT Market. It is our deepest desire that you find this report thoughprovoking, stimulating and informative. The HIMSS Analytics Research Team John Hoyt Lorren Pettit Jennifer Horowitz Roger Park Maggy Tieche Hospitals validated as Stage 7 prior to 2012. Name Alfred I. DuPont Hospital for Children American Family Children’s Hospital Children’s Hospital Boston Children’s Hospital of Pittsburgh Children’s Medical Center at Legacy Children’s Medical Center of Dallas Citizens Memorial Healthcare Deaconess Cross Point Center Deaconess Gateway Hospital Deaconess Hospital Evanston Hospital Florida Hospital–Flagler 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–Moanalua 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–Redwood City Medical Center Kaiser Permanente–Richmond Medical Center Kaiser Permanente–Riverside 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 Rochester Methodist Hospital Sentara Bayside Sentara CarePlex Sentara Leigh Hospital Sentara Norfolk General Hospital Sentara Virginia Beach General Hospital Sentara Williamsburg Regional Medical Center Skokie Hospital St. Mary’s Hospital of Rochester Stanford Hospital and Clinics The Heart Hospital Tucson Medical Center UC San Diego Medical Center–Hillcrest UC San Diego Medical Center–Thornton Hospital University of Wisconsin–Hospital and Clinics Seoul National University Bundang Hospital Universitätsklinikum Hamburg-Eppendorf Hospital de Dénia Marina Salud S.A. Source: HIMSS Analytics® Database 2012 City Wilmington Madison Boston Pittsburgh Plano Dallas Bolivar Evansville Newburgh Evansville Evanston Winter Park Glenview Highland Park Anaheim Antioch Baldwin Park Bellflower Fontana Fremont Fresno Hayward Los Angeles Manteca Honolulu Modesto Moreno Valley Oakland Irvine Panorama City Redwood City Richmond Riverside 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 Rochester Virginia Beach Hampton Norfolk Norfolk Virginia Beach Williamsburg Skokie Rochester Stanford Newburgh Tucson San Diego La Jolla Madison Seoul Hamburg Denia State DE WI MA PA TX TX MO IN IN IN IL FL IL IL CA CA CA CA CA CA CA CA CA CA HI CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA OR CA CA CA CA MN VA VA VA VA VA VA IL MN CA IN AZ CA CA WI KOR GER ESP ©2013 HIMSS Analytics. 5 ▶▶ 2012 Hospital IT Budget and Expenses The 2012 Hospital IT budget and expenses report highlights financial benchmarks that provide a glimpse into IT-related spending as a percentage of organizations’ overall spending. Analyses are presented from three different perspectives. First, the average and median IT operating expenses (OPEX) are shown as a percentage of total hospital operating expense. This calculation excludes capital expenses 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 final 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 is examined by hospital size, hospital type and U.S. census region. The year 2012 represents an end to the downward trend in these ratios that were first noticed in 2010. The results of this year suggest a more positive outlook in the economy. In retrospect, the financial recession began in September 2007, when unemployment rates began to rise, lasting until the early months of 2009, when the bottom of the stock market was reached in February. Since then, the healthcare industry like other industries, has been wary of making significant investments outside of the Meaningful Use and ICD-10 directives. This period coincides with the crisis that began to directly affect healthcare provider organizations (HCOs). According to data from HIMSS Analytics, the percentage of hospitals stating that their IT operating budgets were increasing continued to fall each quarter in 2010, until the 4th quarter when we saw a return to more normal spending. According to an annual analysis by the CMS, national healthcare spending rose at a rate of 3.9 percent in 2011, identical to what was reported in 2010. 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—especially elective type procedures—which are 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.1, 2, 3, 4 In November and December of 2011, we began to see some growth in the national employment rate. The unemployment rate began to tick down below the nine percent range where it had been stuck for most of 2011 and ended at 7.7 percent in November of 2012. The number of layoffs in U.S. hospitals in 2012 was on par with the 2011 number and below the levels in 2009 and 2010 respectively according to the BLS. In 2012, there were an estimated 124 “mass layoffs” at U.S. hospitals (affecting 50 or more employees at once, a BLS definition) compared to 120 in 2011, 137 in 2010, and 152 in 2009. Even though the overall economy is improving and employment is growing, including in the healthcare sector, the number of “mass layoffs” is similar to 2011. The most common reason cited is impending reductions in Medicare and Medicaid payments. Other data from HIMSS Analytics indicates that hospital consolidation continues to increase, though at a markedly slower pace. In 2012, the number of hospitals per IDN was 7.0 compared to 6.9 in 2011, a positive increase of only 1.45 percent, and considerably less than a growth of 4.55 percent in 2011 over 2010. 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 ACA. Of course, increased admissions from expanded coverage availability may offset that decrease from Medicare. That remains to be seen. The notable slowdown in in the number of hospitals per IDN show that very large capital spending may be slowing until hospitals have a better feel for the economic environment in 2014 and beyond. The average and median ratio of IT department operating expense to total hospital operating expense increased from 2011 to 2012 (see Table HB1). When examining the ratio of the total IT budget (includes operating and capital expenses for this year) to total hospital operating expense, the average and median ratio decreased from 2011 to 2012; these ratios remain, however, above what was reported in 2010 (see Table HB2). Ratios related to the hospital’s capital expense to the hospital’s overall capital expense increased from 2010 to 2011 and again from 2011 to 2012. Both the average and median ration increased during this time (see Table HB3). Ta ble hB1 % of Total IT Operating Expense/Total Hospital Operating Expense-Overall Avg Median N 2010 2.40% 1.93% 471 2011 2.39% 2.11% 475 2012 2.74% 2.27% 400 2010 2.77% 2.26% 469 2011 4.87% 3.92% 436 2012 3.21% 2.66% 479 2010 17.32% 10.27% 211 2011 17.89% 12.14% 300 2012 20.22% 14.10% 244 Ta ble hB2 % of Total IT Budget/Total Hospital Expense–Overall Avg Median N Ta ble hB 3 % IS Capital Expense/Total Hospital Capital Expense–Overall Avg Median N 1 By 2018, national health spending is expected to reach $4.4 trillion and comprise just over one-fifth (20.3 percent) of Gross Domestic Product (GDP). http://www.cms.gov/Research-Statistics- Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/downloads/proj2008.pdf 2 The actuaries estimate that health spending will account for 19.6 percent of the gross domestic product (GDP) in 2021, up from 17.9 percent in 2010. http://www.govhealthit.com/news/cms- estimates-healthcare-will-soar-one-fifth-gdp 3 For 2011–13, U.S. health spending is projected to grow at 4.0 percent, on average—slightly above the historically low growth rate of 3.8 percent in 2009. (Published June 2012) http://content. healthaffairs.org/content/early/2012/06/11/hlthaff.2012.0404 4 In 2014, health spending growth is expected to accelerate to 7.4 percent as the major coverage expansions from the Affordable Care Act begin. (Published June 2012) http://content.healthaffairs. org/content/early/2012/06/11/hlthaff.2012.0404 6 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. ▶▶ 2012 Hospital IT Budget and Expenses con tinue d The general increase in the capital and operating expense ratios appear to be modest. However, this may be viewed as an indicator that the economy has recovered to a point where hospitals are beginning to feel more at ease with spending and/or budgeting increases in 2012. IT OPEX as a Percentage of Hospital Total OPEX IT OPEX as a percentage of the hospital total OPEX spending generally increased from 2011 to 2012 (see Table HB4). Almost all bed segments experienced a fairly strong increase. The 501–600 bed Ta ble HB 4 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 2010 2011 Avg % Total Avg % Total IT Operating IT Operating Expense/ Expense/ Total Hospital Total Hospital Operating Operating Expense N Expense 1.82% 183 1.97% 2.09% 77 2.17% 2.97% 78 2.52% 3.08% 55 2.81% 3.43% 41 3.35% 2.53% 13 3.16% 2.54% 24 2.73% 2.40% 471 2.39% N 171 91 74 60 37 17 25 475 2012 Avg % Total IT Operating Expense/ Total Hospital Operating Expense N 2.39% 146 2.50% 74 3.02% 58 2.79% 47 3.47% 29 3.83% 21 2.96% 25 2.74% 400 N 37 438 321 154 84 391 66 409 187 288 2012 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 3.14% 2.70% 2.78% 2.66% 2.22% 2.86% 2.34% 2.82% 3.01% 2.57% N 38 362 266 134 78 322 67 333 155 245 N 72 15 57 18 49 67 82 59 56 2012 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 2.98% 3.19% 2.52% 3.22% 2.30% 2.84% 2.53% 2.76% 2.50% N 68 21 44 29 36 50 54 57 41 Ta ble HB5 Type Academic Non-Academic General Med/Surg Others Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System 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 39 432 304 167 102 369 88 383 160 311 2011 Avg % Total IT Operating Expense/ Total Hospital Operating Expense 2.89% 2.35% 2.35% 2.48% 1.79% 2.52% 1.79% 2.49% 2.52% 2.31% 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% Ta ble HB6 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 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% 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 segment showed the largest increase at 0.67 percent followed by the 201–300 bed segment (0.50 percent increase) and 0–100 bed segment (0.42 percent increase), while the 301–400 bed segment witnessed a negligible decline (.02 points). 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, were often more “best of breed-like” in their deployments and many now have 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 that may be driving this increase. 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 hospital, i.e., those in the 301–500 bed range. Here, we found modest increases in the expense ratios. An evaluation of the IT OPEX by hospital type showed that every category demonstrated an increase in IT OPEX from 2011 to 2012 (see Table HB5). Rural hospitals reflected the largest growth (0.55 percent) followed by multi-hospital systems (0.49 percent), and critical access and general medical/surgical types (both at 0.43 percent growth). On a U.S. regional level, the IT OPEX growth occurred for most regions except for the East South Central and New England regions. The Mountain region reported the highest year-over-year growth of almost a full percent (0.88 percent) followed by East North Central and West South Central regions, at 0.64 percent growth each (see Table HB6). The median IT OPEX ratios for hospital bed size segments shows virtually all of the segments have increased from 2011 to 2012 except the 301–400 bed segment (see Table HB7). The largest growth occurred among large hospitals. Growth in both the 401–500 and 501–600 bed segments is 0.33 percent. Ta ble HB7 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 2010 2011 2012 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 1.56% 183 1.70% 171 2.00% 146 1.73% 77 1.98% 91 2.05% 74 2.13% 78 2.20% 74 2.48% 58 2.74% 55 2.75% 60 2.54% 47 3.23% 41 3.13% 37 3.46% 29 2.43% 13 3.17% 17 3.50% 21 2.32% 24 2.53% 25 2.62% 25 1.93% 471 2.11% 475 2.27% 400 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 7 ▶▶ 2012 Hospital IT Budget and Expenses con tinue d Upon evaluating the median operating expense ratio by hospital type category, all categories indicated a growth in IT OPEX (see Table HB8). The highest growth was among the rural hospital segment (0.42 percent), critical access hospitals (0.38 percent) and multi-hospital systems (0.38 percent). From 2011 to 2012, most of the U.S. regions indicated IT OPEX growth except Middle Atlantic (see Table HB9). The highest growth occurred in the East South Central region at one percent followed by Mountain region (0.77 percent). IT Spending as a Percentage of Hospital Total Spending Including CAPEX The average total IT budget as a percent of the total hospital operating expense (the average budget ratio) across various hospital segments is shown in Tables HB10–HB12. Overall, the IT budget ratio increased from 2011 to 2012. Based on the 2012 data, it appears as if the 2010 data was an anomaly and that the 2012 and 2011 data are more comparable than 2010 data. An evaluation of the average IT budget ratio by bed segmentation shows that the average ratio of four of the seven bed size segments indicated an increase from 2011 to 2012 (0–100, 201–300, 501–600 beds and over 600 beds), ranging from 0.06 percent to 1.39 percent (501–600 beds) (see table HB10). The remaining segments showed a decrease from 2011, ranging from 0.18 percent to 0.32 percent, with the largest decrease among hospitals with between 401 and 500 beds. Ta ble HB8 2010 Median % Total IT Operating Expense/Total Hospital Operating Type Expense Academic 2.78% Non-Academic 1.86% General Med/Surg 2.00% Others 1.86% Critical Access 1.53% Non-Critical Access 2.12% Rural 1.34% Urban 2.12% Multi-Hospital System 1.92% Single Hospital System 1.93% 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 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 37 438 321 154 84 391 66 409 187 288 2012 Median % Total IT Operating Expense/Total Hospital Operating Expense 2.85% 2.18% 2.29% 2.23% 1.90% 2.36% 1.95% 2.38% 2.54% 2.15% N 72 15 57 18 49 67 82 59 56 2012 Median % Total IT Operating Expense/Total Hospital Operating Expense 2.22% 2.83% 2.20% 2.82% 2.46% 2.76% 2.17% 1.96% 1.84% Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central The Pacific, East North Central and Mountain regions are the only segments to indicate an increase in spending ratio from 2011 to 2012, ranging from 0.16 percent to 1.58 percent (see Table HB12). All other regions indicated a decrease in the spending ratio with the largest decrease occurring in the West South Central region at 0.80 percent. Ta ble HB10 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 2010 Avg of Total IT Budget as % of Total Hospital Expense N 2.04% 179 2.39% 72 3.59% 79 3.22% 57 3.80% 41 3.20% 13 3.47% 28 2.77% 469 2011 Avg of Total IT Budget as % of Total Hospital Expense N 4.44% 149 4.92% 78 4.85% 78 5.22% 52 6.00% 38 5.47% 16 4.52% 25 4.87% 436 2012 Avg of Total IT Budget as % of Total Hospital Expense N 4.66% 140 4.73% 69 4.91% 67 5.04% 45 5.68% 31 6.86% 17 5.05% 26 4.96% 395 2010 Avg of Total IT Budget as % of Total Hospital Expense N 3.34% 46 2.71% 423 2.84% 300 2.64% 169 3.06% 148 2.63% 321 2.16% 99 2.93% 370 2.02% 86 2.94% 383 2011 Avg of Total IT Budget as % of Total Hospital Expense 4.80% 4.88% 4.85% 4.92% 4.57% 4.94% 4.69% 4.91% 5.71% 4.44% 2012 Avg of Total IT Budget as % of Total Hospital Expense N 5.06% 38 4.95% 357 5.12% 269 4.61% 126 4.13% 75 5.15% 320 4.63% 69 5.03% 326 6.04% 140 4.36% 255 2010 Avg of 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% 2011 Avg of 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% Ta ble HB11 N 38 362 266 134 78 322 67 333 155 245 Ta ble HB9 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% Several of the hospital types have indicated an increase in total IT spending to total hospital spending ratio (see Table HB11). These hospital types include academic, non-academic, general medical/ surgical, non-critical access, urban and multi-hospital systems. The increase in ratio ranged from 0.07 percent (non-academic facilities) to 0.33 percent (multi-hospital segment). The hospital types that demonstrated a decrease in ratio are “other” non-general medical/ surgical, critical access, rural and single hospital systems. The decrease in ratio ranged from 0.06 percent to 0.44 percent. The largest decrease was among critical access hospitals. 8 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Type Academic Non-Academic General Med/Surg Others Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System N 40 396 290 146 79 357 68 368 148 288 Ta ble HB12 N 68 21 44 29 36 50 54 57 41 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central N 87 20 60 21 50 43 77 63 48 N 75 19 59 20 53 39 63 62 46 2012 Avg of Total IT Budget as % of Total Hospital Expense 5.17% 4.18% 4.38% 7.82% 3.56% 6.50% 5.79% 4.14% 3.56% N 70 21 47 33 44 31 55 58 36 ▶▶ 2012 Hospital IT Budget and Expenses con tinue d Tables HB13–HB15 represent the median of total IT budget as a percent of the total hospital operating expense (median budget ratio) in the various hospital segments. By bed segmentation, 0–100, 201–300, 301–400 and 501–600 bed segments indicated an increase in ratio from 2011 to 2012, ranging from 0.13 percent to 1.41 percent (501–600 bed segment) (see Table HB13). The ratio across almost all of the hospital type market segments, except “other” non-general medical/surgical hospitals and single hospital systems, indicated an increase from 2011 to 2012, ranging from 0.05 percent to 0.26 percent (multi-hospital system) (see Table HB14). As for the U.S. regions, almost all of them, excluding Middle Atlantic and West North Central, indicated an increase in spending ratio, with the Mountain region demonstrating the highest increase at 1.79 percent (see Table HB15). Ta ble HB13 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 2010 2011 2012 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 1.77% 179 3.30% 149 3.72% 140 2.15% 72 4.08% 78 3.65% 69 2.77% 79 3.98% 78 4.13% 67 2.98% 57 4.29% 52 4.32% 45 4.12% 41 5.11% 38 5.06% 31 3.41% 13 4.19% 16 5.60% 17 2.93% 28 4.14% 25 4.07% 26 2.26% 469 3.92% 436 4.05% 395 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 across most of the segments from 2011 to 2012 continuing an upward trend based on the increase reported from 2010 to 2011. The economic recovery may be the driving influence in capital spending. By bed segments, only the 101–200 and over 600 bed segments indicated a decrease in the average capital expense ratio (see Table HB16). Each of these segments showed an approximate two percent decline. The remaining bed segments demonstrated a growth in capital spending ratio from 2011 to 2012, ranging from 2.01 percent to 8.65 percent (501–600 bed segment). The increase is not statistically significant due to the small population size in 2010, 2011 and 2012. An evaluation by hospital types shows that only academic medical centers indicated a decline from 2011 to 2012 in capital expenses (0.88 percent) (see Table HB17). The remaining hospital types have indicated growth in IT capital spending ranging from 0.26 percent to 6.25 percent (multi-hospital system). As for the U.S. region, the average IT capital expense spending ratios are mixed. Five of the nine regions (East South Central, Middle Atlantic, Mountain, South Atlantic and West North Central) indicated an increase in spending, ranging from 1.37 percent to 11.07 percent (see Table HB18). The remaining regions demonstrated a decrease in IT capital spending ratio, ranging from 0.84 percent to 3.51 percent. Ta ble HB16 Ta ble HB14 2010 2011 2012 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 3.06% 46 4.09% 40 4.13% 38 Non-Academic 2.16% 423 3.90% 396 4.01% 357 General Med/Surg 2.28% 300 3.87% 290 4.13% 269 Others 2.26% 169 4.09% 146 3.92% 126 Critical Access 1.89% 99 3.64% 79 3.66% 75 Non-Critical Access 2.53% 370 3.96% 357 4.16% 320 Rural 1.71% 86 3.47% 68 3.65% 69 Urban 2.54% 383 4.03% 368 4.18% 326 Multi-Hospital System 2.52% 148 4.58% 148 4.63% 140 Single Hospital System 2.20% 321 3.74% 288 3.74% 255 Ta ble HB15 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 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% N 75 19 59 20 53 39 63 62 46 2012 Median % Total IT Budget as % of Total Hospital Expense 4.13% 3.78% 3.77% 6.51% 3.58% 4.74% 4.37% 4.05% 2.86% N 70 21 47 33 44 31 55 58 36 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 2010 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense 17.26% 18.78% 16.19% 15.85% 19.51% 25.26% 13.87% 17.32% N 74 33 36 26 22 5 15 211 2011 2012 Avg % Total Avg % Total IT Capital IT Capital Expense Last Expense Last Year/Total Year/Total Hospital Hospital Capital Expense N Capital Expense N 17.77% 99 22.22% 75 18.01% 54 16.19% 45 16.50% 51 18.51% 39 17.52% 41 21.89% 34 24.73% 27 27.38% 19 13.16% 11 21.81% 14 15.40% 17 13.74% 18 17.89% 300 20.22% 244 Ta ble HB17 2010 2011 2012 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 16.27% 19 14.05% 28 13.17% 26 Non-Academic 17.43% 192 18.28% 272 21.06% 218 General Med/Surg 17.88% 141 18.28% 203 20.97% 170 Others 16.20% 70 17.07% 97 18.51% 74 Critical Access 15.74% 38 18.88% 46 22.62% 36 Non-Critical Access 17.67% 173 17.71% 254 19.81% 208 Rural 17.69% 35 17.60% 38 18.80% 33 Urban 17.25% 176 17.93% 262 20.44% 211 Multi-Hospital System 12.35% 79 16.05% 99 22.30% 88 Single Hospital System 20.30% 132 18.79% 201 19.05% 156 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 9 ▶▶ 2012 Hospital IT Budget and Expenses con tinue d An evaluation of median total IT capital expenses to total hospital capital expenses (capital ratios) is shown in tables HB19–HB21. As with the average ratio, the median ratio also increased across most of the segments in the past year. Ta ble HB18 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 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 2012 Avg % Total IT Capital Expense Last Year/Total Hospital Capital Expense 15.87% 42.74% 17.55% 32.10% 17.46% 15.24% 25.34% 18.58% 14.95% N 40 12 34 18 27 18 31 34 30 Ta ble HB19 Bed Seg 0–100 beds 101–200 beds 201–300 beds 301–400 beds 401–500 beds 501–600 beds Over 600 beds Total 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 2012 Median % Median % IT Capital IT Capital Expense/ Expense/ Total Hospital Total Hospital Capital Expense N Capital Expense N 12.20% 99 16.05% 75 11.04% 54 10.69% 45 14.41% 51 13.50% 39 11.18% 41 11.88% 34 18.33% 27 29.33% 19 12.98% 11 17.71% 14 11.96% 17 11.28% 18 12.14% 300 14.10% 244 Ta ble HB20 2010 2011 2012 Median % Median % Median % IT Capital IT Capital IT Capital Expense/ Expense/ Expense/ Total Hospital Total Hospital Total Hospital Type Capital Expense N Capital Expense N Capital Expense N Academic 10.26% 19 12.39% 28 12.33% 26 Non-Academic 10.34% 192 12.14% 272 15.37% 218 General Med/Surg 11.34% 141 11.96% 203 15.91% 170 Others 9.97% 70 12.32% 97 13.68% 74 Critical Access 8.93% 38 11.43% 46 14.76% 36 Non-Critical Access 11.34% 173 12.21% 254 13.75% 208 Rural 11.10% 35 8.99% 38 14.12% 33 Urban 10.26% 176 12.50% 262 14.09% 211 Multi-Hospital System 7.13% 79 10.38% 99 11.96% 88 Single Hospital System 13.45% 132 12.96% 201 14.39% 156 Ta ble HB21 Region East North Central East South Central Middle Atlantic Mountain New England Pacific South Atlantic West North Central West South Central 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% N 28 7 23 10 15 15 29 37 47 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% N 52 10 41 10 38 22 41 43 43 2012 Median % IT Capital Expense/ Total Hospital Capital Expense 12.40% 36.63% 16.98% 33.44% 13.48% 9.69% 18.80% 12.79% 7.00% N 40 12 34 18 27 18 31 34 30 10 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. An analysis of hospital bed segments indicates that the majority of the bed segments indicated an increase in median spending ratio, ranging from 0.70 percent to 11 percent (see Table HB19). The largest increase was among hospitals with 401–500 beds. The bed segments that indicated a decrease in spending were 101–200, 201–300 and over 600 bed segments. All decreases were less than one percent. With the exception of academic medical centers, all of the hospital types indicated an increase in IT capital spending from 2011 to 2012, ranging from 1.36 percent to 5.13 percent (rural hospitals) (see Table HB20). The decrease among academic medical centers was small at .06 percent. The regional analysis indicated that almost all of the regions have shown an increase in the ratio from 2011 to 2012 (see Table HB21). The increase in ratio ranged from 0.50 percent to 16.71 percent. The West North Central, West South Central and Pacific regions showed a decrease in this metric. Market Drivers/Future Outlook Despite the declines we saw in recent years, we expect the general trend in both average and median ratios to gradually increase as the U.S. shows signs of an economic recovery, and as federal healthcare policies and subsidies combine to drive IT spending higher. There is evidence that patient volumes are rebounding too, attributable to an aging population as well a growing workforce. Also, as cited above, there is a sense that capital spending in general (for plant and equipment) is increasing for the short-term in anticipation of tougher cash flow times ahead. However, very large capital outlays, such as for acquisition of other hospitals, may be under greater constraints. 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/or optimize EMR applications to meet the Stage 1 and Stage 2 Meaningful Use criteria. In 2013 and 2014, hospitals must also begin to ramp up for the implementation of ICD-10 encoding upgrades in 2014— upgrades that will impact a broad range of financial, health information management and clinical systems. Also 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. As IDNs ambulatory portfolio continues to grow, some consolidation around a common AEMR and a practice management system will continue to drive some replacement activity. This additional source of patient care data will also drive some infrastructure upgrades in IDN data centers, or see an increasing use of outsourced data centers. For clinicians, the need for ubiquitous access to EMR data of varying 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 ▶▶ 2012 Hospital IT Budget and Expenses con tinue d spending on IT infrastructure higher as well. As more missioncritical, patient clinical data is transformed into digital form, system performance and reliability will become even more important, and costly, for those hospitals that host their own data centers. This massive growth of clinical data is not going unnoticed by hospital boards and leadership who are expecting the wealth of information to turn into a competitive advantage. C&BI is a growth area for hospitals and the early leaders appear to be the large IDNs who are positioning themselves to be ACOs. Investments in mass data storage, vendor neutral archives, and C&BI skills and tools are driving some significant data center investments, and selective outsourcing of data storage. While virtualization of both servers and workstations will help to mitigate some of the associated cost increases, most of these costs will be inescapable. Even hospitals that remotely host their applications will see corresponding cost increases as their service partners will also be forced to provide the necessary additional capacity and services. It is also likely that the virtualization phenomenon that we are seeing with servers and workstations will rapidly spread to storage, as well with vendor neutral archives being a hosted service. 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, as well as 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 HIMSS Analytics monitors four financial management (FM) applications—accounts payable, enterprise resource planning (ERP), general ledger and materials management. Of these applications, three are highly saturated markets with installation rates exceeding 97 percent (see Table FM1). Not too surprisingly, each of these three applications indicated little or no growth from 2011 to 2012. The fourth application in this category, the ERP application, has an installed base of only 27 percent. The year-overyear growth of ERP has held steady at approximately two percent per year since 2010. ERP applications typically replace legacy, stand-alone accounts payable, general ledger and materials management, and possibly human resource solutions. That the ERP market may not be as saturated, as general ledger, materials management and accounts payable may be attributed to the fact that these solutions are not sold as an ERP suite, or hospitals may still be running on legacy systems. We have said in past Annual Reports that we believed that ERP implementations would increase as hospitals consolidate and try to drive supply chain efficiencies. However, we are not seeing that at this time. It is obvious that CIOs are consumed with implementing clinical systems to meet Meaningful Use requirements that have a Ta ble F M1 | Financial Management N=4,217 2010 2011 Accounts Payable 99.79% 99.86% Enterprise Resource Planning 22.69% 24.19% General Ledger 99.79% 99.83% Materials Management 96.92% 97.44% Percentages include installed, contracted or installation in process 2012 99.86% 26.82% 99.83% 97.82% cash incentive attached. It appears that major consolidations around an ERP will have to wait until after 2015. As expected, most of the planned purchases for applications in the financial management suite are from replacement buyers. The exception being ERP, where nearly two-thirds of planned purchases are attributed to first-time purchasers (see Table FM2). An examination of the financial management application market segment by hospital type reveals the following highlights: • Accounts payable: this market is almost 100 percent saturated across all hospital types (see Table FM3). No growth activities were reported across all segments. • ERP: with a market penetration of 49 percent, academic medical centers have the highest adoption rate among the various U.S. hospitals segments considered in this report (see Table FM4). Rural hospitals on the other hand, are the least penetrated hospital segment (10.4 percent). Multi-hospital systems reported the largest increase in installations from 2011 to 2012 at more than three and half percent, followed closely by general medical/ surgical and non-critical access hospitals. • General ledger: more than 99 percent of U.S. hospitals have adopted general ledger technology (see Table FM5). The level of adoption has not changed from 2011 to 2012 across the different hospital segments. • Materials management: this market has achieved almost complete market saturation (see Table FM6). Most of the hospital segments reflected a slight increase in the past year, with the critical access (1.4 percent) and rural hospital (1.2 percent) segments reporting the greatest increase. Ta ble F M2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Accounts Payable 58 100.00% Enterprise Resource Planning 3 37.50% General Ledger 59 100.00% Materials Management 45 88.24% Replacing = Statuses of live and 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 5 0 6 % of Hospitals Planning to Purchase Software for the First Time 0.00% 62.50% 0.00% 11.76% Source: HIMSS Analytics® Database 2012 N = Total Number of Hospitals Planning 58 8 59 51 ©2013 HIMSS Analytics. 11 ▶▶ Financial Management con tinued Ta ble F M3 | Accounts Payable 2010 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 178 4,030 2,449 1,759 1,145 3,063 974 3,234 2,585 1,623 4,208 Percent 100.00% 99.78% 99.88% 99.66% 99.74% 99.80% 99.80% 99.78% 99.69% 99.94% 99.79% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 4,034 2,452 1,759 1,146 3,065 976 3,235 2,588 1,623 4,211 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 83 937 661 359 121 899 78 942 844 176 1,020 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 4,033 2,452 1,758 1,145 3,065 975 3,235 2,588 1,622 4,210 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,931 2,437 1,672 1,064 3,045 904 3,205 2,564 1,545 4,109 Percent 99.44% 99.88% 100.00% 99.66% 99.83% 99.87% 100.00% 99.81% 99.81% 99.94% 99.86% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 4,034 2,452 1,759 1,146 3,065 976 3,235 2,588 1,623 4,211 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 87 1,044 746 385 137 994 101 1,030 940 191 1,131 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 4,033 2,452 1,758 1,145 3,065 975 3,235 2,588 1,622 4,210 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,947 2,437 1,688 1,080 3,045 916 3,209 2,567 1,558 4,125 Percent 99.44% 99.88% 100.00% 99.66% 99.83% 99.87% 100.00% 99.81% 99.81% 99.94% 99.86% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F M4 | Enterprise Resource Planning 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 78 879 622 335 114 843 76 881 794 163 957 Percent 43.82% 21.76% 25.37% 18.98% 9.93% 27.47% 7.79% 27.18% 30.62% 10.04% 22.69% 2011 Percent 46.63% 23.20% 26.96% 20.34% 10.54% 29.29% 7.99% 29.07% 32.55% 10.84% 24.19% 2012 Percent 48.88% 25.85% 30.42% 21.81% 11.93% 32.39% 10.35% 31.78% 36.25% 11.76% 26.82% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F M5 | General Ledger 2010 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 4,030 2,450 1,758 1,144 3,064 974 3,234 2,586 1,622 4,208 Percent 100.00% 99.78% 99.92% 99.60% 99.65% 99.84% 99.80% 99.78% 99.73% 99.88% 99.79% 2011 Percent 99.44% 99.85% 100.00% 99.60% 99.74% 99.87% 99.90% 99.81% 99.81% 99.88% 99.83% 2012 Percent 99.44% 99.85% 100.00% 99.60% 99.74% 99.87% 99.90% 99.81% 99.81% 99.88% 99.83% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F M6 | Materials Management 2010 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 3,909 2,428 1,659 1,052 3,035 887 3,200 2,556 1,531 4,087 Percent 100.00% 96.78% 99.02% 93.99% 91.64% 98.89% 90.88% 98.73% 98.57% 94.27% 96.92% 2011 12 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 100.00% 97.33% 99.39% 94.73% 92.68% 99.22% 92.62% 98.89% 98.88% 95.14% 97.44% 2012 Percent 100.00% 97.72% 99.39% 95.64% 94.08% 99.22% 93.85% 99.01% 99.00% 95.94% 97.82% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Financial Management con tinued When evaluating the market by bed size segments, the following are notable changes from 2011 to 2012: • 0–100 beds: ERP and materials management are the only financial management applications to grow during this period (see Table FM7). • 101–200 beds: ERP demonstrated growth of just over three percent, while the other financial management applications demonstrated no change (see Table FM8). • 201–300 beds: ERP is the only application that demonstrated growth from 2011 to 2012 at more than three and a half percent. The install base of materials management applications decreased slightly (see Table FM9). Ta ble F M7 0–100 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 2,156 308 2,156 2,042 99.58% 14.23% 99.58% 94.32% 2011 2012 % of 2,165 Hospitals 2,160 99.77% 2,160 99.77% 335 15.47% 376 17.37% 2,159 99.72% 2,159 99.72% 2,060 95.15% 2,077 95.94% Ta ble F M8 101–200 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 802 100.00% 192 23.94% 802 100.00% 797 99.38% 2011 % of 802 Hospitals 802 100.00% 204 25.44% 802 100.00% 799 99.63% 2012 802 100.00% 229 28.55% 802 100.00% 799 99.63% Ta ble F M9 201–300 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 483 100.00% 145 30.02% 483 100.00% 483 100.00% 2011 % of 483 Hospitals 483 100.00% 152 31.47% 483 100.00% 483 100.00% 2012 483 100.00% 169 34.99% 483 100.00% 482 99.79% Ta ble F M10 301–400 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 312 100.00% 111 35.58% 312 100.00% 311 99.68% 2011 % of 312 Hospitals 312 100.00% 120 38.46% 312 100.00% 312 100.00% 2012 312 100.00% 132 42.31% 312 100.00% 312 100.00% Ta ble F M11 401–500 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 188 100.00% 77 40.96% 188 100.00% 187 99.47% 2011 % of 188 Hospitals 188 100.00% 78 41.49% 188 100.00% 188 100.00% 2012 188 100.00% 84 44.68% 188 100.00% 188 100.00% Ta ble F M12 501–600 Beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 116 100.00% 54 46.55% 116 100.00% 116 100.00% 2011 % of 116 Hospitals 115 99.14% 55 47.41% 115 99.14% 116 100.00% 2012 115 99.14% 58 50.00% 115 99.14% 116 100.00% Ta ble F M13 Over 600 beds Accounts Payable Enterprise Resource Planning General Ledger Materials Management 2010 151 100.00% 70 46.36% 151 100.00% 151 100.00% 2011 % of 151 Hospitals 151 100.00% 76 50.33% 151 100.00% 151 100.00% 2012 151 100.00% 83 54.97% 151 100.00% 151 100.00% • 301–400 beds: At close to four percent, ERP had the highest growth in this segment when compared to the other bed size groupings. The remaining three applications, which have already achieved full market saturation, reported no growth from 2011 to 2012 (see Table FM10) • 401–500 beds: General ledger, materials management and accounts payable reached full market maturation in 2010 and have maintained complete saturation in 2012 (see Table FM11). Use of ERP solutions grew at slightly more than three percent. • 501–600 beds: ERP is the only financial management application that demonstrated growth at more than two percent from 2011 to 2012. Materials management reached full market saturation in 2010 and continues to be saturated at this time (see Table FM12). • Over 600 beds: Close to five percent of growth was reported for ERP in this segment while all other financial management applications maintained market saturation (see Table FM13). A historical review of financial management application contracts reveals that approximately ten percent of all contracts were signed between 2010 and 2012. Approximately half of all financial management application contracts were signed between 2000 and 2009 (see Tables FM14–FM15). Purchase activities in this area are being subordinated to Meaningful Use deployments even though some financial management applications are near the end of their useful lives. Some replacement activity was driven by the ICD-10 conversion, but we expect most of that to have been accomplished by this time since the original ICD-10 conversion was set for October 2013. Ta ble F M14 Accounts Payable Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Enterprise Resource Planning Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 120 224 919 827 556 341 2,987 2,987 2,987 2,987 2,987 2,987 2,987 2,987 4.02% 7.50% 30.77% 27.69% 18.61% 11.42% 100.00% 0 19 206 203 87 71 586 586 586 586 586 586 586 586 0.00% 3.24% 35.15% 34.64% 14.85% 12.12% 100.00% # for Contract Range Total Responding % of Total Responding 91 220 916 881 539 337 2,984 2,984 2,984 2,984 2,984 2,984 2,984 2,984 3.05% 7.37% 30.70% 29.52% 18.06% 11.29% 100.00% 70 178 662 876 576 314 2,676 2,676 2,676 2,676 2,676 2,676 2,676 2,676 2.62% 6.65% 24.74% 32.74% 21.52% 11.73% 100.00% Ta ble F M15 General Ledger Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Materials Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 13 ▶▶ Financial Management con tinued Market Drivers/Future Outlook The financial management IT application market has been and will continue to be impacted through 2013 by: • Competing IT initiatives (e.g. EHRs, and ICD-10 coding conversion projects) leaving 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 systems with incentive dollars to be earned. • Replacement of legacy general ledger, accounts payable, and materials management application systems by ERP systems, particularly in hospitals with more than 400 beds. • Some revenue cycle system replacements for those IDNs that qualify as ACOs. 