HIMSS11

Annual Conference and Exhibition:

April 2011

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The Frost & Sullivan Perspective on Top

Trends for the Health IT Industry

Conference Highlights and Key Takeways

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Table of Contents*

5Introduction

Slide

Conference Highlights 6

Thought Leader Opinions 9

Customer Opinions – Excerpts from the 2011 HIMSS

Leadership Survey11

Top Ten Industry Trends 20

Top Ten Featured Companies 31

Takeaways and Future Focus 42

Additional Resources 44

About Frost & Sullivan 45

*full study only

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Introduction

• The recent Health Information and Management Systems Society (HIMSS) annual meeting held in

Orlando, Florida in late February 2011 provides a comprehensive overview for the state of the

dynamic health IT market. The topics and tone of the meeting can be leveraged as a reliable harbinger

for what’s in store for the coming year. Frost & Sullivan was in attendance and we present a summary

of highlights, opinions, and market predictions as well as our “top ten” picks for health information

technology trends and companies emerging from the HIMSS event. This Market Insight* includes –

– A high level overview of the conference including summary statistics, selected feature events,

trends in HIT adoption, and key market messages;

– Selected quotes about the conference and the state of the industry from key thought leaders in

government and business as well as excerpts from the 2011 HIMSS Leadership Survey to bring in

the customer perspective;

– Our selection of the top ten industry trends for 2011 plus selected companies (30 company

mentions in total) and products to watch in each category;

– Our selection and impression of the top ten health IT companies of particular interest for 2011;

– Our thoughts on key takeaways and future focus for the industry;

– Links to conference videos featuring interviews with key industry participants, meeting attendee

lists, and educational presentations

*full study only

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Conference Overview

HIMSS Annual Conference & Exhibition – February 20-24, 2011

• Summary Statistics

– A record-breaking 31,225 attendees, > 400 education sessions*, and more than 1,000 exhibiting companies and

organizations; by some accounts, the conference grew 20% over last year

• Keynote Speeches

– Robert Reich, Kathleen Sebelius, Dr. David Blumenthal, Michael J. Fox, and Richard Boyd spoke at the event;

Reich cautioned that Medicare spending is the most important long-term problem facing the nation; Sebelius and

Blumenthal stressed the importance of HIT in driving U.S. economic growth, signaling that federal legislators

should not get in the way of the important progress that has already been made in this area; Fox tied in his

foundation’s research into Parkinson’s disease with the IT industry’s efforts towards improving healthcare; and

Boyd, Chief Architect at Lockheed Martin Virtual World Labs, spoke about healthcare uses for virtual reality

• Selected Featured Events

– HIT X.O – Beyond the Edge focused on innovation and provided a series of lectures focused on next generation

technologies, innovative ideas, cutting-edge scientific advances – heavy focus on mobile apps

– The Interoperability Showcase Connected Demonstration featuring key vendors demonstrating how their

technologies integrate with other platforms as part of the emerging global HIT network

– The Health IT Venture Fair & Strategic Partner Forum focused on emerging technology vendors and how to

approach the investment community

Educational session downloads available at http://www.himssconference.org/handouts

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Conference Overview con’t

• Trends in HIT Adoption

– Many providers (particularly hospitals) appear to be either fully committed or well on the way to commit to a

specific EHR solution

– Hospitals are strongly motivated by fear over HITECH financial penalties as opposed to HITECH financial

incentives

– Providers are focused on preparing for future HITECH program and healthcare reform regulations, however, the

absence of Stage 2 and Stage 3 definitions for meeting Meaningful Use (MU) seems to be a major sticking point

for some

– Many providers are preparing for or considering to launch an Accountable Care Organizations and very interested

in learning about technology solutions that can help

• Impact and Key Messages

– While the hype factor was clearly present (as is the case with most trade shows) there was a strong shared sense

that an era of transformation has truly begun and there is no going back

– The number of participants and the overall high level of energy and enthusiasm is indicative of the strong interest

in all things HIT; almost universal agreement that the industry is due for a significant growth trajectory over the

next 2-5 years

– Economic concerns that have recently impacted provider’s technology spending as been somewhat diminished,

but new spending will be clearly focused on EHR, CPOE, and HIE solutions with scheduling , imaging, and RCM

solutions take a back seat for now

– Large IT companies are starting to make their move in the HIT space but small vendors, particularly in the

emerging mobile app space, will be critical participants in driving innovation and excitement

