
Revenue
$4.90B
2023
Growth Rate (y/y)
7%
2023
Funding
$5
2024
Revenue
Sacra estimates Epic hit $4.9B in revenue in 2023, growing 7% from $4.6B in 2022.
The company's revenue has grown significantly from $500M in 2007, driven by widespread EHR adoption following the 2009 HITECH Act's $27B federal incentive program.
Epic generates revenue primarily through software licensing and maintenance fees from large healthcare providers, with the average customer relationship lasting 10+ years.
Major implementations can cost $650M+ for large health systems, with additional annual maintenance fees in the millions.
The company maintains high profitability with estimated EBITDA margins above 30% and operates debt-free.
Epic dominates the large hospital market with a 39% share of U.S. hospital beds. Its customer base includes 2,400 hospitals and 225 million patient records, representing two-thirds of the U.S. population.
The company has expanded beyond its traditional large academic medical center focus to include smaller community hospitals, international markets, and new verticals like dental practices and retail health.
Product

Epic was founded in 1979 by Judy Faulkner in Madison, Wisconsin, starting as a database management system for healthcare organizations operating from a basement office.
Initially, the system focused on managing external factors like scheduling and patient information to make hospital records more efficient.
Epic found product-market fit as an integrated electronic health records system for large academic medical centers and children's hospitals, with early success at organizations like Kaiser Permanente.
The product unified previously fragmented hospital workflows into a single comprehensive system.
At its core, Epic's electronic health record system manages a patient's entire medical journey. When a patient schedules an appointment, their information flows through Epic as they move from registration to the exam room, where doctors record diagnoses and prescribe medications.
The system then handles billing and follow-up care coordination. Nurses, physicians, and administrative staff all work within Epic to coordinate care delivery.
The system has expanded to include specialized modules for different medical departments: emergency rooms use ASAP for patient tracking, surgeons use OpTime for procedure scheduling, oncologists use Beacon for chemotherapy planning, and patients use MyChart to access their records and communicate with providers.
All these components share data through Epic's Chronicles database, enabling seamless information flow across departments and facilities.
Business Model
Epic generates revenue through large upfront implementation fees ranging from $1-500M+ depending on facility size, plus annual per-user licensing fees averaging $1,500 per provider.
Epic's core competitive advantage comes from its integrated suite of healthcare applications built on a single codebase and database, allowing seamless data sharing across departments and facilities using Epic.
This contrasts with competitors who often cobble together acquired products. The company's software handles everything from scheduling to clinical documentation to billing, making it extremely sticky once implemented.
The business follows a land-and-expand model where Epic typically enters through large academic medical centers and hospital systems, then expands to their affiliated clinics and practices.