The U.S. Health Information Exchange Market
A Comprehensive Guide to Market Dynamics, Technology
Vendors, and Future Trends
November 2012
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Market Overview
• This study pertains to the following region:
United States
Over the period –
2012 to 2016
• Health information exchange (HIE) refers to the electronic
exchange of protected health information among multiple
stakeholders and participants including healthcare providers,
payers, public health organizations, state and local Health
Information Exchange Organizations, federal government
agencies, and patients.
• HIE is a key component of the U.S. government’s drive to
accelerate the use of health IT through the HITECH Act and
Meaningful Use program. The U.S. government has allocated
around $548 million in toward various HIE efforts at the state
level. HIE is also essential to ensuring goals around improved
quality, safety, access, and efficiency as stipulated by the
Patient Protection and Affordable Care Act (ACA) and is a core
competency for forming new delivery models like Accountable
Care Organizations (ACOs.)
• HIE entails many complexities related to privacy, security,
accuracy, authorization, interoperability among disparate
technical infrastructures, varying semantic standards, and other
issues. The market is highly dynamic with a plurality of IT
vendors providing services and solutions to both the private
(enterprise) and public HIE market segments. Source: Frost & Sullivan analysis
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Scope of Study
• This study provides a roadmap for understanding health information exchange, i.e. the process of health information
exchange (the verb), health information exchange organizations (the noun), and applications and services that
constitute health information exchange. We provide an in-depth overview of the technical aspects of health
information exchange; review major government initiatives driving health information exchange efforts across the
U.S.; define and describe the two major market segments, public and private, including technology solutions and
services used within each market segment and sub-segment; discuss the overall competitive market structure
including common business models and pricing approaches; and review key market considerations and strategic
imperatives relevant to a variety of stakeholders, including IT vendors and providers involved in this market. We also
provide brief profiles of 18 technology vendors serving the market.
• This study pertains only to health information exchange in the U.S.
• The study primarily focuses on two key market segments for health information exchange--public, referring to federal,
state, local and community health information exchange efforts and organizations and private, referring to health
information exchange that is created, sponsored, and governed by a single entity or enterprise such as a hospital or
integrated delivery network (IDN).
Products included in study
• While this study describes a range of technology applications and services that are contained within many health
information exchange platforms, such as master patient identifier, electronic health records, clinical decision support,
analytics, e-prescribing, and others, we do not specifically address the separate markets for each of these applications
and services.
• As health information exchange is primarily a process that entails myriad technology applications and services, we do not
size and forecast market revenues nor do we forecast market penetration due to the highly variable, dynamic, and
evolving nature and meaning of health information exchange.
Exclusions and Limitations
Source: Frost & Sullivan analysis
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Market Segmentation
Source: Frost & Sullivan analysis
Federal/
NationalState
Community/
LocalProvider/IDN
Public
• Designed to
connect federal
agencies
• Government
funding and
governance
• Connects with
State HIEs, RHIOs,
private HIE
• Encompasses
NwHIN
• Organized and
governed by states
• Start up funds
provided by
government grants
• Connects to RHIOs
and private HIE
• Multiple independent
entities in urban or
rural areas collectively
get together to share
information (e.g.,
RHIO)
• Created, sponsored,
and governed by a
single entity or
enterprise (e.g.,
hospital, IDN)
Private
Health Information Exchange Market Segments
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Enables coordination of patient care across disperse settings
Ensures cost savings from fewer redundant procedures and tests
Drives patient engagement and health awareness
Reduces unnecessary hospital admissisions due to closer coordination and monitoring
Improves the quality and safety of patient care
Empowers users with key knowledge for effective
decision making
Promotes operational and cost efficiencies and workflow
enhancements
Facilitates a uniform and multi-dimensional view of patient
and population data
Connects key data needed for clinical and syndromic surveillance
Creates a rich soure of data for clinical trials and outcomes research
HEALTH INFORMATION EXCHANGE
Potential Benefits and Advantages of Health Information
Exchange
Source: Frost & Sullivan analysis
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Source: eHealth Initiative, Thomson Reuters, and Frost & Sullivan
Va
lue
-Ad
de
d H
IE S
erv
ice
s
Medication Reconciliation
Certified Physician Order Entry
EHR-lite
ePrescribing
Care Coordination
Administrative Services
Patient Engagement
Quality Reporting
Co
re H
IE S
erv
ice
s
Master Patient Index
Master Provider Index
Record Locator Services
Clinical Messaging
Clinical Data Repository
Longitudinal Patient Record View
HIE to HIE Interoperability
HIE-Related Meaningful Use support
Core and Value-Added HIE Services
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1-2 Years 3 Years 4 Years
Growing Provider Consolidation
Increased Adoption of EHRs and Progressive Meaningful Use Requirements
Need to Improve Cost and Operational Efficiencies
Preparation for Accountable Care and Value-Based Purchasing
Key Market Drivers and Restraints
Impact: High Medium Low
Health Information Exchange Market: Key Drivers and Restraints, U.S., 2013-2016
Source: Frost & Sullivan analysis
Dri
vers
Re
str
ain
ts
Lack of Uniform Goals and Strategic Vision
Uncertainty and Confusion about Overall Market Direction
High Costs and Lack of ROI
Competing IT Priorities and Time Constraints
Fear of Losing Competitive Market Advantage
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Summary of Strategic Market Issues and Future Trends
Source: Frost & Sullivan analysis
2
3
4
5
1
The Drive for Greater Information Transparency Will Continue to Challenge
Privacy Concerns
The Move to Accountable Care Will Mostly Benefit Private HIEs in the Short
Term
The Growth of Cloud and Mobile HIE Will Accelerate Significantly
Innovation in Providing Value-Added HIE Services Will be the Key Competitive
Differentiator
Efforts to Ensure the Ongoing Viability of Public HIE Likely To Increase
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Contact
Britni MyersCorporate Communications
(210) 477-8481
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The Frost & Sullivan Story
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