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. ▶▶ Financial Decision Support Environment The financial decision support market monitored by HIMSS Analytics consists of the following seven applications: budgeting, business intelligence-financial, cost accounting, data warehousing/mining– financial, executive information systems, financial modeling and medical necessity checking content. With the increased interest in C&BI in hospitals, HIMSS Analytics will begin reporting business intelligence applications separately for financial and clinical functions. The business intelligence–financial is covered in this chapter for 2012, while the business intelligence–clinical will be reported in the electronic medical records section in future Annual Reports. The financial decision support market presents as a maturing market. Among the seven software solutions tracked in this market, only two applications had a market penetration of less than 50 percent (business intelligence-financial and financial modeling). The most commonly installed application was a budgeting solution (84 percent) (see Table FDS1). The adoption of financial decision support IT applications has increased since 2010 and is expected to continue growing gradually with the exception of the intelligence and warehousing tools that shows above average activity for this segment. Ta ble F DS1 | Financial Decision Support N=4,217 2010 2011 Budgeting 81.86% 82.69% Business Intelligence–Financial 39.03% 43.18% Cost Accounting 69.10% 69.81% Data Warehousing/Mining–Financial 43.13% 46.91% Executive Information Systems 62.20% 64.33% Financial Modeling 34.34% 36.42% Medical Necessity Checking Content 53.50% 58.43% Percentages include installed, contracted or installation in process 2012 83.87% 47.55% 70.90% 51.03% 66.21% 39.27% 62.08% The financial decision support market reflects a mix of hospitals planning to purchase a solution for the first time, as well as those intending to replace existing solutions. The majority of purchases for budgeting, cost accounting, executive information systems and medical necessity content checking will be replacement purchases, while more than half of the planned purchases for business intelligence-financial, data warehousing/mining-financial and financial modeling will be among hospitals procuring these solutions for the first time (see Table FDS2). The evaluation of the financial decision support market by the various hospital segments yields the following insights: • Budgeting: critical access, rural and non-general medical/surgical hospitals indicated a growth of more than two percentage points from 2011 to 2012 (see Table FDS3). The academic medical center segment is approaching market saturation and did not demonstrate any growth in the past year. • Business intelligence-financial: more than five percentage point growth was reported for the rural and critical access segments from 2011 to 2012 (see Table FDS4). All other hospital segments reported a growth of approximately four percentage points, with the exception of the academic medical center segment, which grew by slightly less than three percentage points. • Cost accounting: both the rural and critical access segments indicated a growth of approximately two percentage points (see Table FDS5). Growth in the other segments was limited and there was no change in adoption among academic medical centers. Ta ble F DS 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Budgeting 36 94.74% Business Intelligence–Financial 8 44.44% Cost Accounting 35 81.40% Data Warehousing/Mining–Financial 7 35.00% Executive Information Systems 29 80.56% Financial Modeling 6 46.15% Medical Necessity Checking Content 9 60.00% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated 14 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 2 10 8 13 7 7 6 % of Hospitals Planning to Purchase Software for the First Time 5.26% 55.56% 18.60% 65.00% 19.44% 53.85% 40.00% N = Total Number of Hospitals Planning 38 18 43 20 36 13 15 ▶▶ Financial Decision Support Environment con tinue d • Data warehousing/mining-financial: growth was greatest in the rural hospital and critical access hospital segments, at slightly more than five percentage points. Growth in all other segments was between three to four percentage points (see Table FDS6). • Executive information systems: critical access hospitals and rural hospitals demonstrated the highest growth from 2011 to 2012 at approximately three percentage points, while the remaining other segments indicated a growth of one to two percentage points (see Table FDS7). • Financial modeling: the academic medical center segment reported the largest increase from 2011 to 2012, at more than five percentage points (see Table FDS8). The other segments demonstrated a growth of one to four percentage points. • Medical necessity checking content: the single hospital segment demonstrated the largest growth from 2011 to 2012 (more than five percentage points). All other segments reported growth ranging from three to slightly under five percentage points (see Table FDS9). Ta ble F DS 3 | Budgeting 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 169 3,283 2,198 1,254 797 2,655 691 2,761 2,250 1,202 3,452 Percent 94.94% 81.28% 89.64% 71.05% 69.43% 86.51% 70.80% 85.19% 86.77% 74.01% 81.86% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 167 3,320 2,206 1,281 813 2,674 707 2,780 2,259 1,228 3,487 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 118 1,703 1,185 636 245 1,576 191 1,630 1,398 423 1,821 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 165 2,779 1,955 989 618 2,326 525 2,419 1,952 992 2,944 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 116 1,862 1,306 672 280 1,698 221 1,757 1,490 488 1,978 Percent 93.82% 82.20% 89.97% 72.58% 70.82% 87.13% 72.44% 85.78% 87.12% 75.62% 82.69% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 167 3,370 2,215 1,322 843 2,694 730 2,807 2,287 1,250 3,537 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 123 1,882 1,296 709 304 1,701 242 1,763 1,519 486 2,005 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 165 2,825 1,976 1,014 641 2,349 546 2,444 1,978 1,012 2,990 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 124 2,028 1,400 752 341 1,811 274 1,878 1,604 548 2,152 Percent 93.82% 83.44% 90.33% 74.90% 73.43% 87.78% 74.80% 86.61% 88.20% 76.97% 83.87% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F DS 4 | Business Intelligence 2010 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 1,540 1,066 580 215 1,431 162 1,484 1,276 370 1,646 Percent 59.55% 38.13% 43.47% 32.86% 18.73% 46.63% 16.60% 45.79% 49.21% 22.78% 39.03% 2011 Percent 66.29% 42.16% 48.33% 36.03% 21.34% 51.35% 19.57% 50.29% 53.91% 26.05% 43.18% 2012 Percent 69.10% 46.60% 52.85% 40.17% 26.48% 55.43% 24.80% 54.40% 58.58% 29.93% 47.55% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F DS5 | Cost Accounting 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 164 2,750 1,944 970 604 2,310 510 2,404 1,934 980 2,914 Percent 92.13% 68.09% 79.28% 54.96% 52.61% 75.27% 52.25% 74.17% 74.59% 60.34% 69.10% 2011 Percent 92.70% 68.80% 79.73% 56.03% 53.83% 75.79% 53.79% 74.64% 75.28% 61.08% 69.81% 2012 Percent 92.70% 69.94% 80.59% 57.45% 55.84% 76.54% 55.94% 75.41% 76.28% 62.32% 70.90% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F DS6 | Data Warehousing/Mining–Financial 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 107 1,712 1,176 643 272 1,547 203 1,616 1,384 435 1,819 Percent 60.11% 42.39% 47.96% 36.43% 23.69% 50.41% 20.80% 49.86% 53.37% 26.79% 43.13% 2011 Percent 65.17% 46.10% 53.26% 38.07% 24.39% 55.33% 22.64% 54.21% 57.46% 30.05% 46.91% 2012 Source: HIMSS Analytics® Database 2012 Percent 69.66% 50.21% 57.10% 42.61% 29.70% 59.01% 28.07% 57.95% 61.86% 33.74% 51.03% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 15 ▶▶ Financial Decision Support Environment con tinue d Ta ble F DS7 | Executive Information Systems 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 134 2,489 1,653 970 513 2,110 429 2,194 1,760 863 2,623 Percent 75.28% 61.62% 67.41% 54.96% 44.69% 68.75% 43.95% 67.70% 67.88% 53.14% 62.20% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 135 2,578 1,713 1,000 535 2,178 451 2,262 1,813 900 2,713 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 101 1,435 989 547 254 1,282 209 1,327 1,107 429 1,536 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 115 2,349 1,627 837 521 1,943 420 2,044 1,669 795 2,464 Percent 75.84% 63.83% 69.86% 56.66% 46.60% 70.97% 46.21% 69.79% 69.92% 55.42% 64.33% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 138 2,654 1,750 1,042 570 2,222 481 2,311 1,854 938 2,792 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 111 1,545 1,049 607 298 1,358 235 1,421 1,202 454 1,656 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 121 2,497 1,727 891 566 2,052 467 2,151 1,738 880 2,618 Percent 77.53% 65.71% 71.37% 59.04% 49.65% 72.40% 49.28% 71.31% 71.50% 57.76% 66.21% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F DS 8 | Financial Modeling 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 96 1,352 942 506 236 1,212 188 1,260 1,053 395 1,448 Percent 53.93% 33.47% 38.42% 28.67% 20.56% 39.49% 19.26% 38.88% 40.61% 24.32% 34.34% 2011 Percent 56.74% 35.53% 40.33% 30.99% 22.13% 41.77% 21.41% 40.94% 42.69% 26.42% 36.42% 2012 Percent 62.36% 38.25% 42.78% 34.39% 25.96% 44.25% 24.08% 43.84% 46.36% 27.96% 39.27% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble F DS9 | Medical Necessity Checking Content 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 95 2,161 1,496 760 465 1,791 374 1,882 1,549 707 2,256 Percent 53.37% 53.50% 61.01% 43.06% 40.51% 58.36% 38.32% 58.07% 59.74% 43.53% 53.50% 2011 The following reflects the highlights of the financial decision support market by bed-size segment: • 0–100 beds: data warehousing/mining-financial and business intelligence-financial demonstrated the greatest increase, at more than four percentage points each (see Table FDS10). All other financial decision support applications indicated growth ranging from approximately two to three percentage points. • 101–200 beds: medical necessity checking content and business intelligence-financial indicated growth of more than four percentage points each. Data warehousing/mining-financial also showed growth of nearly four percentage points. Growth for budgeting systems was negligible during this past year (see Table FDS11). • 201–300 beds: business intelligence-financial and financial modeling indicated the largest growth (at more than four percentage points). Use of cost accounting solutions decreased slightly (see Table FDS12). • 301–400 beds: medical necessity checking content had the highest growth for this segment at more than four percentage 16 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 64.61% 58.16% 66.35% 47.42% 45.38% 63.31% 43.03% 63.07% 64.37% 48.95% 58.43% 2012 Percent 67.98% 61.82% 70.43% 50.48% 49.30% 66.86% 47.85% 66.37% 67.03% 54.19% 62.08% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 points, followed by business intelligence-financial at just less than four percent. Budgeting and cost accounting each indicated a slight decrease from 2011 to 2012 (see Table FDS13). • 401–500 beds: business intelligence-financial had the highest growth for this segment, at more than five percent and data warehousing/mining-financial showed growth of nearly five percentage points. Cost accounting and budgeting reported no growth from 2011 to 2012 (see Table FDS14). • 501–600 beds: the adoption of medical necessity checking content increased by more than seven percentage points in this bed segment. Almost all of the other financial decision support applications demonstrated slight growth in this bed segment, except budgeting and cost accounting, which are approaching market saturation (see Table FDS15). • Over 600 beds: with more than a five percentage point increase from 2011 to 2012, financial modeling demonstrated the largest increase within this bed segment. Business intelligence-financial, data warehousing/mining-financial and medical necessity checking content also experienced an increase (see Table FDS16). ▶▶ Financial Decision Support Environment con tinue d Ta ble F DS10 Ta ble F DS15 0–100 Beds 2010 Budgeting 1,563 Business Intelligence–Financial 622 Cost Accounting 1,198 Data Warehousing/Mining– Financial 700 Executive Information Systems 1,183 Financial Modeling 532 Medical Necessity Checking Content 983 2011 2012 % of 2,165 Hospitals 72.19% 1,597 73.76% 1,647 76.07% 28.73% 694 32.06% 789 36.44% 55.33% 1,228 56.72% 1,265 58.43% 32.33% 54.64% 24.57% 755 1,228 577 34.87% 56.72% 26.65% 859 1,280 639 39.68% 59.12% 29.52% 45.40% 1,072 49.52% 1,143 52.79% Ta ble F DS11 2010 723 371 615 2011 % of 802 Hospitals 90.15% 724 90.27% 46.26% 408 50.87% 76.68% 615 76.68% 2012 725 443 627 90.40% 55.24% 78.18% 397 543 306 49.50% 67.71% 38.15% 437 567 323 54.49% 70.70% 40.27% 467 577 342 58.23% 71.95% 42.64% 505 62.97% 540 67.33% 576 71.82% Ta ble F DS12 201–300 Beds Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2010 439 234 409 2011 % of 483 Hospitals 90.89% 441 91.30% 48.45% 255 52.80% 84.68% 408 84.47% 2012 441 278 407 91.30% 57.56% 84.27% 245 338 210 50.72% 69.98% 43.48% 280 344 217 57.97% 71.22% 44.93% 297 353 237 61.49% 73.08% 49.07% 287 59.42% 328 67.91% 342 70.81% Ta ble F DS13 301–400 Beds Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2010 292 164 273 2011 % of 312 Hospitals 93.59% 292 93.59% 52.56% 183 58.65% 87.50% 273 87.50% 2012 291 195 272 93.27% 62.50% 87.18% 186 221 153 59.62% 70.83% 49.04% 201 230 160 64.42% 73.72% 51.28% 210 235 166 67.31% 75.32% 53.21% 196 62.82% 211 67.63% 224 71.79% Ta ble F DS14 401–500 Beds Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2010 112 70 109 2011 % of 116 Hospitals 96.55% 111 95.69% 60.34% 75 64.66% 93.97% 109 93.97% 2012 111 77 109 95.69% 66.38% 93.97% 63 83 66 54.31% 71.55% 56.90% 67 86 71 57.76% 74.14% 61.21% 69 87 75 59.48% 75.00% 64.66% 72 62.07% 75 64.66% 84 72.41% Ta ble F DS16 101–200 Beds Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 501–600 Beds 2010 181 99 168 2011 % of 188 Hospitals 96.28% 180 95.74% 52.66% 110 58.51% 89.36% 170 90.43% 2012 180 120 170 95.74% 63.83% 90.43% 121 135 101 64.36% 71.81% 53.72% 124 139 107 65.96% 73.94% 56.91% 133 141 108 70.74% 75.00% 57.45% 122 64.89% 134 71.28% 138 73.40% Over 600 beds Budgeting Business Intelligence–Financial Cost Accounting Data Warehousing/Mining– Financial Executive Information Systems Financial Modeling Medical Necessity Checking Content 2010 142 86 142 2011 % of 151 Hospitals 94.04% 142 94.04% 56.95% 96 63.58% 94.04% 141 93.38% 2012 142 103 140 94.04% 68.21% 68.87% 107 120 80 70.86% 79.47% 52.98% 114 119 81 75.50% 78.81% 53.64% 117 119 89 77.48% 78.81% 58.94% 91 60.26% 104 68.87% 111 73.51% At least three-quarters of the contracts signed for all of the applications in the financial decision support application suite were signed in 2000 or later. The most current contract market surrounds medical necessity checking content where more than one-third of all the contracts were signed between 2010 and 2012 (see Tables FDS17–FDS19). Ta ble F DS17 Budgeting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Business Intelligence–Financial Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Cost Accounting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 60 179 393 757 512 289 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2.74% 8.18% 17.96% 34.60% 23.40% 13.21% 100.00% 4 28 164 238 245 147 826 826 826 826 826 826 826 826 0.49% 3.46% 20.27% 29.42% 30.28% 18.17% 100.00% 75 200 399 487 416 226 1,803 1,803 1,803 1,803 1,803 1,803 1,803 1,803 4.16% 11.10% 22.14% 27.03% 23.09% 12.54% 100.00% Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 17 ▶▶ Financial Decision Support Environment con tinue d Ta ble F DS18 Data Warehousing/Mining–Financial Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Executive Information Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Financial Modeling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 6 49 109 284 274 175 897 897 897 897 897 897 897 897 0.68% 5.57% 12.40% 32.31% 31.17% 19.91% 100.00% 42 128 413 394 381 237 1,595 1,595 1,595 1,595 1,595 1,595 1,595 1,595 2.64% 8.04% 25.94% 24.75% 23.93% 14.89% 100.00% 6 102 103 250 137 105 703 703 703 703 703 703 703 703 0.85% 14.53% 14.67% 35.61% 19.52% 14.96% 100.00% # for Contract Range Total Responding % of Total Responding 3 10 123 75 230 232 673 673 673 673 673 673 673 673 0.45% 1.49% 18.36% 11.19% 34.33% 34.63% 100.00% Ta ble F DS19 Medical Necessity Checking Content Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Market Drivers/Future Outlook The financial decision support IT application market has both growth areas and sluggish areas. This market has (and will continue to have) a mixed future driven through 2015 by the following forces: • The drive to provide excellent efficiency analytics counteracts with declining Medicare and Medicaid reimbursement. • Adoption of ICD-10 coding, and the upgrades of all applications impacted by this coding will facilitate significantly enhanced cost and quality analyses, though most of this may have been accomplished by year end 2012. • 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 EHR applications that provide a rich source of line item consumption data for efficiency analytics. • Increasing pay for performance reimbursement models from private insurers and the government. • Continued movement of patient treatment services from the acute care environment to ambulatory settings. • Increased market competition in large metropolitan areas. • Hospital acquisition/divestiture and merger activities. • The need to carefully evaluate new or enhanced hospital services to ensure viability, and profitability, or to determine closure or divestiture strategies. • Increased awareness of, and movement towards, new models of service delivery, such as patient-centered medical homes and ACOs, or other models that may require increased assumption of risk. • 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. ▶▶ Human Resource Environment Human Resources (HR) IT applications support key staff management operations and are therefore critical to a healthcare provider’s success. The value of these applications have elevated over the years as healthcare organizations have relied on these systems to effectively manage staffing shortages and recruitment processes. Hospitals, for example, can alleviate some staff shortages by using these systems to connect to Web sources of resumes and screen the resumes for key words to find candidates. Ta ble HR1 | Human Resources N=4,217 2010 2011 Benefits Administration 88.64% 89.59% Payroll 98.72% 98.98% Personnel Management 88.66% 89.90% Time and Attendance 92.93% 94.07% Percentages include installed, contracted or installation in process 2012 90.51% 99.19% 90.70% 94.85% All of the HR IT applications tracked by HIMSS Analytics grew (albeit ever so slightly) between 2010 and 2012. This growth occurred despite the fact that all these applications are at very high levels of market penetration (see Table HR1). The greatest increase in HR IT application adoption between 2011 and 2012 involved the benefits administration system (.92 percentage point increase), whereas the lowest adoption rate involved the payroll solution (.21 percentage point increase). The HR IT buyer market is largely composed of replacement purchasers. The exception being time and attendance applications, for which two-thirds of the planned purchases are from hospitals making a purchase for the first time (see Table HR2). The high level of replacement purchases is not unexpected given the high market penetration of these applications. Ta ble HR 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Benefits Administration 21 91.30% Payroll 29 96.67% Personnel Management 25 86.21% Time and Attendance 4 33.33% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated 18 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 2 1 4 8 % of Hospitals Planning to Purchase Software for the First Time 8.70% 3.33% 13.79% 66.67% N = Total Number of Hospitals Planning 23 30 29 12 ▶▶ Human Resource Environment con tinue d The following reflects some key highlights when comparing the 2012 HR IT market profile to the 2011 market profile by various hospital segments: • Benefits administration: critical access hospitals demonstrated the highest level of first-time buyer adoption (two percentage point increase), followed by rural and non-general medical/surgical hospitals. By organizational size, single hospitals reflected a greater first-time buyer adoption rate (just over one percentage point increase) than hospitals belonging to multi-hospital systems (see Table HR3). • Payroll: the growth for most hospital types was less than one percentage point. The academic medical center segment is the only segment to have achieved 100 percent market penetration. The academic medical segment along with general medical/ surgical facilities are the only two segments to reflect no measurable growth in the past year (see Table HR4). • Personnel management: critical access hospitals demonstrated the largest growth, registering an increase greater than two percentage points. The rural hospital and non-medical surgical hospital segments also grew, although their growth was slightly less than the critical access hospital market. Other hospital segments indicated a year-over-year growth of less than one percent, with the exception of the academic medical center which has 100 percent market penetration and remained unchanged (see Table HR5). • Time and attendance: rural hospitals and critical access hospitals had the largest growth (approximately two percentage points) between 2011 and 2012. Growth in the single hospital and nonmedical surgical segments exceeded one percent, while most of the other segments grew at less than one percent. The academic medical center segment is the only segment to remain unchanged from last year (see Table HR6). Ta ble HR3 | Benefits Administration 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 176 3,562 2,326 1,412 825 2,913 700 3,038 2,480 1,258 3,738 Percent 98.88% 88.19% 94.86% 80.00% 71.86% 94.92% 71.72% 93.74% 95.64% 77.46% 88.64% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,603 2,343 1,435 846 2,932 727 3,051 2,489 1,289 3,778 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,996 2,444 1,730 1,124 3,050 957 3,217 2,574 1,600 4,174 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,613 2,367 1,424 831 2,960 719 3,072 2,497 1,294 3,791 Percent 98.31% 89.21% 95.55% 81.30% 73.69% 95.54% 74.49% 94.14% 95.99% 79.37% 89.59% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,641 2,354 1,463 869 2,948 745 3,072 2,509 1,308 3,817 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 4,005 2,444 1,739 1,132 3,051 961 3,222 2,580 1,603 4,183 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,647 2,374 1,451 856 2,969 736 3,089 2,517 1,308 3,825 Percent 98.88% 90.15% 96.00% 82.89% 75.70% 96.06% 76.33% 94.79% 96.76% 80.54% 90.51% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HR4 | Payroll 2010 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 3,985 2,438 1,725 1,123 3,040 954 3,209 2,567 1,596 4,163 Percent 100.00% 98.66% 99.43% 97.73% 97.82% 99.06% 97.75% 99.01% 99.00% 98.28% 98.72% 2011 Percent 100.00% 98.94% 99.67% 98.02% 97.91% 99.38% 98.05% 99.26% 99.27% 98.52% 98.98% 2012 Percent 100.00% 99.16% 99.67% 98.53% 98.61% 99.41% 98.46% 99.41% 99.50% 98.71% 99.19% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HR5 | Personnel Management 2010 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 3,561 2,343 1,396 804 2,935 686 3,053 2,488 1,251 3,739 Percent 100.00% 88.17% 95.55% 79.09% 70.03% 95.63% 70.29% 94.20% 95.95% 77.03% 88.66% 2011 Percent 100.00% 89.45% 96.53% 80.68% 72.39% 96.45% 73.67% 94.79% 96.30% 79.68% 89.90% 2012 Source: HIMSS Analytics® Database 2012 Percent 100.00% 90.29% 96.82% 82.21% 74.56% 96.74% 75.41% 95.31% 97.07% 80.54% 90.70% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 19 ▶▶ Human Resource Environment con tinue d Ta ble HR6 | Time and Attendance 2010 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 3,744 2,379 1,540 947 2,972 813 3,106 2,513 1,406 3,919 Percent 98.31% 92.70% 97.02% 87.25% 82.49% 96.84% 83.30% 95.83% 96.91% 86.58% 92.93% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 When examining the HR IT market by bed size segments, the following observations are notable changes from 2011 to 2012: • 0–100 beds: benefits administration, personnel management and time and attendance applications increased by one and a half percentage points, while use of payroll systems increased by less than half a percent (see Table HR7). • 101–200 beds: benefits administration indicated the largest growth in this segment (0.38 percentage points) while the other HR applications remained unchanged (see Table HR8). • 201–300 beds: personnel management is the only HR application that indicated growth in this segment (.20 percentage points), while the other HR applications remained unchanged (see Table HR9). • 301–400 beds: payroll and personnel management reached 100 percent market saturation in 2011 and remained unchanged in 2012. Benefits administration demonstrated a slight increase; while time and attendance remained unchanged from 2011 levels (see Table HR10). • 401–500 beds: payroll and personnel management reached 100 percent market saturation in 2011 and remained unchanged in 2012. Time and attendance experienced a decrease from last year of 0.54 percentage points (see Table HR11). • 501–600 beds: time and attendance indicated a growth of almost two percent. Payroll and personnel management reached market saturation in 2010 and market penetration remains unchanged. There was also no market growth in the use of benefits administration solutions (see Table HR12). • Over 600 beds: benefits administration demonstrated an increase of almost one percent while the other applications remained unchanged. Use of payroll and personnel management systems reached market saturation in 2010 (see Table HR13). Approximately ten percent of contracts for benefits administration, payroll and personnel management were signed within the last two years (between 2010 and 2012). The activity in these areas is not too surprising, since these are often older, legacy solutions that healthcare organizations are replacing (Table HR14 and HR15). This trend can be expected to continue, as at least 40 percent of contracts for all applications in this suite were signed prior to 2000. That said, there is a good possibility that future purchases of HR IT applications may be deferred for many hospitals because of various federal IT related initiatives, such as ICD-10, and Medicare and Medicaid-funded EHR implementations. Hospitals leaders may elect to allocate their resources in satisfying federal initiatives instead of replacing older HR applications, unless their HR IT applications do not meet minimal requirements or been sunsetted by the vendor. 20 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Segment Count 175 3,792 2,400 1,567 971 2,996 833 3,134 2,526 1,441 3,967 Percent 98.31% 93.88% 97.88% 88.78% 84.58% 97.62% 85.35% 96.70% 97.42% 88.73% 94.07% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,825 2,407 1,593 996 3,004 851 3,149 2,539 1,461 4,000 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 98.31% 94.70% 98.16% 90.25% 86.76% 97.88% 87.19% 97.16% 97.92% 89.96% 94.85% Ta ble HR7 0–100 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 1,738 2,117 1,717 1,916 80.28% 97.78% 79.31% 88.50% 2011 2012 % of 2,165 Hospitals 1,769 81.71% 1,803 83.28% 2,125 98.15% 2,134 98.57% 1,762 81.39% 1,795 82.91% 1,953 90.21% 1,985 91.69% Ta ble HR8 101–200 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 775 779 782 779 96.63% 97.13% 97.51% 97.13% 2011 % of 802 Hospitals 779 97.13% 800 99.75% 785 97.88% 785 97.88% 2012 782 800 785 785 97.51% 99.75% 97.88% 97.88% Ta ble HR9 201–300 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 472 482 476 472 97.72% 99.79% 98.55% 97.72% 2011 % of 483 Hospitals 475 98.34% 482 99.79% 477 98.76% 474 98.14% 2012 475 482 478 474 98.34% 99.79% 98.96% 98.14% Ta ble HR10 301–400 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 307 311 310 303 98.40% 99.68% 99.36% 97.12% 2011 % of 312 Hospitals 308 98.72% 312 100.00% 312 100.00% 306 98.08% 2012 309 99.04% 312 100.00% 312 100.00% 306 98.08% Ta ble HR11 401–500 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 185 187 187 186 98.40% 99.47% 99.47% 98.94% 2011 % of 188 Hospitals 186 98.94% 188 100.00% 188 100.00% 186 98.94% 2012 186 98.94% 188 100.00% 188 100.00% 185 98.40% Ta ble HR12 501–600 Beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 114 98.28% 116 100.00% 116 100.00% 114 98.28% 2011 % of 116 Hospitals 114 98.28% 116 100.00% 116 100.00% 113 97.41% 2012 114 98.28% 116 100.00% 116 100.00% 115 99.14% Ta ble HR13 Over 600 beds Benefits Administration Payroll Personnel Management Time and Attendance 2010 147 97.35% 151 100.00% 151 100.00% 149 98.68% 2011 % of 151 Hospitals 147 97.35% 151 100.00% 151 100.00% 150 99.34% 2012 148 98.01% 151 100.00% 151 100.00% 150 99.34% ▶▶ Human Resource Environment con tinue d Ta ble HR14 Benefits Administration Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Payroll Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 100 197 747 725 476 277 2,522 2,522 2,522 2,522 2,522 2,522 2,522 2,522 3.97% 7.81% 29.62% 28.75% 18.87% 10.98% 100.00% 98 207 851 779 529 315 2,779 2,779 2,779 2,779 2,779 2,779 2,779 2,779 3.53% 7.45% 30.62% 28.03% 19.04% 11.34% 100.00% # for Contract Range Total Responding % of Total Responding 106 197 776 727 469 270 2,545 2,545 2,545 2,545 2,545 2,545 2,545 2,545 4.17% 7.74% 30.49% 28.57% 18.43% 10.61% 100.00% 39 152 776 749 434 169 2,319 2,319 2,319 2,319 2,319 2,319 2,319 2,319 1.68% 6.55% 33.46% 32.30% 18.71% 7.29% 100.00% Ta ble HR15 Personnel Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Time and Attendance Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Market Drivers/Future Outlook It is our opinion that the HR IT application market has been and will continue to be impacted through 2015 by the following forces: • A concern over future reimbursement levels and higher IT application priorities, such as EMR and revenue cycle management (RCM) applications, should drive most hospitals to extend the useful life of these applications for as long as possible. • Continued shortages of clinicians, especially pharmacists, nurses and IT staff are driving an increased interest in manpower planning, skills training and enhanced recruiting tools. • The need to track security training and policies for all hospital employees. • Outsourcing services for the HR application suite in order to reduce capital requirements. • The increased centralization of HR operations in IDNs where employees are internally mobile and where internal consolidation is occurring when acquired hospitals has disparate HR systems. • Acquisitions and mergers of healthcare IT vendors. • Service as a Software (SaaS)/Application solutions provider (ASP) products that will appeal to smaller hospitals don’t have the breadth and depth of 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 The business processes supported by the applications in the Revenue Cycle Management (RCM) category are critical to a hospital’s viability. There are eight different applications tracked by HIMSS Analytics in this report: ADT/registration, bed management, contract management, credit/collections, electronic data interchange (EDI), enterprise master person index (EMPI), patient billing and patient scheduling. Of the applications monitored, four applications have reached or are approaching market saturation. These applications are ADT/ registration, patient billing, patient scheduling, and credit/collections (see Table RCM1). Bed management indicated the largest year-overyear growth from 2011 to 2012, registering an increase of approximately four percentage points. Growth for the remaining applications was three percentage points or less. ADT/registration is the only application to remain unchanged from last year. The majority of purchasing plans for all of the RCM applications in 2012 were replacement purchases (see Table RCM2). This was not just the case for applications that have achieved market saturation, but for all applications. Due to impending federal regulation implementation dates that will require significant changes for the RCM environment with the ICD-10 coding adoption in 2014, the impact of healthcare reform legislative provisions for bundled payments and ACOs, it is expected that replacement purchasing will continue to grow significantly for RCM applications through 2015. Ta ble RCM1 | Revenue Cycle Management N=4,217 2010 2011 ADT/Registration 99.55% 99.67% Bed Management 33.96% 38.42% Contract Management 66.11% 67.56% Credit/Collections 90.89% 91.68% Electronic Data Interchange (EDI)– Clearing House Vendor 80.39% 84.82% Enterprise Master Patient Index (EMPI) 48.66% 52.10% Patient Billing 99.29% 99.81% Patient Scheduling 95.94% 96.82% Percentages include installed, contracted or installation in process Source: HIMSS Analytics® Database 2012 2012 99.67% 42.47% 70.05% 93.03% 87.55% 54.97% 99.86% 97.49% ©2013 HIMSS Analytics. 21 ▶▶ Revenue Cycle Management Environment con tinue d Ta ble RCM2 | 2012 # of Hospitals with Installed Software–Replacing 63 34 30 44 % of Hospitals with Installed Software–Replacing 100.00% 91.89% 83.33% 100.00% ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)– Clearing House Vendor 15 93.75% Enterprise Master Patient Index (EMPI) 33 82.50% Patient Billing 66 100.00% Patient Scheduling 64 95.52% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated An evaluation of the RCM application market by hospital market segment indicates the following highlights: • ADT/Registration: virtually all hospitals types have reached market saturation with adoption rates exceeding 99 percent (see Table RCM3). • Bed management: the academic medical center segment reported the highest penetration rate at more than 78 percent in 2012. Adoption in this market grew slightly less than three percentage points in the past year. In general, there is a consistent level of adoption growth of approximately four percentage points across all other market segments (see Table RCM4). • Contract management: the rural hospital, critical access hospital and multi-hospital segments reported a year-over-year growth that exceeded three percentage points (see Table RCM5). • Credit/Collections: the critical access hospital, rural hospital and other non-general medical/surgical hospital segments reported the highest growth (approximately two and one half percentage points). The academic medical center segment is approaching market saturation and demonstrated no growth in the past year. Growth in all other segments was less than two percentage points (see Table RCM6). # of Hospitals Planning to Purchase Software for the First Time 0 3 6 % of Hospitals Planning to Purchase Software for the First Time 0.00% 8.11% 16.67% 0.00% N = Total Number of Hospitals Planning 63 37 36 44 1 7 0 3 6.25% 17.50% 0.00% 4.48% 16 40 66 67 • EDI: all of the segments indicated growth from 2011 to 2012 ranging from two to three percent, with rural hospitals indicating the largest growth (see Table RCM7). • EMPI: the rural hospital and general medical/surgical hospital segments demonstrated the highest growth from 2011 to 2012 at more than three percentage points. The other segments indicated smaller growth rates, with the academic medical center segment indicating the smallest growth at less than one percentage point (see Table RCM8). • Patient billing: with 99 percent of U.S. hospitals indicating they have patient billing, there is little to no growth in this market segment. Those segments that did indicate some growth had grown one-tenth of one percentage point or less (see Table RCM9). • Patient scheduling: this is a highly saturated market. The rural hospital, critical access hospital, single hospital and other nongeneral medical/surgical hospital segments reported growth exceeding one percentage point from 2011 to 2012. The remaining segments reported growth at less than one percentage point. The academic medical center segment, which is fully saturated, is the only segment to report no growth from last year (see Table RCM10). Ta ble RCM3 | ADT/Registration 2010 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 4,020 2,447 1,751 1,138 3,060 968 3,230 2,583 1,615 4,198 Percent 100.00% 99.53% 99.80% 99.21% 99.13% 99.71% 99.18% 99.66% 99.61% 99.45% 99.55% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 4,025 2,449 1,754 1,140 3,063 971 3,232 2,585 1,618 4,203 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 135 1,485 1,146 474 229 1,391 169 1,451 1,115 505 1,620 Percent 100.00% 99.65% 99.88% 99.38% 99.30% 99.80% 99.49% 99.72% 99.69% 99.63% 99.67% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 4,025 2,449 1,754 1,140 3,063 971 3,232 2,585 1,618 4,203 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 140 1,651 1,255 536 277 1,514 207 1,584 1,225 566 1,791 Percent 100.00% 99.65% 99.88% 99.38% 99.30% 99.80% 99.49% 99.72% 99.69% 99.63% 99.67% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RCM4 | Bed Management 2010 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 1,312 1,044 388 181 1,251 132 1,300 985 447 1,432 Percent 67.42% 32.48% 42.58% 21.98% 15.77% 40.76% 13.52% 40.11% 37.99% 27.52% 33.96% 2011 22 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 75.84% 36.77% 46.74% 26.86% 19.95% 45.32% 17.32% 44.77% 43.00% 31.10% 38.42% 2012 Percent 78.65% 40.88% 51.18% 30.37% 24.13% 49.33% 21.21% 48.87% 47.24% 34.85% 42.47% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Revenue Cycle Management Environment con tinue d Ta ble RCM5 | Contract Management 2010 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 2,641 1,825 963 478 2,310 410 2,378 1,967 821 2,788 Percent 82.58% 65.39% 74.43% 54.56% 41.64% 75.27% 42.01% 73.37% 75.86% 50.55% 66.11% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 148 2,701 1,863 986 489 2,360 423 2,426 2,008 841 2,849 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,694 2,350 1,516 959 2,907 822 3,044 2,453 1,413 3,866 Percent 83.15% 66.87% 75.98% 55.86% 42.60% 76.90% 43.34% 74.85% 77.44% 51.79% 67.56% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 150 2,804 1,919 1,035 528 2,426 458 2,496 2,086 868 2,954 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,751 2,362 1,561 988 2,935 846 3,077 2,485 1,438 3,923 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 166 3,526 2,176 1,516 949 2,743 804 2,888 2,300 1,392 3,692 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 134 2,184 1,517 801 518 1,800 419 1,899 1,556 762 2,318 Percent 84.27% 69.42% 78.26% 58.64% 45.99% 79.05% 46.93% 77.01% 80.45% 53.45% 70.05% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RCM6 | Credit/Collections 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 171 3,662 2,332 1,501 939 2,894 806 3,027 2,435 1,398 3,833 Percent 96.07% 90.67% 95.11% 85.04% 81.79% 94.30% 82.58% 93.40% 93.91% 86.08% 90.89% 2011 Percent 96.63% 91.46% 95.84% 85.89% 83.54% 94.72% 84.22% 93.92% 94.60% 87.01% 91.68% 2012 Percent 96.63% 92.87% 96.33% 