Healthcare Consulting Services Market

Market Overview

The global healthcare consulting services market size was valued at USD 16,872.3 million in 2022. It is expected to reach USD 48,624.26 million by 2031, growing at a CAGR of 12.48% during the forecast period (2023–2031).

The providers of healthcare consultancy services assist in advising and communicating expertise for healthcare organizations. Additionally, they support the long-term growth of the organization and the patients by aiding in formulating strategic decisions. Federal agencies, insurance companies, hospitals, and companies involved in the life sciences all use these advisory services. Digital consulting is used widely by hospitals and businesses for operations and policy. The biotechnology industry is also in need of all of these services. The demand for consulting services is anticipated to increase significantly in the upcoming year due to the outsourcing industry's recent significant growth.

Highlights

• The digital consulting segment is the highest contributor to the market by type of service.
• The operations management segment is the highest contributor to the market by application.
• The life science companies’ segment is the highest contributor to the market by end-user.
• North America is the most significant revenue contributor by region.

Market Dynamics

Global Healthcare Consulting Services Market Drivers:

Rising Demand for Healthcare Consultant Services

Healthcare consulting services like population health, clinical consulting, financial management, and operation management are becoming increasingly popular. The growth is attributable to its many healthcare payers and provider applications. The demand is also driven by the requirement to deal with the difficulties presented by a regulated, changing, expensive, and value-based healthcare environment. Healthcare consulting services have improved workflow effectiveness and raised patient care standards. Hospitals and healthcare systems are also adopting healthcare consulting services more frequently, allowing for network security, population risk management, fraud detection, and privacy of patient information. The demand for healthcare consultation services has also been fueled by increased healthcare organizations, a surge in patient inflow, rising demand for specialized services, and improved service delivery.

Growing Consolidation in the Industry for Healthcare Consulting Services

Market expansion is further supported by globalization and the spread of advantageous trade between various nations. The market is anticipated to grow faster due to the industry's increasing consolidation. Consolidation in the healthcare consulting services sector leads to increased outsourcing and international migration, which is expected to affect market growth positively. The need for skilled laborers from developing nations like China and India is growing. Leading American and European businesses can outsource healthcare consulting services from companies based in developing countries at a lower price than those in developed nations.

Global Healthcare Consulting Services Market Restraints:

Suspension Fees for Consultant Services

Employing healthcare consulting service providers can reduce operating costs, especially during upgrades and contract renegotiation. The choice of vendors, currency fluctuations, changes to hardware and software, organizational changes, layoffs, and the potential decline in employee productivity are additional hidden costs. The vendor joins the workflow if an organization chooses a provider for its processes. When a provider runs into problems or makes mistakes, the business will incur extra expenses and lose productivity. Vendors frequently replace seasoned employees with less experienced staff to reduce costs, and as a result, quality needs to improve. Therefore, the growth of the healthcare consulting services market during the forecast period may need to be enhanced by the consulting services' hidden costs.

Global Healthcare Consulting Services Market Opportunities:

Use of Healthcare Consultant Services in Imperializing Economic Situations

The market for healthcare consulting services anticipates excellent opportunities in developing nations. The demand for various healthcare services, including healthcare consulting services, has increased due to expanding healthcare organizations in the Asia-Pacific and MEA regions. Furthermore, there is a high demand for better management services due to rising healthcare revenue. The management of these finances and the resolution of the challenging reimbursement structures are assisted by healthcare consulting services. As a result, there are numerous opportunities for market growth due to rising healthcare spending and the presence of these opportunities in the developing world.

Regional Analysis

North America Dominates the Global Market

The global healthcare consulting services market is segmented into North America, Europe, Asia-Pacific, and the Middle East and Africa.

North America is the most significant revenue contributor and is expected to grow at a CAGR of 12.04% during the forecast period. Due to their advanced technology, high healthcare costs, and concentration of major players, the Americas accounted for the lion's market share. The region's residents are health-conscious, which fuels rising healthcare costs. Therefore, there is a greater need for healthcare consulting services to manage the growing healthcare revenue. According to the Centers for Medicare and Medicaid Services, the U.S. spent USD 3.6 trillion on healthcare in 2018, up 4.6% from the previous year. Spending on healthcare in North America significantly increased in 2019. Additionally, healthcare outsourcing can reduce costs by 30% to 60% for businesses, contributing to the market's expansion. Further, the demand for specialized services and rising cost savings will spur market expansion during the corresponding period. Additionally, growing government investments in the healthcare industry's growth have fueled the American market's development.

Europe is expected to grow at a CAGR of 12.25% during the forecast period. Due to its advanced technology, high healthcare costs, and concentration of major players, Europe also held a sizeable portion of the market. The increased cost of healthcare is a result of the region's health-conscious population. Therefore, there is a greater need for healthcare consulting services to manage the growing healthcare revenue. The major players are increasing their business operations there. For instance, in October 2020, Nordic, a healthcare consulting company, announced that it had acquired Tasman Global, a healthcare IT consulting business with offices across Europe and Asia and headquarters in the Netherlands. Growing government funding for expanding the healthcare industry has also fueled European market expansion.

