Enterprise Imaging to Account for 27% of Global Imaging IT Market by 2021
A battle is raging in imaging IT today. Once a profitable hunting ground for traditional Picture Archiving and Communication System (PACS) firms, new market entrants from the content management, archiving and informatics market are looking to disrupt the status quo. Pushing “deconstruction”, “reconstruction” and “distributed” multi-vendor imaging IT models, they have grabbed the attention of healthcare providers.
However, traditional PACS vendors have also been expanding their offerings, pushing “Enterprise Imaging” solutions (bundled viewer, workflow, dashboarding and archiving) as an upgrade to their stand-alone PACS offerings.
The below offers a summary of the key findings from the new report: “Imaging IT and Archiving & Management IT – World – 2017”, published by Signify Research, to investigate the adoption of new imaging IT models. Enterprise Imaging on The Up
One of the clearest findings from the report shows that single-vendor, enterprise imaging IT looks set to significantly increase its share of the market (see figure). Over the next five years, we forecast enterprise imaging revenue to more than double globally, by far the fastest growing segment in the market. But what is driving this trend and what does it mean for new models offered by non-PACS suppliers?
Incumbent Advantage
Traditional PACS vendors have the largest installed base of standalone PACS, RIS and CVIS software in the market today. This is a clear advantage as healthcare providers see many positives from upgrading their departmental solution to enterprise imaging, including:
Perceived speed and lower expense of implementation with same vendor
Less training required for staff and clinical disruption with similar user interface and system
Perceived lower IT administration and professional service
Single platform approach – perceived to aid workflow efficiency
Relatively broad clinical coverage and capability
Easier to work with single vendor (“one throat to choke”)
Additionally, the core strengths of enterprise imaging solutions fit the needs of the largest addressable market segment, the mid-size hospital market. Combined with many providers in the large and small hospital segment as well, these customers form the core of traditional PACS vendor installed base. Today there is far greater focus on efficiency, workflow and speed of implementation given the current pressures on healthcare funding in this sector. With a single vendor enterprise imaging platform, it is perceived that these core needs can be better addressed than with a multi-vendor, best-of-breed model.
For best-of-breed vendors pushing a deconstructed multi-vendor model, this limits their addressable market. Best-of-breed clinical specialists increasingly find themselves pushed out of most enterprise deals today, especially with an incumbent PACS vendor. Their mainstay opportunities instead are academic providers willing to accept the longer and more expensive implementation required with multi-vendor deconstructed models, though these tend to be less frequent in comparison. Changing Provider Power Base
A change in decision-making power within health provider procurement is also impacting the way in that imaging IT strategy is decided, especially in North America. Centralisation of IT administration as provider networks have expanded created a new powerbase for procurement. Archiving and management vendors have been quick to exploit this in the largest networks. Vendor Neutral Archives (VNAs) and Independent Clinical Archives (ICAs) from specialist vendors are more advanced in capability in most instances and can connect different departmental imaging IT systems to centralise image management and storage at far lower cost than a complete replacement of all imaging IT.
Following this success, archiving and management vendors are also eyeing the clinical realm, developing their own clinical modules for viewing, workflow, clinical review and even diagnostic capabilities. By using their foundation of the application content layer in a health provider’s stack, they are trying to push into front line clinical and diagnostic use. Moreover, they are looking to use the power of the CIO in enterprise provider IT procurement as leverage to adopting their solutions. Clinical Breadth Still Important
However, clinical and diagnostic capability is the mainstay of traditional PACS vendors, with decades of clinical expertise in diagnostics and a breadth of tools in many clinical applications. Our research with industry vendors from across all product types has highlighted that for many providers, clinical breadth of solution remains a major factor in decision-making. This has so far limited independent archiving and management firms from any real success with their clinical or diagnostic capabilities, as most have far less clinical breadth than traditional PACS firms. Moreover, many traditional PACS vendors have now developed or acquired archiving and management capability for their enterprise imaging products. By doing so, this removes the need for standalone solutions from non-PACS competitors, especially in the mid and small provider segments where advanced imaging management and archiving capability is less important. The Bigger Picture
When considered in the wider market context, enterprise imaging from the largest PACS vendors has a further advantage, often overlooked. Healthcare budgets are being squeezed and this is forcing a change in procurement, especially towards bundling of hardware and services in long-term managed service contracts. Most of the major PACS vendors are also imaging modality vendors, as well as offering a host of other clinical hardware and software across the clinical sector.
