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Recent Acquisitions are Changing the Healthcare Software Landscape

Posted on February 26, 2018 I Written By

For the past twenty years, I have been working with healthcare organizations to implement technologies and improve business processes. During that time, I have had the opportunity to lead major transformation initiatives including implementation of EHR and ERP systems as well as design and build of shared service centers. I have worked with many of the largest healthcare providers in the United States as well as many academic and children's hospitals. In this blog, I will be discussing my experiences and ideas and encourage everyone to share your own as well in the comments.

Customers of many software solution have been nervously watching their solutions change hands, leading to increased concerns about the future of those products. Most recently, Allscripts surprised the industry first with the acquisition of Mckesson’s software solutions and now with the purchase of Practice Fusion. Last year, Hyland purchased the Perceptive and Brainware software products from Kofax, and now has purchased Mckesson OneContent from Allscripts. What do these changes mean for the industry and how should owners of these products react to their critical solutions changing hands?

Mergers and acquisitions are nothing new to the software industry. Epic, with its policy of developing entirely in-house and not acquiring other solutions, is the exception, not the rule. For most software companies, acquiring mature solutions to expand into a new market or to acquire customers is a standard method of growth. However, the recent rapid-fire acquisitions in the EHR and document imaging spaces have surprised many customers of those products.

McKesson announced the sunset of their Horizon clinical products years ago, positioning Paragon as its replacement. Yet that is only one of their package of solutions which includes OneContent for document imaging, STAR for billing, Relay Health for claims, Pathways for ERP, and others, many of which are all in use together at some hospitals. When Mckesson sold out its products to Allscripts, many questions came up about the future of those products.

When that deal was done, Allscripts gave the first hint of the product future by announcing that Mckesson Paragon would be their solution for smaller hospitals. That suggested the focus would be on Allscripts, not Paragon, as their go-forward solution. Now with the sale of OneContent to Hyland, Allscripts appears to be divesting itself of some of the Mckesson solutions. Others may soon follow.

Perceptive software was sold to Lexmark many years ago, which in turn acquired Kofax and then the solution was sold to its largest competitor, Hyland. Hyland, which is the developer of the Onbase product, now has purchased OneContent, and now has the customers of three large providers of document imaging solutions all under one roof.

How long will it make sense for them to continue to enhance three different competing solutions? While support may last for many years, there will be limitations to what they will enhance in these older solutions to avoid dividing up R&D resources and creating market confusion.

Allscripts now has a large number of older Mckesson solutions that it will have to evaluate and determine their future. While Practice Fusion may serve as a solution for smaller clinics who would not be candidates for Allscripts, Mckesson’s Paragon product is a direct competitor to Allscripts. Other solutions such as Pathways may simply not be worth further investment and may be outside of Allscript’s core mission.

Hospitals that currently have any solutions whose future is in doubt should start to evaluate their options and consider what is in their long-term interest. Each vendor will likely offer attractive paths to transition to their preferred solution, and it may be best to take advantage of those options early to give sufficient time to make the change.

Change is never easy. The employees of these organizations are going through significant change as are the users of these solutions. However, healthcare technology leaders should always be looking ahead to what’s next and be prepared for change – for change is the only thing that we are guaranteed.

Surescripts Deal Connects EMR Vendors And PBMs To Improve Price Transparency

Posted on November 22, 2017 I Written By

Anne Zieger is veteran healthcare branding and communications expert with more than 25 years of industry experience. and her commentaries have appeared in dozens of international business publications, including Forbes, Business Week and Information Week. She has also worked extensively healthcare and health IT organizations, including several Fortune 500 companies. She can be reached at @ziegerhealth or www.ziegerhealthcare.com.

I’m no expert on the pharmacy business, but from where I sit as a consumer it’s always looked to me as though pharmaceutical pricing is something of a shell game. It makes predicting what your airline ticket will cost seem like child’s play.

Yes, in theory, the airlines engage in demand-oriented pricing, while pharma pricing is based on negotiated prices spread among multiple contracted parties, but in either case end-users such as myself have very little visibility into where these numbers are coming from.  And in my opinion, at least, that’s not good for anyone involved. You can say “blah blah blah skin in the game” all you want, but co-pays are a poor proxy for making informed decisions as a patient as to what benefits you’ll accrue and problems you face when buying a drug.

