Patient Safety Risk Management Software Market

Market Overview

The global patient safety risk management software market size was valued at USD 1.81 billion in 2022. It is estimated to reach USD 4.44 billion by 2031, growing at a CAGR of 10.5% during the forecast period (2023–2031). Factors such as Rising Healthcare Expenditure and Increasing Government Initiatives, significantly drives the patient safety risk management software market demand by 2031.

The rising healthcare expenditure and increasing government initiatives are expected to increase market expansion. A subset of healthcare IT called patient safety and risk management software makes it easier to analyze, record, and manage medical incidents in healthcare institutions. The program has been demonstrated to increase patient satisfaction while reducing error rates. The patient safety and risk management software team works with several clinics and corporate hospitals to find treatment errors and evaluate risk. Software for managing the patient experience, ensuring compliance, processing claims, and other tasks is available. Increasing global acceptance of digitization is one of the main factors propelling the patient safety risk management software market growth.

Pharmacovigilance risk management aims to reduce the likelihood of adverse drug reactions and maximize the health benefits of medicines. It entails finding the risks, evaluating them, and stopping them from happening. Planning pharmacovigilance activities to characterize risks and identify new risks; planning, implementing, and evaluating risk minimization and mitigation activities; documenting post-approval obligations imposed as a condition of marketing authorization; these are the stages of risk management. As part of the pharmaceutical approval process, these initiatives are rolled into one big plan called the risk management strategy. The overarching objective of risk management is to guarantee that, when it comes to treating a specific indication, the benefits of the pharmaceutical product vastly outweigh the risks, both for the individual patient and the intended population as a whole.

Market Dynamics

Global Patient Safety Risk Management Software Market Drivers

Rising Healthcare Expenditure

The adoption of numerous innovative and creative technologies by hospitals, long-term care facilities, and other healthcare institutions has been promoted because it positively influences and supports the market's expansion. Several important factors, including increased patient awareness and improved operational efficiency due to fewer medical errors, drive the market for patient safety and risk management software. Additionally, enhanced and improved workflow in healthcare institutions and the increased need to follow compliance standards or rules are some of the key drivers driving market demand. Thus, businesses are always concentrating on creating new and better software solutions and products for enhancing the performance of healthcare providers and raising the standard of care given to patients.

Additionally, the demand for the installation of IT solutions in the healthcare industry is driven by increased healthcare spending globally. Global spending on health is expected to rise to USD 18.3 trillion by 2040, according to a survey published in The Lancet in 2016. The healthcare sector is transitioning from a fee-for-service paradigm to a value-based approach where payment is based on the success of the patient's treatment. Market expansion is expected to increase throughout the projection period because healthcare expenses are expanding faster than economies.

Increasing Government Initiatives

One of the key factors encouraging market growth is improvements in government initiatives for better patient safety and outcomes. The governments of several developed and emerging nations are working very hard to improve patient safety procedures and other risk management procedures. For example, the WHO has created the Global Patient Safety Action Plan 2021-2030. According to the action plan, partner and member nations will always treat patients safely and respectfully. Government efforts to reduce the burden of unsafe treatment are also growing. Better patient safety solutions are anticipated to contribute to a stronger global healthcare system by reducing the burden of substandard care. For instance, one in four patients in low- and middle-income countries suffer injury due to hazardous care, according to a draft of the WHO's Global Patient Safety Action Plan 2021–2030 published in January 2021. Several strategies and efforts are being put into place to improve patient safety, which is projected to accelerate market growth shortly.

Another issue is the rising prevalence of hospital-acquired illnesses in different nations. Governments are, therefore, attempting to set up patient safety protocols and measures. This is anticipated to accelerate the uptake of different patient safety solutions by governments and healthcare providers, helping the market's expansion. For instance, the Indian government's National Patient Safety Implementation Framework (2018-2025) aims to increase patient safety and decrease hospital-acquired illnesses. Therefore, it is anticipated that throughout the forecast period, government activities will increase, and patient safety solutions for patient management will become more widely adopted by various institutions and governments.

