February 19, 2020

As hospitals and health systems continue to integrate electronic medical record (EMR) systems into their facilities, it might be helpful for these institutions to know a few facts about two of America’s top EMR behemoths.  It should come as no surprise that Epic and Cerner continue to dominate the electronic health information market.  They are by far two of the best-known companies offering EMR solutions; and, though other up-and-coming companies offer similar systems and services, it may be a while before they can catch up to the competition.

So, what should you know about these two leading EMR companies?  Becker’s IT and CIO Report recently published the top 10 facts about each company that you might find helpful if you are seeking an EMR system for your facility.  They are reproduced here for your review and primarily reflect late 2019 or early 2020 statistics and assessments.

Epic’s Top Ten

1. Epic celebrated its 40th anniversary in March 2019.  It now has around 10,000 employees globally and generates about $2.9 billion in annual revenue. The company reports 40 percent of operating expenses are invested in research and development.
2. The EHR giant reports storing medical records for more than 250 million people.
3. In February, Mayo reported net income of $706 million on revenue of $12.6 billion in 2018 after moving to Epic EHR. Mayo officials estimated its multiyear technology upgrade, which included the EHR implementation, encompassed $1.5 billion worth of investments.
4. Epic partnered with Humana in June to advance interoperability and transparency between them. Humana integrated its real-time benefits check tool into Epic’s electronic prescribing workflow.
5. Epic has added several programs to its App Orchard, including American Well’s virtual care platform. Now, Epic EHR will conduct American Well-powered telehealth appointments, and providers can use American Well’s telemedicine carts to digitally partner with non-Epic medical facilities.
6. Epic partnered with Connected Care in July to implement its digital health record platform. Connected Care’s platform of physician-led companies provide technology, services and products to hospitals, medical groups, health plans and independent practice associations.
7. Founder and CEO of Epic, Judy Faulkner, unveiled a new data research initiative and software during the Epic User Group annual meeting on Aug. 27. She highlighted the Cosmos program, which is designed to mine data from millions of patient medical records to improve research into treatments. The program gathers de-identified patient data from 8 million patients at nine health systems, and 31 more organizations have signed on to participate. The company also announced new products focused on letting physicians write shorter notes and voice recognition software.
8. Ms. Faulkner also discussed the company’s culture and growth strategy during The Cap Times Idea Fest in September. She said Epic is built around the “yes, if” culture instead of a “no, because” mentality. She also said her background as a computer programmer was critical to the company’s success, as she has kept the company private instead of going public or making big mergers and acquisitions.
9. Epic initiated another campus expansion at its Wisconsin-based headquarters that would add room for about 1,200 employees. The company plans to add office space that would accommodate job growth.
10. Vanderbilt University Medical Center in Nashville, Tennessee partnered with Epic to help the company address delirium in the ICU. Epic made the add-on system update available to current clients ahead of its software launch in February.

Cerner’s Top Ten

1. In 2018, Cerner reported $5.4 billion in revenue. It has more than 29,000 associates in 26 countries worldwide, and is contracted with more than 27,500 facilities in more than 35 countries.
2. Cerner’s cumulative research and development investment is more than $7 billion.
3. In July, Cerner partnered with Amazon Web Services (AWS) to increase efficiencies and modernize Cerner’s platforms and software development. Cerner aimed to leverage Amazon’s consumer knowledge for future generations of technology. The company plans to move HealtheIntent to AWS during the first half of 2020.
4. Cerner terminated its contract with California-based Adventist Health. The two initially partnered in January 2018 for Cerner RevWorks to manage the health system’s revenue cycle. When the contract was terminated, 1,700 Cerner RevWorks employees became Adventist Health employees. The termination resulted in a $60 million organizational restructuring charge for Cerner.
5. In September, Simplee and Cerner announced a new relationship to improve price transparency and the billing process. Cerner added Simplee’s Patient Financial Engagement Platform to its revenue cycle portfolio and integrated it into the system’s consumer technology. The platform is a digital-first, self-serve technology that uses data analytics and machine learning to make personalized estimates on the cost of care as well as provides payment options.
6. On Oct. 24, Cerner reported $1.43 billion in third quarter revenue, up 7 percent year over year. The company’s professional services revenue was $507.46 million and drove the third quarter increase. The company anticipates fourth quarter revenue at $1.41 billion to $1.46 billion.
7. On Oct. 28, Cerner partnered with Uber Health on non-emergency transportation services. Providers can now schedule Uber transportation through the Cerner EHR for patients.
8. Cerner partnered with Vively Health, a home-based primary care provider for patients with chronic conditions. The five-year partnership was announced on Oct. 29 and will transition Vively to Cerner’s Millennium EHR.
9. On Nov. 12, Cerner reported plans to lay off 131 employees in the U.S. to increase operating margins to 20 percent by the end of the year. In 2019, the company onboarded more than 4,000 associates and planned to hire hundreds more in 2022. This round of layoffs followed a 255-employee layoff in September, as the company attempted to cut $200 million in costs through Dec. 31.
10. Cerner COO Michael Nill’s departure was announced in a Securities and Exchange Commission filing on Nov. 1. Mr. Nill spent 23 years with the company and his official last day was Jan. 10, 2020. Cerner Executive Vice President and Chief Innovation Officer Jeff Townsend also retired Nov. 1 and serves as executive senior adviser at the company.

Calculations and Conclusions

With all these facts and figures in hand, you’re now fully informed concerning the EMR landscape and completely ready to select a system that makes the most sense for your facility.  Okay, maybe not.  While this snapshot of two of the larger companies within the EMR industry has hopefully proved at least somewhat helpful, it’s clear that your due diligence will require you to dive a bit deeper.  You will want to seek reviews from other facilities as to their experience with these companies.  You will want to get an estimate on the cost of implementation for each system.  Finally, other EMR companies will need to be investigated to determine if their quality, capability, security and cost are comparable to these two leading competitors.

The proliferation of EMRs is a growing reality in the health delivery domain.  It will be up to each facility and/or health system to determine the extent to which an EMR solution should be deployed, and which system makes the most sense for their particular needs.  We at MiraMed are available to assist you in this process.  Please feel free to reach out to us at www.miramedgs.com.