88.44% 86.06% 95.63% 86.68% 94.94% 95.83% 88.55% 93.03% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RCM7 | Electronic Data Interchange (EDI)–Clearing House Vendor 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 155 3,235 2,010 1,380 864 2,526 733 2,657 2,100 1,290 3,390 Percent 87.08% 80.09% 81.97% 78.19% 75.26% 82.31% 75.10% 81.98% 80.99% 79.43% 80.39% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 161 3,416 2,119 1,458 912 2,665 771 2,806 2,228 1,349 3,577 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 133 2,064 1,436 761 486 1,711 384 1,813 1,483 714 2,197 Percent 90.45% 84.58% 86.42% 82.61% 79.44% 86.84% 79.00% 86.58% 85.92% 83.07% 84.82% 2012 Percent 93.26% 87.30% 88.74% 85.89% 82.67% 89.38% 82.38% 89.11% 88.70% 85.71% 87.55% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RCM8 | Enterprise Master Person Index (EMPI) 2010 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 1,927 1,341 711 448 1,604 352 1,700 1,387 665 2,052 Percent 70.22% 47.71% 54.69% 40.28% 39.02% 52.26% 36.07% 52.45% 53.49% 40.95% 48.66% 2011 Percent 74.72% 51.10% 58.56% 43.12% 42.33% 55.75% 39.34% 55.94% 57.19% 43.97% 52.10% 2012 Source: HIMSS Analytics® Database 2012 Percent 75.28% 54.07% 61.87% 45.38% 45.12% 58.65% 42.93% 58.59% 60.01% 46.92% 54.97% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 23 ▶▶ Revenue Cycle Management Environment con tinue d Ta ble RCM9 | Patient Billing 2010 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 4,009 2,450 1,737 1,144 3,043 974 3,213 2,566 1,621 4,187 Percent 100.00% 99.26% 99.92% 98.41% 99.65% 99.15% 99.80% 99.14% 98.96% 99.82% 99.29% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 4,031 2,451 1,758 1,144 3,065 975 3,234 2,586 1,623 4,209 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,905 2,431 1,652 1,044 3,039 893 3,190 2,551 1,532 4,083 Percent 100.00% 99.80% 99.96% 99.60% 99.65% 99.87% 99.90% 99.78% 99.73% 99.94% 99.81% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 4,033 2,452 1,759 1,145 3,066 976 3,235 2,587 1,624 4,211 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,933 2,439 1,672 1,062 3,049 912 3,199 2,555 1,556 4,111 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 100.00% 99.85% 100.00% 99.66% 99.74% 99.90% 100.00% 99.81% 99.77% 100.00% 99.86% Ta ble RCM10 | Patient Scheduling 2010 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 3,868 2,418 1,628 1,021 3,025 868 3,178 2,533 1,513 4,046 Percent 100.00% 95.77% 98.61% 92.24% 88.94% 98.57% 88.93% 98.06% 97.69% 93.17% 95.94% 2011 The evaluation by bed size reported that ADT/registration, patient billing, and patient scheduling are at, or near, saturation across all bed segments (see Tables RCM11–RCM17). ADT/registration indicated no growth across all bed segments. Some other key findings within each bed segment are as follows: • 0–100 beds: bed management, contract management and EDI indicated the largest growth, surpassing three percentage points from 2011 to 2012 (see Table RCM11). • 101–200 beds: bed management reported the largest increase over the past year at slightly less than six percentage points. Contract management, EDI and EMPI showed growth of between two and four percentage points, while the remaining solutions showed growth of less than one percentage point (see Table RCM12). • 201–300 beds: the adoption of bed management grew by more than four percentage points in this segment. Growth of the other applications ranged from less than one percentage point for credit/ collections and patient scheduling to nearly three percentage points for EMPI. ADT/registration has reached market saturation and did not see any additional growth (see Table RCM13). • 301–400 beds: bed management reported a growth of more than three percentage points, while contract management and EMPI grew at approximately two percentage points. ADT/registration, patient billing and patient scheduling, which are all at or near market saturation did not grow in the past year (see Table RCM14). • 401–500 beds: EMPI reported the highest increase at more than three percentage points, while bed management and EDI grew approximately two percentage points. Contract management and credit/collections are the only applications which decreased slightly in penetration from 2011 to 2012 (see Table RCM15). • 501–600 beds: bed management demonstrated the largest increase over the past year at more than six percentage points, followed by contract management at four percentage points. Applications at or 24 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 100.00% 96.68% 99.14% 93.60% 90.94% 99.02% 91.50% 98.43% 98.38% 94.33% 96.82% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 100.00% 97.38% 99.47% 94.73% 92.51% 99.35% 93.44% 98.70% 98.53% 95.81% 97.49% near market saturation such as ADT/registration, credit/ collections, patient billing and patient scheduling demonstrated no growth (see Table RCM16). • Over 600 beds: bed management and EDI are the only RCM applications to report a growth exceeding three percentage points from 2011 to 2012. ADT/registration, patient billing and patient scheduling, which have all reached market saturation, reported no growth. The remaining applications demonstrated growth of less than three percentage points (see Table RCM17). Ta ble rcm11 0–100 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 2010 2011 2012 % of 2,165 Hospitals 2,152 99.40% 2,152 99.40% 510 23.56% 586 27.07% 1,193 55.10% 1,258 58.11% 1,889 87.25% 1,937 89.47% 2,147 418 1,152 1,865 99.17% 19.31% 53.21% 86.14% 1,681 77.64% 1,770 81.76% 1,842 85.08% 830 2,136 2,008 38.34% 98.66% 92.75% 900 2,158 2,043 41.57% 99.68% 94.36% 956 2,159 2,066 44.16% 99.72% 95.43% Ta ble rcm12 101–200 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 2010 2011 % of 802 Hospitals 801 99.88% 323 40.27% 622 77.56% 776 96.76% 801 294 615 775 99.88% 36.66% 76.68% 96.63% 663 82.67% 699 442 801 793 55.11% 99.88% 98.88% 482 60.10% 802 100.00% 794 99.00% 87.16% 2012 801 368 638 780 99.88% 45.89% 79.55% 97.26% 717 89.40% 514 64.09% 802 100.00% 797 99.38% ▶▶ Revenue Cycle Management Environment con tinue d Ta ble rcm13 201–300 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 2010 483 100.00% 241 49.90% 383 79.30% 463 95.86% 393 2011 % of 483 Hospitals 483 100.00% 263 54.45% 390 80.75% 465 96.27% 2012 483 100.00% 285 59.01% 397 82.19% 469 97.10% 81.37% 422 87.37% 432 89.44% 281 58.18% 483 100.00% 480 99.38% 297 482 480 61.49% 99.79% 99.38% 311 64.39% 483 100.00% 482 99.79% Ta ble rcm14 301–400 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 2010 312 100.00% 176 56.41% 254 81.41% 293 93.91% 263 84.29% 2011 % of 312 Hospitals 312 100.00% 196 62.82% 255 81.73% 296 94.87% 281 90.06% 2012 312 100.00% 207 66.35% 264 84.62% 297 95.19% 285 91.35% 193 61.86% 312 100.00% 311 99.68% 202 64.74% 312 100.00% 311 99.68% 209 66.99% 312 100.00% 311 99.68% 2010 2011 % of 188 Hospitals 188 100.00% 125 66.49% 164 87.23% 183 97.34% 2012 Ta ble rcm15 401–500 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 188 100.00% 118 62.77% 157 83.51% 181 96.28% 157 83.51% 162 86.17% 188 100.00% 129 68.62% 163 86.70% 182 96.81% 166 88.30% 119 63.30% 188 100.00% 188 100.00% 121 64.36% 188 100.00% 188 100.00% 127 67.55% 188 100.00% 188 100.00% 2010 2011 % of 116 Hospitals 116 100.00% 77 66.38% 95 81.90% 111 95.69% 2012 Ta ble rcm16 501–600 Beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 116 100.00% 71 61.21% 100 86.21% 111 95.69% 100 86.21% 69 59.48% 116 100.00% 115 99.14% 104 89.66% 74 63.79% 116 100.00% 116 100.00% 116 100.00% 84 72.41% 100 86.21% 111 95.69% 106 91.38% 77 66.38% 116 100.00% 116 100.00% Ta ble rcm17 Over 600 beds ADT/Registration Bed Management Contract Management Credit/Collections Electronic Data Interchange (EDI)–Clearing House Vendor Enterprise Master Patient Index (EMPI) Patient Billing Patient Scheduling 2010 151 100.00% 114 75.50% 126 83.44% 145 96.03% 133 88.08% 118 78.15% 151 100.00% 151 100.00% 2011 % of 151 Hospitals 151 100.00% 126 83.44% 130 86.09% 146 96.69% 139 92.05% 121 80.13% 151 100.00% 151 100.00% 2012 151 100.00% 132 87.42% 134 88.74% 147 97.35% 144 95.36% 124 82.12% 151 100.00% 151 100.00% In evaluating the RCM contract signed dates, 10 to 20 percent of the contracts signed were done so between 2010 and 2012. The exceptions are bed management and credit/collections. More than 30 percent of the contracts for bed management were signed between 2010 and 2012, while only four percent of the total credit/collections contracts were signed during this time. The majority of credit/ collections contracts were signed from 1990 to 2004. Activities between 2010 and 2012, particularly for market saturated applications such as ADT/registration, patient billing and patient scheduling, are good indications that replacement purchases are being made. It is likely that these applications will continue to be replaced over the next three to five years. Ta ble RCM18 ADT/Registration Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Bed Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Contract Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 120 320 749 774 658 467 3,088 3,088 3,088 3,088 3,088 3,088 3,088 3,088 3.89% 10.38% 24.29% 25.10% 21.34% 15.14% 100.00% 9 16 40 147 253 199 664 664 664 664 664 664 664 664 1.36% 2.41% 6.03% 22.17% 38.16% 30.02% 100.00% 54 101 406 521 416 229 1,727 1,727 1,727 1,727 1,727 1,727 1,727 1,727 3.15% 5.88% 23.65% 30.34% 24.23% 13.34% 100.00% # for Contract Range Total Responding % of Total Responding 2,781 2,781 2,781 2,781 2,781 2,781 2,781 11.88% 25.78% 23.62% 20.45% 14.40% 4.00% 100.00% 1,316 1,316 1,316 1,316 1,316 1,316 1,316 1.15% 5.44% 20.14% 25.88% 30.47% 17.69% 100.00% 1,338 1,338 1,338 1,338 1,338 1,338 1,338 0.97% 6.35% 12.18% 33.63% 26.91% 19.96% 100.00% Ta ble RCM19 Credit/Collections Prior to 1990 330 1990 to 1994 716 1995 to 1999 656 2000 to 2004 568 2005 to 2009 400 2010 to 2012 111 Total 2,781 Electronic Data Interchange (EDI)–Clearing House Vendor Prior to 1990 15 1990 to 1994 71 1995 to 1999 263 2000 to 2004 338 2005 to 2009 398 2010 to 2012 231 Total 1,316 Enterprise Master Patient Index (EMPI) Prior to 1990 13 1990 to 1994 85 1995 to 1999 163 2000 to 2004 450 2005 to 2009 360 2010 to 2012 267 Total 1,338 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 25 ▶▶ Revenue Cycle Management Environment con tinue d Ta ble RCM20 Patient Billing Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Patient Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 147 309 772 749 619 452 3,048 3,048 3,048 3,048 3,048 3,048 3,048 3,048 4.83% 10.15% 25.37% 24.61% 20.34% 14.85% 100.00% 44 205 532 784 651 461 2,677 2,677 2,677 2,677 2,677 2,677 2,677 2,677 1.65% 7.69% 19.96% 29.42% 24.43% 17.30% 100.00% 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, 2014. • 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 outcomes-based reimbursement models, some of which will be driven by ARRA Meaningful Use requirements, while others will be in response to pay for performance initiatives from private insurers. • Hospitals electing to compete as an ACO in consort with other entities. • Hospitals focusing on bundled payments as a measure to integrate the medical and surgical staff with Medicare and possible private insurance contracts. • The focus on consumer/patient satisfaction and patient engagement (e.g., pricing transparency, consumer-friendly billing formats, online 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. ▶▶ Next Generation Revenue Cycle Management Next generation revenue cycle management (next generation RCM) IT solutions refer to applications designed to improve collection rates, business office workflows, productivity, patient satisfaction and patient convenience. The solutions contribute to the overall efficiency of the RCM process by complementing and enhancing core legacy RCM applications. HIMSS Analytics monitors the solutions available in the following five next generation RCM categories: 1.Consumer focus: provides the ability to extend B2C (Business to Consumer) web services to patients; and facilitates online preregistration,self-scheduling, and bill payment to enhance patient service efficiency and convenience. 2.Eligibility verification: supports real-time insurance eligibility verification transactions to ensure that patients’ insurance covers services and procedures. 3.Rules capability for billing and payment processing: provides rules engines that facilitate medical necessity checking during patient scheduling and registration functions prior to care delivery; 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. They also allow business office personnel to edit bills online 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. next generation RCM tools can also accommodate the auto-encoding of clinical information from the EHR system, determine claims attachment requirements, and automatically create required attachments (when such supporting data exists in digital form, such as in the EHR) prior to claim 26 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. submission to avoid denied or pended claims and improve the efficiency and accuracy of the billing process. 4.Claims processing: provides the ability to submit claims directly to payers, eliminating the need to use a third-party clearinghouse intermediary; accepts direct electronic claims remittance transactions from payers; and directly posts third-party payments against patientspecific receivables from bundled remittance transactions. 5.Treasury functions: 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. The adoption of next generation RCM solutions continued to increase this past year with the exception of EMR documentation for claims, which showed a minor decrease (less than one percent). Web self-pay demonstrated the highest growth rate among next Ta ble NGRCM1 | Next Generation Revenue Cycle Management N=4,217 2010 2011 Biller’s Dash Board 22.69% 25.85% Claims Attachment Rules 26.01% 28.72% Claims Remittance Updates AR 15.27% 16.79% Denial Rules 26.68% 30.31% Direct Payer Claims 12.14% 12.90% EFT Transaction 24.24% 26.08% Eligibility Transaction with Payer 15.51% 16.93% EMR Documentation for Claims 3.84% 2.96% Necessity Alert @ Registration 36.25% 38.65% Necessity Alert @ Scheduling 21.48% 23.14% Web PreRegister 16.81% 19.26% Web Schedule 6.76% 6.92% Web Self-Pay 26.89% 32.51% Percentages include installed, contracted or installation in process 2012 28.57% 32.23% 17.95% 34.01% 13.59% 28.05% 17.83% 2.82% 40.03% 24.99% 20.49% 9.13% 38.04% ▶▶ Next Generation Revenue Cycle Management con tinue d generation RCM applications (more than five percentage points), followed by denial rules (approximately four percentage points), and claims attachment rules (3.5 percentage points). The remaining next generation RCM applications increased between approximately one and three percentage points (see Table NGRCM1). The next generation RCM index is developed by HIMSS Analytics designed to allow hospitals to compare their use of next generation RCM capabilities against other hospitals in the market. A hospital’s next generation RCM adoption is influenced by several factors that include business needs, strategies and competitive environment. Hospitals must be cognizant of the impact that ICD-10 coding upgrades and Meaningful Use objectives will have on many of these applications, and are highly encouraged to be preparing their upgrade strategies now. An evaluation of this market in 2012 by hospital type shows the following trends: Consumer Focus: • Web pre-registration: the rural hospital segment’s adoption rate showed the highest increase at more than two percentage points, followed closely by the critical access segment at just under two percentage points (see Table NGRCM2). • Web scheduling: all segments indicated an increase of between one and a half and four percentage points from 2011 to 2012, with academic medical centers showing the greatest increase (see Table NGRCM3). (Note: we are not making a distinction between whether the consumer can actually write an appointment to the schedule or simply request a schedule slot which is later confirmed by the provider). • Web self-pay: all segments increased adoption of this technology. The academic medical center, medical/surgical, non-critical access hospital and multi-hospital system segments had an increase of more than six percentage points from 2011 to 2012 (see Table NGRCM4). Eligibility Verification • Medical necessity alerts at the point of scheduling: growth was consistent at one to two percentage points across all hospital segments (see Table NGRCM5). • Medical necessity alerts at point of registration: the highest growth in adoption occurred in the single hospital system segment at approximately three percentage points. All other segments except multi-hospital system showed growth at more than one percentage point (see Table NGRCM6). Rules and Billing Capabilities: • Claims attachment rules: at approximately six percentage points, the academic medical center hospital segment had the highest growth in 2012. Adoption in the remaining hospital segments increased between three and four percentage points (see Table NGRCM7). • Denials rules: the highest growth rate was evidenced in academic medical centers at approximately six percentage points. From 2011 to 2012, all other hospital segments increased between three and four percentage points (see Table NGRCM8). • Biller’s dashboard (a graphical user interface of key performance indicators for billing processes that also allows for the editing of claims data): the academic medical center hospital segment had the highest growth rate at approximately four percentage points, followed closely by the single hospital system segment at more than three percentage points. The remaining segments all increased over two percentage points (see Table NGRCM9). • EMR documentation for claims: the academic medical center hospital segment grew by one percentage point, while the remaining segments either grew by less than one percentage point or experienced a slight decrease (see Table NGRCM10). Claims Processing: • Direct payer claims (no clearinghouse): between 2011 and 2012, the medical/surgical and non-critical access hospital segments experienced the highest growth rates of approximately one percentage point. Academic medical centers had no change in adoption rates, while critical access hospitals experienced a slight decrease (see Table NGRCM11). • Claims remittance with automatic accounts receivable update: most hospital segments grew by one percentage point while the rural hospital segment increased by roughly two percentage points (see Table NGRCM12). • Eligibility transaction with payer (no clearinghouse): the highest growth is witnessed in the academic medical center segment at approximately two percentage points. The remaining segments grew by approximately one percentage point (see Table NGRCM13). Treasury Funds • EFT transactions (direct to organization’s bank): the academic medical center hospital segment grew approximately three percentage points between 2011 and 2012. The general medical/ surgical, non-critical access, multi-hospital and urban hospital segments experienced the next highest increases (see Table NGRCM14). Ta ble NGRCM2 | Web Pre-Register 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 31 678 548 161 99 610 79 630 606 103 709 Percent 17.42% 16.79% 22.35% 9.12% 8.62% 19.88% 8.09% 19.44% 23.37% 6.34% 16.81% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 29 783 645 167 104 708 101 711 697 115 812 Percent 16.29% 19.39% 26.31% 9.46% 9.06% 23.07% 10.35% 21.94% 26.88% 7.08% 19.26% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 30 834 671 193 126 738 123 741 721 143 864 Source: HIMSS Analytics® Database 2012 Percent 16.85% 20.65% 27.37% 10.93% 10.98% 24.05% 12.60% 22.86% 27.81% 8.81% 20.49% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 27 ▶▶ Next Generation Revenue Cycle Management con tinue d Ta ble NGRCM3 | Web Schedule 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 35 250 207 78 28 257 20 265 248 37 285 Percent 19.66% 6.19% 8.44% 4.42% 2.44% 8.37% 2.05% 8.18% 9.56% 2.28% 6.76% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 29 263 217 75 30 262 25 267 260 32 292 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 60 1,311 992 379 270 1,101 229 1,142 1,033 338 1,371 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 40 936 712 264 183 793 142 834 654 322 976 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 71 1,559 1,066 564 325 1,305 280 1,350 1,132 498 1,630 Percent 16.29% 6.51% 8.85% 4.25% 2.61% 8.54% 2.56% 8.24% 10.03% 1.97% 6.92% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 36 349 279 106 50 335 41 344 332 53 385 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 73 1,531 1,152 452 315 1,289 273 1,331 1,189 415 1,604 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 42 1,012 765 289 202 852 162 892 698 356 1,054 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 73 1,615 1,103 585 344 1,344 297 1,391 1,142 546 1,688 Percent 20.22% 8.64% 11.38% 6.01% 4.36% 10.92% 4.20% 10.61% 12.80% 3.26% 9.13% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM4 | Web Self-Pay 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 63 1,071 828 306 197 937 169 965 885 249 1,134 Percent 35.39% 26.52% 33.77% 17.34% 17.16% 30.53% 17.32% 29.77% 34.13% 15.33% 26.89% 2011 Percent 33.71% 32.46% 40.46% 21.47% 23.52% 35.87% 23.46% 35.24% 39.84% 20.81% 32.51% 2012 Percent 41.01% 37.91% 46.98% 25.61% 27.44% 42.00% 27.97% 41.07% 45.85% 25.55% 38.04% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM5 | Necessity Alert @ Scheduling 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 34 872 658 248 177 729 135 771 626 280 906 Percent 19.10% 21.59% 26.84% 14.05% 15.42% 23.75% 13.83% 23.79% 24.14% 17.24% 21.48% 2011 Percent 22.47% 23.17% 29.04% 14.96% 15.94% 25.84% 14.55% 25.73% 25.22% 19.83% 23.14% 2012 Percent 23.60% 25.06% 31.20% 16.37% 17.60% 27.76% 16.60% 27.52% 26.92% 21.92% 24.99% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM6 | Necessity Alert @ Registration 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 59 1,470 997 532 310 1,219 264 1,265 1,076 452 1,529 Percent 33.15% 36.40% 40.66% 30.14% 27.00% 39.72% 27.05% 39.03% 41.50% 27.83% 36.25% 2011 28 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 39.89% 38.60% 43.47% 31.95% 28.31% 42.52% 28.69% 41.65% 43.66% 30.67% 38.65% 2012 Percent 41.01% 39.99% 44.98% 33.14% 29.97% 43.79% 30.43% 42.92% 44.04% 33.62% 40.03% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Next Generation Revenue Cycle Management con tinue d Ta ble NGRCM7 | Claims Attachment Rules 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 52 1,045 702 395 201 896 172 925 677 420 1,097 Percent 29.21% 25.87% 28.63% 22.38% 17.51% 29.20% 17.62% 28.54% 26.11% 25.86% 26.01% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 61 1,150 766 445 235 976 190 1,021 731 480 1,211 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 71 1,207 794 484 252 1,026 209 1,069 736 542 1,278 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 57 1,033 642 448 241 849 214 876 629 461 1,090 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 10 115 85 40 21 104 18 107 70 55 125 Percent 34.27% 28.47% 31.24% 25.21% 20.47% 31.80% 19.47% 31.50% 28.19% 29.56% 28.72% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 71 1,288 860 499 271 1,088 227 1,132 814 545 1,359 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 81 1,353 893 541 290 1,144 249 1,185 827 607 1,434 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 64 1,141 716 489 269 936 243 962 687 518 1,205 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 12 107 80 39 19 100 20 99 68 51 119 Percent 39.89% 31.89% 35.07% 28.27% 23.61% 35.45% 23.26% 34.93% 31.39% 33.56% 32.23% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM8 | Denial Rules 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 60 1,065 707 418 210 915 181 944 674 451 1,125 Percent 33.71% 26.37% 28.83% 23.68% 18.29% 29.81% 18.55% 29.13% 25.99% 27.77% 26.68% 2011 Percent 39.89% 29.88% 32.38% 27.42% 21.95% 33.43% 21.41% 32.98% 28.38% 33.37% 30.31% 2012 Percent 45.51% 33.50% 36.42% 30.65% 25.26% 37.28% 25.51% 36.56% 31.89% 37.38% 34.01% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM9 | Biller’s Dashboard 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 49 908 561 396 208 749 188 769 570 387 957 Percent 27.53% 22.48% 22.88% 22.44% 18.12% 24.41% 19.26% 23.73% 21.98% 23.83% 22.69% 2011 Percent 32.02% 25.58% 26.18% 25.38% 20.99% 27.66% 21.93% 27.03% 24.26% 28.39% 25.85% 2012 Percent 35.96% 28.25% 29.20% 27.71% 23.43% 30.50% 24.90% 29.68% 26.49% 31.90% 28.57% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM10 | EMR Documentation for Claims 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 14 148 116 46 27 135 27 135 77 85 162 Percent 7.87% 3.66% 4.73% 2.61% 2.35% 4.40% 2.77% 4.17% 2.97% 5.23% 3.84% 2011 Percent 5.62% 2.85% 3.47% 2.27% 1.83% 3.39% 1.84% 3.30% 2.70% 3.39% 2.96% 2012 Source: HIMSS Analytics® Database 2012 Percent 6.74% 2.65% 3.26% 2.21% 1.66% 3.26% 2.05% 3.05% 2.62% 3.14% 2.82% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 29 ▶▶ Next Generation Revenue Cycle Management con tinue d Ta ble NGRCM11 | Direct Payer Claims 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 31 481 326 186 129 383 105 407 278 234 512 Percent 17.42% 11.91% 13.30% 10.54% 11.24% 12.48% 10.76% 12.56% 10.72% 14.41% 12.14% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 37 507 337 207 132 412 107 437 289 255 544 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 47 661 406 302 127 581 102 606 417 291 708 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 36 678 392 322 156 558 120 594 415 299 714 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 63 1,037 640 460 253 847 210 890 634 466 1,100 Percent 20.79% 12.55% 13.74% 11.73% 11.50% 13.42% 10.96% 13.48% 11.15% 15.70% 12.90% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 37 536 365 208 130 443 108 465 309 264 573 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 48 709 441 316 137 620 119 638 442 315 757 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 40 712 416 336 164 588 127 625 439 313 752 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 69 1,114 706 477 260 923 219 964 693 490 1,183 Percent 20.79% 13.27% 14.89% 11.78% 11.32% 14.43% 11.07% 14.35% 11.92% 16.26% 13.59% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM12 | Claims Remittance Updates AR 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 37 607 361 283 124 520 101 543 380 264 644 Percent 20.79% 15.03% 14.72% 16.03% 10.80% 16.94% 10.35% 16.75% 14.65% 16.26% 15.27% 2011 Percent 26.40% 16.37% 16.56% 17.11% 11.06% 18.93% 10.45% 18.70% 16.08% 17.92% 16.79% 2012 Percent 26.97% 17.55% 17.99% 17.90% 11.93% 20.20% 12.19% 19.69% 17.05% 19.40% 17.95% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM13 | Eligibility Transaction with Payer 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 31 623 363 291 141 513 108 546 392 262 654 Percent 17.42% 15.42% 14.80% 16.49% 12.28% 16.72% 11.07% 16.85% 15.12% 16.13% 15.51% 2011 Percent 20.22% 16.79% 15.99% 18.24% 13.59% 18.18% 12.30% 18.33% 16.00% 18.41% 16.93% 2012 Percent 22.47% 17.63% 16.97% 19.04% 14.29% 19.16% 13.01% 19.28% 16.93% 19.27% 17.83% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble NGRCM14 | EFT Transaction 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 53 969 609 413 228 794 195 827 607 415 1,022 Percent 29.78% 23.99% 24.84% 23.40% 19.86% 25.87% 19.98% 25.52% 23.41% 25.55% 24.24% 2011 30 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 35.39% 25.67% 26.10% 26.06% 22.04% 27.60% 21.52% 27.46% 24.45% 28.69% 26.08% 2012 Percent 38.76% 27.58% 28.79% 27.03% 22.65% 30.07% 22.44% 29.74% 26.73% 30.17% 28.05% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Next Generation Revenue Cycle Management con tinue d An evaluation of next generation RCM adoption by hospital bed-size reveals the following insights (see Tables NGRCM15–NGRCM21): • 0–100 beds: web self-pay demonstrated the largest increase at more than four percentage points. Claims attachment rules and denial rules each increased in adoption by three percentage points. EMR documentation for claims showed a slight decrease in adoption. • 101–200 beds: web self-pay and denial rules increased in adoption by approximately four percentage points. All other next generation RCM applications, except EMR documentation for claims, increased between one and three percentage points. • 201–300 beds: the highest increase in adoption is evidenced in the web self-pay application with an approximate growth of eight percentage points. Denial rules adoption increased by approximately five percentage points while claims attachment rules increased by slightly more than four percentage points. • 301–400 beds: the adoption of web self-pay had the highest increase at six percentage points, followed by biller’s dashboard at more than four percentage points. Besides EMR documentation for claims and web preregister, all other next generation RCM applications increased between one and four percentage points. • 401–500 beds: web self-pay and biller’s dashboard demonstrated the largest increases in application adoption at more than four percentage points. Necessity alert at registration decreased by more than two percentage points, while EMR documentation for claims decreased by one percentage point. Web preregister, web schedule, claims attachment rules and denial rules each increased by three percentage points from 2011 to 2012. • 501–600 beds: the highest growth in adoption for this bed segment was for web self-pay at 11 percentage points. Web schedule had the second largest growth at approximately eight percentage points. Direct payer claims and claims remittance accounts receivable updates did not change while all other next generation RCM applications grew between one and six percentage points. • Over 600 beds: web self-pay had the largest increase in adoption at more than 11 percentage points, followed by web schedule at six percentage points. The remaining next generation RCM applications increased approximately one to five percentage points. Ta ble NGRCM15 0–100 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 232 63 426 334 690 494 514 475 53 230 318 336 503 10.72% 2.91% 19.68% 15.43% 31.87% 22.82% 23.74% 21.94% 2.45% 10.62% 14.69% 15.52% 23.23% 2011 % of 2,165 Hospitals 271 12.52% 68 3.14% 542 25.03% 350 16.17% 730 33.72% 538 24.85% 581 26.84% 535 24.71% 42 1.94% 247 11.41% 329 15.20% 366 16.91% 542 25.03% 2012 294 108 641 378 748 606 650 583 39 252 349 379 565 13.58% 4.99% 29.61% 17.46% 34.55% 27.99% 30.02% 26.93% 1.80% 11.64% 16.12% 17.51% 26.10% Ta ble NGRCM16 101–200 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 172 70 280 218 323 213 219 157 34 85 103 111 180 21.45% 8.73% 34.91% 27.18% 40.27% 26.56% 27.31% 19.58% 4.24% 10.60% 12.84% 13.84% 22.44% 2011 % of 802 Hospitals 212 26.43% 70 8.73% 338 42.14% 244 30.42% 346 43.14% 239 29.80% 256 31.92% 188 23.44% 24 2.99% 90 11.22% 122 15.21% 122 15.21% 198 24.69% 2012 217 83 373 273 365 268 288 206 21 100 132 130 221 27.06% 10.35% 46.51% 34.04% 45.51% 33.42% 35.91% 25.69% 2.62% 12.47% 16.46% 16.21% 27.56% Ta ble NGRCM17 201–300 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 105 57 153 136 192 137 137 116 24 57 79 73 122 21.74% 11.80% 31.68% 28.16% 39.75% 28.36% 28.36% 24.02% 4.97% 11.80% 16.36% 15.11% 25.26% 2011 % of 483 Hospitals 130 26.92% 60 12.42% 182 37.68% 145 30.02% 208 43.06% 164 33.95% 160 33.13% 135 27.95% 18 3.73% 67 13.87% 89 18.43% 82 16.98% 130 26.92% 2012 142 70 223 150 215 185 183 153 19 71 95 87 145 29.40% 14.49% 46.17% 31.06% 44.51% 38.30% 37.89% 31.68% 3.93% 14.70% 19.67% 18.01% 30.02% Ta ble NGRCM18 301–400 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 83 37 113 91 141 95 92 78 16 49 50 46 81 26.60% 11.86% 36.22% 29.17% 45.19% 30.45% 29.49% 25.00% 5.13% 15.71% 16.03% 14.74% 25.96% 2011 % of 312 Hospitals 81 25.96% 44 14.10% 124 39.74% 95 30.45% 144 46.15% 100 32.05% 101 32.37% 85 27.24% 16 5.13% 52 16.67% 58 18.59% 46 14.74% 86 27.56% 2012 83 50 143 103 153 111 114 99 14 57 67 52 97 26.60% 16.03% 45.83% 33.01% 49.04% 35.58% 36.54% 31.73% 4.49% 18.27% 21.47% 16.67% 31.09% Ta ble NGRCM19 401–500 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 47 17 61 58 87 71 72 61 13 43 44 42 65 25.00% 9.04% 32.45% 30.85% 46.28% 37.77% 38.30% 32.45% 6.91% 22.87% 23.40% 22.34% 34.57% 2011 % of 188 Hospitals 45 23.94% 16 8.51% 77 40.96% 64 34.04% 93 49.47% 73 38.83% 75 39.89% 66 35.11% 9 4.79% 38 20.21% 48 25.53% 43 22.87% 66 35.11% Source: HIMSS Analytics® Database 2012 2012 51 22 86 65 88 79 81 74 7 38 49 44 69 27.13% 11.70% 45.74% 34.57% 46.81% 42.02% 43.09% 39.36% 3.72% 20.21% 26.06% 23.40% 36.70% ©2013 HIMSS Analytics. 31 ▶▶ Next Generation Revenue Cycle Management con tinue d Ta ble NGRCM20 501–600 Beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 35 14 47 29 44 36 36 30 7 20 19 20 25 30.17% 12.07% 40.52% 25.00% 37.93% 31.03% 31.03% 25.86% 6.03% 17.24% 16.38% 17.24% 21.55% 2011 % of 116 Hospitals 34 29.31% 12 10.34% 53 45.69% 30 25.86% 46 39.66% 42 36.21% 42 36.21% 35 30.17% 5 4.31% 21 18.10% 25 21.55% 24 20.69% 28 24.14% 2012 36 21 66 34 52 48 49 41 7 21 25 25 30 31.03% 18.10% 56.90% 29.31% 44.83% 41.38% 42.24% 35.34% 6.03% 18.10% 21.55% 21.55% 25.86% Ta ble NGRCM21 Over 600 beds Web PreRegister Web Schedule Web Self-Pay Necessity Alert @ Scheduling Necessity Alert @ Registration Claims Attachment Rules Denial Rules Biller’s Dashboard EMR Documentation for Claims Direct Payer Claims Claims Remittance Updates AR Eligibility Transaction with Payer EFT Transaction 2010 35 27 54 40 52 51 55 40 15 28 31 26 46 23.18% 17.88% 35.76% 26.49% 34.44% 33.77% 36.42% 26.49% 9.93% 18.54% 20.53% 17.22% 30.46% 2011 % of 151 Hospitals 39 25.83% 22 14.57% 55 36.42% 48 31.79% 63 41.72% 55 36.42% 63 41.72% 46 30.46% 11 7.28% 29 19.21% 37 24.50% 31 20.53% 50 33.11% 2012 41 31 72 51 67 62 69 49 12 34 40 35 56 27.15% 20.53% 47.68% 33.77% 44.37% 41.06% 45.70% 32.45% 7.95% 22.52% 26.49% 23.18% 37.09% Market Drivers/Future Outlook The next generation RCM market is still in its infancy, but these applications are expected to become critical solutions for all hospitals within the next few years (see Table NGRCM1). This market will continue to be impacted through 2015 by: • Capital constraints and the intense competition of IT capital funds, which will drive many hospitals to acquire bolt-on next generation RCM applications to enhance their existing, legacy RCM environments, extending their useful life. • Possible major upgrades or outright replacements of RCM solutions due to the ICD-10 mandate. • Shifting profile of the vendors offering next generation RCM solutions. Many next generation RCM applications in each of the product categories are currently delivered by relatively small, specialty vendors. Over time, we expect: –– Larger RCM vendors to introduce similar capabilities as an integral component of new versions. Hospitals upgrading to these new versions will displace these niche products. –– In the near term, many of the specialty vendors offering these applications will be acquired by larger RCM vendors. • As more small- to mid-sized hospitals contract for EMRs, many of these hospitals will acquire complete application suites, including replacement of legacy RCM applications with versions that incorporate these features. • Stage 2 Meaningful Use has a strong intent to increase “patient engagement” as a way to begin tackling the chronic disease issues in the country. We see this as another Meaningful Use driver for web capabilities adoption. ▶▶ Health Information Management The health information management (HIM) IT environment focuses on solutions designed to assist with the maintenance and care of paper as well as EHRs. Eleven different HIM applications are tracked by HIMSS Analytics in this report; abstracting, case mix management, chart deficiency, chart tracking/locator, computerassisted coding, data warehousing/mining-clinical, dictation, dictation with speech recognition, encoder, outcomes and quality management and in-house transcription. The HIM environment generally presents as a well-penetrated marketplace. Five of the 11 HIM applications tracked had penetration levels of 90 percent or greater (abstracting and encoder, chart deficiency, chart tracking/locator and dictation), while eight applications exceeded 70 percent (see Table HIM1). That said, three applications in this environment have exceedingly lower penetration levels when compared to the other applications in this suite: dictation with speech recognition (45.3 percent), data warehousing/mining–clinical (43.0 percent), and computer assisted coding (12.8 percent). Overall, the HIM environment is a growing market as nine of the eleven applications tracked in this report increased penetration levels of one to five percentage points in 2012. The two applications with lower penetration levels in 2012 were in-house transcription (decreased by approximately one percentage point) and computer assisted coding (decreased by more than four percentage points). 