Population Health Management Market Size, Share & Trends Analysis Report By Product (Software, Services), By End Use (Payers, Providers, Employer Groups), By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2022 - 2030

Report Overview

The global population health management market size was valued at USD 47.5 billion in 2021 and is expected to expand at a CAGR of 21.9% from 2022 to 2030. 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. The rising demand for effective disease management strategies is also expected to boost the market growth.

Due to the COVID-19 pandemic, medical institutions are under tremendous strain, and the healthcare industry throughout the world is being swamped by the high number of patients regularly. In various countries, the rising frequency of COVID-19 has increased the necessity for reliable diagnostic and treatment equipment. Population Health Management (PHM) solutions have proven to be extremely beneficial in this regard, as they enable healthcare providers to seamlessly integrate solutions such as electronic health records, care management, and patient management and healthcare payer solutions such as payment management and claim management.

Additionally, the PHM solutions enable the healthcare industry to provide patient-centric care and help reduce high medical care costs by reducing readmission and providing appropriate and optimum intervention to patients.   Furthermore, the rapid global spread of this disease has resulted in lockdowns and restrictions, increasing demand for electronic data transfer and claim management. This is projected to lead to an increase in the use of population health management in the forecast period.

PHM systems classify people into different categories. These methods are commonly seen in the healthcare, pharmaceutical, and insurance industries. The health management system assists in maintaining and improving the health of various groups. Population health management is a patient-friendly platform that aids in the cost-controlling of treatment by presenting cost-effective alternatives. In addition, the platform assists service providers and payers with risk management related to reimbursement policies. In recent years, the healthcare system has evolved significantly and has become more patient-centered.

PHM solutions aim at data-driven healthcare at the population level and enable the segmentation of patients based on common medical conditions and attributes. PHM enables data aggregation, risk stratification, care coordination, and patient communication. The patient care systems have improved, and the use of population healthcare management systems has increased exponentially. 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 the near future, raising awareness about the adoption of better-personalized medicine is expected to provide significant potential prospects for market players. Furthermore, there are a variety of instruments available, each with its own set of functions in varied care settings. These tools aid in data collecting and enable patients and payers, particularly insurers, to get the most out of their healthcare expenditures. Apart from ensuring access to healthcare, the population healthcare management program also assures that health care is affordable to the general public. Various efforts implemented by hospital administrators and physicians have recently been found to be effective in lowering overall hospital costs, testing new disease risk management models, and improving medication adherence.

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. 

Product Insights

The services segment dominated the market for population health management and accounted for the largest revenue share of more than 51.0% in 2021. Growing preference for in-house systems in hospitals and other care providers to avoid involving third parties to assess patient data is driving the services segment. 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 October 2020, Allscripts announced its agreement of selling the CarePort Health business to WellSky Corp. for an upfront payment of USD 1.35 billion, and 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.

End-use Insights

The healthcare providers segment dominated the market for population health management and accounted for a revenue share of 48.7% in 2021. 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 that 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 segment growth significantly over the forecast period.

Regional Insights

North America dominated the population health management market and accounted for a revenue share of 46.9% in 2021. 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. The factors, such as pressure on the healthcare industry to reduce medical costs, rising use of information technology in healthcare, cloud computing, regulatory scenario, and increasing diseases are driving the market for population health management in North America.

For instance, the U.S. government implemented the ACA which is the Affordable Care Act for the prevention of diseases, and the adoption of IT in healthcare, this will boost the market growth and create opportunities for the service provider to effectively collect and maintain patients' data. In Asia Pacific, the market for population health management 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 for population health management in the region.

Key Companies & Market Share Insights

The companies' strategic initiatives to strengthen their market presence include mergers and acquisitions, providing a customized solution, and business partnership with other key players.  Furthermore, as part of their commercialization strategies, companies are investing significant sums of money in developing new products and platforms with enhanced and improved features. For instance, in March 2021, Phillips Healthcare announced its partnership with openDoctor, it aimed to deliver an integrated radiology patient engagement platform. Also in February 2021, Phillip Healthcare launched its full remote emergency solution called Patient Flow Management Solution. Moreover, in March 2018, Cerner Corporation entered into 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. Some of the prominent players in the population health management market include:

• Allscripts

• McKesson Corporation

• Cerner Corporation

• Conifer Health Solutions LLC

• eClinicalWorks

Population Health Management Market Report Scope

Segments Covered in the Report

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 2017 to 2030. For 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, 2017 - 2030)

  • Software

  • Services

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Payers

  • Providers

  • Employer Groups

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • 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