Provided by BIS Research
The rise in geriatric population in the last few years have raised concerns about the quality of care provided to the population. And this rise in the population has increased the number of age-related chronic diseases, which are pervasive in nature. There have been many introductions and amendments in the healthcare systems worldwide, and population health management (PHM) is one of the solutions that has gained traction in the healthcare industry recently.
The World Health Organization's estimation that the number of people aged 60 years & above will rise to 1.4 billion by 2030 has alarmed the healthcare industry worldwide. Many countries still don't have a standard healthcare plan for the population to deal with the rising situation.
In addition to the rising geriatric population, the modern lifestyle has rendered the younger generation inactive. The increased prevalence of obesity, physical inactiveness and increased consumption of fast food are leading to an increased possibility of chronic age-related diseases. Thus, the demand for population health management is increasing to curb the prevalence of chronic diseases.
This management option facilitates healthcare assistance and care delivery across a large or small group of the population and to the population as a whole. The solution integrated into this management system help in analyzing and collecting clinical data across patients' care settings. This further facilitates in minimizing the dangers to patients' health and reveal opportunities which could help in improving the quality of healthcare in an organization as well as the financial benefits.
The population healthcare management solutions market has experienced a healthy growth in the last few years, and the increasing focus on this emerging technology by the governments of a number of countries, to reduce healthcare costs and improving overall population's health, is leading the market towards a robust growth. The gradual shift in the payment model, from fee-for-service reimbursement to performance-based payment, has compelled the healthcare providers to adopt evidence-based care management. Healthcare payers, such as insurers, employers, health plans etc., have also joined hands with the healthcare providers to reduce the number of chronic patients, which will, as a result, reduce the number of claims and result in greater profitability for them.
According to the latest market research report by BIS Research, titled ‘Global Population Health Management Solutions Market - Analysis and Forecast (2017-2025)', the global population health management solutions market was estimated to be $8.9 billion in 2016 and is estimated to grow over $50.3 billion by 2025. The introduction of Affordable Care Act (ACA) in the U.S. is an important step to visualize the future of healthcare as it started making payments to healthcare providers on the basis of evidence-based outcomes such as reduction in the number of hospital readmissions and lowering the cost of avoidable medical procedures.
The PHM market comprises of software and services as its components, and the software segment is currently leading the market owing to the huge demand for PHM tools and platforms to collect, analyze and interpret clinical data to enable improved patient outcomes. The software segment is further divided on the basis of software deployment as web-based, cloud-based, and on-Premise delivery model. Among these, the cloud-based delivery model is the leading segment in the market and is expected to grow at the highest CAGR of 21.2% from 2017 to 2025, due to the cost-effective and secured nature of cloud-based systems.
In terms of geography, North America dominated the PHM solutions market, due to the higher rate of rising geriatric population, increased prevalence of diseases, higher rate of obesity, and increased life expectancy of the population in the region. North America is followed by Europe but it is Asia Pacific which is expected to grow at the highest CAGR of 28.1% from 2017 to 2025. With the ongoing technological advancements in the field of business intelligence, predictive analytics, and big data, the PHM solutions market is expected to gain momentum in the coming years.
The PHM market is a consolidated one, wherein the top four companies accounted for approximately 35% of the market share in 2016. Some of the key players operating in the PHM market include:
- Cerner Corporation
- Advisory Board
- EPIC Systems
- Aetna Inc.
- Health Catalyst
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