CONSOLIDATION CONTINUED impacting sales of new laboratory information system (LIS) software during 1998.
Sales champs in THE DARK REPORT’s annual ranking of the Top Ten LIS Vendors for 1998 are Meditech and Fletcher Flora, in the categories of LIS sales to hospitals and non-hospitals respectively. Rankings for 1998 performance demonstrate how the marketplace for LIS products is changing.
In the category of new sales of LIS to hospitals, Meditech placed 97 systems in 1998. Second were Fletcher Flora and HBOC & Co, each placing 78 systems.
In sales to the non-hospital category, which primarily includes independent clinical laboratories, Fletcher Flora placed 118 systems, followed by second place Schuyler House (47 systems), and third place Creative Computer (16 systems).
In total installed systems, Meditech dominates the hospital category. It has 1,083 LIS systems in operation. This represents 20% of the nation’s hospitals. Next is Sunquest, with 916 installed LIS systems and 17% of the nation’s hospitals, then Cerner Corp. with 621 and 11.5%.
Among non-hospital systems, Sunquest is number one, with 227 LIS installations, or about 10% of the market. Number two and number three are
Creative Computer Applications (210 and 9.4%) and Schuyler House (200 and 8.97%).
One significant change from 1997 to 1998 was a decline in the number of non-hospital installations, from 2,552, to 2,231. This means the independent laboratory marketplace shrunk by almost 13% during the year. It demonstrates the impact that poor reimbursement and laboratory consolidation is having upon this segment of the lab industry.
As in past years, Pareto’s Law continues to accurately describe the LIS industry. Generally the top five or six companies in each market segment control 50% or more of all sales activity. Ranking tables in this story show how a limited number of vendors dominate each category.
This LIS sales data is based on numbers compiled by consultant Robert Johnson of R. L. Johnson & Associates, who has collected hospital and medical information systems data annually for 16 years.