Health IT Superstores Predicted
By John Pulley 11/11/10 04:46 pm ET
A few supersized companies will soon dominate the U.S. health IT market, according to a new market analysis report.
The market "is in the early phases of a massive consolidation that will ultimately devolve into a handful of mega firms that form healthcare IT superstores--or healthcare information networks," technology advisory firm Marlin & Associates said in a news release detailing key findings in its November market commentary, "Next Generation Healthcare Information Networks (HINs)."
The companies that emerge will set industry standards for health information networks--a welcome development in a market hampered by a "cacophony" of competing standards, the authors say. Standards set by the federal government are a good starting point, according to the report, which predicts that a "new breed of standard-setting companies" ultimately will take over that role from the government.
"From that position, [the standard-setters] will be positioned to provide comprehensive integrated information, analytics, communication, administrative, clinical and revenue-cycle management tasks all via a seamless network, accessed through the Web or dedicated terminals," according to the news release. The firm "envisions a future in which providers, payers and patients will be able to conduct the majority of their healthcare business through these ... information networks."
Users will most likely pay for health information networks, or HINs, through a toll fee for transactions, an access fee for data, or subscription-based pricing, according to the report.
"Payers have to invent new products and pricing such as pay-for-performance with providers or behavioral-based premiums for the consumers," said Afsaneh Naimollah, a partner at Marlin & Associates and co-author of the report. "It is the only way that they can stave off the commoditization train."
The authors interviewed 50 health IT companies and additional "thought leaders" as part of its research, reviewed government documents and white papers, and conducted several industry surveys throughout the year to produce the 69-page market commentary.
To read the M&A Report click REPORT
To read the news release click "Back to the Future: Healthcare Rebooted."