In 2017, the top 10 Healthcare software vendors accounted for nearly 43% of the global Healthcare applications market which grew 9.4% to approach nearly $19.3 billion in Healthcare license, maintenance and subscription revenues.
Cerner was the market leader with 12% market share in license, maintenance and subscription revenues, followed by athenahealth, Allscripts, Oracle and Microsoft.
We ask the simple question: Who’s buying Healthcare applications from whom and why? And we provide the answers – supported by decades of research – to our clients around the world. (Sample from our Apps Database)
Through our forecast period, the Healthcare applications market is expected to reach $20.9 billion by 2022, compared with $19.3 billion in 2017 at a compound annual growth rate of 1.6%.
| Exhibit 2: Worldwide Healthcare Software Market 2017-2022 Forecast, $M | |||
|---|---|---|---|
| Year | 2017 | 2022 | 2017-2022 CAGR, % |
| Total | 19310 | 20907 | 1.6% |
Source: Apps Run The World, January 2019
Top 10 Healthcare Software vendors
Healthcare (Healthcare providers, hospitals, physicians, clinics, hospices) – Electronic Health Record, Practice Management, Revenue cycle management, Financials, HR, Procurement
Consolidation among national healthcare providers will accelerate system standardization, while reimbursement cuts especially by the US government will prompt regionals to do the same in order to drive costs down. New E-Prescription rules, medical procedure code changes, health record systems will have profound impact on workflow and revenue cycle management.
Here are the rankings of the top 10 Healthcare software vendors in 2017 and their market shares.
| Rank | Vendor | 2016 Healthcare Apps Revenues, $M | 2017 Healthcare Apps Revenues, $M | YoY Growth | 2017 Healthcare Market Share, % | Recent Developments |
|---|---|---|---|---|---|---|
| 1 | Cerner Corporation | Subscribe | Subscribe | 6.3% | Subscribe | While Cerner focuses on digitally transforming healthcare providers, it also relies heavily on provider-sponsored health plans for population health and government sales to entities like Department of Defense and Veterans Affairs. |
| 2 | athenahealth | Subscribe | Subscribe | 13.4% | Subscribe | Veritas Capital, which bought GE Healthcare assets, took athenahealth private. |
| 3 | Allscripts | Subscribe | Subscribe | 16.6% | Subscribe | Partnering with Microsoft to develop an integrated model for clinical research, aiming to enhance clinical research design, conduct studies more efficiently and improve the research provider and participant experience. Allscripts also sold its behavioral health EHR unit Netsmart for $525 million to private equity firms. |
| 4 | Oracle | Subscribe | Subscribe | 3.4% | Subscribe | Oracle has signed more than 22,000 Cloud ERP customers including many listed below. The number of Oracle Cloud ERP customers totals nearly 6,000 for Oracle ERP Cloud and 16,000 for NetSuite. Each quarter Oracle is migrating at least 200 customers of its on-premise ERP systems like E-Business Suite to the Cloud. |
| 5 | Microsoft | Subscribe | Subscribe | 1.1% | Subscribe | Migrating legacy AX, C5, GP, NAV, and SL to Dynamics 365 for the Cloud remains the top priority for Microsoft’s evolving enterprise apps strategy, whose success will depend on strengthening ties with ISV partners in strategic verticals. |
| 6 | IBM | Subscribe | Subscribe | -4.7% | Subscribe | IBM acquired Red Hat for Cloud security, while IBM unloaded Notes, Sterling and other assets to HCL. |
| 7 | CompuGroup | Subscribe | Subscribe | -3.9% | Subscribe | CompuGroup acquired La-Well Systems GmbH for video consultation software elVi and La-Well Waiting Room TV for strengthening doctor-patient and doctor-to-doctor communication. |
| 8 | Epic Systems | Subscribe | Subscribe | 11.5% | Subscribe | Epic’s all-encompassing EHR strategy may have to shift in wake of increased demand for interoperability with external systems. |
| 9 | eClinicalWorks | Subscribe | Subscribe | 11.0% | Subscribe | eClinicalWorks expanded reach with its cloud-based offerings services, while strengthening telemedicine with its Healow mobile app. |
| 10 | Medical Information Technology | Subscribe | Subscribe | 3.9% | Subscribe | Meditech appears to be on the rebound as it started migrating some customers to newer systems with product sales rising 13% in first nine months of 2018. |
| Subtotal | Subscribe | Subscribe | 6.8% | Subscribe | ||
| Other | Subscribe | Subscribe | 11.4% | Subscribe | ||
