Signify Premium Insights - Digital Health: Round-Up from May 2023
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Written by?Mark Lazell?Editor of Signify Premium Insights – Digital Health.
This article provides several links to our Signify Premium Insights, evaluating recent mergers and news events. To access these articles you will need a subscription or simply request a 30 day free trial below.
It’s been a long wait for vendors, but the revenue rewards of the Germany Hospital Futures Act (KHZG) are finally starting to kick in. And it’s not just in Germany that EHR vendors enjoyed healthy Q1 2023 results. A solid pipeline of state healthcare IT projects across Europe are driving revenues forward.
Across the pond, it’s a different story. Listed inpatient vendors limped listlessly in Q1 2023, revenues at Altera, Oracle Cerner and CPSI down 3% on average over 12 months, with zero year-on-year growth in the last quarter.
Q1 2023’s real star came in US primary care, where CompuGroup Medical SE & Co. KGaA (CGM) hit 16% y-o-y growth. Honourable mentions also go to NextGen Healthcare (up 10% on the rolling 12 months metric) and Veradigm? (up 5%). But how will the growing ‘revenue rift’ between the ‘big 7’ primary care EHR vendors and the long tail of tier-2 and tier-3 vendors in the US play out in future quarters??
Joy within the KHZG vendor community we describe above comes with a caveat: an IT manpower shortage in Germany means many vendors will be unable to commit to the timescales needed to execute all of the 6,000-plus projects approved. How will the vendors, who have waited so long to get started on KHZG, manage resources, delays and potential cost overruns?
The mood music among telehealth vendors could not really be more different than their EHR cousins. Although we stand by our assertation that Amwell and Teladoc Health ’s 2023 prospects offer ‘grounds for guarded optimism’ moving forward, there was little to get excited about in their Q1 2023 year-on-year (y-o-y) financials. Has either company got what it takes to turn the tide, or will challenging market conditions - in particular high operating costs - continue to conspire against best-laid plans?
RPM vendors are no strangers to the revenue struggle, and how to scale has been a strategic question that has vexed many to date. Acquisition is one possible route to scale, however, and in May Validic bought the assets of fellow RPM vendor Trapollo with exactly that in mind. The deal brings together Validic , which supports what it claims is the largest RPM programme in the US, with Trapollo , an old hand in supply chain logistics. It’s a potentially powerful partnership, but still the question remains: in a very fragmented RPM market, with the acquisition, does Validic now have the elbow room to scale??
Back across the Atlantic, there is plenty of chatter in RPM circles around the announcement by NHS Shared Business Services (NHS SBS) of the new ￡150M Technology Enabled Care Services 2 framework.?
The framework’s broad goals are noble and necessary: to free up hospital beds, reduce appointment backlogs, accelerate patient hospital discharge, and alleviate pressure on social care in England. But there is a sneaking suspicion that the amount of funding allocated to the RPM portion of the framework is less than generous. Is the framework, then, just a short-term ‘sticking plaster’ when what is really needed is a proper long-term vision?
Another eye-catching development in RPM was the recent launch of Philips’ Virtual Care Management platform. The company claims the platform will offer a ‘comprehensive’ approach to telehealth for patients, providers and payers, improve patient engagement and health outcomes, lower the cost of care, and make workflows more efficient.?
?The platform is being launched in a US market where a clear RPM reimbursement structure is in place. But that reimbursement structure is underutilised, and as a result can 飞利浦 really disrupt the US chronic care management market? And does ‘hospital-at-home’ offer another route to growth for the company?
The month of May saw new ground being broken in the Australian states of Tasmania and Western Australia (WA) as they revealed plans to implement state-wide electronic medical records (EMRs) for the first time.?
This was widely anticipated given that state-wide EMRs are THE big story in Australian digital health in 2023, and now the jostling among vendors begins in Tasmania and WA. Will international vendors again lead the way on these programmes? Or could home-grown firm Telstra Health , Australia’s leading EHR vendor but to date a mere bystander to the state-wide contract trend, finally get its feet wet in Tasmania?
From hope and opportunity Down Under to a sense of bullish defiance in the UK as provider Babylon Health announced that it had secured a $34.5M interim loan to support ongoing operations as it embarks on a wide-ranging restructuring and re-capitalisation programme. The company also said it would come back into private ownership in June.?
The news came as eMed Healthcare UK juggles widening net losses, mounting debts and rock-bottom shares, despite burgeoning revenues from its US value-based care (VBC) activities.?
The company has several plans to nurse it back to health, but ultimately its profitability will depend on it making deeper cost cuts. But how far can it go? And how many levers can it pull to do so? And is the fact that it has successfully grown its customer base actually been a poisoned chalice as the costs of healthcare provision per patient soar?
Finally, we round out May’s round-up with news that Contexture, the largest health information organisation in the western US, plans to transition to unified health information exchange (HIE) platforms in Colorado and Arizona.
Upgrades to US HIE infrastructure is long overdue, and this development will pique the interest of vendors anticipating HIE upgrades elsewhere. Health Catalyst looks odds-on to win Colorado and Arizona, but what about the prospects of the likes of EHR and data aggregation vendors like InterSystems , Innovaccer , Orion Health and Lyniate, or players like Amazon Web Services (AWS) , 谷歌 , Redox and Epic ? And what of 甲骨文 Cerner, with one eye on developing a national EHR database solution for the US? Could it see state-wide HIEs as the conduit for even grander plans?
About Signify Premium Insights – Digital Health
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About Mark Lazell
Mark joined Signify Research in 2022 as Associate Editor to lead on the company’s Premium Insights - Digital Health service. Prior to Signify, Mark spent 25 years as an editor, publishing detailed analysis of healthcare and other high-tech sectors in the Middle East and Asia Pacific. He was the launch editor of Middle East Medical magazine, and produced detailed country reports and analysis, including interviews with regional policy makers and healthcare executives.
About the Signify Premium Insights Contributing Analysts
Signify Premium Insights rely heavily on the industry expertise from Signify Research’s expert medical imaging analyst team. This team brings with it many years of experience developing market reports, insights and providing consultancy services to the medical imaging industry.
Alex Green, Executive Director and Principal Analyst
Alex has 24 years’ experience in tech market intelligence. He leads on Signify Research’s Digital Health offerings focusing on integrated care IT, EHR/ EMR and telehealth. Prior to joining Signify he served as a Senior Research Director at IHS and as a Business Analyst/IT Project Manager in a joint NHS/ Government role.?
Kelly Patrick, Principal Market Analyst
Kelly joined Signify Research in 2020 as a Principal Analyst. She brings with her 12 years’ experience covering a range of healthcare technology research at IHS Markit/Omdia. Kelly’s core focus has been on the clinical care space, including patient monitoring, respiratory care and infusion.
Arun Gill, Senior Market Analyst
Arun joined Signify Research in 2019 as part of the Digital Health team focusing on EHR/EMR, integrated care technology and telehealth. He brings with him 10 years’ experience as a Senior Market Analyst covering the consumer tech and imaging industry with Futuresource Consulting and NetGrowth Consultants.management.?
Vladimir Kozynchenko Senior Market Analyst
Vlad joined Signify Research in 2023 as Senior Market Analyst in the Digital Health team. He brings two years of experience in the consulting industry, having undertaken strategy, planning, and due diligence assignments for governments, operators, and service providers. Vlad holds an MSc degree with distinction in Business with Consulting from the University of Warwick.
About Signify Research
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