Report: Europe no panacea for struggling U.S. health IT vendors
Discouraged by ebbing new-product sales at home, U.S. vendors of health IT have invested millions to build customer bases in Europe—only to find the going just as slow.
That’s according to a new executive briefing from Katalus Advisors, a healthcare consultancy based in Alpine, Utah, that counts vendors, investors and healthcare providers among its clients.
The white paper, titled “Crossing the Pond: Why U.S. Enterprise HIT Companies Struggle for Success in Europe,” notes that the domestic downturn has come despite the injection of incentives in the Health Information Technology for Economic and Clinical Health (HITECH) Act.
“While buying has picked up a bit, this uptick is universally acknowledged as a short-term blip which will run its course as timelines expire and federal funds are depleted,” the report states. “For U.S. vendors of HIT, a logical question arises, ‘where do we go next?’ The Middle East garners some attention, but Europe is a natural choice for market expansion given the comparable standard of living and adoption of technology.”
Also noted in the paper:
“Some U.S. companies may decide to acquire their way into Europe, like CSC is doing via the acquisitions of Scandihealth and iSoft,” concludes the briefing. “Despite the challenges, this much is certain: U.S. HIT firms must continue to explore and expand in Europe as the U.S. matures into a total replacement market. The key, as always, is to do it right.”
Click here to read the complete white paper, along with a follow-up, “Crossing the Pond Part II.”
That’s according to a new executive briefing from Katalus Advisors, a healthcare consultancy based in Alpine, Utah, that counts vendors, investors and healthcare providers among its clients.
The white paper, titled “Crossing the Pond: Why U.S. Enterprise HIT Companies Struggle for Success in Europe,” notes that the domestic downturn has come despite the injection of incentives in the Health Information Technology for Economic and Clinical Health (HITECH) Act.
“While buying has picked up a bit, this uptick is universally acknowledged as a short-term blip which will run its course as timelines expire and federal funds are depleted,” the report states. “For U.S. vendors of HIT, a logical question arises, ‘where do we go next?’ The Middle East garners some attention, but Europe is a natural choice for market expansion given the comparable standard of living and adoption of technology.”
Also noted in the paper:
- In Europe, market conditions change significantly across national and intranational lines.
- Price points in Europe are generally lower than in the U.S. and vary widely across different countries.
- Closed-loop medication administration is not a priority in Europe as it is in the U.S.
- Vendors in Europe are heavily regionalized. Primary vendors in select markets include Cerner and iSoft in the U.K.; Agfa and Siemens in Germany; Chipsoft and iSoft in the Netherlands; and Alert, HP and Indra in Spain.
“Some U.S. companies may decide to acquire their way into Europe, like CSC is doing via the acquisitions of Scandihealth and iSoft,” concludes the briefing. “Despite the challenges, this much is certain: U.S. HIT firms must continue to explore and expand in Europe as the U.S. matures into a total replacement market. The key, as always, is to do it right.”
Click here to read the complete white paper, along with a follow-up, “Crossing the Pond Part II.”
Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.