HisTalk blog had an article submitted (by Mark Moffitt) on web services and healthcare and how it can bring change to the healthcare industry, although slowly.
Here are few highlights, where Mark was right on about the healthcare lay of the land dominated by heavyweights like GE, Epic, Siemens, Cerner, McKesson, Meditech etc.,
1. Sunk costs of single vendor poses a significant barrier to change for providers who follow a single vendor approach in their IT strategy.
2. That tax is much higher in the US than in other countries (Chart 2). Healthcare cost as a percent of GDP cannot continue at current levels if the USA is to compete against other global economic powerhouses in the 21st century.
3. Agreed, webservices is better integration approach compared to point to point integration provided by HL7 (V2.X)
All other sections, I have a different opinion and here are my comments below.
1. The article claims that there is not enough competition between healthcare IT vendors. When are major 8 vendors like GE, Epic, Siemens, Meditech, McKesson, Cerner, Eclipsys, Healthland controlling the market share to the tunes of around 80%, I think the competition is healthy.
2. Though best of breed might be a better approach to healthcare, significant integration costs and numerous failed approach to integrations makes single vendor approach attractive from a Total cost of Ownership
3. The big vendors are taking step towards web services in their own product portfolio or through partnerships. GE recently partnerd with InterComponentWare(ICW), a really niche eHealth vendor who has all componets in their eHealth framework to enable interoperability at all levels from with in a provider’s infrastructure to across providers in a jurisdiction.