The Definitive Blog

CPSI Acquisition Leads to Major EHR Consolidation in the Critical Access Hospital Market

Computer Programs and Systems, Inc. (CPSI) recently announced the acquisition of competitor Healthland Holding Inc., and its affiliates. Combined, the two companies provide electronic health record (EHR) software solutions to over 700 hospitals nationwide. While that is less than 10% of the overall hospital market, it is a much larger share of CPSI’s primary market, critical access hospitals. CPSI is already the largest single provider to this market, and with the acquisition of Healthland will become even more dominant.

According to Definitive Healthcare, which tracks technology software in use at all hospitals in the U.S., CPSI is currently the EHR vendor for 468 hospitals, while Healthland is the EHR vendor for 242 hospitals. The vast majority of those hospitals are critical access hospitals. Of the 1330 critical access hospitals currently using EHR software, 414 use software from CPSI or Healthland, giving the combined entity a share of over 30% of this market. Below is a breakdown of the major EHR vendors for critical access hospitals:

 

Critical Access EHR Vendor by Market Share

 

In addition to having a major impact on the critical access market, the acquisition is expected to have an impact on the post-acute care market. While CPSI has focused on the critical access market, Healthland has predominately focused on the post-acute care market, providing EHR and other software solutions for skilled nursing facilities and other post-acute facilities. According to the Definitive Healthcare database, over 400 skilled nursing facilities use some type of Healthland software, including Healthland affiliate American HealthTech (AHT). The acquisition will help expand CPSI into the post-acute market, as well as allow for greater integration among providers using CPSI or Healthland software in both the hospital and post-acute settings.

The CPSI and Healthland acquisition comes amidst a wave of major vendor acquisitions. Earlier in 2015, Cerner acquired Siemens Health Services, both major providers in the healthcare software market. Furthermore, as healthcare providers have shifted from a quantity to quality focus on patient care, including covering the continuum of care for each patient, software interoperability has become a key reasoning for many recent acquisitions. Smoothly integrating the CPSI and Healthland systems will be an important focus for hospitals and post-acute facilities using the two in 2016.

Definitive Healthcare has the most up-to-date, comprehensive and integrated data on hospitals, physicians and other healthcare providers. Our hospital database tracks over 8,600 hospitals and health systems, and includes EHR and other technology applications utilized.  

December 8, 2015