| Total | Subscribe | Subscribe | 9.4% | Subscribe |
Source: Apps Run The World, January, 2019
Custom data cuts related to the Construction and Real Estate Applications market are available:
- Top 800+ Healthcare Applications Vendors and Market Forecast 2017-2022
- 2017 Healthcare Applications Market By Functional Market (16 Markets)
- 2017 Healthcare Applications Market By Country (USA + 45 countries)
- 2017 Healthcare Applications Market By Region (Americas, EMEA, APAC)
- 2017 Healthcare Applications Market By Revenue Type (License, Services, Hardware, Support and Maintenance, Cloud)
- 2017 Healthcare Applications Market By Customer Size (revenue, employee count, asset)
- 2017 Healthcare Applications Market By Channel (Direct vs Direct)
- 2017 Healthcare Applications Market By Product
Exhibit 4 shows our projections for the enterprise applications market by vertical segment, based on the buying preferences and the customer propensity to invest in new software within those industries as they continue to upgrade and replace many legacy industry-specific applications that have been identified and tracked in our Buyer Insight Database.
Healthcare Software Purchases Win/Loss Analysis As Part Of Enterprise Applications Buyer Insight Customer Database
On the buyer side, customers are investing in Healthcare applications based on new features and capabilities that are expected to replace their existing legacy systems. In many cases, competitive upgrades and replacements that could have a profound impact on future market-share changes will become more widespread.
Since 2010, our global team of researchers have been studying the patterns of the latest Healthcare software purchases by customers around the world, aggregating massive amounts of data points that form the basis of our forecast assumptions and perhaps the rise and fall of certain vendors and their products on a quarterly basis.
Updated continuously, our database features extensive win/loss analysis. Each year our research team identifies tens of thousands of these Healthcare customer wins and losses from public and proprietary sources.
The research results are being incorporated into regular updates in our Enterprise Applications Buyer Insight Customer Database. You can access the Quarterly Win/Loss Analysis Scoreboard and our Enterprise Applications Buyer Insight Customer Database by becoming a subscriber.
| Customer | Industry | Empl. | Revenue | Country | Vendor | New Product | Function |
| QMP Health | HealthCare | 200 | $60.0M | United States | Oracle | Oracle Autonomous Data Warehouse | Autonomous Database |
| The Leukemia & Lymphoma Society | Healthcare | 2200 | $400.0M | United States | Adaptive Insights | Adaptive Suite | Corporate Performance Management |
| Welcov Healthcare | Healthcare | 3500 | $850.0M | United States | ADP | ADP Vantage HCM | Human Capital Management |
| Parata Systems | Healthcare | 400 | $50.0M | United States | Aras | Aras PLM Platform | Product Lifecycle Management |
| Community Health Center of Lubbock | Healthcare | 141 | $20.0M | United States | Blackbaud | Blackbaud Financial Edge NXT | Enterprise Resource Planning |
| UHS | Healthcare | 83000 | $10.41B | United States | Cerner Corporation | Cerner Millennium Revenue Cycle Management | Revenue Cycle Management |
| University of South Alabama Health System | Healthcare | 3600 | $400.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Waverly Health Center | Healthcare | 470 | $100.0M | United States | eClinicalWorks | eClinicalWorks Cloud EHR | Electronic Medical Records |
| Press Ganey Associates | Healthcare | 996 | $100.0M | United States | HealthStream | HealthStream Learning Center | Learning Management System |
| NorthStar Anesthesia | Healthcare | 2465 | $446.0M | United States | iCIMS | iCIMS Recruit Applicant Tracking System | Applicant Tracking System |
| Capital Region Medical Center (CRMC) | Healthcare | 1600 | $200.0M | United States | Infor | Infor CloudSuite Healthcare | Enterprise Resource Planning |
| CHRISTUS Health | Healthcare | 33000 | $4.92B | United States | Infor | Infor CloudSuite Healthcare | Enterprise Resource Planning |
| CHRISTUS Health | Healthcare | 33000 | $4.92B | United States | Kronos | Kronos Workforce Ready | Human Capital Management |
| HHS – Hospital Housekeeping Systems | Healthcare | 11000 | $600.0M | United States | Kronos | Kronos Workforce Central | Human Capital Management, Workforce Management |
| Mackenzie Health | HealthCare | 2900 | $300.0M | Canada | Kronos | Kronos Workforce Dimensions | Workforce Management |
