I took Katherine’s post about Epic Being a Victim of Its Own Success and posted it on Google Plus to see what kind of conversation would happen (Note: You can find me on Google Plus here). Turns out, it’s already generated 15 responses with a bunch of interesting points of view.
Dan Munro just left the following summary of Epic’s success that I thought was definitely worth sharing on this site since it was thoughtful and useful to consider.
1) The KP deal (started in 2003) is estimated to run $4B over 10yrs
2) Kent Gale, president of KLAS Enterprises, a research firm known in healthcare specifically for its customer surveys said “…there’s a huge gap between Epic and the other vendors. That is probably the biggest differentiator. They are able to keep their commitments better.”
3) Epic ranked No. 1 in seven out of 20 categories in one of KLAS’ most recent survey (and they don’t sell products for several of the categories).
4) “They have a reputation for doing the right things,” said Thomas Handler, a physician and research director at Gartner.
5) Founded in 1979 with an initial investment of $70,000, the company now is conservatively estimated by Wall Street analysts to be worth $1.2 billion (2008).
6) Epic has never done an acquisition, has no debt and has been known to turn away business.
7) The company historically has hired only 2% of all applicants.
8) Epic receives about 40,000 to 50,000 applications/year.
9) Epic’s software enabled Kaiser, the country’s largest health system (outside of VA?), to confirm that Vioxx increased the risk of blood clots, leading to the prescription painkiller being pulled from the market.
10) The company rarely negotiates on price. There is one exception: It has been known to give breaks, such as waiving its annual maintenance fee, to struggling hospitals.
Certainly Epic has been doing very very well. I’m not sure anyone would argue against that.