In bundling their portfolio together with their enterprise imaging IT solutions, they can offer advantages from a cost perspective. These deals tend to be more aggressive on pricing, especially as long-term deals become more common, as they “lock-in” customers and with it, future revenue. Consolidation to a single vendor in this way is also perceived by providers to offer greater benefits in maintenance, support and integration.
For many providers, the perceived positives discussed above offer the best mid-term solution to meet their cost and efficiency goals, while limiting disruption. The single vendor enterprise imaging approach may lead to future challenges with regards to interoperability and content management of images and data down the line, especially when dealing with unstructured content or complex information exchange between providers. While this remains to be seen and further evolution of imaging IT models should be expected, it looks like enterprise imaging will be winning the lion’s share of revenues in the near and mid-term future. New Market Report from Signify Research
The market data presented above is taken from Signify Research’s just published report “Imaging IT and Archiving & Management IT – World 2017”. The report is the first component of the Signify Research “Clinical Content Management IT Service” subscription.
The report provides market estimates for 2015 & 2016 with annual forecasts for radiology IT (PACS, RIS), cardiology IT, enterprise imaging, standalone VNA and standalone image exchange to 2021. Each product market is further segmented by revenue component (software, services (implementation, maintenance, consulting etc.) architecture, provider scale and business model, in 23 geographic markets. Competitive market data is provided by sub-region in each major product category. About Signify Research
At Signify Research we are passionately curious about Healthcare Technology and we strive to deliver the most robust market data and insights, to help our customers make the right strategic decisions. We blend primary data collected from in-depth interviews with technology vendors and healthcare professionals, to provide a balanced and complete view of the market trends. Whether our research is delivered as an off-the-shelf report or as a consultancy project, our customers benefit from direct access to our Analyst team for an expert opinion when they need it. We encourage our clients to think of us as an extension to their in-house market intelligence team.
Our major coverage areas are Healthcare IT, Medical Imaging and Digital Health. In each of our coverage areas, we offer a full suite of solutions including Market Reports, Custom Research and Consultancy services. Our clients include technology vendors, healthcare providers and payers, management consultants and investors.
For further information about purchasing this report please click here or contact [email protected].
245M American Lives Managed by PHM Solutions by the end of 2021
Data from Signify Research’s report “Population Health Management IT – North America – 2017” shows that the number of lives managed by PHM solutions in North America is projected to increase from 135 million at the end of 2016 to 245 million at the end of 2021.
Over this period, the market in terms of revenues is forecast to grow at a CAGR of 16.6% from $3.6B in 2016 to $8.0B in 2021. Solutions will be implemented by a range of organisations such as providers/ACOs, payers, government organisations and employers. In some cases this will lead to individual lives being managed by more than one entity. The provider/ACO vertical is projected to represent the largest market in terms of both managed lives and platform revenues, with the acute sector driving the lion’s share of the provider market.
Factors Driving Growth
The factors driving the uptake of PHM solutions in North America are focused heavily on US legislation and attempts to modernise health care provision. Although the Trump administration is still attempting to repeal the affordable care care (ACA), creating some uncertainty, it has been assumed that the underlying factors driving PHM growth (such as the move to value-based care) will persist. With most of the dialogue around changes to Obamacare and the Republican alternatives being focused on insurance reform, not care delivery reform, Signify Research expects the rollout of accountable care organisations (ACOs) and share savings schemes to continue. PHM solutions will be a core tool in their implementation.
Outside of ACO implementation, the targets put in place via MACRA/MIPS are also assumed to survive any future healthcare reform. PHM will play a central role for providers implementing strategies to make the transition to value-based care, to hit MIPS targets and to measure performance against these targets. The Competitive Environment
In 2016 55% of the North American PHM market was accounted for by EHR vendors, such as Allscripts, Epic, Cerner and eClinicalWorks and payer/provider-owned vendors, such as Optum, Transcend Insights, Aetna/Healthagen and Conifer Health. The remainder was taken by broad portfolio healthtech/IT vendors such as IBM Watson Health and Philips and best-of-breed specialists such as Orion Health, Health Catalyst, Evolent and Enli.
In terms of overall share, it is estimated that Optum commanded the number one position in 2016, followed by IBM Watson Health, Allscripts and Cerner. However, the supplier base remains extremely fragmented and consolidation is expected to continue over the medium term.