| Mercy | Healthcare | 44000 | $5.00B | United States | Kronos | Kronos Workforce Central | Human Capital Management, Workforce Management |
| Southcoast Health | Healthcare | 7400 | $838.0M | United States | Kronos | Kronos Workforce Central | Human Capital Management, Workforce Management |
| Adventist Health | Healthcare | 35000 | $3.60B | United States | Oracle | Oracle ERP Cloud | Enterprise Resource Planning |
| Adventist Health | Healthcare | 35000 | $3.60B | United States | Oracle | Oracle EPM Cloud | Enterprise Performance Management |
| Adventist Health | Healthcare | 35000 | $3.60B | United States | Oracle | Oracle Analytics Cloud | Analytics and BI |
| QMP Health | HealthCare | 200 | $60.0M | United States | Oracle | Oracle Analytics Cloud | Analytics and BI |
| UW Health | Healthcare | 18000 | $2.90B | United States | Oracle | Oracle EPM Cloud | Enterprise Performance Management |
| UW Health | Healthcare | 18000 | $2.90B | United States | Oracle | Oracle ERP Cloud | Enterprise Resource Planning |
| UW Health | Healthcare | 18000 | $2.90B | United States | Oracle | Oracle HCM Cloud | Human Capital Management |
| UW Health | Healthcare | 18000 | $2.90B | United States | Oracle | Oracle SCM Cloud | Supply Chain Management |
| Mercy | Healthcare | 44000 | $5.00B | United States | SAP | SAP Predictive Analytics | Analytics and BI |
| Providence St. Joseph Health | Healthcare | 114000 | $23.00B | United States | SAP | SAP BusinessObjects Lumira | Data Discovery & Visualization |
| Silverado Senior Living | Healthcare | 4000 | $20.0M | United States | Ultimate Software | UltiPro Business Intelligence | Analytics and BI |
| Gentiva Health Services | Healthcare | 15000 | $2.00B | United States | Adaptive Insights | Adaptive Suite | Corporate Performance Management |
| Change Healthcare | Healthcare | 4000 | $2.00B | United States | Adobe Systems | Adobe Experience Manager | Web Content Management |
| Baptist Health South Florida | Healthcare | 15000 | $2.28B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Boca Regional | Healthcare | 2100 | $430.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Centra | Healthcare | 6000 | $2.50B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| IASIS Healthcare | Healthcare | 13400 | $2.80B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Kaiser Permanente | Healthcare | 189302 | $60.70B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Lake Health | Healthcare | 3500 | $1.20B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| McLaren Health Care Corporation | Healthcare | 22000 | $3.50B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Missouri Delta Medical Center | Healthcare | 900 | $87.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Sarah Bush Lincoln | Healthcare | 2200 | $250.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| SoutheastHEALTH | Healthcare | 1200 | $290.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Tift Regional Med Ct | Healthcare | 2010 | $350.0M | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Western Connecticut Health Network | Healthcare | 4354 | $1.10B | United States | Cerner Corporation | Cerner Millennium | Enterprise Resource Planning |
| Advocare, LLC | Healthcare | 100 | $10.0M | United States | eClinicalWorks | eClinicalWorks Cloud EHR | Electronic Medical Records |
| UnitedHealth Group | Healthcare | 172000 | $157.00B | United States | IBM | IBM Emptoris | Contract Management |
| Halyard Health | Healthcare | 16500 | $1.70B | United States | JDA Software Group | JDA Supply Chain Software | Supply Chain Management |
| Orlando Health | Healthcare | 14000 | $595.0M | United States | Kronos | Kronos Workforce Central | Human Capital Management, Workforce Management |
| Transition Health | Healthcare | 50 | $5.0M | United States | Kronos | Kronos Workforce Central | Human Capital Management, Workforce Management |
| Affiliated Radiologists S.C. | Healthcare | 50 | $5.0M | United States | McKesson | McKesson Business Performance | Enterprise Resource Planning |
| Dominion Pathology Laboratories PC | Healthcare | 10 | $1.0M | United States | McKesson | McKesson Business Performance | Enterprise Resource Planning |
