The latest KLAS report on the U.S. Acute Care Electronic Health Record (EHR) Market Share for 2024 reveals Epic Systems has significantly expanded its market presence, further distancing itself from competitors. The Wisconsin-based company saw the highest net market share increase, adding 153 new acute care clients and maintaining all existing customers. Epic now services more than half of the inpatient multispecialty beds across the United States.
Epic's Consistency Fuels Success as Competitors Face Record Client Losses
Epic's success can be attributed to its consistent high performance, robust healthcare IT solutions, and strong client relationships. These factors have made it the preferred choice for large organisations seeking to streamline workflows and improve clinician satisfaction. This trend is further evidenced by major health systems and speciality organizations consolidating their IT systems under Epic. In contrast, Epic’s primary competitor, Cerner – now Oracle Health – experienced substantial client losses, marking the largest net hospital loss recorded. Oracle Health's slowdown was especially evident among smaller, independent hospitals. New Oracle Health clients in 2023 were largely motivated by integration improvements and leveraging Oracle’s broad technology platform.
Meditech and Smaller EHR Vendors Navigate Market Challenges in 2023
Meditech, another legacy EHR provider, faced a decline in retention rates in 2023, a significant shift from the previous year's peak. This decline was partly due to merger and acquisition activities and increased competitive pressures. Smaller EHR vendors had a mixed year. Altera Digital Health focused on its Paragon platform for smaller hospitals, gaining several new contracts. TruBridge, previously known as CPSI, added a few new customers and saw migrations from legacy systems. However, Azalea Health and Medhost did not secure any new contracts in 2023, reflecting reduced purchase energy among small standalone hospitals.
Major Health Systems Drive EHR Market Demand as Vendors Enhance Offerings
The overall trend indicates a shift in market dynamics, with major health systems driving EHR market demand, contrasting with the previous year's smaller hospital-driven growth. Vendors have enhanced their service offerings to retain clients, with Oracle Health and Epic incorporating new generative AI capabilities into their platforms. Significant health system migrations to Epic in 2023 included Intermountain and UPMC, as well as Boston Children's Hospital and Northwell Health, which moved from Allscripts to Epic.
KLAS researchers noted that acute care EHR purchasing remained robust in 2023, driven by large multispecialty and speciality organisations seeking to streamline IT and improve clinical usability. The report highlights the ongoing consolidation and competitive nature of the EHR market, with acquisition activity and clinical efficiency being key decision drivers.
Source: KLAS
Image Credit: CNBC
