{"id":8075,"date":"2013-07-17T18:00:49","date_gmt":"2013-07-17T22:00:49","guid":{"rendered":"http:\/\/www.poweryourpractice.com\/?p=8075"},"modified":"2025-07-01T11:18:44","modified_gmt":"2025-07-01T11:18:44","slug":"physicians-care-health-it-vendor-consolidation","status":"publish","type":"post","link":"https:\/\/carecloud.com\/continuum\/physicians-care-health-it-vendor-consolidation\/","title":{"rendered":"Should Physicians Care About Health IT Vendor Consolidation?"},"content":{"rendered":"<p>When the Affordable Care Act was signed into law in 2010 hundreds of software companies sprang forth ready to take advantage of the government\u2019s push for health IT solutions. But now, the list of companies is shrinking due to a <a href=\"http:\/\/www.healthcareitnews.com\/news\/healthcare-it-merger-acquisition-deals-see-upward-trend-2012\">recent upswing in acquisitions and mergers<\/a>.<\/p>\n<p>This was inevitable, as the smartest companies in any industry always rise to the top by acquiring their smaller counterparts. Unfortunately, <strong>a decrease in health IT vendors could prove detrimental to physicians<\/strong>.<\/p>\n<p><!--more-->Actually, there are four main reasons why physicians should be rooting for health IT companies to strive for internal growth rather than searching for other companies to acquire. Today, we analyze them all.<\/p>\n<p><strong>Fewer Options, Increased Pricing<\/strong><br \/>\nUnless a steady stream of software vendors emerge to replace those absorbed by larger companies, physicians aren\u2019t going to have as many software options to choose from.<\/p>\n<p>Choices are crucial in a medical industry where physicians practice in such a wide array of environments. On one end of the spectrum are <a href=\"https:\/\/www.carecloud.com\/continuum\/electronic-health-records\/solo-practitioners-benefit-cloud-based-ehrs-electronic-health-records\/\">solo practitioners<\/a>, while on the other end are physicians working alongside hundreds of colleagues at mega-hospitals. Within that spectrum lay a broad range of specialties, each asking for different capabilities from their health IT vendors.<\/p>\n<p>Another problem with fewer options is increased pricing. Not that anyone vendor will get to John D. Rockefeller status \u2013 there are laws preventing that \u2013 but, as in any industry, <strong>competing vendors equate to a reduction in pricing<\/strong>.<\/p>\n<p>As mentioned before, physicians work in all sorts of environments, so they need options at many price points. If a particular physician can\u2019t find just the right price point, it is unlikely he or she will ever get to reap the benefits health IT software has to offer.<\/p>\n<p><strong>Mish-Mash Software<\/strong><br \/>\nOne reason software companies acquire competitors is to gain capabilities they don\u2019t already have. For example, a large EHR company may acquire a smaller company offering <a href=\"https:\/\/www.carecloud.com\/continuum\/practice-profitability-index\/practice-management-systems-help-doctors-overcome-hurdles-profitability\/\">first-rate practice management software<\/a> to expand its services. It seems like a suitable solution to acquiring capabilities, but the two solutions must then be reprogrammed to work together.<\/p>\n<p>This can prove exceedingly difficult, and <strong>sometimes creates a gap between the two software solutions that can never be entirely bridged<\/strong>. Physicians looking for a completely integrated suite of practice software may be disappointed by such offerings.<\/p>\n<p>Companies that grow internally and program all of their own components normally don\u2019t have these gaps.<\/p>\n<p><strong>Less Innovation<\/strong><br \/>\nWith fewer software solutions on the market, health IT developers have less initiative to innovate because there aren\u2019t as many competitors driving change. As innovation slows, it will take software companies longer to create better EHRs or PM systems.<\/p>\n<p>In the past, <strong>competition has brought out the best in developers<\/strong> and has led to some of the most <a href=\"https:\/\/www.carecloud.com\/continuum\/medical-technology-trends\/3-unexpected-ways-technology-is-improving-health-care\/\">groundbreaking advances in health care<\/a>.\u00a0 Decreased competition may result in companies feeling more comfortable resting on their laurels.<\/p>\n<p><strong>New Software Means Adjustments<\/strong><br \/>\nWhen one health IT software company acquires another, the physicians using the software of the acquired company are usually left to adjust. A solution, which may have taken staff months to learn, no longer exists.<\/p>\n<p>Even if the purchasing company moves physicians using the purchased company\u2019s software to their solution for free, <strong>there are still costs associated with adjusting to entirely new software<\/strong>. This is without taking into consideration whether or not the new solution is as good for that particular practice as the original.<\/p>\n<p>Although natural, and probably necessary, too many mergers and acquisitions amongst health IT companies may leave physicians feeling the effects. We\u2019ll have to see in which direction the industry shifts. Hopefully, it isn\u2019t the outcome that leaves doctors scrambling to adjust.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When the Affordable Care Act was signed into law in 2010 hundreds of software companies sprang forth ready to take advantage of the government\u2019s push for health IT solutions. But now, the list of companies is shrinking due to a recent upswing in acquisitions and mergers. This was inevitable, as the smartest companies in any [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":32786,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-8075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Health IT Vendor Consolidation Concerns - CareCloud<\/title>\n<meta name=\"description\" content=\"Health IT vendors are consolidating a rapid rate. Unfortunately, decrease in health IT vendors could prove detrimental to physicians. 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