ChannelTrends: Healthcare IT Continues To Gain Momentum

At a recent industry conference, several solution providers expressed their concern that it was just too late for their companies to begin offering EMR and other healthcare-specific technologies. With so much buzz around the topic over the last two years (since the stimulus package was passed by Congress), they were convinced that the opportunities in this market had simply passed them by. But other solution providers in the room stressed that the supply of specialized services has, in no way, r ...
At a recent industry conference, several solution providers expressed their concern that it was just too late for their companies to begin offering EMR and other healthcare-specific technologies. With so much buzz around the topic over the last two years (since the stimulus package was passed by Congress), they were convinced that the opportunities in this market had simply passed them by. But other solution providers in the room stressed that the supply of specialized services has, in no way, reached the demand for healthcare technology.

EMR revenue reached $2,177 million in the U.S. in 2009 according to MarketReserch.com, and is expected to reach more than $6 billion by 2015—that’s an estimated 18.1% CAGR. It’s also just one piece of the healthcare IT opportunity. Though EMR incentives are a factor in getting medical offices to adopt technology change, it typically takes a comprehensive solution plan to close new deals in this space. These facilities could also benefit from managed services, secure backup and recovery, VoIP, print services, and a myriad of solutions that help them meet insurance and legal compliance requirements.

Medical practices and healthcare facilities are, after all, businesses. Their executive team and owners are often focused on process efficiency and cost containment, with a strong emphasis on patient care. Profitability is an underlying objective that solution providers should not lose sight of, as these organizations must remain fiscally healthy in order to carry out their altruistic missions. With those considerations in mind, regional MSPs and VARs are often better equipped to support the specific needs of their local healthcare community than their larger competitors are.

No Dominant Players

Competition is alive and well in the EMR community, with more than 1,000 vendors contending for the attention of healthcare professionals in the United States. That leaves solution providers with a number of portfolio options to help them win new contracts, even if another company is already somewhat entrenched in their market. If the offices are fairly numerous or diverse in one region, one or two competitors offering healthcare IT still could leave a tremendous opportunity for a third practice.

Monopolies may be profitable, but their clients often seek alternatives, leaving the door open for solution providers who can differentiate themselves from the established player. Many areas can support a number of specialized technology practices, with a significant population of medical specialists and facilities that require their unique services. In addition to primary care practices, solution providers may target a host of healthcare professionals with varying workflows, process and IT needs. That list includes orthopedics, dermatologists, psychiatrists, dentists and, yes, even funeral directors! Few may consider the last profession to be an actual medical practice, but they deal with a number of compliance issues and must pay special attention to their clients, the families of the deceased.

The Medical Community Needs Options

A good best practice is to assess the solution needs of medical professionals in your area, starting with the solution provider’s personal physician. This professional community is typically close-knit and most doctors are happy to point their patients in the right direction. Another market investigation tip is to contact the local medical society and find out which companies are offering healthcare IT solutions to their members. Even if the community appears to have a cluster of established providers, it’s still a good idea to build a relationship with these organizations to track industry developments and look for future opportunities.

Doctors are quickly warming to EMR, after a few years of lukewarm interest. The healthcare community is beginning to see the results of earlier implementations and how the technology can benefit their offices and patients. This is changing opinions, according to a survey conducted by GfK Roper (on behalf of Practice Fusion). In this study, more than half of physicians (54 percent) agreed that EMR is safer than paper patient files, while just 18 percent indicated paper is the safer option. Why do medical practitioners prefer electronic records? Nearly 2/3 of those surveyed (62%) indicated that access to medical records when needed was a critical benefit, which increases an office’s efficiency and can lead to improved patient care.

Resources Aplenty

You don’t have to break the bank or spend years building a productive healthcare IT practice. Several channel entities offer programs that will help solution providers get the skills and knowledge needed to be successful, including several vendors and distributors, as well as CompTIA. One of the latest additions to that group, the Ingram Micro Healthcare Partner Network, established a nationwide system of healthcare-focused VARs and MSPs. This offshoot of the Ingram Micro Services Network (IMSN) was designed to create joint healthcare market opportunities for the distributor’s channel partners, promoting shared services and additional revenue for all involved.

To build on its healthcare IT program success, CompTIA continues to add new resources and training tools for solution providers. The Healthcare IT Community has been hard at work on several fronts, including the recent addition of a healthcare technician certification and a number of educational initiatives for VARs and MSPs.

Solution providers can expect growth in both the number of healthcare practices interested in the latest technologies and the depth of opportunity within each office. Ignore the perception of a few; it’s not too late to start a new healthcare IT practice and all the rewards that come with it.

Brian Sherman is founder of Tech Success Communications, specializing in editorial content and consulting for the IT channel. His previous roles include chief editor at Business Solutions magazine and industry alliances director with Autotask. Contact Brian at Bsherman@techsuccesscommunications.com.

Email us at blogeditor@comptia.org for inquiries related to contributed articles, link building and other web content needs.

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