Axolotl

NHINWatch

By Patty Enrado

With states either submitting or receiving approval from the Office of the National Coordinator for Health IT of their strategic and operational plans for statewide HIEs, the HIE market is booming for vendors.

"After a slow start, the HIE marketplace is continuing to evolve, and now so at a faster pace than ever before," said Glenn Keet, president of Axolotl. From 1995 to 2004 the market for regional health information organizations was almost nonexistent, he said. Market awareness emerged between 2004 and 2008, thanks to David Brailer, MD, ONC's first leader, and some market incentives. It wasn't until the American Recovery and Reinvestment Act of 2009 and its HITECH Act that the market dynamics changed dramatically.

"In 2009, when ARRA funding became available, it drastically changed the market dynamics because the increase in funding increased the market for healthcare IT substantially at a time when other industries such as the financial markets are flailing," Keet said. "As a result, there are many, many new entrants to the HIE market that range from new start-ups to large sized companies. Again, the market has become extremely fragmented."

Keet noted that the market will continue to evolve as standards are defined and as new entrants continue to stream into the market. "The end goal is still a fast-moving target," he said. "As a result, it is natural to see consolidation and more partnering in the marketplace."

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