The global Population Health Management (PHM) Market was valued at USD 34.44 Billion in 2022 and is projected to reach USD 184.51 Billion by 2030, growing at a CAGR of 20.5% from 2023 to 2030.

Population Health Management (PHM) Market Overview:

Population health management (PHM) is the process of improving clinical health outcomes for a specific group of people through better care coordination and patient participation, which is supported by the right financial and care models. Its main goal is to collect and analyse clinical data from a patient's healthcare environment to find ways to improve both the patient's health and the provider's financial outcomes. This idea changes the way primary care services are given from being reactive to being proactive. It gives complete, well-researched strategies for improving the systems and policies that affect the quality, access, and outcomes of health care. This improves the overall health of a population and drives the PHM market. In general, PHM programmes use a business intelligence (BI) tool to collect data and give a full clinical picture of each patient. Clinicians could use the data to keep track of the outcomes of care and, hopefully, improve them while lowering costs.

The PHM market is growing because there are more older people, more people are spending more on healthcare per person, and more people are using the Internet of Things (IoT) for healthcare. Smart health care devices for remote health monitoring are in demand because they are easy to get and can share data and work with doctors. The growth of the population health management market is also helped by the fact that medicines are becoming more personalised and that investments in the healthcare industry are going up.

Market Drivers

The growing number of older people and the resulting rise in the number of diseases are expected to have a big effect on the health care systems in many countries. The effects of the growing number of older people are even more noticeable because government budgets are getting tighter, there are fewer health workers in some areas, and more people are getting chronic diseases.

With so many older people who need health and long-term care services, the cost of health care per person is likely to go up in many countries. Also, as people's expectations about health care and social care rise, they are putting more pressure on healthcare systems around the world. In this way, stakeholders are trying out a lot of different ways to keep costs down while keeping the quality of care high. Population health management is one way to improve the quality of care while cutting costs at the same time. Solutions like electronic health records (EHR) and population health management solutions are used to make healthcare systems in most countries less stressed. Because of these market conditions, more people around the world are using population health management solutions.

Restraints

About one-third of data breaches in healthcare lead to medical identity theft. This is mostly because there isn't enough internal control over patient information, there isn't enough support from top management, policies and procedures are out of date or aren't followed, and employees don't have enough training. All of these factors contribute to the rise in data breaches and medical identity theft cases in the healthcare industry. This makes it very hard for the healthcare industry to keep patient information secret.

One big worry about cloud-based solutions for managing a population's health is that the data hosted by vendors is not as safe as data kept on-site. Information about patients is very sensitive, and only people who are allowed to access it should be able to see it. Also, the digitization of medical and patient information has increased the risks and liabilities of data and made data breaches more likely. In the US, the HIPAA Journal recorded 616 healthcare data breaches on its 2020 breach list, which is 66% more than the total number of breaches tracked in 2018. According to a report from HIPAA Journal, HIPAA-covered companies and business associates paid about USD 13.6 million and USD 15.3 million, respectively, for HIPAA violations in 2020 and 2019. So, it is a big challenge for IT companies that work with the healthcare industry to build a secure communication platform. So, people aren't using cloud-based population health management solutions as much as they could because they worry about the security and privacy of sensitive patient information.

Opportunities

Value-based medicine is changing the way healthcare is done and collecting data based on results and making it useful. Business Intelligence (BI) helps healthcare organisations figure out what data they actually need. It also helps them analyse, evaluate, and use this data to understand the overall costs and benefits and gain a competitive edge. It also makes all processes clear so that every purchase can be looked at from the point of view of value, utility, and results.

Also, governments, health insurance companies, and healthcare providers are looking for new ways to cut costs because the current model of healthcare can't work around the world. Also, healthcare organisations will need to use these new methods more and more as the amount and availability of healthcare data grows and the need to give patients good care grows. This will give them a strategic advantage over their competitors and allow them to take advantage of growth opportunities. The rapid shift from fee-for-service (FFS) payments to value-based reimbursement models and the important role of analytics in new pay-for-performance models like Accountable Care Organizations (ACOs) will help the population health management market grow.

Population Health Management (PHM) Market Segmentation Analysis

Product Insights

In terms of revenue, the services segment had the largest market share. This is because hospitals and other care providers prefer to use their own solutions and systems instead of letting third parties look at patient data. The rising demand for PHM is also caused by the growing need for integrated healthcare systems. With healthcare costs going up, companies are putting a lot of money into research and development (R&D) to come up with new products that can help healthcare organisations. For example, Health Catalyst, Inc. released its Population Health Foundations solution in June 2019.