| ConcertoHealth | Healthcare | 280 | $30.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Highland Rivers Health | Healthcare | 220 | $20.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Home Health Depot | Healthcare | 260 | $32.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Little River Healthcare | Healthcare | 260 | $20.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Nobilis Health | Healthcare | 700 | $297.0M | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| TriHealth | Healthcare | 11000 | $1.80B | United States | Microsoft | Microsoft Dynamics GP | Enterprise Resource Planning |
| Molina Healthcare | Healthcare | 21000 | $14.18B | United States | Oracle | Oracle HCM Cloud | Human Capital Management |
| IMS Health | Healthcare | 8000 | $3.30B | United States | Salesforce | Service Cloud | Customer Service and Support |
| INTEGRIS Health | Healthcare | 7000 | $1.30B | United States | Salesforce | Service Cloud | Customer Service and Support |
| STANLEY Healthcare | Healthcare | 51250 | $11.32B | United States | Salesforce | Service Cloud | Customer Service and Support |
| L.A. Care Health Plan | Healthcare | 1500 | $350.0M | United States | SciQuest | Sciquest Source-to-Settle Suite | Procurement |
| Inova Health | Healthcare | 16000 | $3.00B | United States | Tableau | Tableau Software | Business Intelligence and Analytics |
| Providence St. Joseph Health | Healthcare | 114000 | $23.00B | United States | Tableau | Tableau Software | Business Intelligence and Analytics |
| Mid-Atlantic Health Care | Healthcare | 3700 | $1.00B | United States | Ultimate Software | UltiPro | Human Capital Management |
| Cerner | Healthcare | 22000 | $3.40B | United States | Workday | Workday HCM | Human Capital Management |
| CityMD Urgent Care NYC | Healthcare | 1000 | $400.0M | United States | Workday | Workday Planning | Planning, Budgeting, and Forecasting |
| Memorial Hermann Health System | Healthcare | 24000 | $4.00B | United States | Workday | Workday HCM | Human Capital Management |
| Premier Healthcare Services | Healthcare | 400 | $60.0M | United States | Workday | Workday Financial Management | Financial Management |
Source: Apps Run The World, January 2019
Further Readings
An expanded version of this report covers the top 800+ Healthcare Software Vendors, offering in-depth analysis of the market dynamics, vendors’ Strengths, Customers, Opportunities, Risks and Ecosystems as well as their ability to gain Shares (SCORES) within their respective space. We also offer win-loss analysis of the quarterly wins of these top vendors and whether incumbents and upstarts pose any real threat to their standing amid shifting market requirements and user preferences.
More Enterprise Applications Research Findings
Based on the latest annual survey of 3,000+ enterprise software vendors, Apps Run The World is releasing a number of dedicated reports, which profile the world’s 500 largest Enterprise Applications Vendors (Apps Top 500) and the world’s 500 largest Cloud Applications Vendors (Cloud Top 500) ranked by their 2015-2017 product revenues.
Their 2017 results are being broken down, sorted and ranked across 16 functional areas (from Analytics to Treasury and Risk Management) and by 21 vertical industries (from Aerospace to Utility), as shown in our Taxonomy. Further breakdowns by subvertical, country, company size, etc. are available as custom data cuts per special request.
Research Methodology
Each year our global team of researchers conduct an annual survey of thousands of enterprise software vendors by contacting them directly on their latest quarterly and annual revenues by country, functional area, and vertical market. We supplement their written responses with our own primary research to determine quarterly and yearly growth rates, In addition to customer wins to ascertain whether these are net new purchases or expansions of existing implementations.
Another dimension of our proactive research process is through continuous improvement of our customer database, which stores more than one million records on the enterprise software landscape of over 100,000 organizations around the world.
The database provides customer insight and contextual information on what types of enterprise software systems and other relevant technologies are they running and their propensity to invest further with their current or new suppliers as part of their overall IT transformation projects to stay competitive, fend off threats from disruptive forces, or comply with internal mandates to improve overall enterprise efficiency.
The result is a combination of supply-side data and demand-generation customer insight that allows our clients to better position themselves in anticipation of the next wave that will reshape the enterprise software marketplace for years to come.
