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Healthcare IT Provider Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 115 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 5764508
The healthcare IT provider market is expected to register a CAGR of 13.5% over the forecast period.

COVID-19 significantly impacted the healthcare IT provider market, owing to factors such as the rise in the adoption of teleconsultation instead of face-to-face physician consultations. Due to the global lockdown, travel restrictions decreased hospital visits. Similarly, people's hesitation in going to hospitals and clinics boosted digital healthcare.

As per the article published in April 2022 in PubMed, CDSSs provided quality services, eliminated unnecessary testing, increased patient safety from COVID-19, and prevented potentially dangerous and expensive complications. The market is anticipated to witness growth in the coming years owing to the factors such as a rise in demand for healthcare IT technologies in hospitals and an increase in government funding for developing healthcare IT platforms.

Furthermore, as per the article published in Research Gate in October 2021, COVID-19 served as a catalyst and accelerator for digital healthcare innovation. During the pandemic, the United States approved legislation allowing a more seamless data flow. The European Union integrated data across member states to permit the interchange of EHRs across borders. Such instances of increase in acceptance of healthcare IT across the globe are likely to drive market growth in the coming years.

Other driving factors include the rise in the demand for paperless technology, the emergence of social media and its impact on the healthcare IT industry, and increased government funding for healthcare services and infrastructure. With the rising adoption of EHR across the European countries, there is a growing use of CDSS. In June 2022, the European Commission adopted a Recommendation for the European electronic health record exchange format to unlock the flow of health data across borders. This adoption will likely facilitate cross-border interoperability of electronic health records (EHRs) in the European countries. Hence, with the new regulations from the European Commission for adopting EHR, the healthcare IT provider market is anticipated to grow significantly.

Furthermore, in 2021, San Francisco-based healthcare technology startup Innovaccer, and Montana-based non-profit health system St. Peter's Health, collaborated to integrate the latter's healthcare cloud platform into care locations and enhance care management. Similarly, to improve clinical decision support, in 2021, Somo Medical Center in Palm Beach County, Florida, started a cloud-based EHR deployment from health IT vendor eClinicalWorks (CDS). Implementing a cloud-based EHR system is much cheaper than an in-house EHR system.

Strategic partnerships and acquisitions by healthcare IT providers are also anticipated to increase the availability and demand for their products, promoting the market growth. For instance, in June 2022, Cerner acquired Oracle, the provider of digital information systems used within hospitals and health systems to enable medical professionals to deliver better healthcare services.

Thus, due to the rise in the demand for paperless technology, increased government funding for healthcare services and infrastructure, and the surge in collaborations and acquisitions by the key players, the healthcare IT provider market is likely to witness growth over the forecast period. However, a lack of skilled labor and high maintenance costs are anticipated to restrain the market growth.

Healthcare IT Provider Market Trends

Clinical Decision Support System (CDSS) Segment Expected to Drive the Market

The clinical decision support system (CDSS) segment is anticipated to drive market growth during the forecast period, owing to the factors such as CDSS tools enabling prescribers to access real-time patient data, ideally resulting in enhanced patient safety and medication accuracy. These measures will likely reduce healthcare expenditure, thereby boosting the CDSS segment over the forecast period.

According to the August 2021 update from Commonwealth Fund, rising healthcare spending is a concern for state governments and their constituents, who face higher out-of-pocket costs and premiums. By integrating CDS alerts into EHRs in hospitals, expenses are intended to be reduced. As per the European Commission June 2022 report, the European Commission issued a Recommendation on a European electronic health record exchange standard to enable the transfer of health data across borders. It accomplished this by supporting EU nations in their initiatives to ensure that residents can safely access and exchange their health data from any location within the EU. Such initiatives associated with the advancements in healthcare are anticipated to boost segment growth over the forecast period.

Additionally, government initiatives incorporating CDSS systems and updated hospital guidelines will boost market growth during the forecast period. For instance, in September 2022, the FDA released a guidance document for Clinical Decision Support Software which emphasized that software features that satisfy the definition of a device, including those intended for use by patients or caregivers, continue to be subject to the FDA's current digital health standards.

Furthermore, in August 2022, the Parul Institute of Medical Sciences and Research, a constituent college of Parul University, joined hands with Wolters Kluwer. As a part of this collaboration, Wolters Kluwer deployed its Clinical Decision Support System (CDSS) at the institute to enhance the quality of evidence-based care delivery. The products deployed by the institute under this deal include UpToDate, UpToDate Advanced, and Lexicomp. Moreover, by allowing patients and clinicians to collaborate on decisions throughout the continuum of treatment for complicated diseases, the combination of telemedicine and clinical decision support is likely to be a great option in the coming future. As per the National Center for Health Statistics, National Health Interview Survey, 2021, telemedicine was used by 37% of the population in the United States in 2021.