EHR vendors are well positioned to leverage their existing installed base of customers in order to gain share as the PHM market grows. For many, they are banking on PHM driving a large proportion of future company growth as the EHR market matures. However, historically their PHM solutions have fallen short in terms of functionality and performance compared to the best-of-breed specialists. Through acquisition and product development the gap has started to close to some extent, but there still remains a significant opportunity for specialists to also enjoy success over the medium term particularly if they can maintain a leadership position in terms of product functionality and performance.
About the Report
The market data presented above is taken from Signify Research’s just published report on the North American PHM market. The report is a component of the Signify Research “PHM & Telehealth Market Intelligence Service”. Vendors tracked include Aetna, Allscripts, AthenaHealth, AxisPoint Health, Caradigm, Cerner, Conifer Health, eClinicalWorks, Enli, Epic, Evolent, HealthCatalyst, Humana/Transcend Insights, IBM Watson Health, McKesson, Medecision, Meditech, NextGen, Optum, Orion Health, Premier Inc., Verscend, ZeOemga and others. The report provides quarterly market estimates for 2015 & 2016, and annual forecasts by vertical, function, service type, platform delivery and country to 2021. About Signify Research
Signify Research is an independent supplier of market intelligence and consultancy to the global healthcare technology industry. Our major coverage areas are Healthcare IT, Medical Imaging and Digital Health. Our clients include technology vendors, healthcare providers and payers, management consultants and investors. Signify Research is headquartered in Cranfield, UK. To find out more: [email protected], T: +44 (0) 1234 436 150, www.signifyresearch.net
June 2017 Dr. Holly Keats Joins the Signify Research Team
Signify Research (www.signifyresearch.net) is pleased to announce that Dr. Holly Keats has joined its team as a Senior Market Analyst. Holly will be focusing on Signify Research’s Digital Imaging portfolio, initially researching the international x-ray/radiography market.
Holly has 6 years of biological lab experience acquired during her PhD in development genetic regulation; giving her a strong understanding of lab processes, digital image analysis and bioinformatic investigation.
As well as a background in the field of science, Holly also has experience in project and event management; having spent many years organising and competing within the world of amateur boxing.
“I think that my energetic personality and passion will help me build a place within Signify Research as the company goes from strength to strength. This company has a wealth of knowledge and a bright future that I’m excited to be a part of.”
Deep Learning in Medical Imaging A $300M Market by 2021
Deep learning will increasingly be used in the interpretation of medical images to address many long-standing industry challenges. This will lead to a $300 million market by 2021, according to a new report by Signify Research, an independent supplier of market intelligence and consultancy to the global healthcare technology industry.
In most countries, there are not enough radiologists to meet the ever-increasing demand for medical imaging. Consequently, many radiologists are working at full capacity. The situation will likely get worse, as imaging volumes are increasing at a faster rate than new radiologists entering the field. Even when radiology departments are well-resourced, radiologists are under increasing pressure due to declining reimbursement rates and the transition from volume-based to value-based care delivery. Moreover, the manual interpretation of medical images by radiologists is subjective, often based on a combination of experience and intuition, which can lead to clinical errors.
A new breed of image analysis software that uses advanced machine learning methods, e.g. deep learning, is tackling these problems by taking on many of the repetitive and time-consuming tasks performed by radiologists. There is a growing array of “intelligent” image analysis products that automate various stages of the imaging diagnosis workflow. In cancer screening, computer-aided detection can alert radiologists to suspicious lesions. In the follow-up diagnosis, quantitative imaging tools provide automated measurements of anatomical features. At the top-end of the scale of diagnostic support, computer-aided diagnosis provides probability-driven, differential diagnosis options for physicians to consider as they formulate their diagnostic and treatment decisions.
“Radiology is evolving from a largely descriptive field to a more quantitative discipline. Intelligent software tools that combine quantitative imaging and clinical workflow features will not only enhance radiologist productivity, but also improve diagnostic accuracy,” said Simon Harris, Principal Analyst at Signify Research and author of the report.
However, it is early days for deep learning in medical imaging. There are only a handful of commercial products and it is uncertain how well deep learning will cope with variations in patient demographics, imaging protocols, image artefacts, etc. Many radiologists were left underwhelmed by early-generation computer-aided detection, which used traditional machine learning and relied heavily on feature engineering. They remain sceptical of machine learning’s abilities, despite the leap in performance of today’s deep learning solutions, which automatically learn about image features from radiologist-annotated images and a “ground-truth”. Furthermore, the “black box” nature of deep learning and the lack of traceability as to how results are obtained could lead to legal implications. Whilst none of these problems are insurmountable, healthcare providers are likely to take a ‘wait and see’ approach before investing in deep learning-based solutions.