32 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. While the decline of the in-house transcription market penetration may be reflective of a service increasingly outsourced, the notable decline in the computer assisted coding is due in large part to a change in HIMSS Analytics’ definition of computer assisted coding. In 2012, the definition of computer assisted coding was changed to read “software solutions that utilize natural language processing (NLP) and exclusive patented algorithmic software to electronically analyze entire medical charts to pre-code with both CPT procedure and ICD diagnostic nomenclatures.” Due to the change in the definitions, it is likely that computer assisted coding data from 2010 and 2011 were over-reported. Ta ble HIM1 | Health Information Management N=4,217 2010 2011 Abstracting 95.61% 96.66% Case Mix Management 78.68% 79.87% Chart Deficiency 90.70% 92.39% Chart Tracking/Locator 89.49% 91.13% Computer Assisted Coding 14.63% 17.17% Data Warehousing/Mining–Clinical 33.32% 38.42% Dictation 88.10% 90.75% Dictation with Speech Recognition 33.67% 40.67% Encoder 95.94% 96.59% Outcomes and Quality Management 68.65% 70.31% In-House Transcription 77.73% 76.76% Percentages include installed, contracted or installation in process 2012 97.34% 81.20% 93.72% 91.89% 12.78% 42.97% 92.13% 45.27% 97.15% 73.18% 75.39% ▶▶ Health Information Management con tinue d Ta ble hiM2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Abstracting 50 90.91% Case Mix Management 37 97.37% Chart Deficiency 45 88.24% Chart Tracking/Locator 43 91.49% Computer Assisted Coding 2 2.99% Data Warehousing/Mining–Clinical 7 50.00% Dictation 6 54.55% Dictation with Speech Recognition 16 48.48% Encoder 9 52.94% Outcomes and Quality Management 12 63.16% In-House Transcription 5 83.33% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated The best growth potential for the HIM market is expected in two applications—dictation with speech recognition and data warehousing/mining-clinical. However, with respect to the latter, the increasing trend towards more highly integrated, enterprise-wide architectures to support business and clinical intelligence, outcomes and quality reporting, can lead to a corresponding de-emphasis of, and decline in, specialized, department-specific data marts. We believe that a significant portion of the growth reported in the adoption of the data warehousing/mining – clinical and the outcomes and quality management applications go hand-in-hand with the growth highlighted in the Financial Decision Support section of this report. The market penetration of computer assisted coding is highest among academic medical centers at close to 25 percent in 2012. The next highest is general medical surgical hospitals and multi-hospital systems at slightly under 15 percent. As usual, academic medical centers are often closely associated as early adopters to new technology. Encoding upgrades (due to ICD-10 upgrade requirements) and outcomes and quality management (due to ARRA Meaningful Use reporting) are expected to be growth drivers in the HIM market. Standardization of the templates for transcribed documents will improve the ability of hospitals to share standard patient information with one another using the CDA construct (see www.HealthStory.com). The HIM market generally reflects a replacement buyer market partially driven by continued movement away form “best of breed” solutions. This is especially true for abstracting, case mix management, chart deficiency, chart tracking/locator and in-house transcription. That said, the majority of purchases for computer assisted coding will be first time purchases (see Table HIM2). Through 2015, two government mandates are expected to significantly impact the HIM market. The first is the requirement to upgrade encoding systems to use ICD-10 codes by October 1, 2014 (which was delayed in August 2012 from the original date of October 1, 2013). The other mandate is the requirement to report on clinical outcomes as part of the ARRA Meaningful Use requirements. Health reform, and changes in reimbursement methods demanded by both public and private insurers, will increase the need for hospitals to report 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. Highlights of the past year by hospital segments reveal the following: • Abstracting: the rural hospital and critical access hospital segments have the largest year-over-year growth at approximately two percentage points. Most of the other segments reported a • • • • • • • • • • # of Hospitals Planning to Purchase Software for the First Time 5 1 6 4 65 7 5 17 8 7 1 % of Hospitals Planning to Purchase Software for the First Time 9.09% 2.63% 11.76% 8.51% 97.01% 50.00% 45.45% 51.52% 47.06% 36.84% 16.67% N = Total Number of Hospitals Planning 55 38 51 47 67 14 11 33 17 19 6 growth of one percentage point or less. Having already reached market saturation, there was no reported growth among academic medical centers (see Table HIM3). Case mix management: rural hospitals had the highest year-overyear growth at more than three percentage points. The critical access hospital segment also saw growth of more than two percentage points (see Table HIM4). Chart deficiency: both the critical access hospital and the rural hospital segments saw growth of more than three percentage points (see Table HIM5). All other segments registered growth of less than three percentage points. Chart tracking/locator: the critical access and rural hospital segments both reported growth of more than three percentage points. A number of segments reported a slight decline in use of chart tracking/locator solutions (see Table HIM6). Computer assisted coding: in 2012, about one-quarter of the academic medical centers reported adopting computer assisted coding solutions. Due to a change in definition of computer assisted coding, comparison to previous years’ data is not meaningful (see Table HIM7). Data warehousing/mining–clinical: all of the hospital segments indicated a growth ranging from three to six percentage points, with the highest growth demonstrated by academic medical centers and the multi-hospital system segments (see Table HIM8). Dictation: except for the academic medical center segment, all segments grew three percentage points or less (see Table HIM9). Growth was greatest in the critical access hospital and rural hospital segments. Dictation with speech recognition: the growth for all hospital segments was consistent ranging between three and five percentage points (see Table HIM10). The greatest growth was in the general medical/surgical hospital and multi-hospital system segments. Encoder: because this solution is on the verge of complete market saturation across all market segments, there was little increase in adoption over the past year. No segment reported growth of more than two percentage points (see Table HIM11). Outcomes and quality management: both the rural hospital and critical access hospital segments reported growth more than four percentage points from 2011 to 2012. The other hospital segments indicated growth ranging from two to four percentage points (see Table HIM12). In-house transcription: all hospital segments demonstrated a decrease in the penetration of this application. The academic medical center segment indicated the sharpest decrease in adoption at more than two percentage points (see Table HIM13). Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 33 ▶▶ Health Information Management con tinue d Ta ble HIM3 | Abstracting 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 176 3,856 2,425 1,607 1,011 3,021 860 3,172 2,531 1,501 4,032 Percent 98.88% 95.47% 98.90% 91.05% 88.07% 98.44% 88.11% 97.87% 97.61% 92.43% 95.61% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,899 2,432 1,644 1,041 3,035 883 3,193 2,547 1,529 4,076 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 167 3,201 2,162 1,206 675 2,693 587 2,781 2,241 1,127 3,368 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,719 2,405 1,491 889 3,007 758 3,138 2,500 1,396 3,896 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,667 2,377 1,466 869 2,974 744 3,099 2,480 1,363 3,843 Percent 99.44% 96.53% 99.18% 93.14% 90.68% 98.89% 90.47% 98.52% 98.23% 94.15% 96.66% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,928 2,434 1,671 1,066 3,039 905 3,200 2,556 1,549 4,105 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 170 3,254 2,183 1,241 707 2,717 619 2,805 2,273 1,151 3,424 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,774 2,413 1,539 933 3,019 792 3,160 2,512 1,440 3,952 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,700 2,375 1,500 912 2,963 780 3,095 2,475 1,400 3,875 Percent 99.44% 97.25% 99.27% 94.67% 92.86% 99.02% 92.73% 98.73% 98.57% 95.38% 97.34% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM4 | Case Mix Management 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 166 3,152 2,133 1,185 668 2,650 578 2,740 2,205 1,113 3,318 Percent 93.26% 78.04% 86.99% 67.14% 58.19% 86.35% 59.22% 84.54% 85.04% 68.53% 78.68% 2011 Percent 93.82% 79.25% 88.17% 68.33% 58.80% 87.75% 60.14% 85.81% 86.42% 69.40% 79.87% 2012 Percent 95.51% 80.56% 89.03% 70.31% 61.59% 88.53% 63.42% 86.55% 87.66% 70.87% 81.20% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM5 | Chart Deficiency 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 177 3,648 2,388 1,437 845 2,980 723 3,102 2,469 1,356 3,825 Percent 99.44% 90.32% 97.39% 81.42% 73.61% 97.10% 74.08% 95.71% 95.22% 83.50% 90.70% 2011 Percent 99.44% 92.08% 98.08% 84.48% 77.44% 97.98% 77.66% 96.82% 96.41% 85.96% 92.39% 2012 Percent 100.00% 93.44% 98.41% 87.20% 81.27% 98.37% 81.15% 97.50% 96.88% 88.67% 93.72% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM6 | Chart Tracking/Locator 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 177 3,597 2,365 1,409 827 2,947 709 3,065 2,451 1,323 3,774 Percent 99.44% 89.06% 96.45% 79.83% 72.04% 96.02% 72.64% 94.57% 94.52% 81.47% 89.49% 2011 34 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 98.88% 90.79% 96.94% 83.06% 75.70% 96.90% 76.23% 95.62% 95.64% 83.93% 91.13% 2012 Percent 98.31% 91.61% 96.86% 84.99% 79.44% 96.55% 79.92% 95.50% 95.45% 86.21% 91.89% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Health Information Management con tinue d Ta ble HIM7 | Computer Assisted Coding 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 39 578 420 197 122 495 96 521 391 226 617 Percent 21.91% 14.31% 17.13% 11.16% 10.63% 16.13% 9.84% 16.08% 15.08% 13.92% 14.63% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 46 678 479 245 148 576 110 614 467 257 724 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 108 1,512 1,088 532 229 1,391 196 1,424 1,188 432 1,620 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,655 2,365 1,462 965 2,862 828 2,999 2,397 1,430 3,827 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 126 1,589 1,225 490 269 1,446 194 1,521 1,219 496 1,715 Percent 25.84% 16.79% 19.54% 13.88% 12.89% 18.77% 11.27% 18.94% 18.01% 15.83% 17.17% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 43 496 365 174 97 442 76 463 387 152 539 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 118 1,694 1,205 607 290 1,522 248 1,564 1,332 480 1,812 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,713 2,386 1,499 998 2,887 855 3,030 2,419 1,466 3,885 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 134 1,775 1,348 561 326 1,583 241 1,668 1,357 552 1,909 Percent 24.16% 12.28% 14.89% 9.86% 8.45% 14.40% 7.79% 14.29% 14.92% 9.36% 12.78% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM8 | Data Warehousing/Mining–Clinical 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 95 1,310 930 475 208 1,197 173 1,232 1,026 379 1,405 Percent 53.37% 32.43% 37.93% 26.91% 18.12% 39.00% 17.73% 38.01% 39.57% 23.34% 33.32% 2011 Percent 60.67% 37.44% 44.37% 30.14% 19.95% 45.32% 20.08% 43.94% 45.82% 26.60% 38.42% 2012 Percent 66.29% 41.94% 49.14% 34.39% 25.26% 49.59% 25.41% 48.26% 51.37% 29.56% 42.97% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM9 | Dictation 2010 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 3,547 2,316 1,399 921 2,794 788 2,927 2,330 1,385 3,715 Percent 94.38% 87.82% 94.45% 79.26% 80.23% 91.04% 80.74% 90.31% 89.86% 85.28% 88.10% 2011 Percent 96.63% 90.49% 96.45% 82.83% 84.06% 93.26% 84.84% 92.53% 92.44% 88.05% 90.75% 2012 Percent 96.63% 91.93% 97.31% 84.93% 86.93% 94.07% 87.60% 93.49% 93.29% 90.27% 92.13% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM10 | Dictation with Speech Recognition 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 111 1,309 1,017 403 192 1,228 141 1,279 1,031 389 1,420 Percent 62.36% 32.41% 41.48% 22.83% 16.72% 40.01% 14.45% 39.46% 39.76% 23.95% 33.67% 2011 Percent 70.79% 39.34% 49.96% 27.76% 23.43% 47.12% 19.88% 46.93% 47.01% 30.54% 40.67% 2012 Source: HIMSS Analytics® Database 2012 Percent 75.28% 43.95% 54.98% 31.78% 28.40% 51.58% 24.69% 51.47% 52.33% 33.99% 45.27% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 35 ▶▶ Health Information Management con tinue d Ta ble HIM11 | Encoder 2010 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 3,868 2,441 1,605 1,007 3,039 857 3,189 2,553 1,493 4,046 Percent 100.00% 95.77% 99.55% 90.93% 87.72% 99.02% 87.81% 98.40% 98.46% 91.93% 95.94% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,895 2,443 1,630 1,025 3,048 875 3,198 2,560 1,513 4,073 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 153 2,812 1,944 1,021 494 2,471 441 2,524 2,110 855 2,965 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 127 3,110 1,928 1,309 899 2,338 775 2,462 1,978 1,259 3,237 Percent 100.00% 96.43% 99.63% 92.35% 89.29% 99.32% 89.65% 98.67% 98.73% 93.17% 96.59% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,919 2,445 1,652 1,045 3,052 892 3,205 2,565 1,532 4,097 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 160 2,926 2,005 1,081 544 2,542 487 2,599 2,172 914 3,086 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 123 3,056 1,882 1,297 894 2,285 769 2,410 1,941 1,238 3,179 Percent 100.00% 97.03% 99.71% 93.60% 91.03% 99.45% 91.39% 98.89% 98.92% 94.33% 97.15% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM12 | Outcomes and Quality Management 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 151 2,744 1,909 986 466 2,429 418 2,477 2,066 829 2,895 Percent 84.83% 67.94% 77.85% 55.86% 40.59% 79.15% 42.83% 76.43% 79.68% 51.05% 68.65% 2011 Percent 85.96% 69.62% 79.28% 57.85% 43.03% 80.51% 45.18% 77.88% 81.37% 52.65% 70.31% 2012 Percent 89.89% 72.44% 81.77% 61.25% 47.39% 82.83% 49.90% 80.19% 83.76% 56.28% 73.18% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble HIM13 | In-House Transcription 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 137 3,141 1,971 1,307 897 2,381 777 2,501 1,991 1,287 3,278 Percent 76.97% 77.77% 80.38% 74.05% 78.14% 77.58% 79.61% 77.17% 76.78% 79.25% 77.73% 2011 The highlights by bed size segments yielded the following (see Tables HIM14–HIM20): • 0–100 beds: data warehousing-clinical indicated the largest increase in growth from 2011 to 2012 at nearly five percentage points, followed by dictation with speech recognition at more than four percentage points (see Table HIM14). In-house transcription and computer assisted coding (redefined for 2012) both showed decreases in market penetration. • 101–200 beds: eight of the 11 applications indicated an increase in market penetration; the largest growth was among dictation with speech recognition solutions. Decreases in market penetration were seen for chart tracking/locator, computer assisted coding and in-house transcription (see Table HIM15). • 201–300 beds: dictation with speech recognition showed the highest growth at more than five percentage points. Growth was also strong for data warehousing/mining-clinical solutions. Decreased market penetration was seen for chart tracking/ locator, computer assisted coding and in-house transcription (see Table HIM16). 36 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 71.35% 77.00% 78.63% 74.16% 78.31% 76.18% 79.41% 75.96% 76.28% 77.52% 76.76% 2012 Percent 69.10% 75.66% 76.75% 73.48% 77.87% 74.45% 78.79% 74.36% 74.86% 76.23% 75.39% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 • 301–400 beds: the application with the greatest growth in this segment was dictation with speech recognition, at nearly four percentage points. Decreased market penetration was noted for chart tracking/locator, computer assisted coding and in-house transcription (see Table HIM17). • 401–500 beds: at more than six percentage points, data warehousing/ mining-clinical demonstrated the largest growth from 2011 to 2012. This was followed by dictation with speech recognition at more than four percentage points (see Table HIM18). Adoption of both computer assisted coding and in-house transcription declined. There are also many saturated markets with no growth potential. • 501–600 beds: both the dictation with speech recognition and data warehousing/mining-clinical indicated a growth of more than six percentage points from 2011 to 2012 (see Table HIM19). Declines in market penetration were noted in abstracting, chart deficiency, chart tracking/locator, encoder and in-house transcription. • Over 600 beds: dictation with speech recognition and data warehousing/mining-clinical are the only two applications to indicate a growth from 2011 to 2012. All other segments reported a decline or no change (see Table HIM20). ▶▶ Health Information Management con tinue d Ta ble HIM14 Ta ble HIM19 0–100 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 2010 1,992 1,470 1,790 1,757 246 506 1,756 427 1,998 1,202 1,653 2011 2012 % of 2,165 Hospitals 92.01% 2,031 93.81% 2,057 95.01% 67.90% 1,500 69.28% 1,547 71.45% 82.68% 1,857 85.77% 1,908 88.13% 81.15% 1,824 84.25% 1,864 86.10% 11.36% 293 13.53% 199 9.19% 23.37% 581 26.84% 682 31.50% 81.11% 1,832 84.62% 1,880 86.84% 19.72% 544 25.13% 640 29.56% 92.29% 2,026 93.58% 2,048 94.60% 55.52% 1,247 57.60% 1,330 61.43% 76.35% 1,663 76.81% 1,636 75.57% Ta ble HIM15 2010 795 720 787 784 126 304 762 320 800 653 619 99.13% 89.78% 98.13% 97.76% 15.71% 37.91% 95.01% 39.90% 99.75% 81.42% 77.18% 2011 % of 802 Hospitals 798 99.50% 727 90.65% 791 98.63% 789 98.38% 140 17.46% 363 45.26% 779 97.13% 382 47.63% 799 99.63% 660 82.29% 600 74.81% 2012 801 731 796 787 99 399 784 419 801 677 592 99.88% 91.15% 99.25% 98.13% 12.34% 49.75% 97.76% 52.24% 99.88% 84.41% 73.82% Ta ble HIM16 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 2010 483 100.00% 438 90.68% 481 99.59% 477 98.76% 90 18.63% 209 43.27% 461 95.45% 241 49.90% 483 100.00% 402 83.23% 391 80.95% 2011 % of 483 Hospitals 483 100.00% 441 91.30% 481 99.59% 476 98.55% 109 22.57% 249 51.55% 471 97.52% 285 59.01% 483 100.00% 407 84.27% 381 78.88% 2012 483 100.00% 443 91.72% 482 99.79% 474 98.14% 85 17.60% 271 56.11% 474 98.14% 310 64.18% 483 100.00% 417 86.34% 372 77.02% Ta ble HIM17 301–400 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 2010 308 98.72% 272 87.18% 312 100.00% 310 99.36% 58 18.59% 148 47.44% 301 96.47% 165 52.88% 310 99.36% 253 81.09% 243 77.88% 2011 % of 312 Hospitals 309 99.04% 280 89.74% 312 100.00% 309 99.04% 67 21.47% 170 54.49% 306 98.08% 196 62.82% 310 99.36% 259 83.01% 235 75.32% 2012 310 99.36% 280 89.74% 312 100.00% 308 98.72% 52 16.67% 179 57.37% 309 99.04% 208 66.67% 311 99.68% 264 84.62% 233 74.68% Ta ble HIM18 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 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 2010 115 99.14% 102 87.93% 116 100.00% 115 99.14% 23 19.83% 53 45.69% 113 97.41% 69 59.48% 116 100.00% 96 82.76% 98 84.48% 2011 % of 116 Hospitals 116 100.00% 101 87.07% 116 100.00% 115 99.14% 25 21.55% 58 50.00% 113 97.41% 78 67.24% 116 100.00% 95 81.90% 95 81.90% 2012 115 104 115 113 26 65 113 86 115 98 92 99.14% 89.66% 99.14% 97.41% 22.41% 56.03% 97.41% 74.14% 99.14% 84.48% 79.31% Ta ble HIM20 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 501–600 Beds 2010 188 100.00% 172 91.49% 188 100.00% 183 97.34% 42 22.34% 91 48.40% 180 95.74% 99 52.66% 188 100.00% 153 81.38% 149 79.26% 2011 % of 188 Hospitals 188 100.00% 174 92.55% 188 100.00% 183 97.34% 47 25.00% 99 52.66% 181 96.28% 118 62.77% 188 100.00% 160 85.11% 141 75.00% 2012 188 100.00% 174 92.55% 188 100.00% 182 96.81% 36 19.15% 111 59.04% 183 97.34% 126 67.02% 188 100.00% 163 86.70% 137 72.87% Over 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 2010 151 100.00% 144 95.36% 151 100.00% 148 98.01% 32 21.19% 94 62.25% 142 94.04% 99 65.56% 151 100.00% 136 90.07% 125 82.78% 2011 % of 151 Hospitals 151 100.00% 145 96.03% 151 100.00% 147 97.35% 43 28.48% 100 66.23% 145 96.03% 112 74.17% 151 100.00% 137 90.73% 122 80.79% 2012 151 100.00% 145 96.03% 151 100.00% 147 97.35% 42 27.81% 105 69.54% 145 96.03% 120 79.47% 151 100.00% 137 90.73% 117 77.48% When analyzing the HIM contract information in the HIMSS Analytics database, contracts for most of the applications tracked were signed between 1995 and 2004. The notable exception surrounds computer assisted coding contracts for which approximately three-quarters of these contracts were signed between 2010 and 2012 (see Tables HIM20–HIM23). Ta ble HIM21 Abstracting Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Case Mix Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Chart Deficiency Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 119 213 694 736 634 430 2,826 2,826 2,826 2,826 2,826 2,826 2,826 2,826 4.21% 7.54% 24.56% 26.04% 22.43% 15.22% 100.00% 114 233 552 722 430 304 2,355 2,355 2,355 2,355 2,355 2,355 2,355 2,355 4.85% 9.91% 23.48% 30.71% 18.29% 12.93% 100.00% 63 171 567 838 647 410 2,696 2,696 2,696 2,696 2,696 2,696 2,696 2,696 2.34% 6.35% 21.05% 31.11% 24.02% 15.22% 100.00% Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 37 ▶▶ Health Information Management con tinue d Ta ble HIM22 Chart Tracking/Locator Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Computer Assisted Coding Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Data Warehousing/Mining–Clinical Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Ta ble HIM24 # for Contract Range Total Responding % of Total Responding 68 181 564 808 593 393 2,607 2,607 2,607 2,607 2,607 2,607 2,607 2,607 2.61% 6.95% 21.64% 31.01% 22.76% 15.08% 100.00% 0 0 5 5 11 74 95 95 95 95 95 95 95 95 0.00% 0.00% 5.26% 5.26% 11.58% 77.89% 100.00% 5 139 70 262 295 203 974 974 974 974 974 974 974 974 0.52% 14.36% 7.23% 27.07% 30.48% 20.97% 100.00% # for Contract Range Total Responding % of Total Responding 31 76 263 605 435 171 1,581 1,581 1,581 1,581 1,581 1,581 1,581 1,581 1.96% 4.81% 16.64% 38.27% 27.51% 10.82% 100.00% 0 6 7 112 322 143 590 590 590 590 590 590 590 590 0.00% 1.05% 1.23% 19.61% 56.39% 25.04% 100.00% 222 280 681 556 294 153 2,186 2,181 2,181 2,181 2,181 2,181 2,181 2,181 10.18% 12.84% 31.22% 25.49% 13.48% 7.02% 100.23% Ta ble HIM23 Dictation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Dictation with Speech Recognition Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Encoder Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total 38 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Outcomes and Quality Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total In-House Transcription Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 37 132 440 620 344 268 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 2.02% 7.21% 24.03% 33.86% 18.79% 14.64% 100.00% 35 141 318 477 398 197 1,566 1,566 1,566 1,566 1,566 1,566 1,566 1,566 2.25% 9.07% 20.45% 30.68% 25.59% 12.67% 100.00% Market Drivers/Future Outlook Chart deficiency and chart tracking/locator applications are approaching this threshold (90 percent to 95 percent). Ultimately, we believe that chart deficiency and chart tracking/locator applications will become obsolete as the adoption of EHR applications become more prevalent. However, until dependence on paper documentation is completely eliminated, these applications will maintain a healthy market presence. The HIM IT applications market will be significantly impacted through 2015 by several factors: • Preparations for conversation to ICD-10. This includes mapping several applications that rely on encoded data to the new ICD-10 formats (also significantly affecting interfaces) by October 1, 2014. • 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. • Acquisitions of ambulatory practices which have completely paper based records by IDNs. • Increase focus on quality outcomes for participating in outcomes based reimbursement models (e.g. pay for performance, ACOs). • Increased adoption of nomenclature coding standards such as SNOMED and LOINC and RxNorm. ▶▶ Document Management/Electronic Forms Healthcare IT document management and electronic form applications are important components of the EHR environment for scanning paper forms that still may be in use as hospitals move to a paperless environment. It has been HIMSS Analytics’ expectation that the market increasingly adopted these applications to prevent having the medical staff and clinical employees look both online and into a paper chart for clinical documentation, an expectation which appears to be validated. Document management allowing hospitals to track and store electronic documents and/or images of paper documents yielding greater efficiencies in the ability to reuse information and to control the flow of the documents, from creation to archiving. Document management is often used to store documents related to registration, personnel management, and medical records. These systems commonly provide storage, versioning, metadata, security, as well as indexing and retrieval capabilities. Electronic forms automatically generates forms and can be populated with patient data by importing data from another system and/or can export data that has been entered into another system. The electronic forms typically print identifying bar codes to facilitate immediate scanning and indexing to the right location in the right patient electronic record. During the past three years, the document management and electronic forms application market has demonstrated a very positive growth trajectory (see Table DMEF1). Electronic forms management grew by slightly more than seven percentage points from 2011 to 2012, while the implementation of document management solutions increased by approximately 3.5 percentage points. Three-quarters of planned purchases for electronic forms management applications are expected to be among hospitals making a purchase for the first time. In comparison, just more than half of purchases for document management solutions will be for the first time (see Table DMEF2). Ta ble DME F1 | Document Management/Electronic Forms N=4,217 2010 2011 Document Management 67.54% 71.59% Electronic Forms Management 51.22% 56.01% Percentages include installed, contracted or installation in process 2012 75.12% 63.36% An evaluation of the 2012 hospital market segments reveals the following highlights: • Document management: the critical access hospital segment indicated the highest increase in adoption, at nearly seven percentage points (see Table DMEF3), followed closely by the rural hospital and single hospital. • Electronic forms management: all hospital segments—except academic hospitals—grew at least five percentage points. The other non-general medical/surgical hospital segment even grew more than 10 percentage points this past year (see Table DMEF4). Review of the document management and electronic forms management market in 2012 by bed size segments provides additional insight into this application environment (see Tables DMEF5–DMEF11). In our opinion, the adoption of these technologies, particularly electronic forms management, has been heavily influenced by the increases in EMR adoption seen across all bed size ranges by the desire to have all documentation and orders available on the network, even if it was originated on paper. Document management adoption rates exceed 80 percent in all bed size ranges over 100 beds. Conversely, electronic forms management has lower adoption rates and demonstrated larger growth increases. • 0–100 beds: this segment has the lowest adoption rates of both the document management and electronic forms management applications (see Table DMEF5). Electronic forms management adoption increased by more than 10 percentage points while document management adoption increased by just more than four percentage points. • 101–200 beds: from 2011 to 2012, electronic forms management grew nearly six percentage points, while document management adoption grew by nearly four percentage points (see Table DMEF6). • 201–300 beds: both the document management and electronic forms management applications increased by two percentage points (see Table DMEF7). • 301–400 beds: electronic forms management increased by nearly four percentage points from 2011 to 2012, while document management’s growth was just more than one percentage point (see Table DMEF8). Ta ble DME F 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Document Management 34 57.63% Electronic Forms Management 6 24.00% Replacing = Statuses of live and 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 25 19 % of Hospitals Planning to Purchase Software for the First Time 42.37% 76.00% N = Total Number of Hospitals Planning 59 25 Ta ble DME F 3 | Document Management 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 151 2,697 1,806 1,042 540 2,308 459 2,389 1,918 930 2,848 Percent 84.83% 66.77% 73.65% 59.04% 47.04% 75.20% 47.03% 73.71% 73.97% 57.27% 67.54% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 158 2,861 1,902 1,117 598 2,421 508 2,511 2,021 998 3,019 Percent 88.76% 70.83% 77.57% 63.29% 52.09% 78.89% 52.05% 77.48% 77.94% 61.45% 71.59% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 160 3,008 1,980 1,187 678 2,490 568 2,600 2,078 1,090 3,168 Source: HIMSS Analytics® Database 2012 Percent 89.89% 74.47% 80.75% 67.25% 59.06% 81.13% 58.20% 80.22% 80.14% 67.12% 75.12% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 39 ▶▶ Document Management/Electronic Forms con tinue d Ta ble DME F4 | Electronic Forms Management 2010 Segment Count 118 2,042 1,383 777 443 1,717 357 1,803 1,422 738 2,160 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Percent 66.29% 50.56% 56.40% 44.02% 38.59% 55.95% 36.58% 55.63% 54.84% 45.44% 51.22% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 • 401–500 beds: document management adoption neared 90 percent in 2012 as the market penetration grew by less than one percentage point in the past year (see Table DMEF9). Electronic forms management demonstrated an increase of two percentage points. • 501–600 beds: both applications increased in adoption from 2011 to 2012. Electronic forms management adoption increased by slightly more than four percentage points while document management adoption grew by five percentage points (see Table DMEF10). • Over 600 beds: document management adoption reached more than 90 percent market penetration in 2011 and grew by approximately one percentage point in 2012. Electronic forms management’s adoption grew by three percentage points from 2011 to 2012 (see Table DMEF11). Ta ble DME F5 0–100 Beds Document Management Electronic Forms Management 2010 1,242 913 2011 2012 % of 2,165 Hospitals 57.37% 1,335 61.66% 1,429 66.00% 42.17% 1,031 47.62% 1,259 58.15% Ta ble DME F6 101–200 Beds Document Management Electronic Forms Management 2010 581 457 2011 2012 % of 802 Hospitals 72.44% 614 76.56% 646 80.55% 56.98% 485 60.47% 531 66.21% Ta ble DME F 7 201–300 Beds Document Management Electronic Forms Management 2010 380 290 2011 2012 % of 483 Hospitals 78.67% 403 83.44% 413 85.51% 60.04% 315 65.22% 325 67.29% Ta ble DME F 8 301–400 Beds Document Management Electronic Forms Management 2010 255 200 2011 2012 % of 312 Hospitals 81.73% 263 84.29% 267 85.58% 64.10% 212 67.95% 224 71.79% Ta ble DME F 9 401–500 Beds Document Management Electronic Forms Management 2010 125 125 2011 2012 % of 188 Hospitals 66.49% 168 89.36% 169 89.89% 66.49% 134 71.28% 138 73.40% Ta ble DME F10 501–600 Beds Document Management Electronic Forms Management 2010 94 78 2011 2012 % of 116 Hospitals 81.03% 97 83.62% 103 88.79% 67.24% 80 68.97% 85 73.28% Ta ble DME F11 Over 600 beds Document Management Electronic Forms Management 2010 132 97 2011 2012 % of 151 Hospitals 87.42% 139 92.05% 141 93.38% 64.24% 105 69.54% 110 72.85% 40 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Segment Count 128 2,234 1,484 878 517 1,845 412 1,950 1,536 826 2,362 Percent 71.91% 55.31% 60.52% 49.75% 45.03% 60.12% 42.21% 60.17% 59.24% 50.86% 56.01% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 126 2,546 1,608 1,064 609 2,063 489 2,183 1,741 931 2,672 Percent 70.79% 63.04% 65.58% 60.28% 53.05% 67.22% 50.10% 67.36% 67.14% 57.33% 63.36% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Almost two-thirds of document management contracts were signed after 2005. One in five contracts (or 20 percent of the contracts) were signed between 2010 and 2012 (see Table DMEF12). More than 90 percent of the contracts for electronic forms have been signed since 2000. Ta ble DME F12 Document Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Electronic Forms Management Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 2 42 66 313 576 278 1,277 1,277 1,277 1,277 1,277 1,277 1,277 1,277 0.16% 3.32% 5.22% 24.74% 45.53% 21.98% 100.00% 1 34 39 264 350 219 907 907 907 907 907 907 907 907 0.11% 3.75% 4.30% 29.14% 38.63% 24.17% 100.00% Market Drivers/Future Outlook The document management IT application market has been and will most likely continue to be impacted by the following forces: • 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 and prevent errors that can occur from having critical documentation stored in two distinct locations. • The need to make medical record information more secure. • 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. ▶▶ Nursing Department Environment HIMSS Analytics monitors seven IT applications in the nursing department environment used to support the care nurses deliver to patients. These nursing applications include; electronic medication administration record (eMAR), infection surveillance system, medication reconciliation, nurse call system, nurse staffing/ scheduling, nursing documentation and patient acuity. Of the IT applications tracked in the nursing department, two applications (nursing documentation and eMAR) present as fairly universal tools. Three of the applications in this environment (nurse staffing/scheduling; medication reconciliation; nurse call system) present as a maturing product market, while infection surveillance systems and patient acuity reflect a relatively young product market. From 2011 to 2012, medication reconciliation demonstrated the highest growth of the various nursing applications (approximately 13 percent), a trajectory consistent with the applications growth between 2010 and 2011. Infection surveillance systems and nurse call systems also experienced strong growth trajectories this past year, each increasing by seven percentage points. All nursing applications, except nurse staffing/scheduling, reflected an increased market penetration this past year (see Table NA1). The purchasers of applications in the nursing IT environment are most likely to reflect replacement buyers, although this first-time/ replacement buyer mix varies by the application considered (see Table NA2). For example, at least three-quarters of patient acuity and nurse call systems purchases are expected to replace existing systems, whereas slightly more than half of eMAR purchases are projected to be a replacement purchase. Ta ble N A1 | Nursing Department Applications N=4,217 2010 2011 Electronic Medication Administration Record (eMAR) 72.33% 79.08% Infection Surveillance Systems 23.22% 29.52% Medication Reconciliation 36.80% 50.06% Nurse Call Systems 36.87% 46.72% Nurse Staffing/Scheduling 64.76% 64.76% Nursing Documentation 77.64% 82.50% Patient Acuity 29.07% 30.71% Percentages include installed, contracted or installation in process 2012 85.32% 36.92% 62.94% 53.95% 64.06% 87.81% 33.03% An evaluation of these seven applications by various hospital type market segments shows the following trends: • eMAR: the rural hospital segment demonstrated the largest growth at more than 13 percentage points, followed by growth in the critical access hospital and single hospital system segments (see Table NA3). Other hospital segments indicated an increase in adoption ranging from two to nine percent. • Infection surveillance systems: for the second year in a row, academic medical centers showed the highest increase in the use of infection surveillance systems, at more than 11 percent. The other segments demonstrated growth of approximately six to eight percent (see Table NA4). • Medication reconciliation: the other non-general medical/surgical hospital segment reflected the highest year-over-year growth at more than 17 percentage points. The critical access hospital and rural hospital segments also saw a growth increase registering just under 17 percentage points. The lowest market penetration growth, seven percentage points, was among the market segment with the highest adoption rate, academic medical centers (see Table NA5). • Nurse call system: three segments (critical access, multi-hospital system and other non-general medical/surgical hospitals) all experienced market penetration increases of approximately eight percentage points. Growth in all other segments ranged between five and eight percent (see Table NA6). • Nurse staffing/scheduling: this is the only nursing IT application to indicate a decrease compared to 2011. Despite the overall decline, there are areas of growth, including the rural hospital and critical access hospital segments, each reporting a growth of more than four percentage points (see Table NA7). • Nursing documentation: rural hospitals indicated the largest year-over-year increase of close to 12 percentage points. Growth among critical access hospitals was nearly 10 percentage points. All of the other segments reported an increase ranging from two to nine percentage points (see Table NA6). • Patient acuity: growth in the critical access hospital and rural hospital segments was greatest, at approximately five percentage points. Growth in the other segments ranged from one to four percentage points (see Table NA7). Ta ble N A 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Electronic Medication Administration Record (eMAR) 58 51.79% Infection Surveillance Systems 36 57.14% Medication Reconciliation 48 57.83% Nurse Call Systems 7 77.78% Nurse Staffing/Scheduling 13 61.90% Nursing Documentation 63 63.00% Patient Acuity 43 84.31% Replacing = Statuses of Live and 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 54 27 35 2 8 37 8 % of Hospitals Planning to Purchase Software for the First Time 48.21% 42.86% 42.17% 22.22% 38.10% 37.00% 15.69% N = Total Number of Hospitals Planning 112 63 83 9 21 100 51 Ta ble N A 3 | Electronic Medication Administration Record (eMAR) 2010 Type Academic/Teaching Non-Academic Med/Surg Other Critical Access Non-Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 164 2,886 1,914 1,136 617 2,433 514 2,536 2,035 1,015 3,050 Percent 92.13% 71.45% 78.06% 64.36% 53.75% 79.28% 52.66% 78.25% 78.48% 62.50% 72.33% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 167 3,168 2,061 1,274 756 2,579 634 2,701 2,141 1,194 3,335 Percent 93.82% 78.44% 84.05% 72.18% 65.85% 84.03% 64.96% 83.34% 82.57% 73.52% 79.08% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,426 2,171 1,427 886 2,712 763 2,835 2,230 1,368 3,598 Source: HIMSS Analytics® Database 2012 Percent 96.63% 84.82% 88.54% 80.85% 77.18% 88.37% 78.18% 87.47% 86.00% 84.24% 85.32% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 41 ▶▶ Nursing Department Environment con tinue d Ta ble N A 4 | Infection Surveillance System 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 67 912 698 281 139 840 114 865 722 257 979 Percent 37.64% 22.58% 28.47% 15.92% 12.11% 27.37% 11.68% 26.69% 27.84% 15.83% 23.22% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 90 1,155 869 376 192 1,053 153 1,092 884 361 1,245 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 127 1,984 1,366 745 475 1,636 387 1,724 1,289 822 2,111 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 112 1,858 1,295 675 408 1,562 335 1,635 1,277 693 1,970 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 167 2,564 1,888 843 414 2,317 340 2,391 1,888 843 2,731 Percent 50.56% 28.60% 35.44% 21.30% 16.72% 34.31% 15.68% 33.69% 34.09% 22.23% 29.52% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 110 1,447 1,064 493 277 1,280 215 1,342 1,073 484 1,557 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 140 2,514 1,598 1,056 667 1,987 551 2,103 1,596 1,058 2,654 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 126 2,149 1,452 823 464 1,811 387 1,888 1,503 772 2,275 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 168 2,539 1,905 802 462 2,245 388 2,319 1,803 877 2,702 Percent 61.80% 35.83% 43.39% 27.93% 24.13% 41.71% 22.03% 41.41% 41.38% 29.80% 36.92% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble N A5 | Medication Reconciliation 2010 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 1,451 1,049 503 311 1,241 254 1,298 1,020 532 1,552 Percent 56.74% 35.92% 42.78% 28.50% 27.09% 40.44% 26.02% 40.05% 39.34% 32.76% 36.80% 2011 Percent 71.35% 49.12% 55.71% 42.21% 41.38% 53.31% 39.65% 53.19% 49.71% 50.62% 50.06% 2012 Percent 78.65% 62.24% 65.17% 59.83% 58.10% 64.74% 56.45% 64.89% 61.55% 65.15% 62.94% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble N A6 | Nurse Call System 2010 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 1,456 1,025 530 318 1,237 262 1,293 1,003 552 1,555 Percent 55.62% 36.05% 41.80% 30.03% 27.70% 40.31% 26.84% 39.90% 38.68% 33.99% 36.87% 2011 Percent 62.92% 46.00% 52.81% 38.24% 35.54% 50.90% 34.32% 50.45% 49.25% 42.67% 46.72% 2012 Percent 70.79% 53.21% 59.22% 46.63% 40.42% 59.01% 39.65% 58.25% 57.96% 47.54% 53.95% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble N A7 | Nurse Staffing/Scheduling 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 166 2,565 1,892 839 416 2,315 340 2,391 1,915 816 2,731 Percent 93.26% 63.51% 77.16% 47.54% 36.24% 75.43% 34.84% 73.77% 73.85% 50.25% 64.76% 2011 42 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 93.82% 63.48% 77.00% 47.76% 36.06% 75.50% 34.84% 73.77% 72.81% 51.91% 64.76% 2012 Percent 94.38% 62.86% 77.69% 45.44% 40.24% 73.15% 39.75% 71.55% 69.53% 54.00% 64.06% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Nursing Department Environment con tinue d Ta ble N A 8 | Nursing Documentation 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 170 3,104 2,042 1,232 704 2,570 582 2,692 2,143 1,131 3,274 Percent 95.51% 76.85% 83.28% 69.80% 61.32% 83.74% 59.63% 83.06% 82.65% 69.64% 77.64% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 171 3,308 2,132 1,347 804 2,675 662 2,817 2,229 1,250 3,479 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 87 1,208 852 443 191 1,104 153 1,142 887 408 1,295 Percent 96.07% 81.90% 86.95% 76.32% 70.03% 87.16% 67.83% 86.92% 85.96% 76.97% 82.50% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,528 2,225 1,478 917 2,786 776 2,927 2,315 1,388 3,703 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 92 1,301 881 512 250 1,143 197 1,196 951 442 1,393 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 98.31% 87.35% 90.74% 83.74% 79.88% 90.78% 79.51% 90.31% 89.28% 85.47% 87.81% Ta ble N A9 | Patient Acuity 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 84 1,142 819 407 161 1,065 134 1,092 854 372 1,226 Percent 47.19% 28.27% 33.40% 23.06% 14.02% 34.70% 13.73% 33.69% 32.93% 22.91% 29.07% 2011 The profile the of nursing IT environment by bed segment from 2011 to 2012 yields the following highlights (see Tables NA10–NA16): • 0–100 beds: with more than a 17 percentage point difference between 2012 and 2011, medication reconciliation had the highest year-over-year growth in this segment. Nurse staffing/scheduling is the only application to indicate a decrease in this segment, at approximately one percentage point (see Table NA10). • 101–200 beds: medication reconciliation had the highest growth from 2011 to 2012, at close to 12 percentage points, followed by infection surveillance systems at eight percentage points (see Table NA11). • 201–300 beds: infection surveillance systems reported the largest growth from 2011 to 2012 at more than eight percentage points, while eMAR indicated a decrease in adoption (see Table NA12). • 301–400 beds: infection surveillance systems, medication reconciliation and nurse call systems had the three highest yearover-year growth rates ranging from nearly seven percentage points to nine percentage points. Growth among the other applications was approximately one to two percentage points, with the exception of nurse staffing/scheduling, which showed no growth (see Table NA13). • 401–500 beds: at more than 97 percent, eMAR is on the verge of reaching full market saturation. Medication reconciliation and infection surveillance systems reported the largest growth at approximately six percentage points. Nurse staffing/scheduling is the only application to demonstrate a decrease in adoption at little more than one percentage point (see Table NA14). • 501–600: infection surveillance systems is the only nursing IT application within this segment to indicate a double digit increase in adoption from 2011 to 2012. Both medication reconciliation and nurse call systems grew by more than nine percentage points. The adoption of eMAR remained unchanged from last year (see Table NA15). Percent 48.88% 29.91% 34.75% 25.10% 16.64% 35.97% 15.68% 35.24% 34.21% 25.12% 30.71% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 51.69% 32.21% 35.93% 29.01% 21.78% 37.24% 20.18% 36.90% 36.68% 27.22% 33.03% • Over 600 beds: infection surveillance systems had the largest growth in this bed segment at close to 11 percentage points. This is followed by medication reconciliation at more than nine percentage points. All the other nursing IT applications market penetrations also grew this year (see Table NA16). Ta ble N A10 0–100 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 1,338 336 620 634 982 1,473 424 2011 % of 2,165 Hospitals 61.80% 15.52% 28.64% 29.28% 45.36% 68.04% 19.58% 1,544 432 910 826 993 1,622 474 71.32% 19.95% 42.03% 38.15% 45.87% 74.92% 21.89% 2012 1,730 571 1,281 999 970 1,792 548 79.91% 26.37% 59.17% 46.14% 44.80% 82.77% 25.31% Ta ble N A11 101–200 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 624 204 316 345 613 667 279 2011 % of 802 Hospitals 77.81% 25.44% 39.40% 43.02% 76.43% 83.17% 34.79% 651 252 402 426 614 695 286 81.17% 31.42% 50.12% 53.12% 76.56% 86.66% 35.66% 2012 700 317 497 478 615 726 290 87.28% 39.53% 61.97% 59.60% 76.68% 90.52% 36.16% Ta ble N A12 201–300 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 407 150 223 230 425 429 193 2011 % of 483 Hospitals 84.27% 31.06% 46.17% 47.62% 87.99% 88.82% 39.96% Source: HIMSS Analytics® Database 2012 428 200 294 285 417 441 196 88.61% 41.41% 60.87% 59.01% 86.34% 91.30% 40.58% 2012 443 241 317 310 414 452 203 91.72% 49.90% 65.63% 64.18% 85.71% 93.58% 42.03% ©2013 HIMSS Analytics. 