The global Population Health Management market size was valued at USD 32.5 billion in 2019 and is expected to expand at a CAGR of 21.1% over the forecast period. The medical industry is rapidly transforming from a paper-based system to a digitized system, accelerating the demand for healthcare IT services. In addition, increasing demand for solutions supporting value-based care delivery by healthcare stakeholders has resulted in a shift from Fee-For-Service (FFS) to Value-Based Payment (VBP) models. Rising demand for effective disease management strategies is also expected to boost the market growth.
population health management (PHM) solutions aim at data-driven healthcare at the population level and enable segmentation of patients based on common medical conditions and attributes. PHM enables data aggregation, risk stratification, care coordination, and patient communication.
As complexity in care delivery, payment models, and clinical needs is increasing, the need for PHM programs that combine multiple functionalities is rising, which can process clinical, financial, and operational data to improve efficiency and patient care. The adoption of healthcare IT solutions is a result of the growing preference for value-based reimbursement structure and accountable care.
In 2010, the U.S. government introduced the Patient Protection and Affordable Care Act, which facilitates high quality of care and reduces costs. This act also encouraged the formation of Accountable Care Organizations (ACOs) that collaborate with payers to deliver high-quality healthcare. The U.S. Department of Health & Human Services plans to devote 50% of Medicare spending to value-based reimbursement.
Under the value-based model, the healthcare delivery systems (hospitals, physicians, and other healthcare providers) are held accountable by healthcare buyers (consumers, employers, and government) and payers (private and public). Disease management programs analyze demographic characteristics and healthcare utilization, along with the identification of target high-risk populations.
The services segment held the majority of the market share as hospitals and other care providers now prefer an in-house system and avoid involving third parties to assess patient data. The rising need for integrated healthcare systems is also responsible for the increasing demand for PHM.
As healthcare costs are increasing, manufacturers are investing in research and development to launch innovative products to help healthcare organizations. For instance, in June 2019, Health Catalyst, Inc. announced the launch of its Population Health Foundations solution. The product includes DOS Marts, Excel-friendly Analysis Tools, Population Builder: Stratification Module, Leading Wisely: Population Health, and Community Care as its technology components and PHM Solution Optimization and PHM Opportunity Analysis as its service components.
Healthcare providers held the majority of the Population Health Management (PHM) market share in 2019. PHM improves clinical outcomes by aiding in better disease management, resulting in reduced in-patient stay and overall observation hours of physicians. Hence, providers can focus more on patient-centric care and reduce overall costs.
Payers are the third-party entities who finance or reimburse the cost of health services. Predictive analytics competency gives payers an advantage over other providers in interpreting population behavior and unstructured clinical content. This competitive advantage is instrumental in increasing the demand for PHM software for payers and is expected to propel the segment growth significantly over the forecast period.
North America dominated the market in 2019 in terms of revenue share. Total healthcare spending in the U.S. is expected to reach up to USD 4.8 trillion in 2021, accounting for nearly 20% of Gross Domestic Product (GDP) by 2021. Thus, the alarming increase in healthcare costs is, in turn, escalating the demand for an effective PHM. The government is focusing on increased incentives and investments to improve national health by accurately tracking the health of the population and its subgroups.
Asia Pacific PHM market is anticipated to experience the fastest growth over the forecast period due to improving healthcare infrastructure and rising healthcare expenditure. Furthermore, the incidence of chronic diseases is expected to double from 2001 to 2025 in the Asia Pacific region. Managing the data generated from this increase will require advanced data analytics, which is expected to boost the growth of the market.
Some of the key players in the global PHM market are Allscripts, McKesson Corporation, Cerner Corporation, etc. Acquisitions and partnerships with other market players are some of the most undertaken strategies by the companies in this market to strengthen regional presence. For instance, Allscripts announced the acquisition of CarePort in 2016, to strengthen its position across post-acute care settings. Moreover, in March 2018, Cerner Corporation entered into a collaboration with Salesforce, a major player in Customer Relationship Manager (CRM), to integrate Salesforce Marketing Cloud and Health Cloud with its cloud-based population health platform, HealtheIntent.
Report Attribute |
Details |
Market size value in 2020 |
USD 39.1 billion |
Revenue forecast in 2027 |
USD 150.6 billion |
Growth Rate |
CAGR of 21.1% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, end-use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Japan; China; India; Brazil; Mexico; South Africa; Saudi Arabia; United Arab Emirates |
Key companies profiled |
Allscripts; McKesson Corporation; Cerner Corporation; Conifer Health Solutions LLC; eClinicalWorks |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail of customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global population health management market report based on the product, end-use, and region:
Product Outlook (Revenue, USD Million, 2016 - 2027)
Software
Services
End-use Outlook (Revenue, USD Million, 2016 - 2027)
Payers
Providers
Employer Groups
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Europe
The U.K.
Germany
France
Italy
Spain
Asia Pacific
Japan
China
India
Latin America
Brazil
Mexico
Middle East & Africa
South Africa
Saudi Arabia
United Arab Emirates
b. The global population health management market size was estimated at USD 32.5 billion in 2019 and is expected to reach USD 39.1 billion in 2020.
b. The global population health management market is expected to grow at a compound annual growth rate of 21.1% from 2019 to 2027 to reach USD 150.5 billion by 2027.
b. North America dominated the population health management market with a share of 47.6% in 2019. This is attributable to the supportive government initiatives, rising healthcare costs, and local presence of major players in the market.
b. Some key players operating in the population health management market are Allscripts, McKesson Corporation, Cerner Corporation, Conifer Health Solutions LLC, eClinicalWorks, etc.
b. Key factors that are driving the market growth include the shift from Fee-For-Service (FFS) to Value-Based Payment (VBP) models, accelerating demand for healthcare IT solutions, and growing need for disease management strategies.
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