Where will the global market for population health management be in 2020?
As health care costs continue to climb, alternative payment methods and new health care technologies are continuing to emerge. Remaining focused on the overarching goal of improving patient care, new software and services are also aiming to lower costs for patients. Consequently, market intelligence firm Tractica has predicted that the global market for population health management services and software will more than double by 2020.
An opportunity for growth
The evolution of the health care industry provides a window of opportunity and growth for PHM services and software. Turning toward a cost and patient health perspective can reap many benefits, according to Health Data Management. By using PHM to identify the patients that are most at-risk, payers, employers and providers can be proactive about engaging in cost and health benefits. This is especially true for the older population and those dealing with one or more chronic conditions. Organizations serving patients with conditions such as diabetes, respiratory illness and heart failure need to be extremely proactive about managing risks.
"As the health care system, particularly in the U.S., transitions from one based on fee-for-service and volume of patients served, to one based on value, improvements in patient health, and associated decreases in health care costs, more organizations will deploy PHM or expand their existing PHM programs," principal analyst Charul Vyas of Tractica said in a press release.
The current market for 2015 stands at $14 billion with one-third of the revenue representing PHM software and two-thirds representing PHM professional services. Tractica's research projects that the global market will be more than double in five years, estimating the value will increase to $31.9 billion.
Big data analytics
The emergence of big data analytics is also driving the global market for PHM software and services. According to Vyas, by applying medical histories and health care usage to big data, providers will gain a huge advantage. Linking these analytics to big data, patient treatment will improve greatly. Patient-specific care plans can be established, cost and payment can be better coordinated and the risk of hospital readmission can be reduced. Much of these benefits will be predictive analytics, remaining in line with general medical practice. Care coordinators and physicians can use findings from a PHM application fed into an electronic health record. Overall, leveraging analytics will help health care professionals make more accurate decisions that will improve patient outcomes.
