According to a recent Health Data Management article based on KLAS reports, there were about 5,300 hospitals in the US at the end of 2016. The top 2 EMR vendors, Epic and Cerner, cornered about 50% of the market, while the top 8 captured over 90% of all hospitals with the following number of hospitals each.

Figure 1. Number and percent of hospitals by EMR vendor.

Figure 1. Number and percent of hospitals by EMR vendor.

Figure 1. Hospital EMR market share (number and percent) based on the number of hospitals using one of the top 8 hospital EMR vendors. 25.8% of hospitals use Epic, 24.7% of hospitals use Cerner, and altogether 91.6% use one of the top 8 hospital EMR vendors.

 

Company Total Percent
Epic 1363 25.8%
Cerner 1303 24.7%
Meditech 877 16.6%
CPSI 572 10.8%
McKesson 243 4.6%
MedHost 213 4.0%
Allscripts 183 3.5%
AthenaHealth 82 1.6%
Top 8 4836 91.6%
TOTAL 5279 100%

 

Epic and Cerner especially dominate the large hospital market, with about 80% of the hospitals with 600+ beds using their systems. At the 1-25 bed hospitals, interestingly, CPSI has market leadership, with Cerner and Epic following on its heels.

Figure 2. Top 8 hospital EMR vendor market share by hospital size based on total hospital EMR market coverage of 91.6%.

Vendor 1-25 beds 26-100 101-200 201-400 401-600 600+ beds
Allscripts 1.6% 3.2% 3.8% 5.2% 6.9% 9.0%
Athena Health 5.2% 1.7% 0.4% 0.2% 0.0% 0.0%
Cerner 22.2% 22.6% 28.4% 33.1% 35.7% 27.4%
CPSI 27.1% 17.6% 4.9% 1.1% 0.0% 0.0%
Epic 20.7% 23.6% 27.2% 33.3% 46.7% 57.4%
McKesson 4.8% 5.4% 6.9% 4.5% 1.7% 0.0%
MedHost 4.2% 8.1% 5.1% 1.2% 0.0% 0.0%
Meditech 14.1% 18.0% 23.3% 21.4% 9.0% 6.2%
TOTAL 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

 

The dominant market share of Epic and Cerner for the larger hospitals is not about to change in the near future. It was reported that in 2016, 13 out of 23 of contracts from integrated delivery networks went to Epic and about a quarter chose Cerner.

The tides may, however, be shifting longer term. Hospitals with fewer than 200 beds already started to opt for EMR vendors with web-based solutions, such as Meditech and AthenaHealth. Furthermore, KLAS reported that an increasing number of hospitals are starting to consider switching EMRs when they are faced with the need for upgrades. These undercurrents may change the profile of the EMR in the future. The question is how quickly this change will come.