The global healthcare analytics market is expected to register a CAGR of 15% during the forecast period, 2018 to 2023. Healthcare analytics technology, which extensively uses data for quantitative and qualitative analysis, is undergoing an industry transformation from volume-based medicines and reimbursement to value-based medicines and reimbursement. Factors, such as the sudden emphasis on a more improved quality of healthcare, reduced length-of-stay at hospitals, lower costs of healthcare and medicine, and fraud detection, are some of the primary needs of the payers of this technology.
Healthcare analytics continue to bring dramatic changes in the healthcare industry across many countries. Many federal policies, programs, and actions are being initiated by the governments of developed and developing countries across the globe to experience progress in healthcare services. For example, within the United States, the federal government has been encouraging the use of its healthcare data through various policies and initiatives. Affordable Care Act (ACA), the most important healthcare legislation in the United States, has authorized the Department of Health and Human Services to release data that promote transparency in the markets for healthcare and medical insurance. The government is offering incentive payments for healthcare providers to use EMRs and has taken necessary actions to liberate data (as part of a program to promote data release and accessibility) from agencies, like Centers for Medicare and Medicaid Services, the Food and Drug Administration, and Centers for Disease Control. Similarly, government initiatives undertaken in various other countries that have the potential to help patients by improving quality of healthcare drive the healthcare analytics market. The other factors, such as emergence of big data in the healthcare industry to boost the market growth, emergence of big data in the healthcare industry to boost the market growth, increased focus on collection and analysis of data from different sources for better customer service, technological advancements accelerating the market growth and R&D funding and emergence of social media and its impact on the healthcare industry boosting the market growth are driving the healthcare analytics market.
There has been an explosion of data in the current healthcare landscape. Analysing and storing the data are crucial for healthcare setups that is expected to ensure them to run their organizations in an effective manner with minimum resources, better predict the outcome of diseases, and other aspects. However, data storage and analysing the raw data require proper skilled personnel. There is a rising skill gap that is acting as a barrier to the healthcare sector. Lack of broad skills, knowledge, expertize, and experience required to work in data analytics field is a major concern. The field of analytics is currently a niche segment, when it comes to healthcare, as compared with the likes of finance, retail, banking, etc. The respective industries have their share of skilled data scientists in their organizations. There is currently a dearth of data scientists across the globe. There is a huge demand for data analysts, while the supply has been minimal. Both developed and developing countries are struggling to supply adequate numbers of trained, qualified healthcare professionals (especially physicians, medical laboratory professionals, nurses, paramedics, and technologists). Not until recently, organizations have not realized the potential of data analytics in the current market landscape. The lack of proper skilled labor scenario is expected to continue for a limited time, as more and more data analysts are being trained on various aspects of data storage, prediction, and analysis. The demand is anticipated to be met in the near future. The other factor, such as data integrity issues and cost and complexity of software hindering the market growth is also hindering the growth of the market.
The US healthcare analytics market holds the largest market share in 2017 in North America region due to the healthcare infrastructure in the United States is experiencing positive trends in the healthcare analytics domain. Healthcare organizations are also realizing that social determinants of health contribute to the wellbeing of a patient more than medical issues.
The major players include - International Business Machines Corporation (IBM), 3M Company, Allscripts Healthcare Solutions, Cerner Corporation, Oracle Corporation, Philips Healthcare, Sas Institute Inc., Mckesson Corporation, and Information Builders Inc. among others.
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