Epic Systems is the undisputed leader within healthcare information technology. Expectations for digitization and modernization have pressured the healthcare industry to catch up with both consumer demands and current technology, and Epic presented itself as the first player to address these needs. The most widely used electronic healthcare record (EHR) system nationwide, Epic has attracted some of the largest and most prestigious healthcare players such as Partners Healthcare, Mount Sinai Health Systems, UCSF, and several others. Nearly 40% of US citizens have their healthcare records stored within the Epic System, and that number will only increase in the near future. As the saying goes, no CIO will ever get fired for implementing Epic.\u00a0\u00a0 In other words, Epic is \u2013 at least for the moment \u2013 winning.<\/p>\n
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The first \u201cEpic win\u201d stemmed from its ability to predict and meet healthcare industry trends before any other player in the space. Epic established itself as an early leader in aiding hospitals update their technology systems in the pre-internet era, and they quickly caught onto the push towards coordinated health information exchange. To do so, they established a client-server based system and created a product that supported information sharing, clinical coordination, lab results sharing, and pharmacy applications. They forecasted industry needs for interoperability and became proficient in both inpatient and outpatient services. They met the need, and they did so both well-enough and early-enough. As providers and physicians began to feel the pressure to find answers to these challenges on their ends, Epic emerged as the best solution.<\/p>\n
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The truth is, however, Epic\u2019s client-server system is far from ideal for the flexibility and usability demands of the healthcare system; cloud-based models, such as those offered by competitor Athena, could solve these problems far better while also promoting more rapid innovation. But Epic circumvents these threats, and they do so by selling a product that meets another major challenge – adoption.\u00a0\u00a0 They differentiate themselves by providing the staffing, governance, processes, and methodology needed to win physicians over and make them want<\/em> to standardize their work practices with the Epic system. They address the operational component, and this differentiates them from competitors that offer superior technology and capacity solutions.<\/p>\n <\/p>\n Epic also chooses to be a closed system, preventing other systems from sharing information with Epic. As the clear market leader, they are able to set the standards; healthcare systems are ultimately pressured into adopting Epic. This is well illustrated by the fact that they spend approximately $0 on marketing \u2013 customers come to them, and not the other way around. \u00a0If 3rd<\/sup> parties cannot plug into the commonly used Epic information databases, healthcare systems will have no reason to move away from Epic.<\/p>\n <\/p>\n Epic is also excellent at using external factors to its advantage. For example, EHR systems, unlike many consumer products, are extremely sticky. Epic knew this, and they made sure they were the first player to come to market \u2013 even if their product was not perfect. Additionally, government regulations regarding patient health information (PHI) makes it difficult for other firms to have a chance at obtaining market share. A large player like Epic could affect legislation, but they have no motivation to do so (for obvious reasons).<\/p>\n <\/p>\n Recently, however, Epic\u2019s dominance has been equated with general stifling of innovation within the field. They have begun to face pressure to open up their doors to 3rd<\/sup> party vendors so that they can integrate other firms. The pace by which this happens is up to Epic and is unlikely to move quickly. It is highly unlikely other players even pose a marginal threat \u2013 Epic has wisely chosen the strongest of partners who are unlikely to waste millions in investments to switch to a lesser-used EHR system. In a space where technology and innovation are slow moving, Epic finds itself in a prime position to keep dominating market share \u2013 they are simply too big to crush\u2026for now.<\/p>\n","protected":false},"excerpt":{"rendered":" Epic Systems, a leader in health care information technology, has set established itself as a giant in the HCIT industry. Their strategic choices have almost guaranteed that their dominance will be preserved for the next several years, leaving smaller players in the space with few opportunities to move ahead. <\/p>\n","protected":false},"author":58,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","categories":[7],"class_list":["post-655","hck-submission","type-hck-submission","status-publish","hentry","category-winner"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/digital-winners-and-losers\/","yoast_head":"\n