43 ▶▶ Nursing Department Environment con tinue d Ta ble N A13 Ta ble N A17 301–400 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 259 105 140 130 288 280 118 83.01% 33.65% 44.87% 41.67% 92.31% 89.74% 37.82% 2011 % of 312 Hospitals 280 128 186 168 288 287 124 89.74% 41.03% 59.62% 53.85% 92.31% 91.99% 39.74% 2012 286 156 208 189 288 291 130 91.67% 50.00% 66.67% 60.58% 92.31% 93.27% 41.67% Ta ble N A14 401–500 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 177 76 108 84 173 171 92 94.15% 40.43% 57.45% 44.68% 92.02% 90.96% 48.94% 2011 % of 188 Hospitals 181 91 135 105 169 177 91 96.28% 48.40% 71.81% 55.85% 89.89% 94.15% 48.40% 2012 183 102 142 116 166 180 92 97.34% 54.26% 75.53% 61.70% 88.30% 95.74% 48.94% Ta ble N A15 501–600 Beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 109 46 66 57 108 112 49 93.97% 39.66% 56.90% 49.14% 93.10% 96.55% 42.24% 2011 % of 116 Hospitals 111 53 77 66 108 112 51 95.69% 45.69% 66.38% 56.90% 93.10% 96.55% 43.97% 2012 111 65 88 77 110 113 53 95.69% 56.03% 75.86% 66.38% 94.83% 97.41% 45.69% Ta ble N A16 Over 600 beds Electronic Medication Administration Record (eMAR) Infection Surveillance Systems Medication Reconciliation Nurse Call Systems Nurse Staffing/Scheduling Nursing Documentation Patient Acuity 2010 136 62 79 75 142 142 71 90.07% 41.06% 52.32% 49.67% 94.04% 94.04% 47.02% 2011 % of 151 Hospitals 140 89 107 94 142 145 73 92.72% 58.94% 70.86% 62.25% 94.04% 96.03% 48.34% 2012 145 105 121 106 144 149 77 96.03% 69.54% 80.13% 70.20% 95.36% 98.68% 50.99% An evaluation of the contract purchasing time frames for these nursing applications reveals that approximately half of infection surveillance systems, medication reconciliation systems and nurse call systems were signed between 2010 and 2012. Approximately one-quarter of the contracts for eMAR and nursing documentation were signed also within this time frame (see Tables NA17–NA19). # for Contract Range Electronic Medication Administration Record (eMAR) Prior to 1990 3 1990 to 1994 99 1995 to 1999 80 2000 to 2004 568 2005 to 2009 840 2010 to 2012 568 Total 2,158 Infection Surveillance System Prior to 1990 0 1990 to 1994 4 1995 to 1999 10 2000 to 2004 58 2005 to 2009 160 2010 to 2012 206 Total 438 Medication Reconciliation Prior to 1990 4 1990 to 1994 8 1995 to 1999 39 2000 to 2004 121 2005 to 2009 339 2010 to 2012 522 Total 1,033 Total Responding % of Total Responding 2,158 2,158 2,158 2,158 2,158 2,158 2,158 0.14% 4.59% 3.71% 26.32% 38.92% 26.32% 100.00% 438 438 438 438 438 438 438 0.00% 0.91% 2.28% 13.24% 36.53% 47.03% 100.00% 1,033 1,033 1,033 1,033 1,033 1,033 1,033 0.39% 0.77% 3.78% 11.71% 32.82% 50.53% 100.00% # for Contract Range Total Responding % of Total Responding 2 2 13 24 94 113 248 248 248 248 248 248 248 248 0.81% 0.81% 5.24% 9.68% 37.90% 45.56% 100.00% 89 87 196 348 496 230 1,446 1,446 1,446 1,446 1,446 1,446 1,446 1,446 6.15% 6.02% 13.55% 24.07% 34.30% 15.91% 100.00% 8 119 149 694 765 538 2,273 2,273 2,273 2,273 2,273 2,273 2,273 2,273 0.35% 5.24% 6.56% 30.53% 33.66% 23.67% 100.00% # for Contract Range Total Responding % of Total Responding 5 21 41 286 259 145 757 757 757 757 757 757 757 757 0.66% 2.77% 5.42% 37.78% 34.21% 19.15% 100.00% Ta ble N A18 Nurse Call System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Nurse Staffing/Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Nursing Documentation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Ta ble N A19 2012 Patient Acuity Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total 44 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. ▶▶ Nursing Department Environment con tinue d Market Drivers/Future Outlook The nursing application IT application market has been and will continue to be impacted by: • Quality outcomes and performance improvement initiatives. • Pressures 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 than most other applications, since they include functions deemed 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 computerized practitioner order entry (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 will support the medication safety requirements of Stage 2 Meaningful Use. ▶▶ Ancillary Department Environment The applications in the ancillary department support key clinical departments and services in hospitals. HIMSS Analytics monitors the following eight applications in this environment: cardiology information system, emergency department systems (ED), intensive care (ICU), laboratory information system, obstetrical system (OB), pharmacy management system, radiology information system and respiratory care information system. The majority of the planned purchasing for this market in this next year will be replacements purchases (see Table AD2). ED is the only ancillary application to indicate that fewer than 80 percent of planned purchase will be replacements. As in previous years, the requirement for a tight data coupling with pharmacy systems and CPOE systems is driving the replacement of legacy pharmacy systems with the organization’s EMR vendor’s pharmacy system. The market penetration of the applications in the ancillary department varies. Laboratory, pharmacy, and radiology for example, have almost reached complete saturation, while cardiology reflected the lowest level of adoption at 47 percent (not too surprising as not all hospitals have cardiology specific or heart centers). Respiratory had the highest year-over-year level of adoption from 2011 to 2012, with more than a six percentage point increase. At nearly five percentage points, there was also a substantial growth in the ED area. All other ancillary applications have reported an increase from the previous year (see Table AD1). Integration requirements between R-PACS and radiology systems is driving replacement purchases for radiology information systems, while replacement purchases for laboratory systems is being driven by the need for laboratories to function as both hospital laboratories and as reference laboratories for their local and/or regional markets. In addition, as Meaningful Use requirements evolve, hospital laboratories will be required to integrate laboratory results associated with their own external reference labs into the EMRs of their hospital patients and those 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. Some laboratory replacements are beginning to occur where niche laboratory vendors are being replaced by an enterprise wide clinical vendor. Ta ble A D1 | Ancillary Departments N=4,217 2010 2011 Cardiology Information Systems 43.04% 45.34% Emergency Department Systems 72.66% 77.21% Intensive Care 50.46% 53.09% Laboratory Information Systems 97.51% 98.32% Obstetrical Systems (Labor and Delivery) 48.26% 50.58% Pharmacy Management Systems 94.66% 95.97% Radiology Information Systems 93.98% 94.88% Respiratory Care Information Systems 43.49% 49.77% Percentages include installed, contracted or installation in process 2012 46.72% 81.91% 56.56% 98.86% 52.79% 97.11% 96.47% 55.96% An evaluation of hospital type market segments for each ancillary department system from 2011 to 2012 shows the following: • Cardiology information systems: most of the segments reported growth of two percentage points or less. The exception being the academic medical center segment which reported no growth from 2011 to 2012 (see Table AD3). Ta ble A D2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Cardiology Information Systems 41 82.00% Emergency Department Systems 57 66.28% Intensive Care 32 84.21% Laboratory Information Systems 94 92.16% Obstetrical Systems (Labor and Delivery) 13 86.67% Pharmacy Management Systems 71 89.87% Radiology Information Systems 83 88.30% Respiratory Care Information Systems 41 80.39% Replacing = Statuses of live and 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 9 29 6 8 2 8 11 10 % of Hospitals Planning to Purchase Software for the First Time 18.00% 33.72% 15.79% 7.84% 13.33% 10.13% 11.70% 19.61% Source: HIMSS Analytics® Database 2012 N = Total Number of Hospitals Planning 50 86 38 102 15 79 94 51 ©2013 HIMSS Analytics. 45 ▶▶ Ancillary Department Environment con tinue d • Emergency department information systems: the rural and critical access hospital segments demonstrated growth of more than 10 percentage points, while academic medical centers reported a decline of less than one percentage point (see Table AD4). • Intensive care systems: from 2011 to 2012, the general medical/ surgical, rural and single hospital segments all reported growth of more than four percentage points. All other segments reported growth of two to four percentage points (see Table AD5). • Laboratory information systems: since this application is near market saturation across all market segments, there was little growth. The critical access hospital segment had the largest growth at less than two percentage points. The academic medical center segment has reached full market segmentation and there was no growth from 2011 to 2012 (see Table AD6). • Obstetrical systems: market penetration in 2012 is 60 percent or more for the academic medical center, general medical/surgical, non-critical access hospital and urban hospitals. All segments reported growth from 2011 to 2012 ranging from one to nearly four percentage points (see Table AD7). • Pharmacy management systems: the academic medical center segment, which is fully saturated, demonstrated no growth in the past year. Growth in all other hospital segments ranged from less than one percentage point to more than four percentage points. Rural hospitals demonstrated the largest year-over-year growth (see Table AD8). • Radiology information systems: the critical access hospital and rural hospital segments reported more than four percentage point growth from 2011 to 2012 (see Table AD9). • Respiratory care information systems: growth of five to eight percentage points was reported across all segments with critical access hospitals reporting the largest increase at eight percentage points (see Table AD10). Ta ble A D3 | Cardiology Information Systems 2010 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 1,658 1,482 333 97 1,718 78 1,737 1,286 529 1,815 Percent 88.20% 41.05% 60.44% 18.87% 8.45% 55.98% 7.99% 53.59% 49.60% 32.57% 43.04% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 158 1,754 1,558 354 118 1,794 91 1,821 1,323 589 1,912 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 173 3,083 2,246 1,010 742 2,514 646 2,610 2,047 1,209 3,256 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 154 2,085 1,628 611 276 1,963 231 2,008 1,512 727 2,239 Percent 88.76% 43.43% 63.54% 20.06% 10.28% 58.46% 9.32% 56.19% 51.02% 36.27% 45.34% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 158 1,812 1,601 369 137 1,833 111 1,859 1,348 622 1,970 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 3,282 2,317 1,137 863 2,591 749 2,705 2,104 1,350 3,454 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 159 2,226 1,739 646 307 2,078 272 2,113 1,590 795 2,385 Percent 88.76% 44.86% 65.29% 20.91% 11.93% 59.73% 11.37% 57.36% 51.99% 38.30% 46.72% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble A D 4 | Emergency Department Systems 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 171 2,893 2,171 893 630 2,434 544 2,520 1,993 1,071 3,064 Percent 96.07% 71.63% 88.54% 50.59% 54.88% 79.31% 55.74% 77.75% 76.86% 65.95% 72.66% 2011 Percent 97.19% 76.33% 91.60% 57.22% 64.63% 81.92% 66.19% 80.53% 78.94% 74.45% 77.21% 2012 Percent 96.63% 81.26% 94.49% 64.42% 75.17% 84.42% 76.74% 83.46% 81.14% 83.13% 81.91% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble A D5 | Intensive Care 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 146 1,982 1,535 593 266 1,862 215 1,913 1,465 663 2,128 Percent 82.02% 49.07% 62.60% 33.60% 23.17% 60.67% 22.03% 59.02% 56.50% 40.83% 50.46% 2011 46 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 86.52% 51.62% 66.39% 34.62% 24.04% 63.96% 23.67% 61.96% 58.31% 44.77% 53.09% 2012 Percent 89.33% 55.11% 70.92% 36.60% 26.74% 67.71% 27.87% 65.20% 61.32% 48.95% 56.56% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Ancillary Department Environment con tinue d Ta ble A D6 | Laboratory Information System 2010 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 3,934 2,443 1,669 1,074 3,038 920 3,192 2,550 1,562 4,112 Percent 100.00% 97.40% 99.63% 94.56% 93.55% 98.99% 94.26% 98.49% 98.34% 96.18% 97.51% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,968 2,445 1,701 1,096 3,050 933 3,213 2,569 1,577 4,146 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 144 1,989 1,694 439 263 1,870 244 1,889 1,388 745 2,133 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,869 2,442 1,605 1,001 3,046 850 3,197 2,549 1,498 4,047 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,823 2,424 1,577 1,002 2,999 855 3,146 2,504 1,497 4,001 Percent 100.00% 98.24% 99.71% 96.37% 95.47% 99.38% 95.59% 99.14% 99.07% 97.11% 98.32% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,991 2,447 1,722 1,113 3,056 945 3,224 2,576 1,593 4,169 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 146 2,080 1,748 478 299 1,927 275 1,951 1,419 807 2,226 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,917 2,444 1,651 1,045 3,050 890 3,205 2,553 1,542 4,095 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,891 2,435 1,633 1,049 3,019 894 3,174 2,526 1,542 4,068 Percent 100.00% 98.81% 99.80% 97.56% 96.95% 99.58% 96.82% 99.48% 99.34% 98.09% 98.86% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble A D7 | Obstetrical Systems (Labor and Delivery) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 141 1,894 1,630 405 231 1,804 202 1,833 1,358 677 2,035 Percent 79.21% 46.89% 66.48% 22.95% 20.12% 58.78% 20.70% 56.56% 52.37% 41.69% 48.26% 2011 Percent 80.90% 49.24% 69.09% 24.87% 22.91% 60.93% 25.00% 58.28% 53.53% 45.87% 50.58% 2012 Percent 82.02% 51.50% 71.29% 27.08% 26.05% 62.79% 28.18% 60.20% 54.72% 49.69% 52.79% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble A D8 | Pharmacy Management System 2010 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 3,814 2,438 1,554 963 3,029 818 3,174 2,530 1,462 3,992 Percent 100.00% 94.43% 99.43% 88.05% 83.89% 98.70% 83.81% 97.93% 97.57% 90.02% 94.66% 2011 Percent 100.00% 95.79% 99.59% 90.93% 87.20% 99.25% 87.09% 98.64% 98.30% 92.24% 95.97% 2012 Percent 100.00% 96.98% 99.67% 93.54% 91.03% 99.38% 91.19% 98.89% 98.46% 94.95% 97.11% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble A D9 | Radiology Information System 2010 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 3,785 2,416 1,547 969 2,994 825 3,138 2,503 1,460 3,963 Percent 100.00% 93.71% 98.53% 87.65% 84.41% 97.56% 84.53% 96.82% 96.53% 89.90% 93.98% 2011 Percent 100.00% 94.65% 98.86% 89.35% 87.28% 97.72% 87.60% 97.07% 96.57% 92.18% 94.88% 2012 Source: HIMSS Analytics® Database 2012 Percent 99.44% 96.34% 99.31% 92.52% 91.38% 98.37% 91.60% 97.93% 97.42% 94.95% 96.47% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 47 ▶▶ Ancillary Department Environment con tinue d Ta ble A D10 | Respiratory Care Information System 2010 Segment Count 109 1,725 1,261 573 302 1,532 253 1,581 1,202 632 1,834 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Percent 61.24% 42.71% 51.43% 32.46% 26.31% 49.92% 25.92% 48.78% 46.36% 38.92% 43.49% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 The analysis of the ancillary market by bed size from 2010–2012 is exhibited in Tables AD11–AD17. In evaluating the bed segments, the data indicates: • 0–100 beds: ED demonstrated the highest growth within this segment at more than seven percentage points. There was also growth of nearly seven percentage points in the respiratory care market (see Table AD11). • 101–200 beds: the largest year-over-year growth was respiratory care at six percentage points. Almost all other ancillary applications indicated growth ranging from less than one to four percentage points (see Table AD12). • 201–300 beds: respiratory reported the highest growth at more than five percentage points. Laboratory and pharmacy, which are fully saturated, indicated no growth. Radiology is the only application within this segment to report a decline (see Table AD13). • 301–400 beds: four of the eight applications reported growth from 2011 to 2012; ranging from one to five percentage points. Laboratory, OB, pharmacy and radiology, which are all at or near market saturation, reported no growth from last year (see Table AD14). • 401–500 beds: respiratory care indicated a growth of nearly six percentage points. ICU, OB and cardiology also reported positive growth. All other applications are at or approaching market segmentation and indicated no growth in the past year (see Table AD15). • 501–600 beds: respiratory systems demonstrated a six percentage point increase from 2011 to 2012. Having already achieved market saturation, laboratory, pharmacy, radiology are the only ancillary applications to remain the same compared to last year (see Table AD16). • Over 600 beds: respiratory care and ICU reported an increase of more than three percentage points from 2011 to 2012. Cardiology is the only ancillary application to indicate a decline in adoption level from 2011 (see Table AD17). Ta ble A D11 0–100 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 2011 2012 % of 2,165 Hospitals 348 16.07% 384 17.74% 1,355 62.59% 1,518 70.12% 746 34.46% 816 37.69% 2,094 96.72% 2,117 97.78% 308 1,201 712 2,061 14.23% 55.47% 32.89% 95.20% 572 1,941 1,922 26.42% 89.65% 88.78% 627 1,996 1,960 28.96% 92.19% 90.53% 677 2,043 2,024 31.27% 94.36% 93.49% 688 31.78% 849 39.21% 999 46.14% 48 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Segment Count 114 1,985 1,418 681 396 1,703 332 1,767 1,345 754 2,099 Percent 64.04% 49.15% 57.83% 38.58% 34.49% 55.49% 34.02% 54.52% 51.87% 46.43% 49.77% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 126 2,234 1,572 788 487 1,873 407 1,953 1,491 869 2,360 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 70.79% 55.31% 64.11% 44.65% 42.42% 61.03% 41.70% 60.26% 57.50% 53.51% 55.96% Ta ble A D12 101–200 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 2011 % of 802 Hospitals 520 64.84% 709 88.40% 538 67.08% 802 100.00% 2012 491 690 512 801 61.22% 86.03% 63.84% 99.88% 527 65.71% 730 91.02% 568 70.82% 802 100.00% 523 801 792 65.21% 99.88% 98.75% 541 801 793 67.46% 99.88% 98.88% 564 70.32% 802 100.00% 797 99.38% 410 51.12% 455 56.73% 500 62.34% Ta ble A D13 201–300 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 360 74.53% 452 93.58% 337 69.77% 483 100.00% 2011 % of 483 Hospitals 378 78.26% 459 95.03% 360 74.53% 483 100.00% 382 79.09% 469 97.10% 385 79.71% 483 100.00% 331 68.53% 483 100.00% 483 100.00% 348 72.05% 483 100.00% 482 99.79% 362 74.95% 483 100.00% 481 99.59% 271 290 316 56.11% 60.04% 2012 65.42% Ta ble A D14 301–400 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 253 81.09% 286 91.67% 208 66.67% 312 100.00% 2011 % of 312 Hospitals 255 81.73% 292 93.59% 220 70.51% 312 100.00% 264 84.62% 295 94.55% 227 72.76% 312 100.00% 236 75.64% 312 100.00% 311 99.68% 241 77.24% 312 100.00% 311 99.68% 241 77.24% 312 100.00% 311 99.68% 170 187 203 54.49% 59.94% 2012 65.06% Ta ble A D15 401–500 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 165 87.77% 179 95.21% 141 75.00% 188 100.00% 2011 % of 188 Hospitals 166 88.30% 183 97.34% 143 76.06% 188 100.00% 168 89.36% 183 97.34% 150 79.79% 188 100.00% 149 79.26% 188 100.00% 188 100.00% 150 79.79% 188 100.00% 188 100.00% 153 81.38% 188 100.00% 188 100.00% 120 130 141 63.83% 69.15% 2012 75.00% ▶▶ Ancillary Department Environment con tinue d Ta ble A D16 Ta ble A D19 501–600 Beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 98 84.48% 107 92.24% 95 81.90% 116 100.00% 2011 % of 116 Hospitals 101 87.07% 107 92.24% 99 85.34% 116 100.00% 96 82.76% 116 100.00% 116 100.00% 69 96 82.76% 116 100.00% 116 100.00% 59.48% 74 63.79% 2012 102 87.93% 108 93.10% 101 87.07% 116 100.00% 98 84.48% 116 100.00% 116 100.00% 81 69.83% Ta ble A D17 Over 600 beds Cardiology Information Systems Emergency Department Systems Intensive Care Laboratory Information Systems Obstetrical Systems (Labor and Delivery) Pharmacy Management Systems Radiology Information Systems Respiratory Care Information Systems 2010 140 92.72% 149 98.68% 123 81.46% 151 100.00% 2011 % of 151 Hospitals 144 95.36% 151 100.00% 133 88.08% 151 100.00% 143 94.70% 151 100.00% 138 91.39% 151 100.00% 128 84.77% 151 100.00% 151 100.00% 130 86.09% 151 100.00% 151 100.00% 131 86.75% 151 100.00% 151 100.00% 106 114 120 70.20% 75.50% 2012 79.47% An evaluation of contract purchasing time frames for ancillary department applications reveals that more than 20 percent of contracts purchased for respiratory, OB and ED were made between 2010 to 2012 (see Tables AD18–AD20). For the other ancillary applications, more than 15 to 20 percent of the contracts were signed in the same time frame. This could indicate that replacement purchases are being made, particularly in the laboratory, radiology and pharmacy markets in favor of a onevendor integrated systems approach. Ancillary department systems contracted before 1995 will have the highest probability for replacement purchases through 2015. Ta ble A D18 Cardiology Information Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Emergency Department Systems Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Intensive Care Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 5 16 56 274 340 162 853 853 853 853 853 853 853 853 0.60% 1.92% 6.73% 32.93% 40.87% 19.47% 100.00% 9 43 129 634 672 558 2,045 2,045 2,045 2,045 2,045 2,045 2,045 2,045 0.44% 2.11% 6.32% 31.08% 32.94% 27.35% 100.00% 6 117 132 483 478 282 1,498 1,498 1,498 1,498 1,498 1,498 1,498 1,498 0.40% 7.84% 8.84% 32.35% 32.02% 18.89% 100.00% # for Contract Range Total Responding % of Total Responding 121 225 512 677 617 369 2,521 2,521 2,521 2,521 2,521 2,521 2,521 2,521 4.80% 8.93% 20.31% 26.85% 24.47% 14.64% 100.00% 0 29 95 326 301 227 978 978 978 978 978 978 978 978 0.00% 2.97% 9.71% 33.33% 30.78% 23.21% 100.00% 28 195 343 888 771 512 2,737 2,737 2,737 2,737 2,737 2,737 2,737 2,737 1.02% 7.12% 12.53% 32.44% 28.17% 18.71% 100.00% # for Contract Range Total Responding % of Total Responding 42 136 297 817 860 469 2,621 2,621 2,621 2,621 2,621 2,621 2,621 2,621 1.60% 5.20% 11.35% 31.22% 32.86% 17.92% 100.00% 9 116 108 394 418 336 1,381 1,381 1,381 1,381 1,381 1,381 1,381 1,381 0.65% 8.42% 7.84% 28.61% 30.36% 24.40% 100.00% Laboratory Information System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Obstetrical System (Labor and Delivery) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Pharmacy Management System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Ta ble A D20 Radiology Information System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Respiratory Care Information System Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Market Drivers/Future Outlook The ancillary department IT application market has been and will most likely continue to be impacted by the following market forces: • 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, HIE and personal health record (PHR) initiatives. • The continued drive towards integrated clinical systems and away from “best of breed” will drive some replacement purchases of essentially stand-alone ancillary systems. • The need to have CPOE systems tightly coupled with pharmacy systems. • The need to have pharmacy systems tightly coupled with eMAR systems. • 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. Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 49 ▶▶ Ancillary Department Environment con tinue d • The need to have complete clinical transaction data for C&BI analytics for quality and efficiency improvements. • 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. • Intense competition for limited capital funds in a period when government-mandated initiatives will determine the applications that receive the highest priority. • 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 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.” ▶▶ Laboratory Environment The applications that are part of the laboratory environment include anatomical pathology, blood bank, laboratory-molecular diagnostics, laboratory-outreach services and microbiology. These solutions focus on providing automation and efficiency in laboratory operations. Although general laboratory information system solutions could also be considered to be a part of this environment, this solution has historically appeared in the ancillary section of the HIMSS Analytics Annual Report. At least for 2012, general laboratory information systems will continue to be included in the ancillary environment section of this report. Microbiology had the highest market penetration in 2012 at 80 percent; followed by blood bank (68 percent) and anatomical pathology (62 percent). Laboratory-molecular diagnostics has the lowest rate of adoption at just under 15 percent. Between 2011 and 2012, laboratory-outreach services demonstrated the largest year-over-year growth at approximately four percentage points (see Table LAB1). The majority of future purchases in the laboratory environment are expected to be replacement purchases. While the laboratorymolecular diagnostics application is evenly split between first time Ta ble L A B1 | Laboratory N=4,217 2010 2011 2012 Anatomical Pathology 58.88% 59.24% 62.01% Blood Bank 67.61% 67.44% 67.77% Laboratory–Molecular Diagnostics 11.43% 13.45% 14.75% Laboratory–Outreach Services 21.15% 26.08% 30.31% Microbiology 77.31% 79.23% 80.72% 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 and replacement purchase plans, this data needs to be evaluated with caution, as only two hospitals reported plans to purchase this technology (see Table LAB2). An evaluation of this environment from 2011 to 2012 by hospital type shows the highest growth by application occurred as follows: • Anatomical pathology: the greatest growth was demonstrated in the critical access hospital segment at more than five percentage points. The rural, non-medical/surgical and multihospital system segments each had growth more than three percentage points. The academic medical center segment is saturated with 99 percent market adoption (see Table LAB3). • Blood Bank: at just over one percentage point, the multi-hospital system segment had the greatest growth. The rural and single hospital segments saw a decrease in adoption of just more than one percentage point. While displaying a slight decrease, the academic medical center segment is still saturated, with 98 percent adoption (see Table LAB4). • Laboratory-Molecular Diagnostics: adoption of this technology grew more than two percentage points in the academic medical center segment from 2011 to 2012. Growth in the remaining market segments was less than two percentage points (see Table LAB5). • Laboratory-Outreach Services: the academic medical center segment reported the highest increase in adoption over the past year at nearly seven percentage points. The remaining segments grew between three to five percentage points (see Table LAB6). • Microbiology: both the rural hospital and the critical access segments showed growth at more than three percentage points. Academic medical centers have almost reached full market penetration (99 percent adoption), while general medical/surgical hospitals are approaching saturation at 94 percent adoption (see Table LAB7). Ta ble L A B2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Anatomical Pathology 39 95.12% Blood Bank 44 77.19% Laboratory–Molecular Diagnostics 1 50.00% Laboratory–Outreach Services 28 90.32% Microbiology 48 94.12% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated 50 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 2 13 1 3 3 % of Hospitals Planning to Purchase Software for the First Time 4.88% 22.81% 50.00% 9.68% 5.88% N = Total Number of Hospitals Planning 41 57 2 31 51 ▶▶ Laboratory Environment con tinued Ta ble L A B 3 | Anatomical Pathology 2010 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 177 2,306 1,884 599 271 2,212 229 2,254 1,728 755 2,483 Percent 99.44% 57.09% 76.84% 33.94% 23.61% 72.08% 23.46% 69.55% 66.64% 46.49% 58.88% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 2,323 1,882 616 294 2,204 244 2,254 1,713 785 2,498 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 2,669 2,084 760 423 2,421 357 2,487 1,956 888 2,844 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 80 487 399 168 43 524 34 533 438 129 567 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 88 1,012 793 307 130 970 94 1,006 784 316 1,100 Percent 98.31% 57.51% 76.75% 34.90% 25.61% 71.81% 25.00% 69.55% 66.06% 48.34% 59.24% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 2,439 1,936 679 353 2,262 281 2,334 1,804 811 2,615 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 174 2,684 2,106 752 417 2,441 344 2,514 1,989 869 2,858 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 84 538 439 183 48 574 36 586 483 139 622 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 100 1,178 914 364 169 1,109 126 1,152 917 361 1,278 Percent 98.88% 60.39% 78.96% 38.47% 30.75% 73.70% 28.79% 72.01% 69.57% 49.94% 62.01% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble L A B4 | Blood Bank 2010 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 176 2,675 2,106 745 401 2,450 341 2,510 1,978 873 2,851 Percent 98.88% 66.23% 85.89% 42.21% 34.93% 79.83% 34.94% 77.45% 76.28% 53.76% 67.61% 2011 Percent 98.31% 66.08% 84.99% 43.06% 36.85% 78.89% 36.58% 76.74% 75.43% 54.68% 67.44% 2012 Percent 97.75% 66.45% 85.89% 42.61% 36.32% 79.54% 35.25% 77.57% 76.71% 53.51% 67.77% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble L A B5 | Laboratory–Molecular Diagnostics 2010 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 71 411 347 135 25 457 21 461 374 108 482 Percent 39.89% 10.18% 14.15% 7.65% 2.18% 14.89% 2.15% 14.22% 14.42% 6.65% 11.43% 2011 Percent 44.94% 12.06% 16.27% 9.52% 3.75% 17.07% 3.48% 16.45% 16.89% 7.94% 13.45% 2012 Percent 47.19% 13.32% 17.90% 10.37% 4.18% 18.70% 3.69% 18.08% 18.63% 8.56% 14.75% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble L A B6 | Laboratory–Outreach Services 2010 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 76 816 657 235 87 805 61 831 629 263 892 Percent 42.70% 20.20% 26.79% 13.31% 7.58% 26.23% 6.25% 25.64% 24.26% 16.19% 21.15% 2011 Percent 49.44% 25.06% 32.34% 17.39% 11.32% 31.61% 9.63% 31.04% 30.24% 19.46% 26.08% 2012 Source: HIMSS Analytics® Database 2012 Percent 56.18% 29.17% 37.28% 20.62% 14.72% 36.14% 12.91% 35.54% 35.36% 22.23% 30.31% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 51 ▶▶ Laboratory Environment con tinued Ta ble L A B7 | Microbiology 2010 Segment Count 174 3,086 2,258 1,002 563 2,697 487 2,773 2,152 1,108 3,260 Type Academic/Teaching Not Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Percent 97.75% 76.41% 92.09% 56.77% 49.04% 87.88% 49.90% 85.56% 82.99% 68.23% 77.31% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Microbiology is reaching market saturation (more than 94 percent) in each bed segment except the 0–100 bed segment. Additional analysis of the laboratory market by bed size in 2012 indicates the following (see Tables LAB8–LAB14): • 0–100 beds: anatomical pathology showed the highest growth at four percentage points, followed by laboratory-outreach services at slightly more than three percentage points (see Table LAB8). • 101–200 beds: laboratory-outreach services demonstrated the highest growth at nearly five percentage points. Anatomical pathology, laboratory-molecular diagnostics and blood bank each grew by one to two percentage points (see Table LAB9). • 201–300 beds: the greatest growth in this segment was for laboratory-outreach services at close to five percentage points, followed by laboratory-molecular diagnostics at nearly two percentage points (see Table LAB10). • 301–400 beds: laboratory-outreach services and anatomical pathology each grew by more than two percentage points between 2011 and 2012 (see Table LAB11). • 401–500 beds: the greatest growth in this segment was for laboratory-outreach services, which demonstrated an eight percentage point growth. Microbiology’s market penetration was unchanged from last year and the remaining applications grew by less than one percentage point (see Table LAB12). • 501–600 beds: anatomical pathology, blood bank and microbiology reached near complete market saturation (more than 95 percent) in 2011 and saw little to no change in 2012. Laboratory-outreach services showed a six percentage point growth since last year (see Table LAB13). • Over 600 beds: the greatest growth was for laboratory-outreach services at six percentage points. Blood bank and laboratorymolecular diagnostics each grew by slightly more than one percentage point from 2011 to 2012 (see Table LAB14). Ta ble L A B8 0–100 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 716 946 85 238 1,280 2011 2012 % of 2,165 Hospitals 33.07% 734 33.90% 819 37.83% 43.70% 963 44.48% 963 44.48% 3.93% 10.99% 59.12% 119 331 1,356 5.50% 15.29% 62.63% 141 406 1,416 6.51% 18.75% 65.40% 52 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Segment Count 175 3,166 2,282 1,059 609 2,732 530 2,811 2,183 1,158 3,341 Percent 98.31% 78.39% 93.07% 60.00% 53.05% 89.02% 54.30% 86.73% 84.19% 71.31% 79.23% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,228 2,300 1,104 649 2,755 568 2,836 2,210 1,194 3,404 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 98.88% 79.92% 93.80% 62.55% 56.53% 89.77% 58.20% 87.50% 85.23% 73.52% 80.72% Ta ble L A B9 101–200 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 612 699 2011 % of 802 Hospitals 76.31% 607 75.69% 87.16% 682 85.04% 625 690 77.93% 86.03% 111 193 756 13.84% 24.06% 94.26% 134 263 759 16.71% 32.79% 94.64% 118 223 757 14.71% 27.81% 94.39% 2012 Ta ble L A B10 201–300 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 432 460 2011 % of 483 Hospitals 89.44% 437 90.48% 95.24% 458 94.82% 441 460 91.30% 95.24% 72 150 472 14.91% 31.06% 97.72% 91 202 473 18.84% 41.82% 97.93% 83 179 472 17.18% 37.06% 97.72% 2012 Ta ble L A B11 301–400 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 288 306 2011 % of 312 Hospitals 92.31% 286 91.67% 98.08% 300 96.15% 294 301 94.23% 96.47% 73 114 305 23.40% 36.54% 97.76% 86 148 306 27.56% 47.44% 98.08% 81 139 307 25.96% 44.55% 98.40% 2012 Ta ble L A B12 401–500 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 174 181 2011 % of 188 Hospitals 92.55% 173 92.02% 96.28% 182 96.81% 174 183 92.55% 97.34% 42 74 186 22.34% 39.36% 98.94% 53 98 187 28.19% 52.13% 99.47% 52 83 187 27.66% 44.15% 99.47% 2012 Ta ble L A B13 501–600 Beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 113 114 2011 % of 116 Hospitals 97.41% 113 97.41% 98.28% 114 98.28% 114 114 98.28% 98.28% 31 46 113 26.72% 39.66% 97.41% 35 61 113 30.17% 52.59% 97.41% 34 54 113 29.31% 46.55% 97.41% 2012 ▶▶ Laboratory Environment con tinued Ta ble L A B14 Ta ble L A B15 Over 600 beds Anatomical Pathology Blood Bank Laboratory–Molecular Diagnostics Laboratory–Outreach Services Microbiology 2010 148 145 2011 % of 151 Hospitals 98.01% 148 98.01% 96.03% 145 96.03% 148 147 98.01% 97.35% 68 77 148 45.03% 50.99% 98.01% 82 100 150 54.30% 66.23% 99.34% 80 91 149 52.98% 60.26% 98.68% 2012 More than half of all the contracting for anatomical pathology, blood bank and microbiology took place before 2005, while more than half of the contracting for laboratory-molecular diagnostics and laboratory-outreach services took place during 2005 to 2012 (see Tables LAB15–LAB16). 