Mis Five Forces Analysis
A Five Forces Analysis of Allscripts,
An Electronic Health Records (EHR) technology company
Robert A. Brinker
GBA 530 – Management Information Systems
Professor Billie Whitfield
February 6, 2012
The purpose of this paper is to identify competitive forces at work based on Michael Porter’s Five Competitive Forces from his Competitive Analysis Model (McNurlin, 2009) and provide recommendations to Allscripts, an electronic health records (EHR) technology company, as to business technology related improvements. Reviewing the United States healthcare industry would be a massive undertaking, so I will narrow my analysis specifically to an industry that has great momentum, the Health Information Technology (HIT) industry. The healthcare industry was said to be in a makeover year in 2010. (PwC, 2010) “The U.S. health care sector includes more than 780,000 hospitals, doctor offices, emergency care units, nursing homes, and social services providers with combined annual revenue of more than $2 trillion”. (Hoovers, 2011) Many of these healthcare sector participants are very fragmented and information shared between them is either insufficient or non-existent. Most experts agree that the current spending on healthcare is unsustainable now representing 17.3 percent of the nation’s gross domestic product. Many factors are driving the high cost healthcare, but one thing is certain in that the delivery of healthcare hasn’t changed much over the last century at the patient and physician level. The delivery of healthcare is an antiquated paper driven process and in much need of modernization. The demand for HIT has been fueled by new Healthcare Reform legislation and incentives known as the Health Information Technology for Economic and Clinical Health Act or HITECH, passed by President Obama in 2009 as part of the American Recovery and Reinvestment Act (ARRA). The intent of the HITECH Act is to promote the modernization of the
An Electronic Health Records (EHR) technology company
Robert A. Brinker
GBA 530 – Management Information Systems
Professor Billie Whitfield
February 6, 2012
The purpose of this paper is to identify competitive forces at work based on Michael Porter’s Five Competitive Forces from his Competitive Analysis Model (McNurlin, 2009) and provide recommendations to Allscripts, an electronic health records (EHR) technology company, as to business technology related improvements. Reviewing the United States healthcare industry would be a massive undertaking, so I will narrow my analysis specifically to an industry that has great momentum, the Health Information Technology (HIT) industry. The healthcare industry was said to be in a makeover year in 2010. (PwC, 2010) “The U.S. health care sector includes more than 780,000 hospitals, doctor offices, emergency care units, nursing homes, and social services providers with combined annual revenue of more than $2 trillion”. (Hoovers, 2011) Many of these healthcare sector participants are very fragmented and information shared between them is either insufficient or non-existent. Most experts agree that the current spending on healthcare is unsustainable now representing 17.3 percent of the nation’s gross domestic product. Many factors are driving the high cost healthcare, but one thing is certain in that the delivery of healthcare hasn’t changed much over the last century at the patient and physician level. The delivery of healthcare is an antiquated paper driven process and in much need of modernization. The demand for HIT has been fueled by new Healthcare Reform legislation and incentives known as the Health Information Technology for Economic and Clinical Health Act or HITECH, passed by President Obama in 2009 as part of the American Recovery and Reinvestment Act (ARRA). The intent of the HITECH Act is to promote the modernization of the
References: McNurlin, B. C., Sprague, R. H., Jr., & Bui, T. (2009). Information Systems Management in Practice (8th ed.). Upper Saddle River, NJ: Prentice Hall Top health industry issues of 2011 View: Making over healthcare. (2010) Issue 14. PricewaterhouseCoopers (PwC) at http://www.pwc.com accessed on January 30, 2012 Healthcare Industry Description Big Business Eyes EMR Industry. By Lauren Folino, Oct 6, 2009. Access at http://www.inc.com/news/articles/2009/10/emr.html on February 4, 2012 Introduction of an Electronic Medical Record System into Physician Practice Offices: Why Is It so #%!&-ing Hard for Everybody?—Part III. Joseph P. Lyons, MA, CPA,* and Stephen Klasko, MD, MBA. Information Systems (2011) Tapping the Unmet Potential of Health Information Technology O 'Malley, Ann. The New England Journal of Medicine 364. Â12 (Mar 24, 2011): 1090-1091 Allscripts corporate website, accessed at http://www.allscripts.com on February 3, 2012 eClinicalWorks corporate website, accessed at http://www.eclinicalworks.com on February 3, 2012 GE Healthcare corporate website, accessed at http://www.gehealthcare.com on February 3, 2012