Caduceus Software Systems Corp. CSOC -1.26% - (The Company) has received numerous calls from its shareholders requesting more insight and information on the market potential for its Healthcare Information Systems Software, and for this reason this press release will address some of these questions.
Q: Will electronic record keeping actually help make our healthcare system more efficient and if so how?
A: Yes, Electronic Health Records are a major breakthrough in healthcare. They will change the ways in which healthcare is delivered and medicine is practiced, improving care and creating a more efficient system. The goal is to achieve paperless administration across the healthcare industry. This form of administration will make for a more efficient and centralized system that can be used for various purposes such as patient care, administration, research, healthcare quality improvement, and processing of reimbursements.
Q: What is the market size of the medical electronic records market in the US and what does this mean for Caduceus?
A: The market is very large and there are many incentives and opportunities for our Company to capture even a small percentage of this market. For example, the medical electronics market is estimated to be valued at US$128.6 billion for this year (2010), and it is expected to reach a market size of about US$191.1 billion by 2015, resulting in a growth rate of 8 percent over the next five years." (cf. DataBeans 2010 Medical Semiconductors report).
Q: How much is currently being spent on Electronic Health Records?
A: Healthcare providers currently spend just over US$13 billion a year on Electronic Health Records, according to Kalorama Information. Using much narrower criteria, BCC Research figures 2009 spending on EHRs was almost $1.4 billion and growing. Neither estimate included the effect of the recently launched federal program to provide between $30 billion and $40 billion in financial assistance to doctors and hospitals for investments in EHRs through 2016.
Q: Is there still growth left in this market?
A: Yes, as the U.S. Electronic Medical Records market is expected to grow from $2.177 Billion in 2009 to $6.054 Billion in 2015.
Q: What about demand for Electronic Health Records internationally?
A: It is estimated that Healthcare Information Technology (HCIT) market will exceed $25 billion in 2015. Electronic Medical Records is the major segment driving its growth. The rising demand for healthcare cost containment and need to improve quality of healthcare service are driving the growth of the Worldwide EMR market. The global EMR market is expected to grow from $4.355 Billion in 2009 to $9.957 Billion in 2015.
Q: Can you provide an example of how much savings can be achieved by using Electronic Medical Records?
A: Yes, IT spending and the government initiatives towards development of a nationwide healthcare information network are expected to push EMR implementation across the healthcare sector in the US by 2015. As per a study by Harvard Medical School in 2008, administrative automation may result in saving 5% of the total healthcare spending or $100 billion in the U.S. by reducing adverse events such as adverse drug events, medical errors, and complications of interventions including hospital acquired infections. Similarly, overuse of emergency departments and unnecessary ordering of clinical and radiology tests result in loss of $55 billion, which could be saved by implementation of EMR systems at healthcare practices.
Q: What is your competition like and is there a market leader?
A: The U.S. EMR market space is highly fragmented with more than 1000 players in the market. In 2010, Allscripts emerged as a market leader with 15.7% market share in the physician office EMR market; whereas Meditech led the hospital EMR segment with an overall market share of 24.9%. However, we feel that there is still room for growth and many opportunities exist in today's market domestically and internationally. Derrick Gidden, CEO of Caduceus states, "Our analysis of the market indicates that the healthcare industry has actually grown over the past few years, due to technology, IT, government incentives and initiatives, and our product, because of its design, distribution and servicing, will essentially benefit from this apparent change of course."
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