HIMSS Annual Conference & Exhibition – February 20-24, 2011

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Selected Comments from HIMSS Attendees

“

”

HIMSS Annual Conference & Exhibition – February 20-24, 2011

Private payers are in the game (of IT) big time. Payers are buying analytics firms. They are watching doctors and hospitals

merge and these integrated systems are taking on the risk-bearing role that the payers are providing. That's waking them up

and they are becoming active players in the market. Their primary medium is P4P programs. Jonathan Bush, CEO,

athenahealth (in an interview with Neil Versel)

...this year the buzz was shifting away from the big vendors and towards the rise of the "Extender Companies", who are creating products and services which build around the larger ecosystem created by the established HIT

infrastructures in place . Lyle Berkowitz, MD – drlyleblogspot.com

We believe there has never been a better time to be a healthcare innovator than today....incentives and information

liberation will combine to deliver that rocket fuel for innovation...If hospitals and doctors can get rewarded financially for

keeping us healthy, then we've created the market conditions for a whole new set of IT enabled services to support

them in making the kinds of judgments they need to do that. Aneesh Chopra, Federal Chief Technology Officer, White House

We’ve been hearing from some (physicians) that they're beginning to talk with patients saying I need to have an

electronic health record to take good care of you. And that's exciting. Once we get the information electronic, we can

start moving it around and do useful things with it. Doug Fridsma, MD, PhD, Director, Office of Interoperability and Standards at ONC

We're redefining healthcare and we're doing it in a very rapid fashion...in today's world we talk about a connected community ofhealth and it's really important. Healthcare is getting connected right before our eyes; that's happened in every other major

industry and it's happening in healthcare today.. Glen Tullman, Allscripts (in an interview with Matthew Holt)

When it comes to EMR adoption (the US) is not high compared to a lot of countries like Australia, the UK, and Canada...when it

comes to thinking about data sharing, we are probably ahead of other parts of the world because of the activities that have

gone on at the ONC...We're at different points of the journey. Lorraine Fernandes, Global Healthcare Ambassador, IBM

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The Era of Transformation Has Begun

Future Focus• Analytics/Measuring Performance –

Strong focus in coming two years; big IT

vendors likely to dominate this space

• Cutting Costs and Improving Care –

provider and consumer facing products

and services that can help drive cost

efficiencies will be highly sought after

• HIE and Stage 2 MU – Government

initiatives like the Direct Project will drive

interest and innovation

• HIPAA 5010 & ICD-10 Changeover – as

progress towards EHR implementations

continue through 2011, efforts will

inevitably turn to preparing for these two

initiatives; companies with niche expertise

in coding will be acquisition targets for

large vendors

Social Media – initial reluctance will be

overcome; physicians, hospitals and other

provider organizations will jump on board

at an accelerating pace, particularly for

efforts around patient engagement

Top Takeaways• HIT Sector Takes Off - In spite of a fair amount of vendor-induced hype,

the HIT sector is taking off on a multi-year growth spurt driven by

acceptance of the reality of healthcare reform and across-the-board need

to change the way healthcare is delivered and paid for in the U.S.

• Healthcare Structural Changes Favorable to Big Vendors- Big

companies including telecom and IT vendors are deeply interested in

healthcare and will continue to forge strategic alliances as well as acquire

companies and technologies to take advantage of growing market

opportunities. Key vendors to watch in this space – IBM, Microsoft, Cisco,

Apple, and AT&T

• Driving the Consumer Demand Side - Large IT companies with big R&D

budgets and marketing know-how have the power to engage consumers

and influence behavior. A consumer-centric vs. patient-centric approach

will take hold and ignite increased engagement and interest in HIT

• The Innovation Effect and Need to be Agile - Increased HIT adoption

will drive innovation; small hospitals and vendors likely to lead here

HIMSS Annual Conference & Exhibition – February 20-24, 2011

8

Nancy Fabozzi

Senior Industry AnalystHealthcare & Life Sciences IT

nancy.fabozzi@frost.com

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Frost & Sullivan331 Evelyn Avenue, Suite 100

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U.S.A.www.frost.com

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