Population Health Management Market Size, Share & Industry Analysis, By Component (Software, and Services), By Platform (Cloud-based, and On-premise), By End User (Healthcare Providers, Healthcare Payers, and Others), and Regional Forecast, 2019-2032

The global population health management market size stood at USD 21.40 billion in 2018 and is projected to reach USD 275.05 billion by 2032, exhibiting a CAGR of 20.0% during the forecast period. North America dominated the global market with a share of 64.67% in 2018.

Population health management refers to a program where the patient’s data is aggregated across various health information technology resources. This enables the analysis of these aggregated data into a single and actionable patient record, which allows healthcare professionals to improve the clinical and financial outcomes of their patients. Most of the population healthcare management programs utilize a business intelligence tool for the aggregation of data, which allows the healthcare professionals to build a precise and accurate clinical picture of every individual patient.

MARKET TRENDS

Shift from Fee-For-Service (FFS) to a Value-Based Payment (VBP) Model in Healthcare to Accelerate the Market

The shift from fee-for-service (FFS) to a value-based payment (VBP) in healthcare has been critical for the greater adoption of population health management. This is primarily because businesses who practice effective aggregation of data and the subsequent, analysis of the population heath data are able to better practice coordination and management of care. Doing so allows these healthcare businesses and institution generate higher revenue growth, leading to the growth of the global market. The conventional fee-for-service (FFS) reimbursement is being replaced by value-based payment (VBP). In this approach the clinicians consider the overall quality of care provided including clinical outcomes and accordingly ask for reimbursement from insurance companies. Value-based care models follow a holistic approach to care, which requires coordination and communication between clinicians across diverse specialties that population health management seamlessly allows. This is projected to further propel the population health management market growth during the forecast period.

MARKET DRIVERS

Need for Improved Clinical and Financial Outcomes for Patients to Drive Demand for Healthcare IT

One of the most critical driving factors for the population health management market is the increased demand for better outcomes for the patient, which involves positive economic and treatment outcomes. Population health management tools enables medical professionals to access the aggregated information associated with their patients across diverse medical specialties. This allows clinicians to undertake better and informed clinical decisions, leading to better treatment outcomes and also help the patients realize lower treatment costs. This is especially true for the current scenario where patients suffer from a number of chronic medical conditions such as heart disease and diabetes. PHM allows the clinicians to adopt a longitudinal care model, which can lead to significantly positive treatment outcomes. This enables the physicians to avoid singular unpredictable medical events arising from these chronic medical conditions, where high costs are incurred.

Such factors have led to the constant focus by market players to innovate and introduce new population health management software and population health management solutions in the market. This software and services allow the healthcare institutions deliver targeted care to their patients, which also leads their organizations realize greater cost savings. A number of market players are also focusing their efforts on home healthcare, which also greatly helps physicians make even better clinical decisions.

Increasing Technological Advancements in Healthcare IT Coupled with to Augment Demand for Population Health Management

Due to the technological advancements in healthcare IT, population health management programs have become more accurate and effective. This has led to their increased adoption for a wide range of healthcare needs, including the aggregation of data from various sources. According to the Centers for Disease Control and Prevention (CDC), approximately 1 in 6 adults in the United States suffer from a chronic disease, with 1 in 4 individuals having multiple chronic diseases. This highlights the urgent need for effective population health management programs to improve healthcare outcomes for patients. Increased technological advancements in electronic health records (EHR), analytics, blockchain technology and improved population education are also further contributing in the increase of the market size. The above factors combined with the population health management market trends such as changes in the reimbursement model is further projected to fuel the adoption and boost the market growth. 

MARKET RESTRAINT

Concerns Associated with Cyber Security and Weaker Healthcare Infrastructure in Emerging Countries to Limit the Adoption of PHM

Despite increasing technological advancements and accuracy, and increased need for better economic and clinical outcomes for the patients, there are certain factors that are limiting the adoption of population health management. One of the major factors restraining the growth of the population health management market is concerns associated with cyber security. Data can be susceptible to security breaches and numerous confidential data contained in population health management programs can be compromised. Another critical limiting factor is the lack of adequate healthcare infrastructure in the developing regions which further limits the adoption of these programs, are some of the major factors restraining the PHM market growth.

SEGMENTATION

By Component Analysis

Services Segment Dominated the Global Market

Based on component, the population health management market is categorized into software and services based on its components. The services segment had a significant market share in 2018, primarily due to the inclusion of analytics for value-based care and strategic consulting. Services also typically require periodic renewal, which includes upgrades and maintenance of PHM programs, making them critical to the global market dominance..

Software segment is projected to register a lower CAGR during the forecast period. Purchase of new PHM programs by healthcare institutions and increasing adoption in the emerging markets are factors projected to fuel the demand for this segment, and drive the population health management market growth during the forecast period.

