Report: Strong EHR Market Growth Through 2016

While some industry research firms have forecast a slowdown in the electronic health records market after 2013, Millennium Research Group predicts strong revenue growth for the next half-decade.

A new report from Toronto-based MRG predicts the EHR software market will grow at an annual rate of more than 12 percent through 2016, hitting $8.3 billion that year. Medicare reimbursement penalties for non-compliance with meaningful use requirements starting in 2015 will continue to support EHR demand as stragglers race to automate, according to the Toronto-based firm.

But with a hot market comes new vendor entrants that may not have long-term viability, according to MRG Analyst Mickel Phung. "More than 750 companies offering some kind of EMR solution have entered in the span of two years," he notes. "The long-term viability of these newer entrants is questionable. Customers want to make sure their systems meet complex and changing requirements...