The population health management industry will explode in the coming years thanks in large part to innovative technologies and health IT, according to a new report by the Transparency Market Research.
The industry will grow at a compound annual growth rate of 16.1% between 2017 and 2025, expected to reach $69 billion by 2025, the report predicts.
North America and Europe will dominate the global market. Two reasons include the Affordable Care Act implementation and increases in health IT spending. However, Asia Pacific is expected to grow the fastest because of medical tourism and population health management tools made in Japan and Australia.
A greater reliance on population health tools will drive the global population health management market over the next seven years, the report said.
This is good news for companies in the population health management market, which includes the likes of Philips, Lumeris, Health Catalyst, McKesson, Cerner, ZeOmega, Healthagen, UnitedHealth Group, IBM and Persivia.
Healthcare providers are increasingly turning to data integration, data analysis and care coordination to fortify population health programs in a bid to improve outcomes and reduce healthcare costs. A growing number of investors, providers, health IT companies and payers are all interested in the potential to help patients outside of a healthcare setting, including people with chronic illnesses like diabetes.
However, there are still questions about monetizing health information and different priorities working together for a shared outcome.
Despite those concerns, the report said services and web-based segments will dominate the global market. The services segment, which includes population health management work in data analytics, end-user training and software maintenance, will maintain about 40% of the global market.
The web-based segment accounted for more than 40% share of the global market in 2016. “The cloud-based segment is expected to grow at a rapid pace during the forecast period due to increase in adoption of cloud-based computing,” according to Transparency Market Research.
The report said healthcare providers will continue to account for the largest share of the end-user global market as population health management tools become more common.
Greater awareness of population health programs and government initiatives like the ACA will drive the market. “Well-established healthcare infrastructure and strong support from public and private sectors in terms of reimbursement are attributed to the largest market share of North America,” the report said.