Global Patient Safety Risk Management Software Market Restraint

Lack of Skilled Professionals

Technical expertise in patient vital information, software architecture, and statistical models is necessary to interpret healthcare analytics and patient data. Insufficiently qualified specialists may constrain the market's expansion to interpret data. Additionally, only a few universities and institutions provide training and courses for patient safety and risk management. As a result, there is a huge disparity between supply and demand because of technical ignorance. Companies and colleges work together on various projects, expected to inspire students to seek careers in this area. A recent HIMSS conference showed that high-end consulting firms, third-party vendors, and software developers were strategically competing for a small pool of qualified healthcare information technology employees alongside caregivers or providers.

According to several research studies by the U.S. Bureau of Labor Statistics, the demand for IT-skilled medical technicians is predicted to expand, improving job prospects for professionals in the field. A lack of competent individuals in the healthcare IT sector may cause obstacles to market expansion. A serious shortage of healthcare workers is also indicated by the rising incidence of non-communicable diseases, rising internal and external migration of health professionals, and an aging healthcare workforce, which may impede the market growth for patient safety and risk management software. For instance, according to a 2018 study on patient safety concerns and issues in Bhutan's healthcare system, patient safety and education training for patients and healthcare professionals was one of the key factors in developing better patient safety systems in the nation. Better training and educational resources will, therefore, aid in addressing the issue of a lack of trained experts, thereby driving market growth throughout the forecast period.

Global Patient Safety Risk Management Software Market Opportunities

Analytics and Artificial Intelligence (AI) Integration

Integrating AI and analytics into patient safety and risk management software makes it possible to perform advanced data analysis, real-time monitoring, and predictive modeling. These innovations can aid in risk assessment, enhance decision-making, and increase patient safety. Vendors that offer AI-driven solutions have a great chance to meet this expanding demand. The application of big data analytics for patient safety is growing quickly, speeding up the expansion.

Regional Analysis

Based on region, the global patient safety risk management software market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa.

North America Dominates the Global Market

North America is the most significant Patient Safety Risk Management Software Market Shareholder and is estimated to exhibit a CAGR of 10.3% over the forecast period. The largest market share holder for patient safety risk management software is North America, which is anticipated to grow at a CAGR of 10.3% during the forecast period. A well-established healthcare infrastructure and improved healthcare expenditure and coverage regulations have contributed to the rise in the region's income. The presence of large firms close by, the rise of inventors, government backing for laws, and increasing investment all have a good effect on the market. The prevalence of chronic diseases and the aging population are expected to more than quadruple in the upcoming years, significantly straining healthcare systems. These healthcare systems will require significant technical advancements and reforms to remain competitive.

Furthermore, the main factor for the significant market share is the widespread use of healthcare IT services in healthcare facilities throughout the United States, which major industry players facilitate. Transitioning from on-premises systems to healthcare IT solutions is another factor driving the sector. Increased usage of data analytics in healthcare organizations to improve patient safety, streamline workflow, and the presence of multiple market players. One of the main factors promoting market expansion in this region is the United States.

Europe is anticipated to exhibit a CAGR of 10.6% over the forecast period. The healthcare sector in Europe is under strain due to several important issues, including rising expenses, an aging population, an increase in treatment demand, a decrease in the number of healthcare workers, and an increase in the incidence of chronic disorders. Additionally, structural inefficiencies in some European nations are a problem for the sector. The move toward value-based healthcare is anticipated to increase pressure for more favorable patient outcomes at more affordable prices.

Further propelling the market in the region are several government programs that encourage the growth of healthcare IT, the growing need to comply with regulatory requirements, and advancements in healthcare infrastructure. By helping to identify new observations or patterns in human physiology, early illness detection, accurate diagnosis, and the creation of individualized diagnostics and therapies, the increasing integration of AI in risk management platforms is further improving patient safety. Consequently, this is predicted to fuel the market throughout the ensuing years.