“Deep learning is a truly transformative technology and the longer-term impact on the radiology market should not be under-estimated. It’s more a question of when, not if, machine learning will be routinely used in imaging diagnosis”, Harris concluded.
About the Report
“Machine Learning in Medical Imaging – 2017 Edition” provides a data-centric and global outlook on the current and projected uptake of machine learning in medical imaging. The report blends primary data collected from in-depth interviews with healthcare professionals and technology vendors, to provide a balanced and objective view of the market. About Signify Research
Signify Research is an independent supplier of market intelligence and consultancy to the global healthcare technology industry. Our major coverage areas are Healthcare IT, Medical Imaging and Digital Health. Our clients include technology vendors, healthcare providers and payers, management consultants and investors. Signify Research is headquartered in Cranfield, UK. To find out more: [email protected], T: +44 (0) 1234 436 150, www.signifyresearch.net
Signify Research (www.signifyresearch.net) is pleased to announce that Alex Green has joined its leadership team as a Company Director and Principal Analyst. Alex will be responsible for Signify Research’s Digital Health market intelligence portfolio, initially developing its coverage of the patient engagement platforms and portals market.
Alex brings with him 20 years of technology market research experience. Most recently he served as Senior Research Director at IHS Inc., leading the IT & Networking research and analysis team within IHS’ Technology Media and Telecoms (TMT) business line. Prior to that he was a Research Director at IMS Research, overseeing a number of the company’s consumer electronics and communication technology research areas.
Alex also brings with him a wealth of experience from the healthcare sector having worked as a Business Analyst & IT Project Manager in a joint NHS/Local Government role. Within this role he was responsible for the implementation of EHR systems for social care, producing health service demand/capacity forecast models and developing process re-engineering strategies to maximize healthcare system capacity.
Alex will be joining company founder Simon Harris, and healthcare market analysis veteran Steve Holloway on the leadership team at Signify Research. “I’m extremely excited to be joining Signify Research” stated Green, “I’ll be joining a leadership team that has a combined experience of more than 50 years in technology market intelligence and one that includes some of the most highly respected analysts within the healthcare technology industry”.
Industry veteren launches new HealthTech market intelligence firm – Signify Research
A new market intelligence and consultancy company focused on the global healthcare technology industry has launched today.
The new company, Signify Research (www.signifyresearch.net), was founded by Simon Harris, previously Executive Vice President at IMS Research, a leading source of research and analysis for the technology industry. IMS Research, including the InMedica brand of medical market research, was acquired by IHS Inc. in 2012 and Harris stayed on for four years as Senior Research Director for the company’s Technology, Media and Telecoms (TMT) market intelligence division. Harris left IHS earlier this year to launch Signify Research. Joining Harris is Steve Holloway, who was previously head of IHS Healthcare Technology research group. The leadership team has a combined 30 years of experience in technology market intelligence.
Harris explained: “I saw a gap in the market for a market intelligence firm that combines primary research with both technology vendors, and the healthcare providers who purchase their products, to provide a balanced and objective view of the market trends. Most of our competitors are focused on either supply-side or demand-side research, but by blending research with both aspects, we are able to produce a more robust and complete analysis of the market.”
Harris continued: “Investment in healthcare technology has risen rapidly in recent years. The digitalisation of healthcare is advancing into a new era, with a wider array of clinical departments using digital technology as an enabler to smarter, more efficient care. The ability to share, aggregate and analyse clinical, operational and financial data is now vitally important for healthcare providers in monitoring and improving care outcomes, while enabling healthcare to benefit from advances in data analytics and artificial intelligence. Furthermore, Digital Health solutions, such as health and wellness wearables and smartphone apps, are empowering consumers to take a more active role in monitoring and improving their health, and could transform the delivery of healthcare with a more personalized approach to patient treatment.
In these times of huge change, the need for insightful, data-driven market intelligence is greater than ever. Our clients have direct access to our team of market analysts, for real-time insights and opinions on the latest market developments. We encourage our clients to think of us as an extension to their in-house market intelligence team.” About Signify Research
Signify Research is a provider of market intelligence to the global healthcare technology market. The company is focused on three core areas: Healthcare IT, Medical Imaging and Digital Health. It offers off-the-shelf reports as well as custom research and consultancy services. The company was founded in 2016 and is based in Cranfield, UK. The company is on the web at www.signifyresearch.net.
June 2017
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