Population Health Management Market to Hit 25.2% CAGR to 2020 Driven by New Rules and Regulation in North America and Europe

Population health management is a process of aggregating patient data, analyzing data, and taking measures to improve quality of care & curtailing healthcare costs. Population health management solutions are used by healthcare providers & management of healthcare delivery system to improve efficacy of hospitals clinically as well as financially.

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The population health management market is projected to reach USD 42.54 Billion by 2021 from USD 13.85 Billion in 2016, at 25.2% CAGR in next five years (2016 to 2021).

Population health management market is driven by regulatory mandates laid by Affordable Care Act (ACA). Act aims to lower the number of uninsured people in U.S. to reduce the cost of healthcare for government as well as individuals.

Act has made it mandatory for tax-exempted hospitals to assess community health needs every three years and adopt implementation strategies to address these needs. In addition, ACA had allocated USD 15 billion over a period of ten years to Prevention and Public Health Investment Fund in 2010. This amount was subsequently reduced in 2012 to offset a scheduled cut to Medicare physician payments.

In 2017, software segment is expected to account for largest share of global population health management market, by component, and is expected to grow at fastest CAGR from 2015 to 2020.The high growth rate of software segment can be attributed to increasing adoption of population health management solutions mandated by Affordable Care Act (ACA).

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In 2017, North America is expected to account for largest share of global population health management market, followed by Europe, Asia, &Rest of the World (RoW).North America is also expected to be the fastest growing regional segment from 2015 to 2020.

North America’s large share and high growth is attributed to a number of factors such as regulatory mandates set up under the Affordable Care Act (ACA), implementation of Hospital Readmissions Reduction Program (HRRP), and rising geriatric population are driving growth of North American population health management market.

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However, federal government is investing in this fund. Government invested a collective amount of USD 5.05 billion from 2010 to 2015 (Source: United States Department of Health & Human Services). This funding is directed towards enhancing health outcomes and improving health care quality.

The report will enrich both established firms as well as new entrants/smaller firms to gauge the pulse of the market, which in turn helps firms to garner a greater market share. Firms purchasing the report could use any one or a combination of the below-mentioned five strategies (market penetration, product development/innovation, market development, market diversification, and competitive assessment) for strengthening their market shares.

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