Asia-Pacific has emerged as one of the fastest-growing regions in the global market. The demand for patient safety and risk management software is being driven by an increase in the number of patients and investments to upgrade the healthcare infrastructure, developments in machine learning, and algorithm development. Additionally, the move by businesses away from tactical, conventional, tool-focused data and analytical projects and toward cutting-edge, strategic, architecture-focused data and analytical programs is fueling lucrative patient safety risk management software market growth. Additionally, the market in the area is driven by rising demand for personalized and customized information in developing nations like China and India and increased awareness of the necessity for managing effective workflows.

Additionally, due to the growing demand for managing financial operations, improving patient outcomes, and real-time sharing of patient data, these solutions are increasingly being used in healthcare. The regional market is also expected to be driven by increasing numbers of acquisitions, collaborations, and government efforts promoting the use of digital solutions and growing awareness among healthcare providers and organizations of the benefits of the software.

In Latin America, the healthcare sector is not very well developed; ongoing work is being done to increase patient access and quality of care. Various risk management and patient safety solutions will likely increase due to these efforts, which are also anticipated to increase the adoption of IT-based technologies and solutions in the healthcare sector. The market will be driven by the increased use of advanced patient engagement and management software, projected to be boosted by the growing burden of the aging population and the prevalence of chronic diseases.

In the Middle East and Africa, only a few countries have been able to increase their economic growth and development. The implementation of digital health in these nations is anticipated to result from improvements in healthcare systems, which will foster the development and uptake of risk management and patient safety software. However, several African nations don't have the necessary healthcare infrastructure and hence don't rate well in terms of their readiness for digital health. Israel is the Middle East's second-largest exporter of cybersecurity goods and the region's most technologically advanced economy. Over the forecast period, it is anticipated that eHealth services will become more widely used in healthcare institutions due to the increased use of such software, cloud services, and telemedicine services, as well as growing patient awareness.

Segmental Analysis

The global market for patient safety risk management software is bifurcated into service type and end-user.

Based on the service type, the global patient safety risk management software market is bifurcated into Risk Management and Safety Solutions, Claims Management Software, Governance, Risk and Compliance Solutions. 

The risk management and safety solutions segment dominates the global market over the forecast period. By enabling healthcare providers to access patient data from a single system, resulting in easy accessibility and data protection, this software assists healthcare providers in recording and tracking events to meet the new healthcare paradigm, emphasizing reduced medical errors and increased patient safety. The need for these solutions has grown as healthcare providers emphasize patient safety and risk management issues. The development of patient safety software, which contains features that let healthcare management access patient data from a single system, resulting in simple accessibility and data protection, should be credited for this huge share. Patients receive efficient and superior care because of these innovations.

Based on end-users, the global market for patient safety risk management software is divided into Hospitals, Ambulatory Care Centers, and Long-Term Care Centers.

The hospital segment is the most significant contributor to the market over the forecast period. To improve patient safety, streamline productivity, and lower healthcare costs, these employ a variety of patient safety and risk management technologies. The usage of patient safety and risk management systems in hospitals is being driven by the growing need to prevent medical errors and adverse events related to patient safety. Due to the growing need to eliminate medical errors, the hospital sector, which now holds a 40.7% revenue share, monopolizes the patient safety and risk management software industry. The use of IT in healthcare is growing because of its benefits, including a streamlined and standardized data-gathering procedure and a single point of data entry that lowers the chance of errors. Factors contributing to the market's expansion include the rising danger of diseases like sepsis, errors brought on by radiotherapy, and mistakes made during transfusion procedures.

Recent Developments

• January 2023- Circle Health Group is the largest private hospital group in the United Kingdom, and they have partnered with Radar Healthcare to receive risk management and compliance software from Radar Healthcare to serve their patients better. Circle Health Group's 54 hospitals use multiple risk management and compliance tools. Radar Healthcare will provide a unified platform to enhance productivity and liberate critical safety data that may be used to serve patients better.
• April 2022- Customers of the V60/V60 Plus and V680 ventilators from Royal Philips, a world leader in medical technology, have been notified by Philips Respironics of a potential problem with the electrical circuit that controls the 35V power supply to the ventilator and alarm. Philips Respironics has contacted the appropriate regulatory agencies.