Population Health Management Market

Market Perspective

The global Population Health Management Market was valued at USD 37.23 billion in 2022 and is projected to reach USD 140.99 billion by 2030, growing at a CAGR of 18.11% from 2023 to 2030.

The population health management (PHM) market is expected to experience significant growth in the coming years due to several key drivers, including an aging population, rising healthcare costs, and the increasing prevalence of chronic diseases. The PHM market encompasses a range of services and technologies designed to enhance healthcare delivery by improving patient outcomes and reducing costs.

Moreover, the growing demand for value-based care models is driving the adoption of population health management services and technologies. Value-based care models focus on rewarding healthcare providers for delivering high-quality care outcomes and not simply providing care services. This approach encourages providers to take a more proactive approach to healthcare delivery, focusing on patient outcomes rather than the volume of services delivered.

Analyst’s Review on Population Health Management

The population health management market is experiencing significant growth and transformation as healthcare organizations increasingly recognize the need for proactive healthcare strategies. With a focus on improving health outcomes, reducing costs, and enhancing patient experiences, population health management solutions are gaining traction. These solutions leverage advanced analytics, data integration, and care coordination tools to identify high-risk populations, optimize care delivery, and enable preventive interventions. The market's growth is driven by factors such as the rising prevalence of chronic diseases, the shift towards value-based care, and the increasing adoption of healthcare IT solutions.

Market Definition

Population Health Management (PHM) is a healthcare approach that leverages data analytics and technology to improve patient health outcomes across a broad population group. It encompasses a range of tools, techniques, and interventions to track and manage patients’ health, streamline care, and deliver tailored interventions to improve patient outcomes. The population health management market comprises software, services, and devices intended to improve health outcomes, enhance patient satisfaction, and reduce overall healthcare costs.

The PHM market is segmented by product type, service type, mode of delivery, and region. By product type, the market is segmented into software and services. PHM software includes platforms for data analysis, clinical decision support, disease management, patient engagement, and care coordination. PHM services include consulting, implementation, and training services for healthcare providers.

Population health management is a rapidly growing healthcare strategy designed to enhance patient outcomes and reduce healthcare costs using proactive care management and prevention strategies. The population health management (PHM) market offers a range of services and technologies to support effective healthcare delivery across diverse populations, and its continued expansion is fueled by increased demand for better outcomes and more efficient care.

Market Dynamics

The transition from Fee-For-Service (FFS) to Value-Based Payment (VBP) models is among primary driving factors. It incentivizes healthcare providers to focus on improving health outcomes and reducing costs, creating a demand for population health management solutions. This has led to a significant demand for population health management services and technologies to enable proactive care management and prevention strategies. Additionally, the prevalence of chronic diseases is expected to increase further with the ongoing COVID-19 pandemic, which is likely to fuel the growth of the PHM market.

The growth of the population health management (PHM) market is also driven by the increasing healthcare costs. In recent years, healthcare costs have been on the rise, leading healthcare providers to actively explore innovative strategies to mitigate and control expenses. and improve outcomes. Population health management services and technologies are being deployed to achieve these objectives, helping minimize hospital readmissions and unnecessary emergency department visits, thereby reducing the overall cost of healthcare delivery.

The expanding healthcare infrastructure, coupled with growing awareness about the benefits of population health management, is driving market growth. Healthcare organizations are recognizing the need to proactively manage population health, leading to increased investments in population health management solutions.

Segmentation Analysis

The global population health management market is segmented based on component, mode of delivery, and geography.

Based on component, the PHM market is bifurcated into software and services. The software segment encompasses e-commerce platforms, inventory management systems, and payment gateways, among others. Services include website development, maintenance, and digital marketing. The Software category is anticipated to account for the largest share of 58.43% by 2030 owing to technological developments and high adoption rate in developed and developing countries.

Based on mode of delivery, the market is bifurcated into on-premise and cloud-based. On-premise solutions offer superior control and customization, while cloud-based solutions provide scalability, flexibility, and cost-effectiveness.

Based on end user, the PHM market is further categorized into healthcare providers, healthcare payers, and others. Online retail in the healthcare industry enables providers to streamline their operations, enhance patient experiences, and improve access to healthcare products. Healthcare payers benefit from online retail by managing insurance plans and facilitating seamless transactions. Other end users include various industries such as fashion, electronics, and consumer goods, which leverage online retail to reach a broader customer base and enhance customer satisfaction.

Geographical Analysis

Based on regional analysis, the global population health management market is classified into North America, Europe, Asia Pacific, MEA,  and Latin America.

The population health management (PHM) markets in North America and Europe are expected to experience significant growth in the coming years, driven by a range of factors, including the aging population, rising healthcare costs, and increasing prevalence of chronic diseases.

North America is one of the largest markets for PHM due to the high healthcare expenditure in the region. According to the World Health Organization (WHO), healthcare expenditure in the US alone surpassed USD 4.3 trillion in 2021. Additionally, the region has a large population of elderly individuals, which is expected to further drive PHM market expansion. The presence of leading market players in the region is also contributing to market growth. Cerner Corporation, Allscripts Healthcare Solutions, and Athenahealth Inc. are some of the key players in the PHM market in North America.

In Europe, the PHM market is expected to grow significantly due to factors such as an increasing burden of chronic diseases and the implementation of favourable government initiatives. The aging population in the region is driving market growth, with statistics showing that over 20% of the European population is aged 65 and above. Moreover, rising healthcare expenditure in Europe is driving the adoption of PHM services and technologies. According to the WHO, healthcare expenditure in the European region was over USD 1.5 trillion in 2020. Major players in the European PHM market include Cerner Corporation, Philips Healthcare, and Allscripts Healthcare Solutions.

Competitive Landscape

The global population health management industry study will provide valuable insight with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies, such as partnerships, mergers and acquisitions, product innovations, and joint ventures, to expand their product portfolio and increase their market shares across different regions. Strategic initiatives related to expansion and investments encompass various activities such as investing in research and development, establishing new manufacturing facilities, and optimizing the supply chain. The major players in the population health management market are

• Cerner Corporation
• Allscripts Healthcare Solutions
• Athenahealth Inc.
• eClinicalWorks
• Enli Health Intelligence
• HealthEC, LLC
• Medecision
• Welltok
• Health Catalyst
• Koninklijke Philips N.V (Philips Wellcentive)

Key Developments

• May 2022 (Acquisition)- Health Catalyst, Inc., a prominent provider of data and analytics technology and services for healthcare organizations, completed the acquisition of ARMUS Corporation. ARMUS Corporation, a technology company based in Silicon Valley, specializes in the development of clinical registries and data management solutions. Its services encompass data abstraction, validation, management, submission, and reporting, catering to healthcare institutions worldwide. These institutions include health systems, payers, medical device companies, and esteemed medical societies.
• June 2022 (Acquisition) - Oracle successfully acquired Cerner, propelling the healthcare industry into a new era of innovation. This strategic partnership promised a transformative future, as the combined forces of Oracle's technological prowess and Cerner's healthcare expertise hold the potential to revolutionize patient care and bolster health outcomes. This acquisition was purposed to promote novel breakthroughs and advancements in the realm of healthcare.

The global Population Health Management Market is segmented as:

By Component

• Software
• Services

By Mode of Delivery

• On-premise
• Cloud-based

By End User

• Healthcare Providers
• Healthcare Payers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America