Increasing Uptake of Healthcare IT drives U.S. Population Health Management Solutions Market

Population health management has been a hot topic in the U.S. of late. The 2010 Patient Protection and Affordable Care Act, for instance, became one of the most hotly debated topics at the time and earned outgoing President Barack Obama many new followers and detractors in equal measure. 2016 presidential candidate Bernie Sanders has also been outspoken about his support for universal healthcare, which means the topic is bound to come up several times in the coming months. Unfortunately for detractors of universal healthcare, a new study has uncovered a strong correlation between higher social spending and better population health outcomes.

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The study, published in leading healthcare journal Health Affairs, states that the link between higher social spending and better health outcomes is strong, if not demonstrably causative. The researchers studied data regarding the population health performance of U.S. states from 2000 to 2009, which revealed that high ratios of public spending to Medicaid/Medicare expenditure were strongly correlated with better health outcomes. To be precise, states with higher ratios scored better on 7 of 8 measures used to judge population health. Excepting mortality rates of postneonatal infants, states with higher ratios scored better on asthma, adult obesity, type 2 diabetes, acute myocardial infarction, days with activity limitations, mentally unhealthy days, and mortality due to lung cancer.

With population health expected to remain a highly contentious issue in the near future, here?s a look at how various aspects of the U.S. population health management market shaped up in 2014:

Valuation and Projected Growth Trajectory:

According to Transparency Market Research, a leading market intelligence firm, the U.S. population health management market was worth US$3.4 bn in 2014. Backed by steady government support and the increasing awareness among the population, the market is expected to exhibit a stellar 23.9% CAGR from 2015 to 2023, with a valuation of US$45.7 bn projected by the end of the forecast period.

Major Market Drivers:

The U.S. population health management market is set to witness rising demand from the country?s growing geriatric population in the near future. With the baby boomer population entering the geriatric demographic, social services and public healthcare spending are set to take on a renewed significance among the American populace. Since the geriatric demographic is more prone to degenerative diseases as well as chronic diseases than younger demographics, the increase in the aging population will serve as a significant opportunity for the U.S. population health management market.

The incorporation of big data technologies into the existing public health infrastructure will also boost the U.S. population health management market. Utilization of big data allows digitization of the healthcare record system, including doctor visits, past health problems, and prescriptions. This will help in streamlining population health management operations in the U.S. Big data is also enabling the growth of cloud-based operation of population health management, which is more viable for the industry and more beneficial for the U.S. population in the long run.

Major Restraints:

Due to the relatively recent emergence of big data and cloud, incorporating it in the public healthcare infrastructure in the large scale is still expensive. This is the major restraint on the U.S. population health management market at present, though the current support for advanced population health management technologies is expected to weather this obstacle in due time.

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Major Market Players:

Caradigm, IBM, OptumHealth, Inc., Caradigm, The Advisory Board Company, ZeOmega Inc., Pervisia, Health Catalyst, Conifer Health Solutions, Healthagen, LLC, NextGen Healthcare Information Systems, LLC, and Premier Inc. were the major companies operating in the U.S. population health management market in 2014. Innovation of new services, including software, and upgrading existing services to keep up with the contemporaneous technological scenario are the major avenues employed by key companies in the U.S. population health management market.

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