Healthcare Finance Solutions Market Size, Share & Trends Analysis Report By Equipment (Diagnostic/Imaging Equipment, Specialty Beds, Surgical Instruments, Decontamination Equipment, IT Equipment), By Facility (Hospitals & Health Systems, Outpatient Imaging Centers, Outpatient Surgery Centers, Physician Practices & Outpatient Clinics, Diagnostic Laboratories, Urgent Care Clinics, Skilled Nursing Facilities, Pharmacies, Other Healthcare Providers), By Services (Equipment and Technology Finance, Working Capital Finance, Project Finance Solutions, Corporate Lending) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global healthcare finance solutions market size was valued at USD 120.3 billion in 2021 and is projected to reach USD 249.65 billion by 2030 at a CAGR of 8.45% from 2022 to 2030.

Healthcare finance solutions are a collection of financial capital solutions that enable parties to mobilize cash to address diverse healthcare needs, such as funding for medical equipment, infrastructure upgrades, and treatment coverage. These solutions enable the most efficient collection and financing of healthcare-related services by facilitating a more efficient capital flow.

Market Dynamics

Global healthcare finance solutions market drivers

Constant up-gradation will drive the market

The rising demand for constant upgrades and modifications in various healthcare processes with the aim of enhancing the performance of various healthcare facilities will act as a critical factor in accelerating the growth rate of the healthcare finance solutions market. The increasing rate of adoption of high-tech equipment and technology will increase the demand for healthcare finance solutions, thereby accelerating the market's growth rate. The presence of favorable government initiatives for the development of the healthcare infrastructure also contributes significantly to the market's expansion. Moreover, rising healthcare expenditures and a rise in digital adoption in the healthcare sector are the primary factors that will propel the market's expansion. Rapid urbanization, a shift in lifestyle, and a rise in disposable incomes in developing and developed nations will impact the market growth rate for healthcare finance solutions. The increase in the geriatric population, the rise in the prevalence of chronic disorders, and the rise in the demand for the early diagnosis will stimulate the growth rate of the healthcare finance solutions market.

Increasing value-based care is driving the market

The healthcare system is transitioning from volume-based to value-based care in an effort to improve patient care and patient engagement. Volume-based care is a traditional healthcare service known as (Fee for Service) that does not guarantee a positive patient outcome. Providers of healthcare are compensated for each service rendered, regardless of the success or necessity of the service. The framework for value-based care delivery aims to improve healthcare outcomes at a lower cost. Under this model, payers do not pay healthcare providers individually but instead can appoint a primary provider to be responsible for budget distribution to secondary healthcare providers.

Global healthcare finance solutions market restraints

Stringent regulations and lack of cost-effectiveness are the major hindrances

The market expansion will be impeded by high costs and unfavorable government policies. In addition, the market for healthcare finance solutions will be hampered by intense competition among market participants. In addition, a lack of awareness will act as a restraint and hinder the market's growth rate.

Global healthcare finance solutions market opportunities

Technological advancements will drive the market in the future

The adoption of technologically advanced products to improve functions and processes is on the rise in the healthcare industry, which is undergoing change. It is possible to observe advancements in healthcare equipment, software, infrastructure, and therapy, among other fields. Safe and effective therapy or treatment is a top priority for all healthcare professionals and technological advancements have made it easier to achieve this objective.

Enhancements in technological access, internet, and video & remote monitoring capabilities can aid healthcare providers in delivering more cost-effective, patient-centered care. This strategy is likely to reduce patients' overall expenditures on healthcare. The COVID-19 pandemic has had a positive effect on reimbursement policy; consequently, there has been an increase in the adoption of home-based care and telehealth.

Regional Analysis

The United States is one of the leading countries in the production and development of technologically advanced products for the healthcare industry, resulting in an increase in the total cost of healthcare for patients. This increases the financial burden on patients in a direct manner. 40 to 50 percent of the annual cost increase is attributable to new medical technology.

The United States spends significantly more than other wealthy nations on healthcare administration, with administrative costs comprising approximately 30 percent of total healthcare expenditures. The increase in administrative expenses of healthcare providers is a result of the rising cost of healthcare and the introduction of new and costly technology.

Over the forecast period, the Asia-Pacific region is anticipated to experience the highest growth. The growth of the healthcare finance solution market in the region is also anticipated to be driven by an increase in healthcare expenditures and the presence of a large patient base. The investment of international healthcare finance solution providers, such as the Asian Development Bank, is expected to propel the market's expansion over the forecast period.

Segmental Analysis

This market can be segmented based on equipment, facilities, services, regions, and competitors.

The market is segmented by equipment into diagnostic/imaging equipment, specialty beds, surgical instruments, decontamination equipment, and information technology equipment. The decontamination equipment dominated the market share in 2021 due to the fact that it is expensive and requires significant capital investment. In addition, the rising demand for the most appropriate care and the desired outcomes is likely to increase the demand for advanced equipment, which is anticipated to contribute to the growth of the market.

Over the forecast period, the segment of specialty beds is anticipated to record the highest CAGR, 8.9%. This is a result of the growing demand for advanced beds in healthcare facilities. In addition, favorable government initiatives pertaining to the development of healthcare infrastructure are anticipated to fuel the growth of this industry over the coming years.

The market is divided into hospitals & health systems, outpatient imaging centers, outpatient surgery centers, physician practices & outpatient clinics, diagnostic laboratories, urgent care clinics, skilled nursing facilities, pharmacies, and other healthcare providers based on the type of healthcare facility.

Due to the increasing number of hospitals & health systems and their rising demand, the hospital & health systems segment was the largest in 2021, accounting for 23.6% of the market share. In light of frequently shifting regulations, the expansion of healthcare access, and rising patient demands, hospitals require financial assistance. Patients are expected to receive both the most appropriate care and the desired outcomes from healthcare facilities. Therefore, it is anticipated that the hospital and health system facility will experience significant growth over the forecast period.

Based on services, the global market is divided into equipment and technology financing, working capital financing, project finance solutions, and corporate lending. In 2021, 43.5 percent of the market share was contributed by equipment and technology finance. This is due to the large amount of capital required for the establishment and the expensive medical equipment that requires financial support.

In the future, digital technology may enhance the patient experience by providing real-time access to medical services and related support. This update will necessitate the installation of equipment capable of handling and coordinating these tasks without difficulty. As technology advances and the demand for advanced healthcare increases, the cost of the devices will become a crucial consideration for healthcare providers. The cost of such devices will have a substantial impact on the expansion of the healthcare finance solutions market.

Geographically, the market for healthcare finance solutions is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. With a market share of 38.2 percent in 2018, North America dominated the market. Due to the high demand for advanced healthcare systems and electronic data management initiatives, this is the case. As a result of the presence of a large number of key players, North America is also expected to experience lucrative growth over the forecast period. Such companies include Siemens Financial Services, Inc. and Commerce Bancshares, Inc.

Recent Developments

• Humana (US) and IBM (US) worked together in 2021 to deploy IBM Watson Assistant for Health Benefits, an AI-enabled virtual agent built on the IBM Watson Health Cloud. This agent contributes to a better member experience by enhancing the clarity and transparency of benefits and other related matters for Humana Employer Group members.
• Allied Digestive Health (ADH) chose athenahealth's (US) cloud-based healthcare payments and patient engagement solutions in 2021 to drive patient relations and revenue cycle excellence, thereby supporting the organization's future growth.