Global population health management market attained a value of USD 20 billion in 2018 and is expected to grow at a CAGR of 17% during the forecast period, 2019–2026.
Population health management covers collection and analysis of patient data from various health information technology resources to improve patients’ health and decrease the financial burden on patients. Population health management is based on a technology that supports data collection, governance, and analysis. Moreover, it pays attention to data integration and analysis, actionable insights, patient-centered care management, and patient engagement.
Shifting trend towards value-based care over volume-based care in the U.S., rising geriatric population, subsequently increasing the prevalence of chronic diseases, and growing adoption of healthcare IT solutions are the key factors driving the population health management market growth. The supportive legal framework in the U.S. is also one of the key market drivers. For instance, in February 2009, the U.S. president Barack Obama signed the Health Information Technology for Economic and Clinical Health Act (HITECH Act) to promote the implementation of electronic health records in the country. This law enabled sharing of protected health records of the patients across healthcare settings.
Rising burden of chronic diseases is also flourishing the adoption of population health management solutions globally. As per our database, chronic diseases account for nearly seven out of ten deaths in the U.S. and remain accountable for 86% of the national healthcare spending. For instance, diabetes is one of the chronic diseases, which accounts for over 20% of the healthcare spending in the U.S. ‘Medication non-adherence’ is a critical issue observed in diabetic patients that leads to additional complications. However, this issue can be solved with the development of personalized adherence plans that further reduces healthcare costs by reducing hospital or emergency visits.
Global population health management market is segmented by component, end-users, and mode of delivery.
By component, the market is segmented into software and services. The services segment was found the leading revenue generator in the global market in 2018. The services suites provided by the manufacturers assist in improving population health management. Development of innovative service offerings by the company is one of the market drivers. In March 2015, Humana announced the launch of two population health management services suites, namely Transcend Insights and Transcend. Recurring revenue generated from the services is the key contributing factor to the highest revenue share. From the last few years, the market has been witnessing increased demand for population health management services to combine multiple functionalities to assure the efficiency in care delivery.
The software segment is expected to grow at the fastest CAGR over the forecast period due to increasing R&D activities to provide an integrated software solution in population health management. Integration of wearable technologies and IoT is further offering lucrative opportunities for the market. Wearable technology tracks various health parameters such as sleep patterns and heart rate that are crucial for monitoring health. With the development of innovative population health-based software, the health system can collect, track, and analyze this data to develop a treatment therapy for the patients. Moreover, end-user spending on wearable technology is also expected to increase in the coming years.
By end-users, the population health management market is segmented into healthcare providers, payers, and employer groups. Currently, healthcare providers are leading the market and are likely to continue the same because of increasing pressure to improve clinical outcomes by aiding disease management. The healthcare providers are also spending a huge amount on improving this outcome and adopting EHR solutions. Various initiatives supporting the adoption of EHR and data interoperability is further expected to impact the adoption of population health management solutions among healthcare providers, positively. To boost the adoption of the HER, several federal governments are offering various incentive and reimbursement programs. In 2014, the U.S. federal government paid nearly USD 34.5 billion to 493,612 physicians, 4,924 hospitals, and other eligible professionals for EHR.
Geographically, the global population health management market is segmented into four regions: the Americas, Europe, Asia Pacific, and Latin America, and the Middle East & Africa (MEA).
North America accounted for the greater revenue share in 2018. This can be attributed to advanced healthcare IT infrastructure, high adoption rate of healthcare IT solutions, and the shifting trend towards value-based care for cutting healthcare expenditure. After enforcement of HITECH act, 2009, nearly 84% of hospitals in the U.S. adopted basic EHRs as of 2015. Also, numerous leading IT companies are making a huge investment in this region to expand their footprint and overall market share. For instance, Agfa, Microsoft, General Electric (GE), IBM Canada Healthcare, Siemens Canada, Philips Healthcare, and McKesson Canada are some of the players that have significantly invested in Canadian healthcare IT sector.
Europe is likely to emerge as the second-largest population health management market globally on account of significant growth in the adoption of health IT solutions such as EHR. As per WHO, nearly 70% of the member states adopted a nationwide e-health strategy until 2015. Moreover, governments of different nations like France, the U.K, and Germany are also planning to reduce healthcare expenditure. Moreover, economies in Western Europe are is projected to spend over USD 13 billion on strengthening their healthcare IT infrastructure in the next few years.
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