The global healthcare analytics market was valued at USD 5.6 billion in 2015. The pressure from governing bodies, such as the Center for Medicare and Medicaid (CMS), to reduce the soaring treatment costs and other associated expenditures that stem from medical product flaws and hospital workflow inefficiencies, is fostering the usage of big data in the healthcare sector.
Developing as well as developed regions are struggling to achieve the high care delivery standards, which are both cost-effective and quality-oriented while containing medical errors. For instance, in the U.S., the healthcare expenditure is around 2.4 times higher than the global average and is anticipated to increase by 68.0% in the coming ten years. With the help of HA, providers are now able to identify clinically meaningful outcomes in relation to costs through the investigational mining of electronic patient records to identify inherent medical inaccuracies in the system so as to offer cost-effective treatments to patients with lesser amount of resources wasted.
Predictive Analytics market estimates and trends
The accelerated incorporation of big data in the medical field has led to the introduction of data-enriched tools that enable informed patient decision-making, allowing patients to take better control of their health as well as to receive customized care. The advent of personalized, sharable electronic medical record systems coupled with the development of decision support tools permit patients to avail remote care and consultation.
With the combined forces of artificial and human intelligence, the field of data management holds the potential to revolutionize medical care in bringing in a more personalized and patient-centered approach; as a result of these transforming changes the market is likely to witness significant growth over the forecast period.
Healthcare big data is the key facilitator for the incorporation of an evidence-based approach to decision-making in the healthcare sector, which enhances the health economic efficiency. For instance, in 2004,the cardiovascular risks associated with the painkiller, Vioxx were unveiled based on investigational data analysis of patient health records obtained from the health maintenance organization, Kaiser Permanente.
In this manner, regulatory and insurance bodies, such as the FDA and France, l’Assurance Maladie are following suit in turning to data analytics to unravel diverse medical flaws and inefficiencies related to drug safety through initiatives, such as the FDA Sentinel Initiative; thereby promoting the worldwide penetration of the data management services.
The descriptive analytics segment is most widely used and held a substantial share in the year, 2015. These systems are frequently used for process optimization and administrative activities wherein the past data records as well as real-time present data are analyzed to yield a summarized pattern with in depth insights that impact future decisions.
On the other hand, predictive type is anticipated to witness lucrative growth over the forecast period. This method is largely used in government organizations, such as in healthcare financing systems primarily to avoid fraud cases. For instance, in 2011, the CMS reported that under its Fraud Prevention System (FPS), predictive type helped in saving USD 1.5 billion through the suspension of improper claims. Moreover, the CMS is working on to develop next generation predictive analytics, which is definitely expected to foster its usage.
Key component segments analyzed in the report are software, hardware, and services. Services held a substantial share in 2015 and are expected to grow at a sturdy rate over the forecast period. Outsourcing of big data services dominated this segment. Outsourcing saves cost and time and provides access to qualified staff, which eliminates the need for training.
In addition, in terms of market share, the services segment was identified to be followed by the hardware components segment. The high-cost associated with the associated infrastructure, such as computer systems and high-speed internet, governed the growth of the hardware segment.
Delivery modes of the healthcare analytics market include on-premise, web-based, and cloud-based delivery. On-premise delivered services contributed to around 48.0% shares in 2015.
On the other hand, the cloud-based delivery mode category is anticipated to exhibit a remunerative growth over the forecast period. Remote access to data, real-time data tracking, and the avoidance of complex physical hardware ecosystem are the notable benefits associated with cloud-based systems.
The application segment includes clinical, operational & administrative, and financial systems. Operational & administrative services dominated the applications segment in 2015. This can be attributed to their wide number of applications encompassing supply chain management, workforce, and strategic analytics.
Financial applications are anticipated to gallop over the forecast period owing to their growing adoption in the government as well as private health settings. As mentioned earlier, the initiatives, such as FPS to avoid frauds that help in saving costs, thus augmenting the demand for these services. The key financial applications include claim settlement, fraud analysis, and risk adjustment and assessment.
The end-users include payers, providers, and other end-users, such as the Accountable Care Organizations (ACOs), Managed Care Organizations (MCOs), and Third Party Administrators (TPA).
Payers held a significant share in 2015; however, the providers are anticipated to grow in number at a fast pace. The increasing adoption of these systems in hospitals is expected to support the growth of this segment.
North America held a revenue share of around 60.0% in 2015. The high per capita healthcare cost, increasing incidences of payment frauds, and the rising need to cut back costs resulted in the adoption of these systems to a greater extent.
The Asia Pacific healthcare analytics market is expected to grow at a lucrative CAGR of around 27.0% over the forecast period. The supportive government initiatives to improve the medical infrastructure and boost the economic developments are anticipated to increase the uptake of analytics tools in this region.
Some key players of the healthcare analytics market include IBM Corporation, Oracle Corporation, SAS Institute Inc., Cerner Corporation, Allscripts Healthcare Solutions, Inc., OptumHealth, Inc., and Verisk Analytics, Inc. The notable initiatives include new product launches, collaboration with government bodies, and R&D investments.
For instance, in May 2016, OptumHealth, Inc. collaborated with Medecision, Inc., and TriZetto Corporation to streamline Medicaid management information system. This initiative is anticipated to help the company strengthen its position in financial applications of big data.
The study of the global healthcare analytics market highlights the key components and various types. Market estimates and forecasts are generated based on various approaches and models that were applied to the data. Top down approach is one of the approaches employed, which is based on deriving data from the parent market, big data analytics.
The report highlights the trends in the industry, initiatives from key industry players, and the critical success factors in this industry. These insights provide a complete understanding of the HA field that enables sound business decision-making. The regional scope of the report is kept limited to assure the proportion of studies, however, it can be further customized based on requirement.
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