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. • An increased use of laboratory components from the enterprise clinical systems vendor and a general movement away from niche vendors. • Intense competition for capital funding, and staff resources between financial (e.g. ICD-10 coding mandate and payment reform) 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 leading edge 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. Anatomical Pathology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Blood Bank Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Laboratory–Molecular Diagnostics Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 38 117 234 445 333 193 1,360 1,360 1,360 1,360 1,360 1,360 1,360 1,360 2.79% 8.60% 17.21% 32.72% 24.49% 14.19% 100.00% 63 137 211 383 437 205 1,436 1,436 1,436 1,436 1,436 1,436 1,436 1,436 4.39% 9.54% 14.69% 26.67% 30.43% 14.28% 100.00% 5 4 22 21 48 10 110 110 110 110 110 110 110 110 4.55% 3.64% 20.00% 19.09% 43.64% 9.09% 100.00% # for Contract Range Total Responding % of Total Responding 6 23 57 88 168 91 433 433 433 433 433 433 433 433 1.39% 5.31% 13.16% 20.32% 38.80% 21.02% 100.00% 80 167 375 542 469 280 1,913 1,913 1,913 1,913 1,913 1,913 1,913 1,913 4.18% 8.73% 19.60% 28.33% 24.52% 14.64% 100.00% Ta ble L A B16 Laboratory–Outreach Services Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Microbiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 53 ▶▶ Surgical Information System The surgical information system environment focuses on IT applications used in the operating room (OR) and surgery setting. HIMSS Analytics monitors the following applications in this environment: OR scheduling, pre-operative and post-operative systems. As of this year, HIMSS Analytics no longer tracks perioperative systems (see Table OR1). Moreover, all three applications increased in market adoption this year with increases ranging from three to four percentage points. Approximately three-quarters of planned purchases across all three surgical information system applications were by hospitals intending to replace their current solution (see Table OR2). An evaluation of the surgical information system application market by the various hospital market segments in 2012 reveals the following: • Post-operative: the rural hospital segment had the highest yearover-year growth for this segment, at nearly eight percentage points. This is followed by the critical access and single hospital system segments, which each had growths of six to seven percentage points (see Table OR3). All other segments indicated an increase of less than five percentage points. • Pre-operative: all segments grew between 2011 and 2012, with the largest gains occurring in the critical access and rural hospital segments (see Table OR4). Academic medical centers, which have Ta ble OR1 | Operating Room N=4,217 2010 2011 Post-Operative 60.52% 64.71% Pre-Operative 64.64% 67.68% OR Scheduling 67.63% 70.41% Percentages include installed, contracted or installation in process 2012 68.72% 71.16% 73.35% achieved near market saturation, reflected the smallest increase in market penetration at less than one percentage point. • OR scheduling: the rural hospital segment reported the largest year-over-year growth at approximately seven percentage points. Strong growth (six percentage points) was also observed in the critical access hospital segment. All of the other hospital segments demonstrated an increase ranging from less than one percentage point to approximately five percentage points (see Table OR5). An evaluation of the surgical information system market by bed size in 2012 demonstrated the following (see Tables OR6–OR12): • 0–100 beds: all three OR applications showed a growth of approximately five percentage points (see Table OR6). • 101–200 beds: OR scheduling is the only application to report a growth of less than two percentage points. Post-operative and pre-operative adoption grew by two to three percentage points (see Table OR7). Ta ble OR 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Post-Operative 53 75.71% Pre-Operative 55 73.33% OR Scheduling 59 85.51% Replacing = Statuses of live and 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 17 20 10 % of Hospitals Planning to Purchase Software for the First Time 24.29% 26.67% 14.49% N = Total Number of Hospitals Planning 70 75 69 Ta ble OR3 | Post-Operative 2010 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 2,391 1,876 676 401 2,151 320 2,232 1,693 859 2,552 Percent 90.45% 59.20% 76.51% 38.30% 34.93% 70.09% 32.79% 68.87% 65.29% 52.89% 60.52% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 166 2,563 1,966 763 476 2,253 388 2,341 1,774 955 2,729 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 172 2,682 2,057 797 501 2,353 408 2,446 1,844 1,010 2,854 Percent 93.26% 63.46% 80.18% 43.23% 41.46% 73.41% 39.75% 72.23% 68.41% 58.81% 64.71% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 169 2,729 2,053 845 556 2,342 463 2,435 1,842 1,056 2,898 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 173 2,828 2,125 876 579 2,422 478 2,523 1,901 1,100 3,001 Percent 94.94% 67.57% 83.73% 47.88% 48.43% 76.31% 47.44% 75.13% 71.04% 65.02% 68.72% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble OR4 | Pre-Operative 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 170 2,556 1,994 732 440 2,286 347 2,379 1,796 930 2,726 Percent 95.51% 63.28% 81.32% 41.47% 38.33% 74.49% 35.55% 73.40% 69.26% 57.27% 64.64% 2011 54 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 96.63% 66.40% 83.89% 45.16% 43.64% 76.67% 41.80% 75.47% 71.11% 62.19% 67.68% 2012 Percent 97.19% 70.02% 86.66% 49.63% 50.44% 78.92% 48.98% 77.85% 73.31% 67.73% 71.16% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Surgical Information System con tinue d Ta ble OR5 | OR Scheduling 2010 Segment Count 176 2,676 2,074 778 473 2,379 366 2,486 1,892 960 2,852 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 98.88% 66.25% 84.58% 44.08% 41.20% 77.52% 37.50% 76.70% 72.97% 59.11% 67.63% • 201–300 beds: all three applications reported an increase in adoption from 2011 to 2012, ranging from one to two percentage points (see Table OR8), with post-operative reflecting the largest increase. • 301–400 beds: post-operative and pre-operative grew between 2011 and 2012, while OR scheduling reflected a small decline during time (see Table OR9). • 401–500 beds: post-operative applications indicated the highest year-over-year growth from 2011 to 2012, at more than two percentage points (see Table OR10). The other two OR applications also grew during this period. • 501–600 beds: post-operative and pre-operative systems grew less than one percent from 2011 to 2012, while there was no change in the highly saturated OR scheduling market (see Table OR11). • Over 600 beds: all three OR applications are close to approaching, or have already achieved, market saturation (95-100 percent) in this bed segment. No growth was reported for OR scheduling, while post-operative adoption increased by more than one percentage point (see Table OR12). Ta ble OR6 0–100 Beds Post-Operative Pre-Operative OR Scheduling 2010 863 941 993 2011 2012 % of 2,165 Hospitals 39.86% 987 45.59% 1,109 51.22% 43.46% 1,037 47.90% 1,149 53.07% 45.87% 1,078 49.79% 1,185 54.73% Ta ble OR7 101–200 Beds Post-Operative Pre-Operative OR Scheduling 2010 606 640 671 2011 % of 802 Hospitals 75.56% 633 78.93% 79.80% 660 82.29% 83.67% 696 86.78% 2012 656 678 705 81.80% 84.54% 87.91% Ta ble OR8 201–300 Beds Post-Operative Pre-Operative OR Scheduling 2010 407 432 452 2011 % of 483 Hospitals 84.27% 409 84.68% 89.44% 434 89.86% 93.58% 452 93.58% 2012 420 443 458 86.96% 91.72% 94.82% Ta ble OR9 301–400 Beds Post-Operative Pre-Operative OR Scheduling 2010 264 279 292 2011 % of 312 Hospitals 84.62% 277 88.78% 89.42% 287 91.99% 93.59% 295 94.55% 2012 282 290 294 90.38% 92.95% 94.23% Segment Count 177 2,792 2,136 833 532 2,437 426 2,543 1,925 1,044 2,969 Percent 99.44% 69.13% 87.11% 47.20% 46.34% 79.41% 43.65% 78.46% 74.24% 64.29% 70.41% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 2,915 2,188 905 603 2,490 496 2,597 1,975 1,118 3,093 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Percent 100.00% 72.17% 89.23% 51.27% 52.53% 81.13% 50.82% 80.13% 76.17% 68.84% 73.35% Ta ble OR10 401–500 Beds Post-Operative Pre-Operative OR Scheduling 2010 167 178 180 2011 % of 188 Hospitals 88.83% 170 90.43% 94.68% 178 94.68% 95.74% 183 97.34% 2012 175 181 186 93.09% 96.28% 98.94% Ta ble OR11 501–600 Beds Post-Operative Pre-Operative OR Scheduling 2010 104 110 114 2011 % of 116 Hospitals 89.66% 107 92.24% 94.83% 110 94.83% 98.28% 114 98.28% 2012 108 111 114 93.10% 95.69% 98.28% Ta ble OR12 Over 600 beds Post-Operative Pre-Operative OR Scheduling 2010 141 146 150 2011 % of 151 Hospitals 93.38% 146 96.69% 96.69% 148 98.01% 99.34% 151 100.00% 2012 148 98.01% 149 98.68% 151 100.00% At least 20 percent of the contracts in the surgical information system market were signed in the past two years (see Table OR13), while approximately two-thirds of all contracts were signed between 2000 and 2009. Ta ble OR13 Post-Operative Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Pre-Operative Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total OR Scheduling Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 16 63 200 660 554 388 1,881 1,881 1,881 1,881 1,881 1,881 1,881 1,881 0.85% 3.35% 10.63% 35.09% 29.45% 20.63% 100.00% 17 52 160 610 595 403 1,837 1,837 1,837 1,837 1,837 1,837 1,837 1,837 0.93% 2.84% 8.72% 33.26% 32.44% 21.97% 100.00% 17 52 160 610 595 403 1,837 1,837 1,837 1,837 1,837 1,837 1,837 1,837 0.93% 2.84% 8.72% 33.26% 32.44% 21.97% 100.00% Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 55 ▶▶ Surgical Information System con tinued Market Drivers/Future Outlook The surgical information system market for U.S. hospitals has been and will continue to be impacted through 2015 by: • Internally and externally initiated quality outcomes and performance improvement efforts. • A continuing focus on reducing medical and medication errors at the point-of-care and during surgical procedures, which is again likely to be tied to ARRA reporting measures. • 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 purposes, as well as to prepare the organization to price appropriately to accept more bundled pricing risk in an ACO environment. • Intense competition for limited capital funds, which are likely to be allocated to higher priority applications, such electronic medical record (EMR) and financial projects (e.g. ICD-10 encoding conversions) which may slow this market through at least 2015. • The increased focus of the federal government via ARRA to improve data sharing across modalities of care and among all care providers (e.g. patient summary data). • Increasingly stringent claims coding and supporting documentation requirements mandated by federal regulations and public and private reimbursement requirements. • An increased consumer demand to access and evaluate hospital service performance indicators related to hospital performance score cards. ▶▶ Radiology PACS Radiology picture archive and communications systems (R-PACS) are used by hospitals to capture medical images and provide convenient access to clinicians throughout the healthcare system. The R-PACS suite monitored by HIMSS Analytics is comprised of the following 10 modalities: angiography, computed radiography, computerized tomography (CT), digital fluoroscopy, digital mammography, digital radiography, magnetic resonance imaging (MRI), nuclear medicine, orthopedic surgical templating and ultrasound. In 2012, the R-PACS environment demonstrated market penetration growth in all modalities (see Table RP1). The rate of increase from 2011 to 2012 was generally lower than those indicated from 2010 to 2011. The digital mammography modality had the highest year-overyear growth from 2011 to 2012 at just more than five percentage points. Relatively few hospitals indicated plans to purchase an R-PACS modality in the near distant future. Of those that did, the majority Ta ble RP1 | R-PACS N=4,217 2010 2011 Angiography 63.86% 65.26% Computed Radiography (CR) 82.88% 86.01% Computerized Tomography (CT) 84.63% 87.05% Digital Fluoroscopy (DF) 71.61% 74.18% Digital Mammography 50.46% 58.41% Digital Radiography (DR) 74.48% 77.12% Magnetic Resonance Imaging 79.18% 81.53% Nuclear Medicine 73.70% 75.84% Orthopedic 42.54% 47.33% Ultrasound (US) 82.90% 86.10% Percentages include installed, contracted or installation in process 2012 66.54% 88.10% 88.78% 76.22% 63.46% 78.35% 83.16% 77.28% 49.99% 87.72% of hospitals would be classified as first time buyers of an R-PACS modality (see Table RP2). The clear exception to this general trend involved the orthopedic surgical templating modality. More than 70 percent of the planned purchases for CT, digital fluoroscopy, digital mammography, digital radiography, nuclear medicine and ultrasound were for hospitals that do not have these solutions. The following are some of the key findings for each R-PACS modality by hospital segment: • Angiography: all hospital segments reported a slight increase in adoption from 2011 to 2012 (see Table RP3). This modality appears to be a good market opportunity (34 percent of hospitals have yet to acquire this technology). • Computed radiography: the critical access and rural hospital segments reported the highest increase in adoption from 2011 to 2012 at approximately five percentage points. The academic medical center segment, which is a saturated market, had growth of less than one percentage point (see Table RP4). • Computerized tomography: critical access and rural hospital segments were the only segments to report a growth in adoption from 2011 to 2012 at more than four percentage points. All other segments, except academic medical centers, reported a growth from one to three percentage points. The academic medical center segment has reached market segmentation and registered no market penetration change (see Table RP5). • Digital fluoroscopy: All segments indicated growth from 2011 to 2012 with the largest growth evidenced in the rural and critical access hospital segments (see Table RP6). Ta ble rp 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Angiography 4 40.00% CR (Computed Radiography) 2 33.33% CT (Computerized Tomography) 3 30.00% DF (Digital Fluoroscopy 2 28.57% Digital Mammography 2 13.33% DR (Digital Radiography) 2 28.57% MRI (Magnetic Resonance Imaging) 2 33.33% Nuclear Medicine 2 28.57% Orthopedic 3 60.00% US (Ultrasound) 2 25.00% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated 56 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 6 4 7 5 13 5 4 5 2 6 % of Hospitals Planning to Purchase Software for the First Time 60.00% 66.67% 70.00% 71.43% 86.67% 71.43% 66.67% 71.43% 40.00% 75.00% N = Total Number of Hospitals Planning 10 6 10 7 15 7 6 7 5 8 ▶▶ Radiology PACS con tinued • Digital Mammography: all segments grew by four to eight percentage points from 2011 to 2012. The rural and critical access hospital segments reported made the biggest gains this past year (see Table RP7). • Digital radiography: rural hospitals had the largest increase at slightly more than three percentage points; the medical/surgical and urban segments reported the lowest growth at less than one percentage point each (see Table RP8). • MRI: the rural hospital and critical access hospital segments experienced the most growth from 2011 to 2012 at more than three percentage points. The academic medical center segment, which is approaching market saturation, showed no growth. The remaining segments showed growth of less than three percentage points (see Table RP9). • Nuclear medicine: all of the hospital segments reported a growth of under four percentage points, with the critical access segment reflecting the largest year-over-year increase (see Table RP10). • Orthopedic: academic medical centers had the highest growth in this segment with more than a five percentage point increase. The next highest increase was in the general medical/surgical segment at three percentage points (see Table RP11). • Ultrasound: almost all segments indicated growth from 2011 to 20112. The exception being the academic medical center segment which is fully saturated had reported no change from 2011. The highest year-over-year growth of nearly four percentage points was found in critical access and rural hospitals (see Table RP12). Ta ble RP 3 | Angiography 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 172 2,521 1,987 706 394 2,299 330 2,363 1,844 849 2,693 Percent 96.63% 62.42% 81.04% 40.00% 34.32% 74.91% 33.81% 72.91% 71.11% 52.28% 63.86% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 173 2,579 2,035 717 416 2,336 356 2,396 1,889 863 2,752 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,452 2,290 1,337 897 2,730 760 2,867 2,251 1,376 3,627 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,494 2,359 1,312 968 2,703 816 2,855 2,216 1,455 3,671 Percent 97.19% 63.85% 82.99% 40.62% 36.24% 76.12% 36.48% 73.93% 72.85% 53.14% 65.26% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 2,631 2,065 741 437 2,369 381 2,425 1,928 878 2,806 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,539 2,316 1,399 954 2,761 811 2,904 2,290 1,425 3,715 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,567 2,383 1,361 1,014 2,730 860 2,884 2,253 1,491 3,744 Percent 98.31% 65.14% 84.22% 41.98% 38.07% 77.19% 39.04% 74.82% 74.35% 54.06% 66.54% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP4 | Computed Radiography (CR) 2010 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 3,320 2,235 1,260 828 2,667 693 2,802 2,166 1,329 3,495 Percent 98.31% 82.20% 91.15% 71.39% 72.13% 86.90% 71.00% 86.45% 83.53% 81.83% 82.88% 2011 Percent 98.31% 85.47% 93.39% 75.75% 78.14% 88.95% 77.87% 88.46% 86.81% 84.73% 86.01% 2012 Percent 98.88% 87.62% 94.45% 79.26% 83.10% 89.96% 83.09% 89.60% 88.31% 87.75% 88.10% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP5 | Computerized Tomography (CT) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 177 3,392 2,312 1,257 899 2,670 752 2,817 2,158 1,411 3,569 Percent 99.44% 83.98% 94.29% 71.22% 78.31% 87.00% 77.05% 86.92% 83.22% 86.88% 84.63% 2011 Percent 99.44% 86.51% 96.21% 74.33% 84.32% 88.07% 83.61% 88.09% 85.46% 89.59% 87.05% 2012 Source: HIMSS Analytics® Database 2012 Percent 99.44% 88.31% 97.19% 77.11% 88.33% 88.95% 88.11% 88.98% 86.89% 91.81% 88.78% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 57 ▶▶ Radiology PACS con tinued Ta ble RP6 | Digital Fluoroscopy (DF) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 170 2,850 2,132 888 552 2,468 459 2,561 1,972 1,048 3,020 Percent 95.51% 70.56% 86.95% 50.31% 48.08% 80.42% 47.03% 79.02% 76.05% 64.53% 71.61% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 171 2,957 2,187 941 599 2,529 503 2,625 2,038 1,090 3,128 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 139 2,324 1,753 710 524 1,939 421 2,042 1,569 894 2,463 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 173 3,079 2,190 1,062 656 2,596 560 2,692 2,099 1,153 3,252 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,263 2,299 1,139 821 2,617 692 2,746 2,131 1,307 3,438 Percent 96.07% 73.21% 89.19% 53.31% 52.18% 82.40% 51.54% 80.99% 78.60% 67.12% 74.18% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,039 2,223 991 643 2,571 542 2,672 2,084 1,130 3,214 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 150 2,526 1,867 809 612 2,064 496 2,180 1,680 996 2,676 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 174 3,130 2,202 1,102 692 2,612 596 2,708 2,123 1,181 3,304 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,332 2,326 1,181 864 2,643 730 2,777 2,166 1,341 3,507 Percent 98.31% 75.24% 90.66% 56.15% 56.01% 83.77% 55.53% 82.44% 80.37% 69.58% 76.22% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP7 | Digital Mammography 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 126 2,002 1,529 599 413 1,715 322 1,806 1,385 743 2,128 Percent 70.79% 49.57% 62.36% 33.94% 35.98% 55.88% 32.99% 55.72% 53.41% 45.75% 50.46% 2011 Percent 78.09% 57.54% 71.49% 40.23% 45.64% 63.18% 43.14% 63.01% 60.51% 55.05% 58.41% 2012 Percent 84.27% 62.54% 76.14% 45.84% 53.31% 67.25% 50.82% 67.26% 64.79% 61.33% 63.46% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP 8 | Digital Radiography (DR) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 172 2,969 2,133 1,008 606 2,535 508 2,633 2,041 1,100 3,141 Percent 96.63% 73.51% 86.99% 57.11% 52.79% 82.60% 52.05% 81.24% 78.71% 67.73% 74.48% 2011 Percent 97.19% 76.23% 89.31% 60.17% 57.14% 84.59% 57.38% 83.06% 80.95% 71.00% 77.12% 2012 Percent 97.75% 77.49% 89.80% 62.44% 60.28% 85.11% 61.07% 83.55% 81.87% 72.72% 78.35% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP 9 | Magnetic Resonance Imaging (MRI) 2010 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 3,165 2,245 1,094 763 2,576 629 2,710 2,072 1,267 3,339 Percent 97.75% 78.36% 91.56% 61.98% 66.46% 83.94% 64.45% 83.62% 79.91% 78.02% 79.18% 2011 58 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 98.31% 80.79% 93.76% 64.53% 71.52% 85.27% 70.90% 84.73% 82.18% 80.48% 81.53% 2012 Percent 98.31% 82.50% 94.86% 66.91% 75.26% 86.12% 74.80% 85.68% 83.53% 82.57% 83.16% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Radiology PACS con tinued Ta ble RP10 | Nuclear Medicine 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 169 2,939 2,210 898 586 2,522 498 2,610 1,988 1,120 3,108 Percent 94.94% 72.77% 90.13% 50.88% 51.05% 82.18% 51.02% 80.53% 76.67% 68.97% 73.70% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 169 3,029 2,256 942 645 2,553 552 2,646 2,039 1,159 3,198 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 127 1,869 1,393 603 364 1,632 288 1,708 1,272 724 1,996 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,455 2,341 1,290 936 2,695 788 2,843 2,214 1,417 3,631 Percent 94.94% 74.99% 92.01% 53.37% 56.18% 83.19% 56.56% 81.64% 78.63% 71.37% 75.84% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 170 3,089 2,275 984 685 2,574 584 2,675 2,074 1,185 3,259 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 137 1,971 1,469 639 385 1,723 309 1,799 1,337 771 2,108 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 176 3,523 2,363 1,336 979 2,720 827 2,872 2,246 1,453 3,699 Percent 95.51% 76.48% 92.78% 55.75% 59.67% 83.87% 59.84% 82.54% 79.98% 72.97% 77.28% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP11 | Orthopedic 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 122 1,672 1,261 533 304 1,490 232 1,562 1,160 634 1,794 Percent 68.54% 41.40% 51.43% 30.20% 26.48% 48.55% 23.77% 48.20% 44.74% 39.04% 42.54% 2011 Percent 71.35% 46.27% 56.81% 34.16% 31.71% 53.18% 29.51% 52.70% 49.06% 44.58% 47.33% 2012 Percent 76.97% 48.80% 59.91% 36.20% 33.54% 56.14% 31.66% 55.51% 51.56% 47.48% 49.99% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble RP12 | Ultrasound (US) 2010 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 3,321 2,289 1,207 859 2,637 715 2,781 2,127 1,369 3,496 Percent 98.31% 82.22% 93.35% 68.39% 74.83% 85.92% 73.26% 85.81% 82.03% 84.30% 82.90% 2011 The evaluation of R-PACS market by bed size for 2012 indicates that growth was slightly higher among the smaller hospital bed segments than larger bed segments. The adoption of digital mammography demonstrated the largest increase from 2011 to 2012 across most of the bed segments. The following list represents some key modality findings within each bed segment: • 0–100 beds: digital mammography indicated the largest yearover-year increase at more than six percentage points, while the other modalities experienced increases ranging from one to four percentage points (see Table RP13). • 101–200 beds: digital mammography reported the highest growth at more than four percentage points, while all other segments indicated growth two percentage points or less (see Table RP14). • 201–300 beds: digital mammography demonstrated the highest increase from 2011 to 2012 at more than four percentage points, followed by orthopedic at more than two percentage points. Digital radiography is the only R-PACS modality to indicate a decrease in adoption (see Table RP15). Percent 98.88% 85.54% 95.47% 73.09% 81.53% 87.81% 80.74% 87.72% 85.38% 87.25% 86.10% 2012 Percent 98.88% 87.22% 96.37% 75.69% 85.28% 88.63% 84.73% 88.61% 86.62% 89.47% 87.72% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 • 301–400 beds: at more than five percentage points, digital mammography had the highest adoption from 2011 to 2012, followed by orthopedic at more than four percentage points. All other modalities indicated growth of approximately one percentage point (see Table RP16). • 401–500 beds: orthopedic indicated the largest increase from 2011 to 2012 at approximately two percentage points, followed by digital mammography, MRI and nuclear medicine. All other modalities reported no change from 2011 (see Table RP17). • 501–600 beds: digital mammography had the highest increase in adoption from 2011 to 2012 at more than five percentage points, while digital radiography reported a decline of more than two percentage points. None of the other modalities reported a change from 2011 (see Table RP18). • Over 600 beds: digital fluoroscopy, digital mammography and digital radiography are the only modalities to indicate an increase from 2011 to 2012. All other modalities reported no change in the past year (see Table RP19). Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 59 ▶▶ Radiology PACS con tinued Ta ble RP13 Ta ble RP18 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) 2010 895 1,560 1,607 1,162 768 1,267 1,415 1,194 608 1,548 41.34% 72.06% 74.23% 53.67% 35.47% 58.52% 65.36% 55.15% 28.08% 71.50% 2011 2012 % of 2,165 Hospitals 926 42.77% 960 44.34% 1,673 77.27% 1,751 80.88% 1,697 78.38% 1,760 81.29% 1,240 57.27% 1,301 60.09% 956 44.16% 1,087 50.21% 1,355 62.59% 1,404 64.85% 1,492 68.91% 1,549 71.55% 1,268 58.57% 1,318 60.88% 706 32.61% 770 35.57% 1,667 77.00% 1,726 79.72% Ta ble RP14 2010 635 734 739 687 482 698 716 716 416 729 79.18% 91.52% 92.14% 85.66% 60.10% 87.03% 89.28% 89.28% 51.87% 90.90% 2011 % of 802 Hospitals 649 80.92% 748 93.27% 749 93.39% 705 87.91% 558 69.58% 713 88.90% 734 91.52% 729 90.90% 463 57.73% 742 92.52% 2012 661 753 755 720 592 716 739 733 482 748 82.42% 93.89% 94.14% 89.78% 73.82% 89.28% 92.14% 91.40% 60.10% 93.27% Ta ble RP15 201–300 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) 2010 433 452 467 440 319 442 459 457 272 465 89.65% 93.58% 96.69% 91.10% 66.05% 91.51% 95.03% 94.62% 56.31% 96.27% 2011 % of 483 Hospitals 442 91.51% 457 94.62% 469 97.10% 447 92.55% 343 71.01% 444 91.93% 461 95.45% 459 95.03% 295 61.08% 468 96.89% 2012 447 460 472 450 363 442 465 462 306 470 92.55% 95.24% 97.72% 93.17% 75.16% 91.51% 96.27% 95.65% 63.35% 97.31% Ta ble 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) 2010 286 300 304 292 218 290 301 299 184 302 91.67% 96.15% 97.44% 93.59% 69.87% 92.95% 96.47% 95.83% 58.97% 96.79% 2011 % of 312 Hospitals 289 92.63% 301 96.47% 304 97.44% 295 94.55% 236 75.64% 295 94.55% 302 96.79% 299 95.83% 193 61.86% 302 96.79% 2012 292 303 305 298 252 299 304 302 207 303 93.59% 97.12% 97.76% 95.51% 80.77% 95.83% 97.44% 96.79% 66.35% 97.12% Ta ble 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) 2010 113 115 115 114 84 114 115 113 72 115 97.41% 99.14% 99.14% 98.28% 72.41% 98.28% 99.14% 97.41% 62.07% 99.14% 2011 % of 116 Hospitals 113 97.41% 115 99.14% 115 99.14% 114 98.28% 95 81.90% 114 98.28% 115 99.14% 113 97.41% 79 68.10% 115 99.14% 2012 113 115 115 114 101 111 115 113 79 115 97.41% 99.14% 99.14% 98.28% 87.07% 95.69% 99.14% 97.41% 68.10% 99.14% Ta ble RP19 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) 501–600 Beds 2010 182 184 186 180 139 181 184 182 131 186 96.81% 97.87% 98.94% 95.74% 73.94% 96.28% 97.87% 96.81% 69.68% 98.94% 2011 % of 188 Hospitals 182 96.81% 183 97.34% 186 98.94% 180 95.74% 147 78.19% 182 96.81% 184 97.87% 183 97.34% 139 73.94% 186 98.94% 2012 182 183 186 180 150 182 185 184 143 186 96.81% 97.34% 98.94% 95.74% 79.79% 96.81% 98.40% 97.87% 76.06% 98.94% 60 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Over 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) 2010 149 98.68% 150 99.34% 151 100.00% 145 96.03% 118 78.15% 149 98.68% 149 98.68% 147 97.35% 111 73.51% 151 100.00% 2011 % of 151 Hospitals 151 100.00% 150 99.34% 151 100.00% 147 97.35% 128 84.77% 149 98.68% 150 99.34% 147 97.35% 121 80.13% 151 100.00% 2012 151 150 151 151 131 150 150 147 121 151 100.00% 99.34% 100.00% 100.00% 86.75% 99.34% 99.34% 97.35% 80.13% 100.00% Most R-PACS application contracts were signed prior to 2010 with less than 10 percent of contracts signed across almost all modalities occurring between 2010 and 2012. Digital mammography is the only modality to have more than 10 percent of the contracts signed after 2010 (see Tables RP20–RP23). Ta ble RP 20 Angiography Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Computed Radiography (CR) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Computerized Tomography (CT) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 0 0 54 799 874 99 1,826 1,826 1,826 1,826 1,826 1,826 1,826 1,826 0.00% 0.00% 2.96% 43.78% 47.89% 5.42% 100.00% 0 0 56 910 1,205 163 2,334 2,334 2,334 2,334 2,334 2,334 2,334 2,334 0.00% 0.00% 2.40% 39.04% 51.69% 6.99% 100.00% 0 0 58 935 1,198 158 2,349 2,349 2,349 2,349 2,349 2,349 2,349 2,349 0.00% 0.00% 2.20% 35.63% 47.93% 6.63% 100.00% ▶▶ Radiology PACS con tinued Ta ble RP 21 Digital Fluoroscopy (DF) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Digital Mammography Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Digital Radiography (DR) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Ta ble RP 23 # for Contract Range Total Responding % of Total Responding 0 0 54 856 1,028 124 2,062 2,062 2,062 2,062 2,062 2,062 2,062 2,062 0.00% 0.00% 2.62% 41.53% 49.88% 6.02% 100.00% 0 0 17 320 749 173 1,259 1,259 1,259 1,259 1,259 1,259 1,259 1,259 0.00% 0.00% 1.35% 25.44% 59.54% 13.75% 100.00% 0 0 48 820 1,030 130 2,028 2,028 2,028 2,028 2,028 2,028 2,028 2,028 0.00% 0.00% 2.37% 40.45% 50.81% 6.41% 100.00% # for Contract Range Total Responding % of Total Responding 0 0 58 904 1,095 147 2,204 2,204 2,204 2,204 2,204 2,204 2,204 2,204 0.00% 0.00% 2.63% 41.03% 49.70% 6.67% 100.00% 0 0 55 858 1,050 128 2,091 2,091 2,091 2,091 2,091 2,091 2,091 2,091 0.00% 0.00% 2.63% 41.05% 50.24% 6.12% 100.00% 0 0 21 365 562 84 1,032 1,032 1,032 1,032 1,032 1,032 1,032 1,032 0.00% 0.00% 2.03% 35.37% 54.46% 8.14% 100.00% Ta ble RP 22 Magnetic Resonance Imaging (MRI) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Nuclear Medicine Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Orthopedic Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total US (Ultrasound) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 0 0 57 930 1,175 156 2,318 2,318 2,318 3,218 2,318 2,318 2,318 2,318 0.00% 0.00% 1.77% 40.16% 50.73% 6.74% 100.00% Market Drivers/Future Outlook The R-PACS IT application market will most likely continue to experience growth, 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 most likely continue to be, impacted through 2015 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. • Increased demand for the electronic transmittal and integration of images and reports from owned, affiliated and other ambulatory practices for which the hospital provides diagnostic imaging services. • Ongoing market consolidation where a growing IDN elects to standardize on one R-PACS vendor solution for the entire system. • Continued acquisitions of ambulatory centers by IDNs where they elect to standardize on one PACS vendor solution. • Ongoing demand to drive down radiology service and storage costs and eliminate film costs. • The increasing demand for orthopedic pre-surgical templating to improve quality related to implant surgery for a growing elderly population. • The need to attach medical images to claims for improved payer reimbursement processes. • 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. • Increasing consumer demands to have access to their medical information and images. Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 61 ▶▶ Cardiology PACS A cardiology picture archive and communications system (C-PACS) solution refers to electronic storage of images in a networked digital archive that stores, manages, transmits and displays cardiology images. The C-PACS market is comprised five different modalities including cath lab, computerized tomography (CT), echocardiology, intravascular ultrasound and nuclear cardiology. More than one-third of U.S. hospitals have incorporated the echocardiology and cath lab modalities, while approximately 20 percent of hospitals have the other C-PACS modalities in place. The C-PACS environment demonstrated a growth ranging from one to three percent for all modalities (see Table CP1). The growth from 2011 to 2012 slowed in comparison to 2010 to 2011. Historically, C-PACS tend to grow at a slow but steady pace. The C-PACS growth is thought to be slower than the R-PACS growth due to a lack of significant cost reduction from the replacement of film. When evaluating planned purchases, CT is the only C-PACS modality to indicate more plans for replacements than first time purchases. Intravascular ultrasound purchase plans reflect more first time purchasers than replacements. The remaining modalities Ta ble CP1 | C-PACS N=4,217 2010 2011 Cardiology–Cath Lab 31.04% 32.30% Cardiology–Computerized Tomography (CT) 19.99% 22.15% Cardiology–Echocardiology 30.78% 33.55% Cardiology–Intravascular Ultrasound 18.90% 21.22% Cardiology–Nuclear Cardiology 18.00% 20.99% Percentages include installed, contracted or installation in process 2012 34.01% 24.02% 36.19% 23.17% 23.12% indicated almost the same amount of first time and replacement purchases (see Table CP2). An evaluation of market segments in 2012 by hospital type reveals the following highlights for each C-PACS modality: • Cath lab: the academic medical center segment indicated the highest increase from 2011 to 2012 at slightly less than three percentage points. The general medical/surgical, non-critical access, urban and multi-hospital segments all grew by more than two percentage points. The critical access hospital segment is the only segment to report a decrease from 2011 (see Table CP3). • Computerized tomography: all of the hospital segments reported a growth from 2011 to 2012 with general medical/surgical reporting the largest year-over-year increase at about three percentage points (see Table CP4). Growth ranged from less than one to slightly under three percentage points across all segments. • Echocardiology: growth for academic medical center, general medical/surgical and non-critical access segments all exceeded three percentage points from 2011 to 2012 (see Table CP5). All other segments demonstrated an increase of one to three percentage points. • Intravascular ultrasound: the academic medical center segment demonstrated the largest year-over-year growth at approximately four percentage points. The critical access hospital segment demonstrated the lowest increase (see Table CP6). • Nuclear cardiology: with more than a five percentage point increase, the academic medical center market segment reflected the highest year-over-year growth, followed by the general medical/ surgical and non-critical access segments (see Table CP7). Ta ble CP 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Cardiology–Cath Lab 7 50.00% Cardiology–Computerized Tomography (CT) 6 75.00% Cardiology–Echocardiology 7 50.00% Cardiology–Intravascular Ultrasound 1 25.00% Cardiology–Nuclear Cardiology 5 45.45% Replacing = Statuses of live and 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 7 2 7 3 6 % of Hospitals Planning to Purchase Software for the First Time 50.00% 25.00% 50.00% 75.00% 54.55% N = Total Number of Hospitals Planning 14 8 14 4 11 Ta ble CP 3 | Cardiology–Cath Lab 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 140 1,169 1,094 215 21 1,288 18 1,291 962 347 1,309 Percent 78.65% 28.94% 44.62% 12.18% 1.83% 41.97% 1.84% 39.83% 37.10% 21.37% 31.04% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 62 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Segment Count 139 1,223 1,148 214 20 1,342 18 1,344 984 378 1,362 Percent 78.09% 30.28% 46.82% 12.12% 1.74% 43.73% 1.84% 41.47% 37.95% 23.28% 32.30% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 144 1,290 1,214 220 18 1,416 24 1,410 1,036 398 1,434 Percent 80.90% 31.94% 49.51% 12.46% 1.57% 46.14% 2.46% 43.51% 39.95% 24.51% 34.01% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Cardiology PACS con tinued Ta ble CP4 | Cardiology–Computerized Tomography (CT) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 90 753 684 159 41 802 23 820 612 231 843 Percent 50.56% 18.64% 27.90% 9.01% 3.57% 26.13% 2.36% 25.30% 23.60% 14.22% 19.99% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 96 838 761 173 48 886 28 906 673 261 934 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 131 1,284 1,137 278 89 1,326 63 1,352 973 442 1,415 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 98 797 735 160 33 862 27 868 627 268 895 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 91 794 721 164 47 838 38 847 601 284 885 Percent 53.93% 20.75% 31.04% 9.80% 4.18% 28.87% 2.87% 27.95% 25.95% 16.07% 22.15% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 100 913 830 183 50 963 36 977 724 289 1,013 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 138 1,388 1,218 308 106 1,420 83 1,443 1,038 488 1,526 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 105 872 804 173 35 942 37 940 686 291 977 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 101 874 787 188 57 918 48 927 653 322 975 Percent 56.18% 22.60% 33.85% 10.37% 4.36% 31.38% 3.69% 30.15% 27.92% 17.80% 24.02% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble CP5 | Cardiology–Echocardiology 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 130 1,168 1,046 252 69 1,229 45 1,253 910 388 1,298 Percent 73.03% 28.92% 42.66% 14.28% 6.01% 40.05% 4.61% 38.66% 35.09% 23.89% 30.78% 2011 Percent 73.60% 31.79% 46.37% 15.75% 7.75% 43.21% 6.45% 41.72% 37.52% 27.22% 33.55% 2012 Percent 77.53% 34.36% 49.67% 17.45% 9.23% 46.27% 8.50% 44.52% 40.03% 30.05% 36.19% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble CP 6 | Cardiology–Intravascular Ultrasound 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 94 703 652 145 26 771 19 778 565 232 797 Percent 52.81% 17.41% 26.59% 8.22% 2.26% 25.12% 1.95% 24.00% 21.79% 14.29% 18.90% 2011 Percent 55.06% 19.73% 29.98% 9.07% 2.87% 28.09% 2.77% 26.78% 24.18% 16.50% 21.22% 2012 Percent 58.99% 21.59% 32.79% 9.80% 3.05% 30.69% 3.79% 29.00% 26.46% 17.92% 23.17% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble CP7 | Cardiology–Nuclear Cardiology 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Not Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 88 671 611 148 35 724 25 734 523 236 759 Percent 49.44% 16.61% 24.92% 8.39% 3.05% 23.59% 2.56% 22.65% 20.17% 14.53% 18.00% 2011 Percent 51.12% 19.66% 29.40% 9.29% 4.09% 27.31% 3.89% 26.13% 23.18% 17.49% 20.99% 2012 Source: HIMSS Analytics® Database 2012 Percent 56.74% 21.64% 32.10% 10.65% 4.97% 29.91% 4.92% 28.60% 25.18% 19.83% 23.12% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 63 ▶▶ Cardiology PACS con tinued The evaluation of the C-PACS market by bed size segments for 2012 reveals the following (see Tables CP8–CP14): • 0–100 beds: echocardiology had the highest growth at nearly two percentage points, while the other modalities reported an increase of under two percentage points (see Table CP8). • 101–200 beds: for the second year in a row, echocardiology indicated the highest increase at more than four percentage points, followed by nuclear cardiology at slightly more than three percentage points (see Table CP9). All other modalities indicated an increase of at least two percentage points from last year. • 201–300 beds: nuclear cardiology grew by almost four percentage points, followed by cath lab at slightly more than three percentage points. All other modalities reported a growth of slightly under three percentage points (see Table CP10). • 301–400 beds: the cath lab modality increased by more than five percentage points from 2011 to 2012. All other modalities grew by two to four percentage points (see Table CP11). • 401–500 beds: echocardiology and nuclear cardiology are tied for the highest increase in adoption from 2011 to 2012, at close to four percentage points (see Table CP12). • 501–600 beds: intravascular ultrasound reported the largest increase in adoption from 2011 to 2012 at more than four percentage points. The level of adoption for cath lab declined slightly in this segment (see Table CP13). • Over 600 beds: at more than six percentage points, the largest year-over-year growth in this bed segment was intravascular ultrasound, followed by computerized tomography at more than five percentage points (see Table CP14). When evaluating the historical contracting activity in the C-PACS modalities market, we discovered that more than 10 percent of contracts were signed between 2010 and 2012 (see Tables CP15– CP16), while more than half of contracts for all modalities were signed from 2005 to 2009. In addition, as EMR deployments in academic medical centers and the larger and multi-hospital market segments have matured, we are seeing an increase in EMR deployments that incorporate digital images of all types into their contents. We expect digital imaging modalities of all types to continue to proliferate over the next several years as the industry embraces various forms of HIE. Not all of these types of images will neatly fit into cardiology or R-PACS, since they will be from other sources, such as gastroenology, pthalmology, dermatology, tele-medicine, etc. Ta ble CP 8 0–100 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 125 2011 2012 % of 2,165 Hospitals 5.77% 128 5.91% 143 6.61% 105 190 4.85% 8.78% 124 232 5.73% 10.72% 144 273 6.65% 12.61% 87 97 4.02% 4.48% 109 134 5.03% 6.19% 129 157 5.96% 7.25% Ta ble CP 9 101–200 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 323 2011 % of 802 Hospitals 40.27% 334 41.65% 2012 357 44.51% 211 314 26.31% 39.15% 234 340 29.18% 42.39% 257 377 32.04% 47.01% 181 178 22.57% 22.19% 202 207 25.19% 25.81% 226 232 28.18% 28.93% Ta ble CP10 201–300 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 275 2011 % of 483 Hospitals 56.94% 300 62.11% 2012 316 65.42% 166 249 34.37% 51.55% 189 273 39.13% 56.52% 203 284 42.03% 58.80% 158 143 32.71% 29.61% 185 174 38.30% 36.02% 196 193 40.58% 39.96% Ta ble CP11 301–400 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 211 2011 % of 312 Hospitals 67.63% 218 69.87% 2012 234 75.00% 123 198 39.42% 63.46% 130 210 41.67% 67.31% 140 222 44.87% 71.15% 131 118 41.99% 37.82% 139 126 44.55% 40.38% 146 133 46.79% 42.63% Ta ble CP12 401–500 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 150 2011 % of 188 Hospitals 79.79% 154 81.91% 2012 155 82.45% 97 136 51.60% 72.34% 104 143 55.32% 76.06% 106 150 56.38% 79.79% 94 85 50.00% 45.21% 104 93 55.32% 49.47% 109 100 57.98% 53.19% Ta ble CP13 501–600 Beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 2010 99 2011 % of 116 Hospitals 85.34% 100 86.21% 2012 99 85.34% 59 89 50.86% 76.72% 63 92 54.31% 79.31% 65 92 56.03% 79.31% 62 61 53.45% 52.59% 65 66 56.03% 56.90% 70 68 60.34% 58.62% Ta ble CP14 Over 600 beds Cardiology–Cath Lab Cardiology–Computerized Tomography (CT) Cardiology–Echocardiology Cardiology–Intravascular Ultrasound Cardiology–Nuclear Cardiology 64 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 2010 126 2011 % of 151 Hospitals 83.44% 128 84.77% 2012 130 86.09% 82 122 54.30% 80.79% 90 125 59.60% 82.78% 98 128 64.90% 84.77% 84 77 55.63% 50.99% 91 85 60.26% 56.29% 101 92 66.89% 60.93% ▶▶ Cardiology PACS con tinued Ta ble CP15 Ta ble CP15 # for Contract Range Cardiology–Cath Lab Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Cardiology–Computerized Tomography (CT) Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Cardiology–Echocardiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Total Responding % of Total Responding 0 1 9 150 319 79 558 558 558 558 558 558 558 558 0.00% 0.18% 1.63% 27.17% 57.79% 14.31% 100.00% 0 0 5 101 196 34 336 336 336 336 336 336 336 336 0.00% 0.00% 1.49% 30.06% 58.33% 10.12% 100.00% 0 1 8 133 336 84 562 562 562 562 562 562 562 562 0.00% 0.18% 1.42% 23.67% 59.79% 14.95% 100.00% 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 most likely continue to be impacted by: • The demand to increase medical image sharing among providers in an EMR environment. # for Contract Range Total Responding % of Total Responding 0 0 5 94 214 40 353 353 353 353 353 353 353 353 0.00% 0.00% 1.42% 26.70% 60.80% 11.36% 100.00% 0 0 6 98 206 41 351 351 351 351 351 351 351 351 0.00% 0.00% 1.71% 27.92% 58.69% 11.68% 100.00% Cardiology–Intravascular Ultrasound Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Cardiology–Nuclear Cardiology Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total • 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 various types 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. ▶▶ Bar Code Technology This section tracks the use of bar code technology across eight different hospital departments/functions. Bar coding technology is most widely used in the laboratory as more than 85 percent of U.S. hospitals had a laboratory bar coding system in place in 2012. During this past year, the market penetration all of the bar code technologies tracked by HIMSS Analytics increased. Medication administration and pharmacy administration demonstrated the largest increases, at eight and seven percent respectively (see Table BC1). Bar code technology is least likely to be used for fixed assets/ equipment tracking, as only seven percent of U.S. hospitals use bar codes in this area. The use of bar code technology for patient registration applications is expected to grow as these applications support a very key area of the hospital, point-of-care medication administration. With respect to bar coding purchasing plans, medication administration once again tops the list (31 percent of all U.S. hospitals) (see Table BC2). The projected use of the other bar coding technologies increased from 2011 to 2012. Ta ble BC1 | Bar Coding (Current) Count 2010 Percent Count 2011 Percent Count 2012 Percent 165 3,442 1,981 1,868 390 2,602 2,098 3.91% 81.62% 46.98% 44.30% 9.25% 61.70% 49.75% 212 3,519 2,101 2,096 497 2,825 2,122 5.03% 83.45% 49.82% 49.70% 11.79% 66.99% 50.32% 281 3,605 2,207 2,447 594 3,119 2,153 6.66% 85.49% 52.34% 58.03% 14.09% 73.96% 51.06% N=4,217 Fixed Assets/Equipment Tracking Laboratory Materials Management Medication Administration Patient Registration Pharmacy Administration Radiology Ta ble BC 2 | Bar Coding (Planned) Count 2010 Percent Count 2011 Percent Count 2012 Percent 62 195 325 1,549 90 908 138 1.47% 4.62% 7.71% 36.73% 2.13% 21.53% 3.27% 96 209 351 1,468 120 848 145 2.28% 4.96% 8.32% 34.81% 2.85% 20.11% 3.44% 115 221 368 1,304 131 694 156 2.73% 5.24% 8.73% 30.92% 3.11% 16.46% 3.70% N=4,217 Fixed Assets/Equipment Tracking Laboratory Materials Management Medication Administration Patient Registration Pharmacy Administration Radiology Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 65 ▶▶ Bar Code Technology con tinued Use of bar coding technologies is expected to increase for a multiplicity of reasons. For example, bar coding supports patient safety efforts by ensuring hospitals follow the “five rights” of medication administration (right patient, right dose, right drug, right time and right route). Bar coding is also associated with automated medication administration that is an “assistive technology” used in conjunction with an eMAR, which is a Stage 2 Meaningful Use requirement for any acute care hospital with an average daily census of greater than nine patients. 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 experience. • Stage 2 ARRA Meaningful Use requirements which require the use of assistive technologies in conjunction with an eMAR for medication administration processes. • The growing use of bar code usage in blood tracking and blood administration. • The need to 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 adoption of RFID technologies in patient tracking and material management, which may begin to reduce some growth of bar code technologies in these applications over the next several years. ▶▶ Electronic Medical Record Environment HIMSS Analytics monitors the following seven applications as part of the EMR application suite: clinical data repository; clinical decision support system; computerized practitioner order entry; order entry; patient portal; physician documentation; physician portal. These applications have the ability to significantly impact clinical outcomes, patient safety and efficiency 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). All of the applications in this suite grew in their market penetration in the past year. The highest increases were for CPOE (over ten percentage points), physician documentation (seven percentage points) and physician portal (over five percentage points). All other Ta ble E MR1 | Electronic Medical Record N=4,217 2010 2011 Clinical Data Repository 88.24% 91.11% Clinical Decision Support Systems (CDSS) 85.72% 88.62% Computerized Practitioner Order Entry (CPOE) 56.58% 67.77% Order Entry (includes Order Communication) 91.65% 93.64% Patient Portal 41.71% 50.34% Physician Documentation 53.17% 61.80% Physician Portal 42.87% 50.75% Percentages include installed, contracted or installation in process 2012 94.00% 91.25% 78.35% 95.26% 54.59% 68.98% 56.27% applications, except general order entry, increased by at least 2.5 percentage points (see Table EMR1). General order entry is reaching market saturation (over 95 percent penetration) and may become an obsolete application as hospitals adopt CPOE applications in place of legacy systems. Clinical data repositories are also nearing market saturation, rising to 94 percent in 2012. The majority of purchases for CPOE and physician documentation solutions will be made by hospitals that are planning to purchase this technology for the first time. The remaining applications in the EMR segment have more replacement than first time purchase plans (see Table EMR2). An evaluation of this market from 2011 to 2012 by hospital type reveals the following highlights: • CDR: the rural and critical hospital segments had the highest growth rates between 2011 and 2012 at around seven percentage points each, while single hospital systems showed growth of over five percentage points (see Table EMR3). Academic medical centers reached full market penetration in 2010 and have seen no changes since then. • Clinical decision support: the highest increases from 2011 to 2012 were in the rural and critical access segments, each at nearly seven percentage points (see Table EMR4). Growth in the single hospital segment was over 5.5 percentage points. Ta ble E MR 2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Clinical Data Repository 71 71.00% Clinical Decision Support Systems (CDSS) 68 70.83% Computerized Practitioner Order Entry (CPOE) 50 30.86% Order Entry (includes Order Communication) 67 72.04% Patient Portal 29 51.79% Physician Documentation 51 40.48% Physician Portal 29 64.44% Replacing = Statuses of live and operational, contracted/not yet installed and installation in process First time = Status of not automated 66 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. # of Hospitals Planning to Purchase Software for the First Time 29 28 112 26 27 75 16 % of Hospitals Planning to Purchase Software for the First Time 29.00% 29.17% 69.14% 27.96% 48.21% 59.52% 35.56% N = Total Number of Hospitals Planning 100 96 162 93 56 126 45 ▶▶ Electronic Medical Record Environment con tinue d • CPOE: all hospital segments except academic hospitals increased CPOE implementation by at least eight percentage points (see Table EMR5). At 96 percent, implementation is nearing market saturation in the academic medical center segment. Rural hospitals showed the highest increase with an 18 percentage point gain from 2011 to 2012. • Order entry: academic medical centers, medical surgical hospitals, non-critical access hospitals, urban hospitals and the multi-hospital system segments are highly saturated markets with market penetration of more than 95 percent (see Table EMR6). Critical access and rural hospitals indicated the highest growths with approximately 4.5 percentage point increases. • Patient Portal: from 2011 to 2012, there was an increase in market penetration in each hospital segment (see Table EMR7). Academic hospitals demonstrated the largest increase (six percentage points), followed closely by single hospital systems and critical access hospitals, each just over five percentage points. • Physician documentation: all hospital segments demonstrated growth from 2011 to 2012. Critical access, rural hospitals and single hospital systems indicated at least a ten percentage point increase (see Table EMR8). • Physician portal: the academic medical center segment demonstrated the greatest growth between 2011 and 2012 at almost nine percentage points (see Table EMR9). All other hospital segments showed increases of at least five percentage points. Academic medical centers and larger medical/surgical hospitals demonstrated the highest adoption rates in physician-focused applications (e.g. CPOE, physician documentation, physician portal). These organizations tend to have higher staffing levels of residents and hospitalists, who are generally required to use the clinical applications for patient care. Critical access and rural hospitals showed higher adoption increases as they continue to expand their EMR application capabilities and increasingly adopt the role of hospitalists. Ta ble e mr3 | Clinical Data Repository 2010 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 3,543 2,332 1,389 811 2,910 693 3,028 2,426 1,295 3,721 Percent 100.00% 87.72% 95.11% 78.70% 70.64% 94.82% 71.00% 93.43% 93.56% 79.74% 88.24% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,664 2,361 1,481 889 2,953 763 3,079 2,459 1,383 3,842 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 173 3,564 2,343 1,394 884 2,853 761 2,976 2,380 1,357 3,737 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 165 2,693 1,710 1,148 631 2,227 500 2,358 1,834 1,024 2,858 Percent 100.00% 90.72% 96.29% 83.91% 77.44% 96.22% 78.18% 95.00% 94.83% 85.16% 91.11% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 178 3,786 2,399 1,565 969 2,995 835 3,129 2,492 1,472 3,964 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 175 3,673 2,373 1,475 961 2,887 827 3,021 2,400 1,448 3,848 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 170 3,134 1,972 1,332 799 2,505 677 2,627 2,046 1,258 3,304 Percent 100.00% 93.74% 97.84% 88.67% 84.41% 97.59% 85.55% 96.54% 96.10% 90.64% 94.00% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble e mr4 | Clinical Decision Support System (CDSS) 2010 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 3,441 2,297 1,318 811 2,804 699 2,916 2,339 1,276 3,615 Percent 97.75% 85.19% 93.68% 74.67% 70.64% 91.37% 71.62% 89.97% 90.20% 78.57% 85.72% 2011 Percent 97.19% 88.24% 95.55% 78.98% 77.00% 92.96% 77.97% 91.82% 91.79% 83.56% 88.62% 2012 Percent 98.31% 90.94% 96.78% 83.57% 83.71% 94.07% 84.73% 93.21% 92.56% 89.16% 91.25% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble e mr5 | Computerized Practitioner Order Entry (CPOE) 2010 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 2,226 1,437 949 452 1,934 358 2,028 1,639 747 2,386 Percent 89.89% 55.11% 58.61% 53.77% 39.37% 63.02% 36.68% 62.57% 63.21% 46.00% 56.58% 2011 Percent 92.70% 66.67% 69.74% 65.04% 54.97% 72.56% 51.23% 72.76% 70.73% 63.05% 67.77% 2012 Source: HIMSS Analytics® Database 2012 Percent 95.51% 77.59% 80.42% 75.47% 69.60% 81.62% 69.36% 81.06% 78.90% 77.46% 78.35% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ©2013 HIMSS Analytics. 67 ▶▶ Electronic Medical Record Environment con tinue d Ta ble e mr6 | Order Entry (includes Order Communication) 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 177 3,688 2,373 1,492 905 2,960 788 3,077 2,471 1,394 3,865 Percent 99.44% 91.31% 96.78% 84.53% 78.83% 96.45% 80.74% 94.94% 95.30% 85.84% 91.65% 2011 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,772 2,400 1,549 954 2,995 823 3,126 2,508 1,441 3,949 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 124 1,999 1,503 620 373 1,750 311 1,812 1,578 545 2,123 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 153 2,453 1,618 988 516 2,090 420 2,186 1,745 861 2,606 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 127 2,013 1,490 650 385 1,755 329 1,811 1,459 681 2,140 Percent 99.44% 93.39% 97.88% 87.76% 83.10% 97.59% 84.32% 96.45% 96.72% 88.73% 93.64% 2012 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 177 3,840 2,413 1,604 1,006 3,011 866 3,151 2,523 1,494 4,017 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 135 2,167 1,613 689 436 1,866 357 1,945 1,666 636 2,302 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 161 2,748 1,767 1,142 637 2,272 538 2,371 1,880 1,029 2,909 Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Segment Count 143 2,230 1,623 750 465 1,908 396 1,977 1,586 787 2,373 Percent 99.44% 95.07% 98.41% 90.88% 87.63% 98.11% 88.73% 97.22% 97.30% 92.00% 95.26% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble e mr7 | Patient Portal 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 109 1,650 1,259 500 298 1,461 241 1,518 1,347 412 1,759 Percent 61.24% 40.85% 51.35% 28.33% 25.96% 47.61% 24.69% 46.84% 51.95% 25.37% 41.71% 2011 Percent 69.66% 49.49% 61.30% 35.13% 32.49% 57.02% 31.86% 55.91% 60.86% 33.56% 50.34% 2012 Percent 75.84% 53.65% 65.78% 39.04% 37.98% 60.80% 36.58% 60.01% 64.25% 39.16% 54.59% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble e mr8 | Physician Documentation 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 145 2,097 1,383 859 393 1,849 316 1,926 1,560 682 2,242 Percent 81.46% 51.92% 56.40% 48.67% 34.23% 60.25% 32.38% 59.43% 60.16% 42.00% 53.17% 2011 Percent 85.96% 60.73% 65.99% 55.98% 44.95% 68.10% 43.03% 67.45% 67.30% 53.02% 61.80% 2012 Percent 90.45% 68.04% 72.06% 64.70% 55.49% 74.03% 55.12% 73.16% 72.50% 63.36% 68.98% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 Ta ble e mr9 | Physician Portal 2010 Type Academic/Teaching Non- Academic Med/Surg Other Critical Access Non- Critical Access Rural Urban Multi-Hospital System Single Hospital System All Segment Count 119 1,689 1,296 512 280 1,528 242 1,566 1,262 546 1,808 Percent 66.85% 41.82% 52.85% 29.01% 24.39% 49.79% 24.80% 48.32% 48.67% 33.62% 42.87% 2011 68 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 71.35% 49.84% 60.77% 36.83% 33.54% 57.18% 33.71% 55.88% 56.27% 41.93% 50.75% 2012 Percent 80.34% 55.21% 66.19% 42.49% 40.51% 62.17% 40.57% 61.00% 61.16% 48.46% 56.27% Total Count 178 4,039 2,452 1,765 1,148 3,069 976 3,241 2,593 1,624 4,217 ▶▶ Electronic Medical Record Environment con tinue d Analysis of the EMR market by bed size in 2012 indicates that CPOE demonstrated the highest growth across almost the majority of bed segments. The exceptions being the 301–400 and over 600 bed segments. CPOE and physician documentation showed five percentage point growth in the 401–500 beds segment while CPOE, patient portal and physician documentation showed six percentage point growth in the 501–600 bed segment. The following provides an analyses of growth from 2011 to 2012 by hospital bed size (see Tables EMR10–EMR16): • 0–100 beds: CPOE had the highest growth in this segment at almost 13 percentage points, while physician documentation grew by nearly ten percentage points. Physician portal showed the third highest growth in this segment with a six percentage point increase. • 101–200 beds: CPOE adoption grew by nearly 11 percentage points, followed by physician documentation (4.6 percentage points). • 201–300 beds: the highest growth in the past year was for CPOE (nearly eight percentage points) followed by physician portal (nearly six percentage points). • 301–400 beds: physician documentation and CPOE had similar growth (nearly six percentage points) from 2011 to 2012. Physician and patient portals also grew by more than five percentage points in the past year. • 401–500 beds: Use of CDR and clinical decision support software is nearly universal in this bed segment, and there was no growth in the past year. CPOE and patient portal each demonstrated growth of at least five percentage points in the past year. • 501–600 beds: Use of CDR, clinical decision support and order entry software is universal in this bed segment. CPOE, physician portal and patient portal each had a growth of six percentage points in this segment. • Over 600 beds: CDR, clinical decision support, CPOE and order entry have achieved market saturation. The highest growth in this segment was for physician portal (over eight percentage points), followed by CPOE and patient portal (each over 4.5 percentage points). Ta ble E MR10 0–100 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 1,714 2011 2012 % of 2,165 Hospitals 79.17% 1,828 84.43% 1,934 89.33% 1,659 76.63% 1,763 81.43% 1,859 85.87% 1,021 47.16% 1,298 59.95% 1,578 72.89% 1,853 643 934 626 85.59% 29.70% 43.14% 28.91% 1,928 807 1,124 819 89.05% 37.27% 51.92% 37.83% 1,990 896 1,336 951 91.92% 41.39% 61.71% 43.93% Ta ble E MR11 101–200 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 765 2011 % of 802 Hospitals 95.39% 771 96.13% 2012 784 97.76% 743 92.64% 753 93.89% 764 95.26% 451 56.23% 536 66.83% 623 77.68% 774 405 452 400 96.51% 50.50% 56.36% 49.88% 780 489 529 457 97.26% 60.97% 65.96% 56.98% 784 515 566 488 97.76% 64.21% 70.57% 60.85% Ta ble E MR12 201–300 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 475 2011 % of 483 Hospitals 98.34% 476 98.55% 2012 479 99.17% 466 96.48% 471 97.52% 472 97.72% 328 67.91% 376 77.85% 414 85.71% 474 259 322 274 98.14% 53.62% 66.67% 56.73% 477 310 366 312 98.76% 64.18% 75.78% 64.60% 480 334 384 340 99.38% 69.15% 79.50% 70.39% Ta ble E MR13 301–400 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 2011 % of 312 Hospitals 312 100.00% 312 100.00% 2012 312 100.00% 299 95.83% 302 96.79% 303 97.12% 216 69.23% 253 81.09% 270 86.54% 311 174 197 194 99.68% 55.77% 63.14% 62.18% 310 202 220 213 99.36% 64.74% 70.51% 68.27% 309 218 238 227 99.04% 69.87% 76.28% 72.76% Ta ble E MR14 401–500 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 2011 % of 188 Hospitals 188 100.00% 188 100.00% 2012 188 100.00% 185 98.40% 185 98.40% 185 98.40% 146 77.66% 157 83.51% 167 88.83% 186 106 123 133 98.94% 56.38% 65.43% 70.74% 187 125 136 143 99.47% 66.49% 72.34% 76.06% 187 135 145 151 99.47% 71.81% 77.13% 80.32% Ta ble E MR15 501–600 Beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 2011 % of 116 Hospitals 116 100.00% 116 100.00% 116 100.00% 115 99.14% 115 99.14% 115 99.14% 93 80.17% 99 85.34% 106 91.38% 116 100.00% 71 61.21% 91 78.45% 80 68.97% 116 100.00% 80 68.97% 96 82.76% 83 71.55% 2012 116 100.00% 87 75.00% 100 86.21% 90 77.59% Ta ble E MR16 Over 600 beds Clinical Data Repository Clinical Decision Support Systems (CDSS) Computerized Practitioner Order Entry (CPOE) Order Entry (includes Order Communication) Patient Portal Physician Documentation Physician Portal 2010 2011 % of 151 Hospitals 151 100.00% 151 100.00% 2012 151 100.00% 148 98.01% 148 98.01% 150 99.34% 151 100.00% 139 92.05% 146 96.69% 151 100.00% 101 66.89% 123 81.46% 101 66.89% 151 100.00% 110 72.85% 135 89.40% 113 74.83% Source: HIMSS Analytics® Database 2012 151 100.00% 117 77.48% 140 92.72% 126 83.44% ©2013 HIMSS Analytics. 69 ▶▶ Electronic Medical Record Environment con tinue d Over three-quarters of all applications in the EMR segment were contracted after 2000 (see Tables EMR17–EMR19). The majority of contracts for patient portal and physician portal were signed in 2010 or later. The availability of ARRA incentives are expected to drive higher adoption rates for CPOE, physician documentation, patient portal and physician portal through 2016 as hospitals strive to meet Meaningful Use criteria. Ta ble E MR17 # for Contract Range Clinical Data Repository Prior to 1990 17 1990 to 1994 89 1995 to 1999 386 2000 to 2004 838 2005 to 2009 795 2010 to 2012 529 Total 2,654 Clinical Decision Support System (CDSS) Prior to 1990 15 1990 to 1994 85 1995 to 1999 332 2000 to 2004 694 2005 to 2009 760 2010 to 2012 523 Total 2,409 Computerized Practitioner Order Entry (CPOE) Prior to 1990 2 1990 to 1994 90 1995 to 1999 43 2000 to 2004 449 2005 to 2009 681 2010 to 2012 767 Total 2,032 Total Responding % of Total Responding 2,654 2,654 2,654 2,654 2,654 2,654 2,654 0.64% 3.36% 14.56% 31.60% 29.98% 19.95% 100.00% 2,409 2,409 2,409 2,409 2,409 2,409 2,409 0.63% 3.56% 13.91% 29.07% 31.84% 21.91% 100.00% 2,032 2,032 2,032 2,032 2,032 2,032 2,023 0.10% 4.45% 2.13% 22.19% 33.66% 37.91% 100.00% Total Responding % of Total Responding 2,898 2,898 2,898 2,898 2,898 2,898 2,898 1.38% 6.80% 15.36% 31.54% 26.36% 18.56% 100.00% 181 181 181 181 181 181 181 0.00% 0.00% 0.55% 10.50% 14.36% 67.96% 100.00% Ta ble E MR18 # for Contract Range Order Entry (includes Order Communication) Prior to 1990 40 1990 to 1994 197 1995 to 1999 445 2000 to 2004 914 2005 to 2009 764 2010 to 2012 538 Total 2,898 Patient Portal Prior to 1990 0 1990 to 1994 0 1995 to 1999 1 2000 to 2004 19 2005 to 2009 38 2010 to 2012 123 Total 181 70 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Ta ble E MR19 Physician Documentation Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total Physician Portal Prior to 1990 1990 to 1994 1995 to 1999 2000 to 2004 2005 to 2009 2010 to 2012 Total # for Contract Range Total Responding % of Total Responding 3 92 48 457 563 677 1,840 1,840 1,840 1,840 1,840 1,840 1,840 1,840 0.16% 5.00% 2.61% 24.85% 30.61% 36.81% 100.00% 0 6 20 187 277 358 848 848 848 848 848 848 848 848 0.00% 0.71% 2.36% 22.08% 32.70% 42.27% 100.00% Market Drivers/Future Outlook The EMR environment market has been or will most 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. • While Stage 2 Meaningful Use has raised the bar on all the Stage 1 measures for EMR use, clearly there is a strong intent to increase “patient engagement” as a way to begin tackling the chronic disease issues in the country. We see this as another Meaningful Use driver for portal adoption. • 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. • Increased purchasing of physician practices which 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. • Tight capital markets which may 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 acute care 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. HIMSS Analytics collects data on healthcare IT deployments and uses this data to measure the degree of deployment of core technologies and processes that support an electronic medical record environment. This model, which uses an algorithm to score more than 5,300 U.S. acute care hospitals, demonstrates consistent upward movement among U.S. hospitals (see Figure EMRAM1). This same algorithm-based technique is used to measure movement towards an EMR environment in Canada, Europe, the Middle East and Asia. 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 and radiology) are installed. Stage 2: Major ancillary clinical systems feed orders and results data to a 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: Clinical documentation (e.g., vital signs, flow sheets, nursing notes, and the eMAR) is required; care plan charting is scored with extra points, and is implemented and integrated with the CDR for at least one service or one unit in the hospital. Some level of medical image access from radiology picture archive and communication systems (R-PACS) is available to physicians via the organization’s intranet or other secure networks outside of the radiology department confines. If clinical documentation (e.g., vital signs, flow sheets, nursing notes, and eMAR) is implemented for one inpatient service area and completed the previous stages, then this stage has been achieved. Stage 4: 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 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 and 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 clinical decision support. 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 R-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 HIE (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). A comparison of the EMRAM scores for U.S. hospitals by individual stage for the third quarter of 2012 as compared to year end 2011 final numbers is shown in Figure EMRAM1. Continuing trends from previous years, hospitals in Stages 4 through 6 increased from end of year 2011 to the Q3 of 2012, while the percentage of hospitals in Stages 0 to 3 have decreased in the same timeframe showing that hospitals are moving up the EMRAM stages. 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 number of U.S. Stage 7 hospitals increased slightly from 2011 to 2012, while the number of U.S. hospitals in Stage 3 decreased by almost three percent. 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). Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 71 ▶▶ The EMR Adoption ModelSM: Measuring Clinical IT Transformation con tinue d Figure EMRAM1: US EMR Adoption Model SM Stage Cumulative Capabilities 2011 Final 2012 Q3 Stage 7 Complete EMR; CCD transactions to share data; Data warehousing; Data continuity with ED, ambulatory, OP 1.2% 1.8% Stage 6 Physician documentation (structured templates), full CDSS (variance & compliance), full R-PACS 5.2% 7.3% Stage 5 Closed loop medication administration 8.4% 12.0% Stage 4 CPOE, Clinical Decision Support (clinical protocols) 13.2% 14.2% Stage 3 Nursing/clinical documentation (flow sheets), CDSS (error checking), PACS available outside Radiology 44.9% 41.3% Stage 2 CDR, Controlled Medical Vocabulary, CDS, may have Document Imaging; HIE capable 12.4% 11.2% Stage 1 Ancillaries - Lab, Rad, Pharmacy - All Installed 5.7% 4.8% Stage 0 All Three Ancillaries Not Installed 9.0% 7.4% N = 5,337 N = 5,319 Data from HIMSS AnalyticsTM Database ©2012 The EMRAM scores of U.S. hospitals have moved positively since 2008, as Stages 4 through 7 have increased while Stages 0 through 3 have decreased. The following is a representation of a five-year trend (see Table EMRAM1): Ta ble E MR A M1 Stage 7 Stage 6 Stage 5 Stage 4 Stage 3 Stage 2 Stage 1 Stage 0 N 2008 (Q4) 0.3% 0.5% 2.5% 2.5% 35.7% 31.4% 11.5% 15.6% 5,168 2009 (Q4) 0.7% 1.6% 3.8% 7.4% 50.9% 16.9% 7.2% 11.5% 5,235 2010 (Q4) 1.0% 3.2% 4.5% 10.5% 49.0% 14.6% 7.1% 11.5% 5,281 2011 (Q4) 1.2% 5.2% 8.4% 13.2% 44.9% 12.4% 5.7% 9.0% 5,337 2012 (Q3) 1.8% 7.3% 12.0% 14.2% 41.3% 11.2% 4.8% 7.4% 5,319 A more comprehensive evaluation of the U.S. hospital EMRAM model is presented in the HIMSS Analytics’ Essentials of the U.S. Hospital IT Market quarterly reports. It is also worth noting that in 2012, seven critical access hospitals (all with 25 and under bed size and all part of an integrated delivery system) have attained Stage 7 status. Additionally, a free standing hospital with 82 beds also achieved Stage 7. This clearly demonstrates that achieving Stage 7 of the EMRAM model is not exclusively the purview of large hospitals. An evaluation of U.S. hospitals by type, bed size and region (see Table EMRAM2) with 2012 data shows that: • Among all hospital types, academic medical centers had the highest mean and median EMRAM scores; this hospital segment is also the only group that has both a median and mean score of 4.000. This is followed by general medical/surgical and urban hospitals. This is unchanged from previous Annual Reports. 