Asia-Pacific is the region with the fastest-growing demand for healthcare consulting services due to the rapidly evolving healthcare industry and the abundance of opportunities for market growth. According to the Australian Institute of Health and Welfare, Australia spent USD 185 billion on healthcare overall in 2018. In China, healthcare spending is anticipated to increase by 8.8% annually from 2015 to 2018. The market's expansion has also been fueled by expanding healthcare organizations and industries and technological advancements. Additionally, the region is likely to experience a rise in emigration due to the increased per-capita healthcare spending, increase in diagnostic centers, and rapid urbanization in developing nations like India. The demand for healthcare consulting services is expected to increase due to the need for adequate healthcare services to meet unmet medical needs.

The Middle East and Africa account for the smallest percentage of the global market due to their poor and slowly developing nations, particularly in Africa. However, due to the expanding population and advancements in the healthcare industry, spending on healthcare also increased in the Middle East and Africa. The region that contributes most to the market is the Middle East. Sub-Saharan Africa's economy performed better in 2019, with positive economic growth and high demand for healthcare resources. The Middle East and Africa market has grown due to the advancement of technology and the rising demand for better management software.

Segmental Analysis

The global healthcare consulting services market is segmented by type of services, application, and end-use.

Based on the type of services, the global healthcare consulting services market is bifurcated into IT, digital, financial, operational, and strategy consulting.

The digital consulting segment is the highest contributor to the market and is expected to grow at a CAGR of 13.31% during the forecast period. Digital consulting is a practice that links business strategy to implementation in a variety of digital fields, including branding, marketing, public relations, server scaling, and web design and development. Examining current and developing digital platforms is the responsibility of digital consultants. They are experts in search engine optimization and add relevant, high-quality content to websites while ensuring rules are followed. It is anticipated that the share of this market will grow due to the increasing utility of various digital platforms, including e-commerce websites, point-of-sale terminals, marketing through paid digital services, and others.

Customers receive advice from IT consultants on everything from overall IT strategy—including what to store in a data center versus the cloud—to the kind of technology and functionality required in the context of the customer's IT and business environments, as well as on goals like process automation or mobile security. End users can optimize their software portfolio, automate processes, and digitalize operations with IT consulting. Some of the uses for IT consulting include enhancing software architecture, developing a technology-driven strategy, and enhancing operations by maximizing the software portfolio. These advisory services provide architectural, operational, and implementation planning to support customers' IT initiatives. Recent trends such as remote patient monitoring, telemedicine options, digital therapeutics, healthcare data management and analytics, patient relationship management, and others drive this market.

Based on the application, the global healthcare consulting services market is bifurcated into operations management, financial, population health, and clinical.

The operations management segment is the highest contributor to the market and is expected to grow at a CAGR of 11.96% during the forecast period. The operation management services aim to increase the value chain's productivity and efficiency. The goal of supply chain management consultants is to improve the supply-side activities of an organization, from production to logistics and warehousing to customer delivery. The availability of an increasing number of goods and services is anticipated to make this sector more profitable.

The financial is divided into fraud prevention, revenue cycle management, and other categories. The advisory and analytics company The Chartis Group (US) announced the introduction of Next Intelligence in January 2021. The article focuses on hospitals, health systems, and providers with operational, clinical, and financial difficulties. Similarly, LifePoint Health (US), a national network of hospitals with more than 80 locations, and R1 RCM Inc. (US), a provider of technology-enabled revenue cycle management services to healthcare providers, have entered into a new revenue cycle management agreement that will make R1 RCM Inc. the exclusive revenue cycle management partner for more than one-third of LifePoint hospitals. The market share of this sector is anticipated to be driven by an increase in product launches and strategic choices.

Based on the end-user, the global healthcare consulting services market is bifurcated into hospitals and clinics, government bodies, and life science companies.

The life science companies’ segment is the highest contributor to the market and is expected to grow at a CAGR of 12.21% during the forecast period. Life science businesses develop goods and services while also keeping an eye on things like marketing, operations, and human resources, among other things. Pharmaceutical companies need consulting services for drug development, clinical trials, and distribution agreements. Like other industries, the manufacturing of medical devices requires consulting to achieve goals like market access, regulatory approvals, mergers and acquisitions, new product development, and others. Small and large businesses have significantly increased over the last ten years, expanding the target market for consulting firms. Additionally, it is anticipated that the market share of this sector will increase due to the growing reliance of healthcare providers on consulting firms for market insight and feasibility analysis, transaction services and partnership assistance, and turnaround strategy assistance.

In a clinical setting, operational and financial performance, such as the cost and quality of care, safety, readmission rates, length of stay, patient and physician satisfaction, turnover, and vacancy rates, are examined to conclude. Hospitals and clinics are anticipated to grow the fastest end-user segment. This is attributed to healthcare professionals' increasing awareness of consulting services. An essential driver of this segment's growth is the rising demand for consulting services for managing expenditures, workforce management, and other applications and sourcing equipment.

Recent Developments

• December 2022- Mobeus, a technology company leading the way in immersive experiences through transparent computing, received a strategic investment from Accenture through Accenture Ventures. Mobeus Industries, Inc., with its main office in New Jersey, is creating frictionless technology to improve how people connect and communicate.
• November 2022- The first Prime Site in Israel launched by IQVIA, a leading global provider of advanced analytics, technology solutions, and clinical research services to the life sciences sector. Clalit is the most significant health services organization in Israel.