The global population health management market size was valued at USD 18.92 billion in 2019 and is anticipated to grow at a CAGR of 29.2% during the forecast period. The management of population health is related to the aggregation of data of various patients across different health information technology resources. The data collected is then processed and translated into a single, actionable patient record. This allows healthcare providers to improve clinical as well as financial results for patients.
Due to the complex and dynamic nature of care delivery and payment structures, the need for population health programs incorporating multiple functionalities is growing. Medical, financial, and organizational data can be analyzed with the help of population health management (PHM) solutions. This, in turn, helps maximize quality and patient care.
Owing to the growing focus on value-based payment (VBP) and responsible care organizations, the health management program is also witnessing improvements in medical reimbursement (ACOs). The value-based payment models are known for the convenience they offer, which in turn, is driving the adoption of population health solutions by ACOs.
In order to offer high quality services to patients, ACOs, consisting of hospitals, clinics, and other healthcare facilities, operate with the payers (private and public). Different disease management services that aid with the treatment of chronic illnesses have been implemented by private and public insurance companies. Such multidisciplinary efforts are supposed to contribute to successful results in counseling and are likely to recommend the most appropriate courses of action that need to be taken. In the U.S., successful large-scale trials have made important advances in disease control programs possible.
The global population health management market is driven by the growing geriatric population and the increasing burden of chronic diseases, and digitalization of healthcare systems. Further, with rising healthcare costs, the demand for affordable treatment options is growing significantly. This is also fueling the demand for population health management market. However, lack of data processing skills and qualified analysts and the inability to implement new technology can restrain the market growth.
On the other hand, a growing emphasis on value-based medicine and growth opportunities in the developing Asia-Pacific and LAMEA economies are expected to provide multiple market growth opportunities over the forecast period. With the current developments in population health management, however, clients are facing challenges related to data protection and reliability, increased compliance with legislation, and the processing of huge volumes of health data. The possibility of decreased service/product quality is also among the few factors that are expected to limit market growth in the coming days.
The focus of the market players is on acquisitions & mergers, the provision of tailored solutions, and the expansion of businesses in untapped commercial markets. Some of the important strategies pursued by these businesses to reinforce their market position are acquisitions and corporate alliances with other market players. In addition, as part of their commercialization strategies, businesses are investing massive sums in creating new products and platforms with enhanced and improved functionality.
Global Population Health Management Market, By Component
Based on component, the global population health management market has been segmented into software and services. The software segment accounted for the largest share of the global market in 2019. The increased adoption of software solutions by payers and providers to minimize readmissions, increase cost effectiveness, improve operating performance, enhance patient experience, and help data integration and analysis are reasons behind the large market share held by this category.
Global Population Health Management Market, By Mode of Delivery
Population health management solutions are provided to end-users via on-premise and cloud-based distribution modes. In 2019, the on-premise delivery mode accounted for the largest share of the population health management market by delivery mode.
Due to an increase in the number of advantages provided by the cloud-based mode, such as low licensing and start-up costs, low maintenance and technology obligation costs, and broader accessibility, the cloud-based segment is expected to hold a major share of the population health management industry in the coming years. In fact, this segment is expected to experience the fastest growth owing to increased efficiency and quick and seamless implementation.
Global Population Health Management Market, By End User
The global market has been segmented into healthcare providers, healthcare payers, employer groups, and government bodies. Among these, the healthcare providers segment accounted for the largest market share in 2019. The large share of this segment is mainly due to the introduction of the Affordable Care Act and Hospital Readmissions Reduction Program. The program is aimed to minimize healthcare costs in the US by using innovative strategies such as population health management. Apart from this, the high demand for PHM solutions among healthcare providers because of the benefits provided by these solutions is also responsible for the larger share of this segment.
Global Population Health Management Market, By Geographical Regions
During the forecast period, North America is predicted to maintain a leading role in the market for population health management. The growth of the population health management market in the region is being driven by factors such as favorable regulatory scenario, pressure on healthcare organizations to minimize costs, and increasing developments in healthcare IT, big data, and cloud computing. The presence of a well-established healthcare infrastructure, ongoing reforms by governments, and the rising burden of patients are some other important factors that will be driving the growth of the North American market.
Key Market Developments:
Some Key Findings of the Population Health Management Market Report Include:
By Mode of Delivery
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Market recommendations supporting decision making processes
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