Apparently, Surescripts hopes to change the rules to some degree. It just announced that it has come together with two other interest groups within the pharmacy supply chain to offer patient-specific benefit and price information to providers at the point of care.

Its partners in the venture include a group of EMR companies, including Cerner, Epic, Practice Fusion and Aprima Medical Software, which it says represent 53% of the U.S. physician base. It’s also working with two pharmacy benefit managers (CVS Health and Express Scripts) which embrace almost two-thirds of US patients.

The new Surescripts effort actually has two parts, a Real-Time Prescription Benefit tool and an expanded version of its Prior Authorization solution.  Used together, and integrated with an EHR, these tools will clarify whether the patient’s health insurance will cover the drug suggested by the provider and offer therapeutic alternatives that might come at a lower price.

If you ask me, this is clever but fails to put pressure on the right parties. You don’t have to be a pharmaceutical industry expert to know that middlemen like PBMs and pharmacies use a number of less-than-visible stratagems jack up drug prices. Patients are forced to just cope with whatever deal these parties strike among themselves.

If you really want to build a network which helps consumers keep prices down, go for some real disclosure. Create a network which gathers and shares price information every time the drug changes hands, up to and including when the patient pays for that drug. This could have a massive effect on drug pricing overall.

Hey, look at what Amazon did just by making costs of shipping low and relatively transparent to end-users. They sucked a lot of the transaction costs out of the process of shipping products, then gave consumers tools allowing them to watch that benefit in action.

Give consumers even one-tenth of that visibility into their pharmacy supply chain, and prices would fall like a hot rock. Gee, I wonder why nobody’s ever tried that. Could it be that pharmaceutical manufacturers don’t want us to know the real costs of making and shipping their product?

Hospital EHR

Posted on June 20, 2011 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 10 blogs containing over 8000 articles with John having written over 4000 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 16 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

To kick things off on the Hospital EHR and EMR blog, I decided I’d do a Google search for the term “hospital EHR.” I thought it would be fun to see what Google lists as the top resources online for hospital EHR software. I must admit that I’m mostly disappointed with the result.

There was a “Hospital EHR Adoption Database” for $3550. Sounds like a great deal, but I think HIStalk was putting out the info they had for free. At least that resource was from 2011 along with a couple KevinMD blog posts about hospital EHR. One of which was very recent. I guess Google’s rewarding it for being so recent.

I won’t go over all of the links. Some required a registration which I didn’t want to do. Others were from 2007 or talking about the hospital EHR certification being open for public comment. I did like this post by Fred Trotter about “What does it mean to have a hospital EHR?” That article is a little dated too, but I always love Fred’s in your face style of writing. He calls it the way he sees it and I love that about him.

I also have to admit that I was happy (and a bit surprised) that EMRandHIPAA.com had the category for Hospital EHR posts listed 10th on the Hospital EHR search as well. That’s particularly interesting, because I just created that category on EMRandHIPAA.com about 10 minutes before I did the search.

What’s probably more interesting is the EHR vendors and other EHR related companies that are advertising for the keyword Hospital EHR. Here’s a list of the EHR vendors that came up with my search:
Clear Practice
Athena Health
eClinicalWorks
Care 360 (Quest Diagnostics)
Allscripts
Practice Fusion

Pretty interesting list of “Hospital EHR.” Ok, I am being facetious. How many of those even have a hospital EHR software? Allscripts does. I think Athena Health and eClinicalWorks have some services for hospitals, but they don’t really get in the hospital EHR space. I think they are interested in the ACO stuff which is what the Athena Health ad was really about. I do find it interesting that none of the major hospital EHR software vendors are doing advertising on Google. Plus, it seems that some of the ambulatory EHR companies might want to work on their Google Ads targeting.

There were also 3 “EMR List” websites that had paid ads on there as well:
EMR Consultant
Business Software EMR List
Capterra

Then, it made sense why Accenture would want to sell their hospital EHR consulting services. I’m not sure what Bio Visual Tech is, but it was on there as well.

There you go. Now we’ve got this blog kicked off. It’s taken a while to get this blog started, but now we’re ready to go. In fact, I have 3 other writers that are planning to write on this blog. So, check back often to see the latest and greatest info on hospital EHR software.

If you have any must read resources and/or perspectives on the hospital EHR world, please do share them in the comments.