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Mayo Clinic chooses Epic Systems Corp. as its new provider

Mayo Clinic chooses Epic Systems Corp. as its new provider

Epic has landed a prestigious new client — Mayo Clinic — wooing it away from two big competitors in a deal that could help other Madison area companies as well.

Epic Systems Corp., Verona, will install electronic health records and billing systems for Mayo, replacing current providers Cerner and GE.

The new system will be “a foundation for Mayo Clinic operations over the next several decades,” the Rochester, Minnesota, health care organization said in a news release.

“We’re confident in choosing Epic as our strategic partner as we continue to enhance Mayo Clinic’s excellence in health care and medical innovation,” said Dr. John Noseworthy, Mayo Clinic president and chief executive.

Terms of the contract are not being disclosed. It still needs approval from Mayo’s board of governors and board of trustees, with action scheduled in February.

Mayo Clinic saw more than 1 million patients in 2014 at clinics in Minnesota, Florida and Arizona.

“We see a very long and wonderful relationship with Mayo Clinic. They are a welcome addition to the Epic community, with their focus on integrated care, improved patient experience, and innovation,” Epic spokeswoman Erika Koch said.

If approved, Epic’s digital systems will be installed in 2015 and 2016 with implementation planned to start in 2017. More than 45,000 Mayo employees will be trained to use the new technology.

Epic’s software already is used by about 350 health care organizations that care for 54 percent of U.S. patients. Cerner and GE are among Epic’s biggest competitors.

Signing Mayo is a coup as it is considered “one of the crown jewels in the market,” said analyst Eric Coldwell, of Robert W. Baird & Co. Coldwell does not report on privately owned Epic, but he follows Cerner.

“Several pundits speculate that winning Mayo is an incremental marketing advantage (for Epic)” and may raise questions about the current providers, Coldwell said. “I’ve even heard some experts comment that the Mayo RFP (request for proposals) may influence the DHMSM RFP, though that seems to me to be quite a stretch.”

The DHMSM RFP, or U.S. Department of Defense’s request for proposals, involves an $11 billion contract to install electronic health records systems for the military. Epic and IBM are among the teams that submitted a bid, which is expected to be awarded later this year.

Epic has about 8,000 employees and had $1.66 billion in revenues in 2013, the most recent figure disclosed. Epic officials would not comment on the potential job impact of a contract with Mayo.

Mayo officials said staff from Mayo, Epic and “external consulting organizations” will be on the project team.

Consultants were not identified but several Epic consultant groups are in the Madison area. Nordic Consulting, the largest, with 475 employees, could not be reached for comment on Wednesday.

Huron Consulting Group’s Vonlay, Middleton, and BlueTree Network, Madison, also are Epic consultants.


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