EHR Market Reached $25B in 2014, Likely To Increase

The electronic health record market reached nearly $25 billion in 2014 and is likely to continue growing over the next four years, according to a report by Kalorama Information, Healthcare IT News reports (Monegain, Healthcare IT News, 4/28).

Report Details

According to the report, EHR sales increased by 10% between 2012 and 2014, reaching $24.9 billion. The report attributes the growth in large part to hospitals and providers acquiring updated EHR systems.

Among physicians, EHR adoption rates increased from 57% in 2011 to 81.4% in 2014.

Meanwhile, the report projected that the EHR market will grow to $35.2 billion by 2019.

The report said the estimated growth likely would be driven by:

  • Continued EHR adoption among hospitals;
  • Increased adoption to meet meaningful use Stage 3 requirements (Jayanthi, Becker's Health IT & CIO Review, 4/17); and
  • Payment reductions under the incentive program for failing to adopt EHRs.

Under the 2009 economic stimulus package, providers who demonstrate meaningful use of certified EHRs can qualify for Medicaid and Medicare incentive payments.

The report said that "fear of reimbursement loss will end up driving adoption more than incentives for extra reimbursement."

It added, "Growth will continue at approximately 13.4% for 2015-2019 as the 'carrot' of incentives tempts physicians but most importantly as the 'stick' of penalties threaten to impact 2015 revenues" (Healthcare IT News, 4/28).

Source: iHealthBeat, Tuesday, April 28, 2015