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Consolidation in HIE Market to Continue

by John Moore | March 31, 2011

Yesterday, Chilmark Research participated in a webinar hosted by the eHealth Initiative. The topic of discussion was consolidation in the HIE market and drawing upon our research for the recently published HIE Market Report, we gave the following presentation.

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While we do predict that the HIE market will continue to consolidate, the big question is how much are larger companies willing to spend to pick-up one of the Tier Two HIE vendors. There are still several good companies out there that are ripe for the picking but after the large valuations we saw for both Axolotl and Medicity in the second half 2010, are these Tier Two companies expecting the same rich rewards. If so, this may dampen the appetite for acquisitions and we’ll see stronger partnerships being formed instead.

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