On the other hand, the software segment is a big reason why the value of the global population health management market is growing. The fact that providers and payers are using software solutions more and more to cut costs, reduce readmissions, improve patient engagement, improve operational efficiency, and help with data analysis and integration is a big reason for the segment's large share.

Based on End Use:

In 2019, healthcare providers took the most valuable share of the market for population health management. PHM improves the results of medical centres and clinics by giving them better ways to manage diseases. This means that patients spend less time in hospitals and medical centres as in-patients, and doctors spend less time observing patients as a whole. So, providers can focus more on lowering overall costs and putting the needs of the patient first. Also, a lot of money is being put into acute hospital care, which is expected to help the number of providers grow in the coming years. The growing number of older people, who are more likely to have chronic diseases, is a big reason why the market for healthcare providers is growing so quickly.

Payers, on the other hand, are outside groups that pay for or reimburse the cost of health services. Payers have an advantage over other providers when it comes to figuring out what unstructured clinical content and population behaviour mean. This competitive advantage is a big reason why the demand for PHM software for payers is growing quickly, and it is expected to help the segment grow a lot during the analysis period. The above factors are expected to help the segment grow in a way that will make it more profitable.

Regional Insights:

During the Forecast period, North America is anticipated to be the largest market by region.

In 2021, 46.9% of the money made in the population health management market came from North America. Total healthcare spending in the U.S. is expected to reach up to USD 4.8 trillion in 2021, which will make up nearly 20% of GDP. So, the alarming rise in healthcare costs is also driving up the need for a good PHM. The government is focusing on giving more incentives and making more investments to improve the health of the whole country. This is being done by keeping accurate track of the health of the population and its subgroups. In North America, the market for population health management is being driven by things like the pressure on the healthcare industry to cut costs, the rising use of information technology in healthcare, cloud computing, the regulatory environment, and the rise of diseases.

For example, the U.S. government passed the Affordable Care Act (ACA) to prevent diseases and encourage the use of IT in healthcare. This will help the market grow and give service providers more chances to collect and keep track of patients' information. Over the next few years, the market for population health management is expected to grow the fastest in Asia Pacific, where healthcare infrastructure is getting better and spending on healthcare is going up. Also, the number of people with chronic diseases is expected to double in the Asia-Pacific area between 2001 and 2025. Keeping track of all the new data that comes from this growth will require advanced data analytics. This is likely to help the market for population health management in the region grow.

Scope Analysis

Recent Development

• July 2021 – Healthix and The Garage announced a partnership to launch a professional population health management platform for membership called Municipal. The platform will help Healthix organize, manage and analyze its vast repository of patient data.
• June 2021 – Emtiro Health, LLC and Innovaccer Inc. announced a partnership to develop a population health analytics platform for the North Carolina Managed Medicaid Care launch. Along with helping the two companies engage in value-based payment arrangements, the partnership will help develop a platform to support North Carolina's transition to managed care, specifically high-end care housing and providers.
• December 2020 – Cerner Corporation announced that it had signed an agreement to acquire Kantar Health, a division of the Kantar Group. This acquisition will help promote the Learning Health Network to allow Cerner to engage more directly in the life sciences for funded research.
• February 2020 – Allscripts Healthcare Solutions, Inc. and Manorama Infosolutions announce the formation of a strategic partnership to provide an integrated health management information system and health information exchange platform. The agreement will help Manorama integrate AllScript's interoperability platform dbMotion solutions with its Lifeline solution suite. Additionally, this will increase the availability of population health management systems in emerging markets such as India.

The Global Population Health Management (PHM) Market has been segmented into:

By Product & Service

• Software
• Services

By Mode of Delivery

• On-premise
• Cloud-based

By End User

• Healthcare Providers
• Healthcare Payers
• Other End Users

By Companies

• Cerner Corporation (US)
• Epic Systems Corporation (US)
• Koninklijke Philips (Netherlands)
• i2i Population Health (US)
• Health Catalyst (US)
• Optum (US)
• Enli Health Intelligence (US)
• eClinicalWorks (US)
• Allscripts Healthcare Solutions (US)
• IBM Corporation (US)
• HealthEC LLC (US)
• Medecision (US)
• Arcadia (US)
• athenahealth (US)
• Cotiviti (US)
• NextGen HealthcareInc. (US)
• Conifer Health Solutions (US)
• SPH Analytics (US)
• Lightbeam Health Solutions (US)
• Innovaccer (US)
• Lumeris (US)
• Zeomega (US)
• HGS Healthcare
• LLC (US)
• Persivia (US)
• Color HealthInc., (US).