Thus, due to the rise in the demand for CDSS implementation in the healthcare industry and increased government funding for healthcare services and infrastructure, the CDSS segment is likely to witness growth over the forecast period.

North America Anticipated to Witness Growth in the Market

North America is anticipated to observe growth in the healthcare IT provider market during the forecast period, owing to the factors such as the region's well-established healthcare industry and the early adoption of IT services across healthcare settings. In addition, the high concentration of key healthcare providers and increased government funding for healthcare IT services and infrastructure also drive market growth in North America.

In February 2021, Northern Inyo Healthcare District collaborated with Cerner Corporation to transform its electronic health record (EHR). The collaboration involved Northern Inyo Healthcare District moving to an updated electronic system that supports physicians, nurses, and clinicians to share data across the district’s multiple offices.

Similarly, in May 2022, based on a Biden administration initiative to increase access to COVID-19 medication, Wisconsin-based Epic Systems attempted to make it simpler for patients and physicians to find COVID-19 antiviral treatments using its EHR. Epic software was used to administer roughly 500,000 daily vaccinations across traditional clinical settings and mass vaccination sites.

Furthermore, software and services expansions across the country are anticipated to drive market growth. For instance, in February 2022, Hoy Health offered telemedicine services via its HoyDOCÒ platform at the Central de Abastos in Mexico City, one of the most important Mexican national supply communities. The commercial district spans 304 acres and facilitates a comprehensive supply chain network of over 2,000 businesses, producers, wholesalers, retailers, and consumers. Hoy Health is a health tech company that is leading primary care in the digital health industry via remote patient monitoring, telehealth, and medication access.

Thus, due to the rise in the demand for Healthcare IT services and the increase in government funding for healthcare services and infrastructure, North America is anticipated to witness growth in the healthcare IT provider market over the forecast period.

Healthcare IT Provider Market Competitor Analysis

The healthcare IT provider market is fragmented in nature. The major market players are focusing on technological advancements and high investments in hospital infrastructure and patient management. Some of the major players in the market are Allscripts Healthcare Solutions, Oracle (Cerner Corporation), IBM Corporation, Siemens Healthineers, and Philips Healthcare, among others.

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Table of Contents

1.1 Study Assumptions & Market Definition
1.2 Scope Of The Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise in the Demand for Paper-less Technology
4.2.2 Emergence of Social Media and its Impact on the Healthcare IT Industry
4.2.3 Increased Government Funding on Healthcare Services and Infrastructure
4.3 Market Restraints
4.3.1 Lack of Skilled Labor
4.3.2 High Maintenance Costs
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION (Market Size by Value - USD Million)
5.1 By Business Segment
5.1.1 Laboratory Information Systems (LIS)
5.1.2 Radiology Information Systems (RIS)
5.1.3 Cardiovascular Information System (CVIS)
5.1.4 Electronic Health Records (EHR)
5.1.5 Telemedicine
5.1.6 Clinical Decision Support System (CDSS)
5.1.7 Picture Archiving and Communication System (PACS) & Vendor Neutral Archive (VNA)
5.1.8 Other Business Segments
5.2 By Component
5.2.1 Software
5.2.2 Hardware
5.2.3 Services
5.3 By Delivery Mode
5.3.1 On-premise
5.3.2 Cloud-based
5.4 By Geography
5.4.1 North America United States Canada Mexico
5.4.2 Europe Germany United Kingdom France Italy Spain Rest of Europe
5.4.3 Asia-Pacific China Japan India Australia South Korea Rest of Asia-Pacific
5.4.4 Middle East and Africa GCC South Africa Rest of Middle East and Africa
5.4.5 South America Brazil Argentina Rest of South America
6.1 Company Profiles
6.1.1 Allscripts Healthcare Solutions Inc.
6.1.2 Oracle (Cerner Corporation)
6.1.3 General Electric Company (GE Healthcare)
6.1.4 Epic Systems Corporation
6.1.5 IBM Corporation
6.1.6 Koninklijke Philips NV
6.1.7 Mckesson Corporation
6.1.8 Siemens Healthineers
6.1.9 SAS Institute Inc.
6.1.10 Wipro
6.1.11 3M
6.1.12 Optum Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Allscripts Healthcare Solutions Inc.
  • Oracle (Cerner Corporation)
  • General Electric Company (GE Healthcare)
  • Epic Systems Corporation
  • IBM Corporation
  • Koninklijke Philips NV
  • Mckesson Corporation
  • Siemens Healthineers
  • SAS Institute Inc.
  • Wipro
  • 3M
  • Optum Inc.