By Platform Analysis

Remote Accessibility of Cloud-based Population Health Management to Aid Dominance of the Segment

In terms of platform, the market is segmented into cloud-based, and on-premise. Cloud-based population health management programs are accessible over the internet without the need for active participation by the healthcare management. This enables the effective accessibility of population health management over diverse specialties and various healthcare institutions. Hence, the proven effectiveness of cloud-based population health management in home healthcare, along with seamless accessibility of data across multiple platforms, is the primary reason for dominance of cloud-based platform segment in the global market.

On-premise is among the other major segment, in terms of platform. Greater security attributed to on-premise platform, along with greater freedom in the customization of PHM solutions, is expected to drive the growth of the segment during the forecast period.

By End User Analysis

Healthcare Providers Segment to Remain the Most Dominant in the Forecast Period

In terms of end user, the population health management market is categorized into three end-user segments: healthcare providers, healthcare payers, and others. Among these, healthcare providers are projected to maintain their dominant position during the forecast period. The increasing incidence of various medical conditions, including neurology and cardiology, in developed and emerging economies has led to a large patient pool with chronic and acute illnesses. As a result, healthcare providers are likely to remain the primary end-users of population health management solutions. This growing number of patients is expected to further provide impetus to the growing adoption of PHM programs. Growing number of healthcare payers, along with changing reimbursement models, are some of the major factors responsible for second highest market revenue share of the segment in the forecast period. 

The other segment includes other key stakeholders in healthcare industry such as governmental bodies which in recent times have shown greater initiatives in aggregation of their citizens’ population health data. The others segment is projected to register a significantly lower CAGR in the population health management market during the forecast period.

REGIONAL ANALYSIS

In 2018, the North American population health management market was valued at USD 13.84 billion. This can be attributed to the region's advanced healthcare infrastructure and widespread use of healthcare information technology, along with the presence of major players and their products. North America has a significant market share in population health management due to these factors. These factors, along with higher awareness among patient population towards population health management and the strong growth of the home healthcare market in the region, are responsible for dominant share of the region in the global market. The market in Europe and Asia-Pacific is projected to register comparatively higher CAGR during the forecast period. Lower initial adoption and anticipated increase in the adoption of population health management due to strong scope of growth, are expected to fuel the growth of market in Europe during forecast period. Increasing advancements in healthcare IT infrastructure coupled with increasing number of specialty and multi-chain hospitals in Asia Pacific, together are anticipated to drive the market growth in region during 2019-2026. The Latin America PHM market is currently in nascent stage and improving healthcare infrastructure is anticipated to drive the growth of the market in the region. In Middle East & Africa region greater exposure to healthcare IT and growing awareness is anticipated to drive the population health management market growth during forecast period.

KEY INDUSTRY PLAYERS

Strong Product Portfolio and Global Presence of Cerner and Allscripts Healthcare, to Drive the Companies to a Market Leader Position in Population Health Management

Competitive landscape of this market depicts competitive landscape with a presence of a number of companies. A broad product portfolio meeting the needs of diverse healthcare systems and institutions, along with technological developments by these companies and a global presence, are important factors responsible for their leading positions in the market.

However, a number of other major players such as Deloitte, GE Healthcare, and IBM have significant market revenue share, giving rise to a competitive market scene with fierce competition among the players. This is projected to positively impact the global market as the presence of diverse companies are anticipated to lead to more product options amongst for the population health management buyers during the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Cerner Corporation


• Allscripts Healthcare, LLC


• Deloitte Touche Tohmatsu Limited


• GE Healthcare (General Electric Company)


• International Business Machines Corporation (IBM)


• Koninklijke Philips N.V.


• McKesson Corporation


• UnitedHealth Group


• Medecision


• Others

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Healthix and The Garage announced a partnership to launch a specialized population health management platform for its membership called Municipal. The platform will help Healthix to organize, manage and analyze their vast repository of patient data.


• June 2021 – Emtiro Health, LLC and Innovaccer Inc. announced a partnership to develop a population health analytics platform for the North Carolina Managed Medicaid care launch. The partnership helps both the company to develop a platform which supports North Carolina’s transition to managed care, specifically the advanced medical homes and providers along with helping them participate in value based payment agreements.


• December 2020 – Cerner Corporation announced that they signed an agreement for the acquisition of Kantar Health, a division of Kantar Group. This acquisition will help Cerner to facilitate their Learning Health Network to have a more direct engagement with life sciences for funded research studies.


• February 2020 – Allscripts Healthcare Solutions, Inc. and Manorama Infosolutions announced the formation of a strategic partnership to deliver an integrated Health Management Information System and a Health Information Exchange platform. The agreement will help Manorama to integrate AllScript’s interoperability platform dbMotion Solutions and Lifeline Suite of Solutions. Also, this will increase the availability of population health management systems in emerging markets such as India.

REPORT COVERAGE

The population health management market report provides a detailed analysis of the market and focuses on key aspects such as regulatory scenario - by key countries, overview of key mergers and acquisitions, key start-ups with their funding overview, key industry trends, and, overview of healthcare infrastructure – key countries. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over the recent years.

Report Scope & Segmentation