With $20 billion in federal stimulus money earmarked toward hospitals that can prove they are using eletrononic healthcare record (EHR, which seems to be the new acronym replacing EMR- electronic medical records) in a meaningful fashion, document imaging and mangement vendors having been trying to figure out how to get a slice of that pie. Hyland Software, which already has a fairly successful healthcare business, focsued mainly on automating back-office/financial administration at providers, has made an acquisition designed to move it deeper into this market. Yesterday evening, Hyland announced it had acquired Salem, NH-based Valco Systems. Quite frankly, we’re not certain what Valco brings to the table that Hyland doesn’t already have, aside from some more vertical expertise in a potentially burgeoning market. But, then again, when the majority of Hyland’s stock was acquired by the investment firm Thoma, Cressey, Bravo, the Cleveland-area based ISV announced an aquisition strategy of acquiring market share. Presumably this is what they have done with Valco.
Related to this acquisition, it still remains somewhat of a question how much the stimulus package will drive growth in our industry. It’s my opinion that it will be significant, as I’ve always believed EHR was a great opporunity for our industry-even before the stimulus. I mean, a standardized accessible eletronic record is too much of a benefit to healthcare providers to pass up, isn’t it? They’ve pretty much managed to pass it up for over 10 years now, but at some point, they have to get smart, don’t they? If this stimulus package helps them get there, all the better.
The bottom like is that I hope universal EHR happens, as I have always thought it would -just for the sake of better healthcare service, not to mention the growth it could bring to our industry. Maybe the stimulus package will help it happen a bit sooner rather than later – although there are still obviously many hurdles to clear.
Ralph
