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N7E7 - U.S. Ambulatory EHR Market

August 2010

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Overview of Study - N7E7 U.S. Ambulatory EHR Market

• This study pertains to the following region:

• United States• Over the period –

• Base year – 2009• Forecast period – 2010 to 2016

• The use of EHRs among all physicians has slowly been rising over the past decade and is expected to accelerate dramatically over the next 5 to 7 years.

• The market is volatile and highly fragmented with >300 vendors supplying a variety of basic to advanced EHRs to ~261,000 physicians, or 44% of physicians in ambulatory practice for 2009.

• Total revenues are estimated at $1,348.9 million for the base year 2009 and are expected to dramatically increase between 2011 and 2013, a three-year period representing the peak opportunity for market participants. Revenues are expected to almost double from 2009 to 2012 from $1,348.9 million to $2,631.1 million respectively, representing a 95 percent increase over four years.

• The top of the market for the forecast period is expected to occur in 2013 when total revenues should reach almost $3 billion ($2,979.2 million) after which point market saturation will occur and prices will decline.

• The CAGR for the seven year forecast period (2010 to 2016) is estimated to be less than 1 percent (0.88) with 2016 revenues expected at $1,434.1 million, representing a near return to 2009 baseline revenues of $1,348.9 million.

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Market Segmentation - N7E7 U.S. Ambulatory EHR Market

• The total EHR market is segmented by the setting of patient care, e.g. enterprise (hospitals and institutions) and ambulatory (office or clinics). This study focuses only on the ambulatory EHR market.

• The ambulatory market EHR market is segmented by physician practice size although there is no standard way to do this. The market segments used for this study are follows* -

• Solo/Partner Practice (1 to 2 physicians)

• Small to Medium Practice (3 to 10 physicians)

• Large Practice (>11)

• A third level of segmentation is the non-physician clinician who acts as the primary care provider in certain ambulatory settings and holds an individual EHR license

• Products included in the study• EHRs, both basic and advanced, used in ambulatory medical practices (physicians offices, community

health centers)

• Products not included in study• EHRs used in enterprise settings (hospitals, nursing homes, etc)

• Practice Management Systems used for billing, scheduling, and revenue cycle management

• Personal Health Records/Patient Portals

*Modeled on CDC’s National Ambulatory Medical Care Survey, 2007

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Table of Contents – N7E7 U.S. Ambulatory EHR Market

1. Executive Summary of the U.S. Ambulatory EHR Market

1. U.S. EHR Market Executive Summary1. Executive Summary of Key Findings for the U.S. Ambulatory EHR Market2. Introduction and Overview3. Research Methodology

2. Glossary of Terms

1. Abbreviations and Key Terms

1. Lists of Abbreviations and Key Terms

3. U.S. Healthcare System Overview

1. Recent Trends Impacting the Delivery of Health Services in the U.S.1. The Push for Quality and Efficiency2. National Health Expenditures Continue to Rise3. The Complexity of Physician Reimbursement4. Changes in the Healthcare Workforce

2. The Impact of Healthcare Reform1. Key Provisions of the New Healthcare Reform Legislation2. Healthcare Reform Cost Estimates and Potential Impact on Health Information Technology

4. Introduction to EHRs

1. Overview of EHRs1. A Clarification of Basic Terminology2. Features and Functions of EHRs3. Trends in EHR Adoption in Ambulatory Medical Practices4. The Health Information Technology for Economic and Clinical Health Act (HITECH)

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Table of Contents – N7E7 U.S. Ambulatory EHR Market

5. Total U.S. Ambulatory EHR Market

1. Total Market Overview1. Distribution of U.S. Physicians by Main Practice Setting in 20092. Forecasts for Total Numbers of Ambulatory Physicians from 2009 to 20163. Definitions of Ambulatory Market Segments4. Forecasts of EHR Penetration Among Ambulatory Physicians from 2009 to 2016

2. Industry Dynamics1. Market Challenges2. Market Drivers3. Market Restraints

3. Market Engineering Measurements and Total Revenue Forecasts1. Market Engineering Measurements2. Revenue Forecasts

4. Competitive Structure1. The EHR Vendor and Product Landscape2. Distribution and Sales3. Recent Trends in Industry Deals4. Product Pricing and Regulatory Issues5. Market Share Analysis6. Selected Vendor Profiles

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Table of Contents – N7E7 U.S. Ambulatory EHR Market

6. U.S. Ambulatory EHR Market Segments1. Revenue Forecasts

1. Total Revenue Forecasts by Market Segments2. Revenue Forecasts for Solo/Partner Practices3. Revenue Forecasts for Small to Medium Practices4. Revenue Forecasts for Large Practices5. Revenue Forecasts for Non-Physician Clinicians

7. U.S. Ambulatory EHR Market - Technology Trends1. Trends in Ambulatory EHR Technology

1. Trends in EHR Technology for the Ambulatory Market

8. U.S. Ambulatory EHR Market - Conclusions and Strategic Recommendations1. Summary of Key Trends and Strategic Recommendations

1. Conclusions and Recommendations9. References

1. Secondary Research Sources1. Bibliography

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Table of Contents – N7E7 U.S. Ambulatory EHR Market

10. Decision Support Database1. Databases

1. National Health Expenditures by Category2. Projected Public and Private National Health Expenditures3. National Health Expenditures by Category and Distribution4. Percent of Public vs. Private Health Care Expenditures 5. Projected Supply and Demand of Office-Based Physicians by Specialty 6. Number of Physicians in Patient Care by State per Civilian Population7. Number of Registered Nurses by State8. Number of Physician Assistants by State9. Number of Registered Nurse Practitioners by State10. Number of Federally Qualified Health Centers by State11. Number of Healthcare Establishments by Type12. Health Information Technology RECs by State and Amount of Federal Funding

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Our global team of in-house market analysts work closely with experienced strategy consultants to help our clients maximise the market value of it’s product portfolio and develop successful growth strategies. Our training team manages tailored training programs and workshops to ensure the successful development & implementation of strategy.

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Who We Are & What We Do

Frost & Sullivan is a global Growth Consulting Company. We partner with clients to accelerate their growth.

We employ nearly 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community. We have over 1,700 Consultants & Analysts across 40 global locations on six continents.

We help our clients to grow their businesses through a unique combination of 3 core service areas: Growth Partnership Services, Growth Consulting and Training. This allows us to support with tactical information, idea generation & evaluation, strategy development, and implementation.

Our global team of in-house market analysts work closely with experienced strategy consultants to help our clients maximise the market value of it’s product portfolio and develop successful growth strategies. Our training team manages tailored training programs and workshops to ensure the successful development & implementation of strategy.

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