72 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. • A positive correlation continues between larger bed hospitals and high EMRAM average and median scores. Hospitals in both the 501 to 600 bed segment and the over 600 bed segment categories have achieved both a median and average score of at least four. Hospitals with fewer than 100 beds have the lowest mean and median scores. • The New England region had the highest mean and median score by region, as also reported in previous years. New England is also the only region to have both a median and mean score of four. The Mountain and West South Central regions have hospitals with the lowest average and median scores. The East South Central region is the only region that does not have a hospital that has achieved Stage 7. Ta ble E MR A M2 Segment Hospital Type Segment Academic/Teaching Non-Academic General Medical/Surgical Others (Non-General Medical/Surgical) 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 Over 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 4.5386 3.4372 3.7575 3.0686 2.8370 3.6660 3.5982 3.2731 2.8503 0.3870 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 7.0710 7.0710 7.0710 7.0710 7.0710 7.0710 7.0710 7.0710 7.0390 4.3270 3.3670 3.4300 3.2225 3.1990 3.4150 3.3900 3.3640 3.2100 207 5,112 3,177 2,142 1,193 4,126 3,387 1,932 1,333 3.0229 3.6841 4.0363 4.0817 4.1525 4.4725 4.5214 0.0000 0.0000 0.0000 0.0810 2.0540 2.1700 2.1020 7.0710 7.0710 7.0710 7.0710 7.0710 7.0710 7.0710 3.2220 3.4140 3.4620 3.4620 3.5340 4.3160 4.3000 2,779 970 613 400 222 144 191 3.7730 3.1427 3.6997 3.0790 4.3040 3.6038 3.6680 3.4461 3.0203 0.0000 0.0000 0.0050 0.0000 0.2400 0.0000 0.0000 0.0000 0.0000 7.0710 6.0710 7.0390 7.0630 7.0630 7.0710 7.0710 7.0710 7.0390 3.4380 3.3340 3.4150 3.2670 4.2310 3.3680 3.4225 3.4150 3.2310 843 447 481 421 199 583 790 713 839 3.4801 0.0000 7.0710 3.3830 5,319 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 ▶▶ The EMR Adoption ModelSM: Measuring Clinical IT Transformation con tinue d An analysis of the EMRAM scores by individual U.S. state shows that seven states (Rhode Island, Vermont, Maine, Minnesota, Connecticut, Massachusetts and Iowa) have median scores above 4.0000. Montana and District of Columbia have median EMRAM scores below 3, the lowest reported (see Table EMR3). Ta ble E MR A M3 State Rhode Island Vermont Maine Minnesota Connecticut Massachusetts Iowa Delaware Virginia Maryland Illinois Wisconsin Washington New Jersey Michigan Indiana Missouri Alaska Colorado North Carolina Alabama Georgia Florida Pennsylvania Oregon South Carolina Utah South Dakota Idaho Tennessee New York Ohio Hawaii Kentucky New Hampshire West Virginia California Nebraska Arizona New Mexico Texas Louisiana Oklahoma Arkansas Nevada Mississippi Wyoming Kansas North Dakota District of Columbia Montana Mean 4.7805 4.9062 4.5703 4.1482 4.2186 4.3003 3.9563 4.3137 4.3354 4.1783 3.9257 3.9177 3.7755 3.7200 3.9086 3.6542 3.7895 3.7316 3.3341 3.5571 3.2861 3.4860 3.6388 3.7130 3.7692 3.5681 3.0502 3.3348 3.1915 3.2744 3.6785 3.5077 3.0211 3.2623 3.5188 3.2907 3.5652 3.0087 3.6851 3.0383 3.1401 2.8118 2.8168 2.9856 2.5724 2.6988 3.1957 2.5744 2.6142 2.6105 2.0988 Min 0.3870 3.4160 3.2070 0.0000 1.0790 0.2400 0.0050 2.6370 2.0390 0.0810 0.0450 0.0550 0.0000 0.1900 0.0050 0.0000 0.0250 0.0050 0.0150 0.0100 0.0000 0.0000 0.0640 0.0050 0.0420 0.2400 0.0000 0.0000 0.0000 0.0000 0.0850 0.0000 0.0050 0.0480 2.0860 0.0700 0.0000 0.0100 0.0610 0.0000 0.0000 0.0180 0.0000 0.0350 0.0000 0.0000 0.0200 0.0000 0.0250 1.0000 0.0000 Max 6.0710 6.0710 6.0710 7.0710 6.0710 7.0630 7.0710 7.0470 7.0710 6.0710 7.0710 7.0710 6.0710 6.0710 6.0710 7.0550 7.0550 6.0710 7.0470 6.0710 5.1640 6.0710 7.0710 7.0390 7.0230 6.0710 5.1180 6.0710 6.0560 6.0710 6.0710 7.0710 7.0470 6.0710 6.0470 6.0630 7.0710 7.0080 7.0630 6.0310 7.0390 6.0710 6.0710 6.0710 7.0160 6.0710 7.0390 6.0480 6.0710 4.2920 6.0310 Median 6.0320 5.1100 4.3140 4.2690 4.2300 4.2160 4.0230 3.6200 3.5400 3.5180 3.4700 3.4700 3.4540 3.4465 3.4395 3.4380 3.4310 3.4310 3.4300 3.4220 3.4220 3.4215 3.4175 3.4160 3.4150 3.4150 3.3830 3.3740 3.3580 3.3510 3.3500 3.3420 3.3420 3.3300 3.3260 3.3175 3.3085 3.2900 3.2820 3.2800 3.2570 3.2270 3.2150 3.2060 3.1700 3.1665 3.1620 3.1540 3.0900 2.6305 2.1670 Number 11 14 37 136 33 78 121 9 83 48 197 137 94 84 160 143 132 17 84 121 98 158 240 195 61 71 49 53 43 140 202 206 23 107 26 50 388 87 82 38 486 147 121 85 42 102 27 139 45 10 56 For additional information about EMRAM, go to the link shown below: http://www.himssanalytics.org/emram/index.aspx The first incentive payments were issued in May 2011, for Meaningful Use Stage 1 achievement measured in late 2010. Data that compares the growth of EMR adoption over the five quarters that followed showed an admirable growth in EMRAM Stages 5 and 6 of more than 80 percent with more than 66 percent in Stage 7. Concomitantly, there was a 16 percent to 27 percent decrease in Stages 0, 1 and 2, the lower, elementary stages of the EMRAM. We believe this indicates that the incentive program is clearly working to motivate hospitals to invest in healthcare IT to improve quality and safety while earning incentive payments. However, while the rate of progress is commendable and vital to the long-term “health” of health care, much more work remains to be accomplished if the government’s goal of 70 percent of the U.S. healthcare providers is to achieve meaningful criteria by the end of 2015 (see Figure EMRAM2). Figure EMRAM2: US EMR Adoption Model SM Stage Cumulative Capabilities 2011 Q2 2012 Q3 Stage 7 Complete EMR; CCD transactions to share data; Data warehousing; Data continuity with ED, ambulatory, OP 1.1% 1.8% Stage 6 Physician documentation (structured templates), full CDSS (variance & compliance), full R-PACS 4.0% 7.3% Stage 5 Closed loop medication administration 6.1% 12.0% Stage 4 CPOE, Clinical Decision Support (clinical protocols) 12.3% 14.2% Stage 3 Nursing/clinical documentation (flow sheets), CDSS (error checking), PACS available outside Radiology 46.3% 41.3% Stage 2 CDR, Controlled Medical Vocabulary, CDS, may have Document Imaging; HIE capable 13.7% 11.2% Stage 1 Ancillaries - Lab, Rad, Pharmacy - All Installed .6% 4.8% Stage 0 All Three Ancillaries Not Installed 10.0% 7.4% N = 5,310 N = 5,310 Data from HIMSS AnalyticsTM Database ©2012 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 73 ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment In 2012, HIMSS Analytics streamlined our data collection efforts in the ambulatory market to focus on applications of greatest interest to the IT vendor community. As a result, this report no longer includes data on ambulatory laboratory, pharmacy and radiology systems, and will instead just report on the following three applications: Ambulatory EMR (A-EMR), Ambulatory PACS, and Practice Management. Since the Meaningful Use definition will be introduced in three stages through 2015, and providers can qualify for the full value of the incentive if they are fully qualified before the end of 2012, it is reasonable to assume that A-EMR first time purchases will continue to increase over the next few years as the data in the following tables demonstrates. Of the applications tracked in the hospital-owned/managed ambulatory IT market, the A-EMR software application market reflected the most positive market penetration gains this past year (see Table AH1). It is reasonable to assume that A-EMR growth can be traced to hospitals and clinics having a better understanding of the ARRA Meaningful Use metrics released in 2010. The ambulatory PACS market penetration decreased by less than one percent this past year, while practice management growth was negligible given this market reflecting near market saturation levels (95 percent or better) in the hospital owned/managed clinic environment. However, if the demand continues to sustain, we remain concerned about whether the industry has the number of implementation professionals that will be required to meet the ARRA Meaningful Use measurements for 2013 and beyond. More than three-quarters of purchasing plans for practice management applications are projected to be replacement purchases (see Table AH2), whereas A-EMR and ambulatory PACS continue to primarily reflect first time purchasers. Ta ble A H1 | Ambulatory N = 19,649 2010 2011 Ambulatory EMR 57.37% 62.71% Ambulatory PACS* 62.32% 60.10% Practice Management 96.62% 97.40% Percentages include installed, contracted or installation in process *N = 3,461 only includes ambulatory facilities that offer on-site imaging 2012 70.04% 59.43% 97.43% An evaluation of the urban vs. rural and multi- vs. single hospital system ownership/management market segments of ambulatory facilities provides the following insights: • A-EMR: ambulatory facilities owned/managed by rural hospitals demonstrated the highest growth year-over-year at more than 11 percentage points (see Table AH3). Ambulatory facilities owned/managed by a single hospital system segment demonstrated growth of approximately ten percentage points. Growth in the urban and multi-hospital owned/managed segments was between five and seven percentage points. • Ambulatory PACS: the rural market segment for ambulatory facilities showed the highest growth rates, at just less than one percentage point. Single hospital system owned/managed ambulatory facilities had the largest market penetration decrease of nearly three percentage points (see Table AH4). Ta ble A H2 | 2012 # of Hospitals % of Hospitals with Installed with Installed Software–Replacing Software–Replacing Ambulatory EMR 85 23.04% Ambulatory PACS 1 11.11% Practice Management 119 78.81% Replacing = Statuses of live and 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 284 8 32 % of Hospitals Planning to Purchase Software for the First Time 76.96% 88.89% 21.19% N = Total Number of Hospitals Planning 369 9 151 Ta ble A H3 | Ambulatory EMR 2010 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 1,093 10,180 7,562 3,711 11,273 Percent 50.70% 58.19% 59.54% 53.40% 57.37% 2011 Total Count 2,156 17,493 12,700 6,949 19,649 Segment Count 1,233 11,088 8,152 4,169 12,321 Total Count 242 3,219 2,402 1,059 3,461 Segment Count 99 1,981 1,462 618 2,080 Total Count 2,156 17,493 12,700 6,949 19,649 Segment Count 2,051 17,088 12,437 6,702 19,139 Percent 57.19% 63.39% 64.19% 59.99% 62.71% 2012 Total Count 2,156 17,493 12,700 6,949 19,649 Segment Count 1,483 12,279 8,885 4,877 13,762 Total Count 242 3,219 2,402 1,059 3,461 Segment Count 101 1,956 1,468 589 2,057 Total Count 2,156 17,493 12,700 6,949 19,649 Segment Count 2,052 17,093 12,403 6,742 19,145 Percent 68.78% 70.19% 69.96% 70.18% 70.04% Total Count 2,156 17,493 12,700 6,949 19,649 Ta ble A H4 | Ambulatory PACS* 2010 Segment Type Count Rural 108 Urban 2,049 Multi-Hospital System 1,547 Single Hospital System 610 All 2,157 * Only includes ambulatory facilities doing imaging on site Percent 44.63% 63.65% 64.40% 57.60% 62.32% 2011 Percent 40.91% 61.54% 60.87% 58.36% 60.10% 2012 Percent 41.74% 60.76% 61.12% 55.62% 59.43% Total Count 242 3,219 2,402 1,059 3,461 Ta ble A H5 | Practice Management 2010 Type Rural Urban Multi-Hospital System Single Hospital System All Segment Count 2,033 16,951 12,337 6,647 18,984 Percent 94.29% 96.90% 97.14% 95.65% 96.62% 2011 74 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Percent 95.13% 97.68% 97.93% 96.45% 97.40% 2012 Percent 95.18% 97.71% 97.66% 97.02% 97.43% Total Count 2,156 17,493 12,700 6,949 19,649 ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment con tinue d • Practice management: market penetration for practice management is over 95 percent in all segments. Growth for all segments was less than one percentage point (see Table AH5). More than three-quarters of the contracts for A-EMR were signed between 2005 and 2012. Nearly 80 percent of ambulatory PACS contracts were signed between 2000 and 2009 (see Table AH6). More than half of the contract activity for practice management solutions occurred in 2004 or prior. The applications contracted before 2000 may be entering a stage when the hospitals begin to evaluate them for replacement. The impending deadline for conversion to ICD-10 diagnostic coding will require a major upgrade to these legacy practice management applications. The one year extension of the ICD-10 implementation was welcomed by the physician community as this was the market segment that needed more time to adapt to the new coding requirement. In our view, the next two years will see an increase in purchasing activity for updating practice management among these facilities. Ta ble A H9 # for Contract Range Ambulatory EMR Prior to 1990 0 1990 to 1994 42 1995 to 1999 216 2000 to 2004 1,321 2005 to 2009 3,477 2010 to 2012 1,883 Total 6,939 Ambulatory PACS* Prior to 1990 0 1990 to 1994 0 1995 to 1999 14 2000 to 2004 163 2005 to 2009 224 2010 to 2012 87 Total 488 Practice Management Prior to 1990 129 1990 to 1994 455 1995 to 1999 1,521 2000 to 2004 3,253 2005 to 2009 2,972 2010 to 2012 1,741 Total 10,071 * Based on ambulatory facilities doing imaging on site Total Responding % of Total Responding 6,939 6,939 6,939 6,939 6,939 6,939 6,939 0.00% 0.61% 3.11% 19.04% 50.11% 27.14% 100.00% 488 488 488 488 488 488 488 0.00% 0.00% 2.87% 33.40% 45.90% 17.83% 100.00% 10,071 10,071 10,071 10,071 10,071 10,071 10,071 1.28% 4.52% 15.10% 32.30% 29.51% 17.29% 100.00% 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 A-EMR implementations or recover A-EMR 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. • 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. • Completion of practice management system upgrades in time for the ICD-10 implementation deadline. • The likely increase use of hospital PACS systems by tethered (ambulatory facilities owned, operated and/or managed by a hospitals) ambulatory facilities and thus a decrease of free standing PACS environments. • Growing efforts of HIE projects, and the ability to create, manage, and exchange patient summary data from all modalities of patient care. • 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 A-EMR and the provisions of Meaningful Use Stage 2 to increase patient engagement. • 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. Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 75 ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment con tinue d The Ambulatory EMR Adoption ModelSM HIMSS Analytics launched the Ambulatory EMR Adoption ModelSM (A-EMRAM) in 2012 to monitor EMR adoption in ambulatory settings. Since there is such wide variation in ambulatory care settings, we strive to apply the A-EMRAM to the following care delivery environment: where there is a patient and care giver encounter where the care giver is licensed to asses, diagnose, document findings and impressions, generate orders and prescribe medications. This patient and care giver encounter does not necessarily have to be face to face, but it must include a care giver whose license and scope of practice includes the ability to asses, diagnose, document findings and impressions, generate orders and prescribe medications. Similar to the hospital EMRAM, this model uses an algorithm to score ambulatory facilities owned, operated and/or managed by a hospital (a.k.a. tethered facility). The A-EMRAM creates a framework for dialogue among ambulatory facilities by focusing on the systems which will provide higher levels of access, quality, efficiency and safety. Ambulatory EMR Adoption ModelSM The stages of the model are as follows: Scoring Format An Ambulatory 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 and functions that have been implemented before the higher stage has been fully achieved. In this model all applications and functions in previous stages and the current stage must be achieved before the current stage score is achieved. For example, if an ambulatory facility uses electronic messaging for intra-office communication (Stage 3), but has not yet implemented all of the components required for an Ambulatory EMR (Stage 2), then the ambulatory facility would be scored as a Stage 2 ambulatory and the four digits after the stage designation would identify the weighted points that had been achieved for implementing intra-office electronic messaging (2.nnnn). As with the hospital EMRAM, there is a validation process for Stage 6 and Stage 7 ambulatories to confirm the facility’s capabilities. Fig. AEMRAM1: Ambulatory EMR Adoption Model SM 2012 Q3 Stage 0: There is no EMR at all; paper charts are the only means of storing and accessing clinical information (even if there is a computerized billing system). Stage Cumulative Capabilities Stage 7 HIE capable, sharing of data between the EMR and community based EHR, business and clinical intelligence 0.00% Stage 1: Access to limited clinical information available through computers for doctors and nurses; information is from multiple data sources, no CDR functionality. Stage 6 Advanced clinical decision support, proactive care management, structured messaging 0.81% Stage 5 Personal health record, online tethered patient portal 2.13% Stage 2: Computers may be at point-of-care; orders and results are beginning to feed a CDR; results from outside facilities made available on-line. Stage 4 CPOE, use of structured data for accessibility in EMR and internal and external sharing of data 0.24% Stage 3 Electronic messaging, computers have replaced the paper chart, clinical documentation and clinical decision support 7.59% Stage 3: Nursing/clinical documentation charting includes vitals, nursing intake assessment, encounter procedures with clinical decision support; electronic messaging utilized; computers have replaced paper charts; Problem lists, e-prescribing utilized and all medications tracked for medication reconciliation. Stage 2 Beginning of a CDR with orders and results, computers may be at point-of-care, access to results from outside facilities Stage 2 Desktop access to clinical information, unstructured data multiple data sources, intra-office/informal messaging 4.29% Stage 0 Paper chart based 53.77% Stage 4: CPOE and physician documentation; discrete structured data used in EMR; electronic growth charts supported where appropriate, data shared both internally and externally. Stage 5: Online patient portal; personal health record created. Stage 6: Advanced 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; structured messaging in use for communication; proactive care management; follow-up notices sent directly to patients are initiated by flags set by provider. Stage 7: Patient data/information is easily exchanged between the inpatient, out-patient, and emergency department domains. 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 HIE (i.e., hospitals, other ambulatory clinics, sub-acute environments, employers, payers and patients). 76 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Data from HIMSS AnalyticsTM Database ©2012 30.54% N = 14,872 An overall profile of A-EMRAM scores by tethered U.S. ambulatory facilities for the third quarter of 2012 is shown in Figure AEMRAM1. The majority of ambulatory facilities (53.8 percent) still rely on paper based charts. Thirty (30) percent of scored ambulatories are Stage 3, showing increased use of computers for documenting care. No ambulatory site has achieved Stage 7 and less than one percent of all scored facilities have reached Stage 6. In subsequent Annual Reports, comparison between years will be made. An evaluation of U.S. ambulatories by healthcare system type and region (see Table AEMRAM1) with 2012 data shows that: • Ambulatory facilities that are part of an IDS had the highest mean and median A-EMRAM scores compared to facilities that are associated with single hospital organization. Nearly twothirds of all ambulatory facilities included in this sample are part of a multi-hospital healthcare system. • The West North Central region had the highest mean score by region. New England had the highest median score and the second highest mean score. The lowest average score is in the East South Central region. The lowest median score was seen in the East South Central and West South Central regions. ▶▶ Ambulatory (Hospital Owned/Managed) IT Environment con tinue d Ta ble A E MR A M1 Segment Hospital Type Segment IDS Independent Hospital 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 Ambulatories Total Ta ble A E MR A M2 Mean Min Median Number 1.20346 0.00000 6.21500 0.15500 0.98925 0.00000 6.17500 0.06600 9,427 5,445 1.24456 0.77785 1.01284 1.11020 1.28528 1.16493 1.04261 1.34047 0.78774 0.18700 0.03100 0.06400 1.03200 1.03500 0.25800 0.05400 1.03200 0.03100 3,154 713 1,947 893 995 1,477 2,344 2,183 1,166 1.12503 0.00000 6.21500 0.10800 14,872 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Max 6.19500 5.14000 3.26900 3.26600 3.21200 6.17500 5.21500 6.19500 6.21500 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 An evaluation of the A-EMRAM scores by individual U.S. state reveals that 16 states have median scores above 2.00000. Virginia, Maine and New Hampshire have the highest median scores. The District of Columba, Minnesota and Virginia each have average scores above 2.00000, the three highest average A-EMRAM. Rhode Island has the lowest mean and median scores and is ranked 50th of all the U.S. states and District of Columbia (see Table AEMRAM2). For additional information about A-EMRAM, go to the link shown below: http://www.himssanalytics.org/emram/AEMRAM.aspx The year 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 and we anticipate this trend will further accelerate in 2013. However, while the rate of progress is commendable and vital to the long-term “health” of health care, much more work remains to be accomplished if the government’s goal of 70 percent of the U.S. healthcare providers is to achieve meaningful criteria by the end of 2015. State Virginia Maine New Hampshire Wisconsin Hawaii New Mexico Idaho Minnesota Utah District of Columbia Iowa Pennsylvania Oregon Ohio North Dakota Washington Massachusetts Maryland Nevada Illinois Connecticut South Dakota South Carolina Oklahoma California Indiana Arkansas Montana Missouri New York Wyoming Michigan Mississippi Vermont Arizona Colorado Nebraska Florida Georgia Kentucky North Carolina Kansas Tennessee Louisiana Texas West Virginia Alabama Alaska New Jersey Delaware Rhode Island Mean 2.13581 1.68731 1.61433 1.58376 1.73169 1.29698 1.49682 2.30576 1.94325 2.60462 1.32649 1.23048 1.41315 1.22700 1.75407 1.29264 1.17901 1.49273 1.06246 1.60910 0.81581 1.00295 0.36012 0.71163 1.04695 0.99505 0.38573 0.38526 1.07922 0.92832 1.05947 0.60603 0.87734 0.80876 0.62123 0.92707 0.70725 0.53492 0.82164 0.79596 0.71442 0.68019 0.88289 1.50221 0.74376 0.80465 0.51024 0.52082 0.37095 0.14792 0.02520 Min 0.00000 0.00000 0.01100 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Source: HIMSS Analytics® Database 2012 Max 5.21500 3.11200 3.21200 6.19500 3.26600 2.25500 3.17600 6.19500 2.07100 5.14500 3.13000 3.23600 3.26600 5.14000 6.19500 4.12700 3.20600 5.14500 2.04900 6.16500 3.14700 3.18600 2.08300 2.21500 6.17500 2.17400 3.23100 2.12300 6.18500 3.26900 3.13000 5.12000 3.20900 3.18400 3.19500 3.26600 2.21300 3.22000 3.26600 5.14000 3.13000 6.18500 2.23300 6.21500 6.19500 2.24600 2.23300 2.06000 2.13500 2.13500 0.05900 Median 2.27100 2.12000 2.11700 2.06200 2.06000 2.05800 2.05600 2.05500 2.05400 2.03900 2.03900 2.03700 2.03200 2.01950 2.01000 2.00500 1.05600 1.04900 1.04500 1.03500 0.52650 0.12000 0.08900 0.08100 0.07600 0.07600 0.07600 0.06400 0.06300 0.04800 0.04300 0.04000 0.03900 0.03900 0.03900 0.03500 0.03450 0.03200 0.03100 0.03100 0.03100 0.03100 0.03050 0.03000 0.03000 0.02300 0.01800 0.01100 0.01100 0.01100 0.01100 Number 432 200 203 597 29 50 138 502 156 21 308 932 205 617 81 370 383 219 59 874 131 223 289 249 851 438 167 82 657 805 30 628 174 68 195 183 191 342 429 216 493 221 175 157 593 80 148 22 210 39 10 ©2013 HIMSS Analytics. 77 ▶▶ Appendix Applications 0–100 Beds 2011 2012 % of 2,165 hospitals % of 2,165 hospitals 101–200 Beds 2011 2012 % of 802 hospitals % of 802 hospitals 201–300 Beds 2011 2012 % of 483 hospitals % of 483 hospitals Abstracting 2,031 93.81% 2,057 95.01% 798 99.50% 801 99.88% 483 100.00% 483 100.00% Accounts Payable 2,160 99.77% 2,160 99.77% 802 100.00% 802 100.00% 483 100.00% 483 100.00% ADT/Registration 2,152 99.40% 2,152 99.40% 801 99.88% 801 99.88% 483 100.00% 483 100.00% Anatomical Pathology 734 33.90% 819 37.83% 607 75.69% 625 77.93% 437 90.48% 441 91.30% Bed Management 510 23.56% 586 27.07% 323 40.27% 368 45.89% 263 54.45% 285 59.01% 1,769 81.71% 1,803 83.28% 779 97.13% 782 97.51% 475 98.34% 475 98.34% Benefits Administration Blood Bank 963 44.48% 963 44.48% 682 85.04% 690 86.03% 458 94.82% 460 95.24% 1,597 73.76% 1,647 76.07% 724 90.27% 725 90.40% 441 91.30% 441 91.30% Business Intelligence–Financial 694 32.06% 789 36.44% 408 50.87% 443 55.24% 255 52.80% 278 57.56% Cardiology–Cath Lab 128 5.91% 143 6.61% 334 41.65% 357 44.51% 300 62.11% 316 65.42% Budgeting Cardiology–CT (Computerized Tomography) 124 5.73% 144 6.65% 234 29.18% 257 32.04% 189 39.13% 203 42.03% Cardiology–Echocardiology 232 10.72% 273 12.61% 340 42.39% 377 47.07% 273 56.52% 284 58.80% Cardiology–Intravascular Ultrasound 109 5.03% 129 5.96% 202 25.19% 226 28.18% 185 38.30% 196 40.58% Cardiology–Nuclear Cardiology 134 6.19% 157 7.25% 207 25.81% 232 28.93% 174 36.02% 193 39.96% Cardiology Information System 348 16.07% 384 17.74% 520 64.84% 527 65.71% 378 78.26% 382 79.09% Case Mix Management 1,500 69.28% 1,547 71.45% 727 90.65% 731 91.15% 441 91.30% 443 91.72% Chart Deficiency 1,857 85.77% 1,908 88.13% 791 98.63% 796 99.25% 481 99.59% 482 99.79% Chart Tracking/Locator 1,824 84.25% 1,864 86.10% 789 98.38% 787 98.13% 476 98.55% 474 98.14% Clinical Data Repository 1,828 84.43% 1,934 89.33% 771 96.13% 784 97.76% 476 98.55% 479 99.17% Clinical Decision Support System (CDSS) 1,763 81.43% 1,859 85.87% 753 93.89% 764 95.26% 471 97.52% 472 97.72% 293 13.53% 199 9.19% 140 17.46% 99 12.34% 109 22.57% 85 17.60% Computerized Practitioner Order Entry (CPOE) 1,298 59.95% 1,578 72.89% 536 66.83% 623 77.68% 376 77.85% 414 85.71% Contract Management 1,193 55.10% 1,258 58.11% 622 77.56% 638 79.55% 390 80.75% 397 82.19% Cost Accounting 1,228 56.72% 1,265 58.43% 615 76.68% 627 78.18% 408 84.47% 407 84.27% Credit/Collections 1,889 87.25% 1,937 89.47% 776 96.76% 780 97.26% 465 96.27% 469 97.10% 755 34.87% 859 39.68% 437 54.49% 467 58.23% 280 57.97% 297 61.49% Computer Assisted Coding Data Warehousing/Mining–Financial Data Warehousing/Mining–Clinical 581 26.84% 682 31.50% 363 45.26% 399 49.75% 249 51.55% 271 56.11% DBMS 1,149 53.07% 1,194 55.15% 615 76.68% 628 78.30% 381 78.88% 392 81.16% Dictation 1,832 84.62% 1,880 86.84% 779 97.13% 784 97.76% 471 97.52% 474 98.14% 544 25.13% 640 29.56% 382 47.63% 419 52.24% 285 59.01% 310 64.18% 50.93% Dictation with Speech Recognition Disaster Recovery 719 33.21% 787 36.35% 358 44.64% 410 51.12% 217 44.93% 246 Document Management 1,335 61.66% 1,429 66.00% 614 76.56% 646 80.55% 403 83.44% 413 85.51% EDI-Cleaninghouse Vendor 1,770 81.76% 1,842 85.08% 699 87.16% 717 89.40% 422 87.37% 432 89.44% Electronic Forms Management 1,031 47.62% 1,259 58.15% 485 60.47% 531 66.21% 315 65.22% 325 67.29% Electronic Medication Administration Record (eMAR) 1,544 71.32% 1,730 79.91% 651 81.17% 700 87.28% 428 88.61% 443 91.72% Emergency Department Systems 1,355 62.59% 1,518 70.12% 709 88.40% 730 91.02% 459 95.03% 469 97.10% Encoder 2,026 93.58% 2,048 94.60% 799 99.63% 801 99.88% 483 100.00% 483 100.00% Encryption 997 46.05% 1,129 52.15% 524 65.34% 568 70.82% 330 68.32% 359 74.33% Enterprise Master Person Index (EMPI) 900 41.57% 956 44.16% 482 60.10% 514 64.09% 297 61.49% 311 64.39% Enterprise Resource Planning 335 15.47% 376 17.37% 204 25.44% 229 28.55% 152 31.47% 169 34.99% 1,228 56.72% 1,280 59.12% 567 70.70% 577 71.95% 344 71.22% 353 73.08% 577 26.65% 639 29.52% 323 40.27% 342 42.64% 217 44.93% 237 49.07% Firewall 1,346 62.17% 1,455 67.21% 609 75.94% 635 79.18% 382 79.09% 397 82.19% General Ledger 2,159 99.72% 2,159 99.72% 802 100.00% 802 100.00% 483 100.00% 483 100.00% Executive Information Systems Financial Modeling Infection Surveillance System 432 19.95% 571 26.37% 252 31.42% 317 39.53% 200 41.41% 241 49.90% 1,663 76.81% 1,636 75.57% 600 74.81% 592 73.82% 381 78.88% 372 77.02% Intensive Care 746 34.46% 816 37.69% 538 67.08% 568 70.82% 360 74.53% 385 79.71% Interface Engines 967 44.67% 1,053 48.64% 551 68.70% 580 72.32% 363 75.16% 374 77.43% 18.84% In-House Transcription Laboratory–Molecular Diagnostics 119 5.50% 141 6.51% 118 14.71% 134 16.71% 83 17.18% 91 Laboratory–Outreach Services 331 15.29% 406 18.75% 223 27.81% 263 32.79% 179 37.06% 202 41.82% Laboratory Information System 2,094 96.72% 2,117 97.78% 802 100.00% 802 100.00% 483 100.00% 483 100.00% Materials Management 2,060 95.15% 2,077 95.94% 799 99.63% 799 99.63% 483 100.00% 482 99.79% Medical Necessity Checking Content 1,072 49.52% 1,143 52.79% 540 67.33% 576 71.82% 328 67.91% 342 70.81% 910 42.03% 1,281 59.17% 402 50.12% 497 61.97% 294 60.87% 317 65.63% 1,356 62.63% 1,416 65.40% 757 94.39% 759 94.64% 472 97.72% 473 97.93% 826 38.15% 999 46.14% 426 53.12% 478 59.60% 285 59.01% 310 64.18% Medication Reconciliation Microbiology Nurse Call System Nurse Staffing/Scheduling Nursing Documentation Obstetrical Systems (Labor and Delivery) 993 45.87% 970 44.80% 614 76.56% 615 76.68% 417 86.34% 414 85.71% 1,622 74.92% 1,792 82.77% 695 86.66% 726 90.52% 441 91.30% 452 93.58% 627 28.96% 677 31.27% 541 67.46% 564 70.32% 348 72.05% 362 74.95% 78 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 301–400 Beds 2011 2012 % of 312 hospitals % of 312 hospitals 401–500 Beds 2011 2012 % of 188 hospitals % of 188 hospitals 501–600 Beds 2011 2012 % of 116 hospitals % of 116 hospitals Over 600 beds 2011 2012 % of 151 hospitals % of 151 hospitals 309 99.04% 310 99.36% 188 100.00% 188 100.00% 116 100.00% 115 99.14% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 115 99.14% 115 99.14% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 286 91.67% 294 94.23% 173 92.02% 174 92.55% 113 97.41% 114 98.28% 148 98.01% 148 98.01% 196 62.82% 207 66.35% 125 66.49% 129 68.62% 77 66.38% 84 72.41% 126 83.44% 132 87.42% 308 98.72% 309 99.04% 186 98.94% 186 98.94% 114 98.28% 114 98.28% 147 97.35% 148 98.01% 300 96.15% 301 96.47% 182 96.81% 183 97.34% 114 98.28% 114 98.28% 145 96.03% 147 97.35% 292 93.59% 291 93.27% 180 95.74% 180 95.74% 111 95.69% 111 95.69% 142 94.04% 142 94.04% 183 58.65% 195 62.50% 110 58.51% 120 63.83% 75 64.66% 77 66.38% 96 63.58% 103 68.21% 218 69.87% 234 75.00% 154 81.91% 155 82.45% 100 86.21% 99 85.34% 128 84.77% 130 86.09% 130 41.67% 140 44.87% 104 55.32% 106 56.38% 63 54.31% 65 56.03% 90 59.60% 98 64.90% 210 67.31% 222 71.15% 143 76.06% 150 79.79% 92 79.31% 92 79.31% 125 82.78% 128 84.77% 139 44.55% 146 46.79% 104 55.32% 109 57.98% 65 56.03% 70 60.34% 91 60.26% 101 66.89% 60.93% 126 40.38% 133 42.63% 93 49.47% 100 53.19% 66 56.90% 68 58.62% 85 56.29% 92 255 81.73% 264 84.62% 166 88.30% 168 89.36% 101 87.07% 102 87.93% 144 95.36% 143 94.70% 280 89.74% 280 89.74% 174 92.55% 174 92.55% 101 87.07% 104 89.66% 145 96.03% 146 96.03% 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 115 99.14% 151 100.00% 151 309 99.04% 308 98.72% 183 97.34% 182 96.81% 115 99.14% 113 97.41% 147 97.35% 147 97.35% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 166 100.00% 151 100.00% 151 100.00% 302 96.79% 303 97.12% 185 98.40% 185 98.40% 115 99.14% 115 99.14% 148 98.01% 150 99.34% 67 21.47% 52 16.67% 47 25.00% 36 19.15% 25 21.55% 26 22.41% 43 28.48% 42 27.81% 253 81.09% 270 86.54% 157 83.51% 167 88.83% 99 85.34% 106 91.38% 139 92.05% 146 96.69% 255 81.73% 264 84.62% 164 87.23% 163 86.70% 95 81.90% 100 86.21% 130 86.09% 134 88.74% 273 87.50% 272 87.18% 170 90.43% 170 90.43% 109 93.97% 109 93.97% 141 93.38% 140 92.72% 296 94.87% 297 95.19% 183 97.34% 182 96.81% 111 95.69% 111 95.69% 146 96.69% 147 97.35% 201 64.42% 210 67.31% 124 65.96% 133 70.74% 67 57.76% 69 59.48% 114 75.50% 117 77.48% 170 54.49% 179 57.37% 99 52.66% 111 59.04% 58 50.00% 65 56.03% 112 74.17% 120 79.47% 255 81.73% 260 83.33% 158 84.04% 163 86.70% 98 84.48% 100 86.21% 133 88.08% 136 90.07% 306 98.08% 309 99.04% 181 96.28% 183 97.34% 113 97.41% 113 97.41% 142 94.04% 145 96.03% 196 62.82% 208 66.67% 118 62.77% 126 67.02% 78 67.24% 86 74.14% 99 65.56% 112 74.17% 135 43.27% 150 48.08% 84 44.68% 97 51.60% 54 46.55% 64 55.17% 87 57.62% 94 62.25% 263 84.29% 267 85.58% 168 89.36% 169 89.89% 97 83.62% 103 88.79% 139 92.05% 141 93.38% 281 90.06% 285 91.35% 162 86.17% 166 88.30% 104 89.66% 106 91.38% 139 92.05% 144 95.36% 212 67.95% 224 71.79% 134 71.28% 138 73.40% 80 68.97% 85 73.28% 105 69.54% 110 72.85% 280 89.74% 286 91.67% 181 96.28% 183 97.34% 111 95.69% 111 95.69% 140 92.72% 145 96.03% 292 93.59% 295 94.55% 183 97.34% 183 97.34% 107 92.24% 108 93.10% 151 100.00% 151 100.00% 310 99.36% 311 99.68% 188 100.00% 188 100.00% 116 100.00% 115 99.14% 151 100.00% 151 100.00% 209 66.99% 225 72.12% 131 69.68% 140 74.47% 75 64.66% 84 72.41% 108 71.52% 116 76.82% 202 64.74% 209 66.99% 121 64.36% 127 67.55% 74 63.79% 77 66.38% 121 80.13% 124 82.12% 120 38.46% 132 42.31% 78 41.49% 84 44.68% 55 47.41% 58 50.00% 76 50.33% 83 54.97% 230 73.72% 235 75.32% 139 73.94% 141 75.00% 86 74.14% 87 75.00% 119 78.81% 119 78.81% 160 51.28% 166 53.21% 107 56.91% 108 57.45% 71 61.21% 75 64.66% 81 53.64% 89 58.94% 237 75.96% 244 78.21% 152 80.85% 157 83.51% 84 72.41% 90 77.59% 122 80.79% 126 83.44% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 115 99.14% 115 99.14% 151 100.00% 151 100.00% 69.54% 128 41.03% 156 50.00% 91 48.40% 102 54.26% 53 45.69% 65 56.03% 89 58.94% 105 235 75.32% 233 74.68% 141 75.00% 137 72.87% 95 81.90% 92 79.31% 122 80.79% 117 77.48% 220 70.51% 227 72.76% 143 76.06% 150 79.79% 99 85.34% 101 87.07% 133 88.08% 138 91.39% 248 79.49% 248 79.49% 162 86.17% 163 86.70% 102 87.93% 104 89.66% 136 90.07% 142 94.04% 81 25.96% 86 27.56% 52 27.66% 53 28.19% 34 29.31% 35 30.17% 80 52.98% 82 54.30% 139 44.55% 148 47.44% 83 44.15% 98 52.13% 54 46.55% 61 52.59% 91 60.26% 100 66.23% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 211 67.63% 224 71.79% 134 71.28% 138 73.40% 75 64.66% 84 72.41% 104 68.87% 111 73.51% 186 59.62% 208 66.67% 135 71.81% 142 75.53% 77 66.38% 88 75.86% 107 70.86% 121 80.13% 307 98.40% 306 98.08% 187 99.47% 187 99.47% 113 97.41% 113 97.41% 149 98.68% 150 99.34% 168 53.85% 189 60.58% 105 55.85% 116 61.70% 66 56.90% 77 66.38% 94 62.25% 106 70.20% 288 92.31% 288 92.31% 169 89.89% 166 88.30% 108 93.10% 110 94.83% 142 94.04% 144 95.36% 287 91.99% 291 93.27% 177 94.15% 180 95.74% 112 96.55% 113 97.41% 145 96.03% 149 98.68% 241 77.24% 241 77.24% 150 79.79% 150 79.79% 96 82.76% 98 84.48% 130 86.09% 131 86.75% Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. 79 ▶▶ Appendix con tinued 0–100 Beds 2011 2012 % of 2,165 hospitals % of 2,165 hospitals Applications Operating Room (Surgery)–Post-Operative 101–200 Beds 2011 2012 % of 802 hospitals % of 802 hospitals 201–300 Beds 2011 2012 % of 483 hospitals % of 483 hospitals 987 45.59% 1,109 51.22% 633 78.93% 656 81.80% 409 84.68% 420 Operating Room (Surgery)–Pre-Operative 1,037 47.90% 1,149 53.07% 660 82.29% 678 84.54% 434 89.86% 443 91.72% OR Scheduling 1,078 49.79% 1,185 54.73% 696 86.78% 705 87.91% 452 93.58% 458 94.82% Order Entry (includes Order Communications) 1,928 89.05% 1,990 91.92% 780 97.26% 784 97.76% 588 98.76% 480 99.38% Outcomes and Quality Management 1,247 57.60% 1,330 61.43% 660 82.29% 677 84.41% 407 84.27% 417 86.34% 474 21.89% 548 25.31% 286 35.66% 290 36.16% 196 40.58% 203 42.03% 2,158 99.68% 2,159 99.72% 802 100.00% 802 100.00% 482 99.79% 483 100.00% Patient Acuity (formerly Nurse Acuity) Patient Billing Patient Portal 86.96% 807 37.27% 896 41.39% 489 60.97% 515 64.21% 310 64.18% 334 69.15% Patient Scheduling 2,043 94.36% 2,066 95.43% 794 99.00% 797 99.38% 480 99.38% 482 99.79% Payroll 2,125 98.15% 2,134 98.57% 800 99.75% 800 99.75% 482 99.79% 482 99.79% Personnel Management 1,762 81.39% 1,795 82.91% 785 97.88% 785 97.88% 477 98.76% 478 98.96% Pharmacy Management System 1,996 92.19% 2,043 94.36% 801 99.88% 802 100.00% 483 100.00% 483 100.00% Physician Documentation 1,124 51.92% 1,336 61.71% 529 65.96% 566 70.57% 366 75.78% 384 79.50% 819 37.83% 951 43.93% 457 56.98% 488 60.85% 312 64.60% 340 70.39% Physician Portal Radiology–Angiography 926 42.77% 960 44.34% 649 80.92% 661 82.42% 442 91.51% 447 92.55% Radiology–Computed Radiography (CR) 1,673 77.27% 1,751 80.88% 748 93.27% 753 93.89% 457 94.62% 460 95.24% Radiology–Computerized Tomography (CT) 1,697 78.38% 1,760 81.29% 749 93.39% 755 94.14% 469 97.10% 472 97.72% Radiology–Digital Fluoroscopy (DF) 1,240 57.27% 1,301 60.09% 705 87.91% 720 89.78% 447 92.55% 450 93.17% 75.16% Radiology–Digital Mammography 956 44.16% 1,087 50.21% 558 69.58% 592 73.82% 343 71.01% 396 Radiology–Digital Radiography (DR) 1,355 62.59% 1,404 64.85% 713 88.90% 716 89.28% 444 91.93% 442 91.51% Radiology–Magnetic Resonance Imaging (MRI) 1,492 68.91% 1,549 71.55% 734 91.52% 739 92.14% 461 95.45% 465 96.27% Radiology–Nuclear Medicine 1,268 58.57% 1,318 60.88% 729 90.90% 733 91.40% 459 95.03% 462 95.65% 706 32.61% 770 35.57% 463 57.73% 482 60.10% 295 61.08% 306 63.35% Radiology–Orthopedic Radiology–Ultrasound (US) 1,667 77.00% 1,726 79.72% 742 92.52% 748 93.27% 468 96.89% 470 97.31% Radiology Information System 1,960 90.53% 2,024 93.49% 793 57.73% 482 60.10% 482 99.79% 481 99.59% Respiratory Care Information System 849 39.21% 999 46.14% 455 56.73% 500 62.34% 290 60.04% 316 65.42% Single Sign-On 506 23.37% 604 27.90% 352 43.89% 389 48.50% 245 50.72% 261 54.04% 79.50% Spam Filter/ Spyware 1,244 57.46% 1,317 60.83% 568 70.82% 596 74.31% 366 75.78% 384 Staff Scheduling 655 30.25% 735 33.95% 443 55.24% 460 57.36% 311 64.39% 327 67.70% Telemedicine 574 26.51% 662 30.58% 204 25.44% 236 29.43% 128 26.50% 140 28.99% 1,953 90.21% 1,985 91.69% 785 97.88% 785 97.88% 474 98.14% 474 98.14% 671 30.99% 790 36.49% 348 43.39% 414 51.62% 239 49.48% 265 54.87% Time and Attendance Virtualization Software 0–100 Beds 2011 2012 % of 2,165 hospitals % of 2,165 hospitals Next Generation RCM Biller’s Dash Board 101–200 Beds 2011 2012 % of 802 hospitals % of 802 hospitals 201–300 Beds 2011 2012 % of 483 hospitals % of 483 hospitals 271 12.52% 294 13.58% 212 26.43% 217 27.06% 130 26.92% 142 29.40% 68 3.14% 108 4.99% 70 8.73% 83 10.35% 60 12.42% 70 14.49% Claims Remittance Updates AR 542 25.03% 641 29.61% 338 42.14% 373 46.51% 182 37.68% 223 46.17% Denial Rules 350 16.17% 378 17.46% 244 30.42% 273 34.04% 145 30.02% 150 31.06% Claims Attachment Rules Direct Payer Claims 730 33.72% 748 34.55% 346 43.14% 365 45.51% 208 43.06% 215 44.51% EFT Transaction 538 24.85% 606 27.99% 239 29.80% 268 33.42% 164 33.95% 185 38.30% Eligibility Transaction with Payer 581 26.84% 650 30.02% 256 31.92% 288 35.91% 160 33.13% 183 37.89% EMR Documentation for Claims 535 24.71% 583 26.93% 188 23.44% 206 25.69% 135 27.95% 153 31.68% Necessity Alert @ Registration 42 1.94% 39 1.80% 24 2.99% 21 2.62% 18 3.73% 19 3.93% Necessity Alert @ Scheduling 247 11.41% 252 11.64% 90 11.22% 100 12.47% 67 13.87% 71 14.70% Web PreRegister 329 15.20% 349 16.12% 122 15.21% 132 16.46% 89 18.43% 95 19.67% Web Schedule 366 16.91% 379 17.51% 122 15.21% 130 16.21% 82 16.98% 87 18.01% Web Self-Pay 542 25.03% 565 26.10% 198 24.69% 221 27.56% 130 26.92% 145 30.02% A mbulat ory Ambulatory EMR Practice Management A mbulat ory 2011 % of 19,649 Ambulatory Facilities 12,321 62.71% 19,139 97.40% 2012 % of 19,649 Ambulatory Facilities 13,762 70.04% 19,145 97.43% 80 Source: HIMSS Analytics® Database 2012 ©2013 HIMSS Analytics. Ambulatory PACS* 2011 % of 3,461 Ambulatory Facilities 2,080 60.10% *Only includes ambulatory facilities doing imaging on site 2012 % of 3,461 Ambulatory Facilities 2,057 59.43% 301–400 Beds 2011 2012 % of 312 hospitals % of 312 hospitals 401–500 Beds 2011 2012 % of 188 hospitals % of 188 hospitals 501–600 Beds 2011 2012 % of 116 hospitals % of 116 hospitals Over 600 beds 2011 2012 % of 151 hospitals % of 151 hospitals 277 88.78% 282 90.38% 170 90.43% 175 93.09% 107 92.24% 108 93.10% 146 96.69% 148 98.01% 287 91.99% 290 92.95% 178 94.68% 181 96.28% 110 94.83% 111 95.69% 148 98.01% 149 98.68% 295 94.55% 294 29.23% 183 97.34% 186 98.94% 114 98.28% 114 98.28% 151 100.00% 151 100.00% 310 99.36% 309 99.04% 187 99.47% 187 99.47% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 259 83.01% 264 84.62% 160 85.11% 163 86.70% 95 81.90% 98 84.48% 137 90.73% 137 90.73% 124 39.74% 130 41.67% 91 48.40% 92 48.94% 51 43.97% 53 45.69% 73 48.34% 77 50.99% 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 202 64.74% 218 69.87% 125 66.49% 135 71.81% 80 68.97% 87 75.00% 110 72.85% 117 77.48% 311 99.68% 311 99.68% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 312 100.00% 312 100.00% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 220 70.51% 238 76.28% 136 72.34% 256 77.13% 96 82.76% 100 86.21% 135 89.40% 140 92.72% 213 68.27% 227 72.76% 143 76.06% 151 80.32% 83 71.55% 90 77.59% 113 74.83% 126 83.44% 289 92.63% 292 93.59% 182 96.81% 182 96.81% 113 97.41% 113 97.41% 151 100.00% 151 100.00% 301 69.47% 303 97.17% 182 97.34% 183 97.34% 115 99.14% 115 99.14% 150 99.34% 150 99.34% 304 97.44% 305 97.76% 186 98.94% 186 98.94% 115 99.14% 115 99.14% 151 100.00% 151 100.00% 295 94.55% 298 95.51% 180 95.74% 180 95.74% 114 98.28% 114 92.28% 147 97.35% 151 100.00% 236 75.64% 252 80.77% 147 78.19% 150 79.79% 95 81.90% 101 87.07% 128 84.77% 131 86.75% 295 94.55% 299 95.83% 182 96.81% 182 96.81% 114 98.28% 111 95.69% 149 98.68% 150 99.34% 302 96.79% 304 97.44% 184 97.87% 185 98.40% 115 99.14% 115 99.14% 150 99.34% 150 99.34% 299 95.83% 302 96.79% 183 97.34% 184 97.87% 113 97.41% 113 97.41% 147 97.35% 147 97.35% 193 61.86% 207 66.35% 139 73.94% 143 76.06% 79 68.10% 79 68.10% 121 80.13% 121 80.13% 302 96.79% 303 97.12% 186 98.94% 186 98.94% 115 99.14% 115 99.14% 151 100.00% 151 100.00% 311 99.68% 311 99.68% 188 100.00% 188 100.00% 116 100.00% 116 100.00% 151 100.00% 151 100.00% 187 59.94% 203 65.06% 130 69.15% 141 75.00% 74 63.79% 81 69.83% 114 75.50% 120 79.47% 150 48.08% 174 55.77% 86 45.74% 96 51.06% 59 50.86% 65 56.03% 92 60.93% 100 66.23% 233 74.68% 241 77.24% 145 77.13% 152 80.85% 82 70.69% 86 74.14% 122 80.79% 127 84.11% 222 71.15% 232 74.36% 129 68.62% 137 72.87% 80 68.97% 87 75.00% 118 78.15% 123 81.46% 91 29.17% 102 32.69% 59 31.38% 65 34.57% 43 37.07% 47 40.52% 68 45.03% 79 52.32% 306 98.08% 306 98.08% 186 98.94% 185 98.40% 113 97.41% 115 99.14% 150 99.34% 150 99.34% 160 51.28% 175 56.09% 103 54.79% 113 60.11% 58 50.00% 71 61.21% 91 60.26% 102 67.55% 301–400 Beds 2011 2012 % of 312 hospitals % of 312 hospitals 401–500 Beds 2011 2012 % of 188 hospitals % of 188 hospitals 501–600 Beds 2011 2012 % of 116 hospitals % of 116 hospitals Over 600 beds 2011 2012 % of 151 hospitals % of 151 hospitals 81 25.96% 83 26.60% 45 23.94% 51 27.13% 34 29.31% 36 31.03% 39 25.83% 41 27.15% 44 14.10% 50 16.03% 16 8.51% 22 11.70% 12 10.34% 21 18.10% 22 14.57% 31 20.53% 124 39.74% 143 45.83% 77 40.96% 86 45.74% 53 45.69% 66 56.90% 55 36.42% 72 47.68% 95 30.45% 103 33.01% 64 34.04% 65 34.57% 30 25.86% 34 29.31% 48 31.79% 51 33.77% 44.37% 144 46.15% 153 49.04% 93 49.47% 88 46.81% 46 39.66% 52 44.83% 63 41.72% 67 100 32.05% 111 35.58% 73 38.83% 79 42.02% 42 36.21% 48 41.38% 55 36.42% 62 41.06% 101 32.37% 114 36.54% 75 39.89% 81 43.09% 42 36.21% 49 42.24% 63 41.72% 69 45.70% 85 27.24% 99 31.73% 66 35.11% 74 39.36% 35 30.17% 41 35.34% 46 30.46% 49 32.45% 16 5.13% 14 4.49% 9 4.79% 7 3.72% 5 4.31% 7 6.03% 11 7.28% 12 7.95% 52 16.67% 57 18.27% 38 20.21% 38 20.21% 21 18.10% 21 18.10% 29 19.21% 34 22.52% 58 18.59% 67 21.47% 48 25.53% 49 26.06% 25 21.55% 25 21.55% 37 24.50% 40 26.49% 46 14.74% 52 16.67% 43 22.87% 44 23.40% 24 20.69% 25 21.55% 31 20.53% 35 23.18% 86 27.56% 97 31.09% 66 35.11% 69 36.70% 28 24.14% 30 25.86% 50 33.11% 56 37.09% Home He alt h Home Health Administrative Home Health Clinical 2011 % of 1,782 Home Health Facilities 1,723 96.69% 1,593 89.39% 2012 % of 1,782 Home Health Facilities 1,733 97.25% 1,629 91.41% 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 health and healthcare. Founded 52 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 52,000 individual members, of which more than two thirds work in healthcare provider, governmental and not-for-profit organizations. HIMSS also includes over 600 corporate members and more than 225 not-for-profit partner organizations that share our mission of transforming healthcare through the best 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 Analy tics 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: 978-1-938904-26-4 ISSN: 1949-0526 Order Code: 617