KLAS Investigates Application Hosting Services in Healthcare

A growing number of healthcare provider organizations are turning to vendors and third party firms to host and manage some of their core applications. KLAS takes an in-depth look at what is happening in the provider application hosting marketplace, what is fueling this growth, and investigates provider successes, struggles and satisfaction with vendors in this growing area.

Orem, UT, January 11, 2008 --(PR.com)-- In order to improve patient care, keep up with government regulations, function with even tighter budgets and limited resources and deliver increasingly complex technology solutions, many healthcare providers are turning to software vendors or third party firms to host and manage some of their critical applications. KLAS’ Application Hosting Study set out to help providers better understand what is happening with the application hosting market and to investigate the successes and struggles providers are experiencing with regard to application hosting of core clinical and financial software applications.

As part of this study, KLAS asked organizations if they were planning to renew their contract, whether the level of service for the application had improved or declined since hosting and whether they felt that they were getting more or less value for their money. In all cases the overwhelming majority responded favorably to each question. Seventy-seven percent of survey respondents indicated that they were getting more for their money. However, not everyone was content with their hosting experience. Forty-five percent mentioned having at least one expectation that was not met. Additionally, many reported that while benefits are being attained, they do not match the original reason(s) that lead to the decision for application hosting in the first place.

Nine vendors qualified to be included in this research, including Cerner, Eclipsys, NaviSite, netASPx, Perot Systems and Siemens in the Main Body of the report with ACS, McKesson and PHNS in the Early Data section of the report. Additionally, seven more vendors were on the cusp of qualifying for study inclusion including: CedarCrestone, CSC, GE, Lawson, Oracle, Phoenix Health Systems and Velocity.

Some of the additional studies also available from KLAS include Nursing Adoption of IT, Medical Transcription Outsourcing Services, Community PACS and Clinical Market Share.

About KLAS
KLAS is the only research firm that specializes in monitoring and reporting the performance of healthcare’s information technology (HIT) vendors. KLAS’ mission is to improve HIT delivery, by independently measuring vendor performance for the benefit of their healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4500 hospitals and over 2500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the HIT industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to www.healthcomputing.com, email marketing@healthcomputing.com, or call 1-800-920-4109 to speak with a KLAS representative.


All KLAS data and reports are © 2008 KLAS Enterprises, LLC. All rights reserved.
Andrea Morrill