Long-time Dodge client Dialog Medical is a provider of automated informed consent technology. Vice President, Marketing Tim Kelly weighs in on how the stimulus is impacting niche vendors:
This question is being asked with increasing frequency and, on the heels of the HIMSS Conference, the answer appears to be, “The same as for EHR vendors.” Hospitals are continuing to embrace the offerings of niche vendors, yet healthcare providers are exhibiting the same recession-influenced caution relative to purchase decisions as they are for any technology vendor. If there is a short-term “silver lining” to the purchase deliberation process it is that niche vendors don’t have the added worry of having to prove that their products will ultimately be deemed “certified technology.” Thus, for the balance of 2009, the impact of the EHR/stimulus push may be negligible, however, that will change quickly…
Inherent to the question above is the more pointed query, “Once the regulations are written and there is a clearer definition of exactly what it will take to get CMS reimbursement under the HITECH Act, how will niche vendors get any attention from hospitals that are not ‘meaningful users’ of EHRs?” That answer will depend on whether the niche vendor inserts itself into the ‘stimulus fray’ or retrenches and focuses its attention only on the Stage 4 EMR Adopters (assuming, of course, that “Stage 4” becomes the ‘Mendoza Line’ for Medicare incentive payments).
The intrepid niche vendors that embrace the EHR stimulus push will adopt at least two central strategies specific to helping hospitals meet the requirements set forth in the HITECH Act:
- Implementation of our product will drive clinician usage of the EHR.
- Integration of your EHR with our product is essential to demonstrating that your EHR meets the “qualified” definition.
Niche vendors tend to offer narrowly defined products that increase hospital efficiency and meet a well-defined need. Consider a recent analysis published in The New England Journal of Medicine, electronic laboratory reports are fully implemented in 77% of U.S. hospitals while electronic physicians’ notes are fully implemented in only 12%. Forward-thinking niche vendors will leverage the ‘pull through’ benefits offered by their respective products. Winning strategies will focus on how niche solutions enhance the value of the EHR and increase clinician adoption of technology in general.
The HITECH Act defines a qualified EHR as having the capacity “to exchange electronic health information with, and integrate such information from other sources.” Niche vendors historically are adept at interfacing with various EHRs as a manner of necessity. The integration tenet of the stimulus legislation may even enhance the motivation of EHR vendors in terms of their willingness to collaborate on interfaces. Regardless of whether ‘warmer, gentler’ EHR vendors emerge, niche vendors must communicate the ability of their systems to allow hospitals to demonstrate successful information exchange between the EHR and other sources.
The Chinese adage, “may you live in interesting times,” is quite apropos to niche vendors caught in the turmoil of the EHR/stimulus legislation. Whether that admonition is a curse or a benediction will depend on the degree to which niche vendors position their offering as supporting the requirements set forth by the HITECH Act.
