SC&H Capital Managing Director Chris Helmrath discussed four trends in the healthcare IT mergers and acquisitions market, according to HIT Consultant.
Here are four trends:
1. Market players must bring unique value. The healthcare IT opportunities are changing as the market becomes more saturated. For instance, the electronic health records market is expected to reach $29.8 billion by 2020, and there are 26 different EHR systems accountable care organizations can use. The market does not need a completely new EHR system, but would need to build upon the current EHR systems.
2. Companies offer more of the same. Healthcare IT draws many similarities to cybersecurity. The cybersecurity market was booming with hundreds of companies, however, many of these companies offered essentially identical solutions. Healthcare IT companies also have very similar solutions, making it hard for acquiring companies to find providers who offer unique solutions.
3. Pursue forward-trending solutions. Because so many companies offer the same solutions, companies should look toward the future when devising solutions. Successful companies will cater solutions to the consumers and will work to connect patients to their data.
4. Create proactive solutions. When devising solutions, companies should set an overarching goal to improve the nation's health. Also, companies should consider producing proactive solutions to stay ahead of their competitors. Companies should look to go beyond meeting government regulations and devise consumer-driven solutions.
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