Publications
Publications
- September 2024 (Revised December 2024)
- HBS Case Collection
Epic: The Future of Health Information Technology
By: Regina E. Herzlinger and Brian L. Walker
Abstract
What are the next steps for a firm that has scaled up?
The case focuses on how the founder and leadership team of a health IT company with over 45 years of market leadership should prepare for the future, while navigating founder transitions and industry changes. Founded by Judy Faulkner in the late 1970s, Epic pioneered electronic health records (EHR) and has grown into a $4.9B revenue company, providing services to hospitals, health systems, and patients worldwide. Throughout its history, Epic has remained a private, debt-free company, resisting the urge to follow in the footsteps of its tech peers by going public.
Now, Epic faces the challenge of maintaining its leadership position in a rapidly evolving health information technology (HIT) landscape. Industry incumbents and new entrants, including Microsoft and Google, are eyeing healthcare, and innovations may lead hospitals to consider alternative systems or niche products over Epic’s embedded capabilities. At the same time, Epic must anticipate future healthcare demands, navigate regulatory complexities, and prepare for leadership changes.
The company’s enviable market position and long-term planning provide a strong platform for future growth, but Epic must decide how to prioritize its objectives over the next five years and beyond. Should it focus on expanding its product offerings, enhancing system capabilities, or diversifying into new markets? How should Epic position itself to address the ongoing evolution of healthcare technologies and patient needs while ensuring the sustainability of its founder’s vision?
The case focuses on how the founder and leadership team of a health IT company with over 45 years of market leadership should prepare for the future, while navigating founder transitions and industry changes. Founded by Judy Faulkner in the late 1970s, Epic pioneered electronic health records (EHR) and has grown into a $4.9B revenue company, providing services to hospitals, health systems, and patients worldwide. Throughout its history, Epic has remained a private, debt-free company, resisting the urge to follow in the footsteps of its tech peers by going public.
Now, Epic faces the challenge of maintaining its leadership position in a rapidly evolving health information technology (HIT) landscape. Industry incumbents and new entrants, including Microsoft and Google, are eyeing healthcare, and innovations may lead hospitals to consider alternative systems or niche products over Epic’s embedded capabilities. At the same time, Epic must anticipate future healthcare demands, navigate regulatory complexities, and prepare for leadership changes.
The company’s enviable market position and long-term planning provide a strong platform for future growth, but Epic must decide how to prioritize its objectives over the next five years and beyond. Should it focus on expanding its product offerings, enhancing system capabilities, or diversifying into new markets? How should Epic position itself to address the ongoing evolution of healthcare technologies and patient needs while ensuring the sustainability of its founder’s vision?
Citation
Herzlinger, Regina E., and Brian L. Walker. "Epic: The Future of Health Information Technology." Harvard Business School Case 325-028, September 2024. (Revised December 2024.)