Market Trends of Healthcare Provider Network Management Industry
Cloud-based Delivery Segment is Expected to Witness Significant Growth Over the Forecast Period
- The healthcare provider network management market is expected to witness significant growth in the cloud-based delivery mode segment during the forecast period. This growth can be attributed to several factors, including the high number of cloud-based software and services available in the market and the increasing use of these technologies by healthcare providers.
- According to an article published in Korea Science in March 2021, cloud service providers offer a wide range of services that allow for the secure ingestion, storage, and processing of healthcare data. In addition, the cloud provides mid-sized hospitals with cost-effective solutions for administering their services, with strong computing, effective storage, and advanced analytics on healthcare data. The benefits offered by cloud-based software are expected to increase their adoption by healthcare providers, thereby boosting segment growth.
- Moreover, the increasing company activities in developing technologically advanced software and solutions are also expected to drive market growth. For instance, in October 2022, Innovaccer, the Health Cloud company, launched Innovaccer Health Limited, which accelerates innovation and digital transformation by offering Innovaccer's industry-leading Health Cloud, Data Activation Platform, and Healthcare Technology solutions.
- Additionally, in June 2021, Salesforce launched new artificial intelligence tools for its healthcare cloud platform to help providers better manage patient engagement and scheduling. Salesforce's Intelligent Appointment Management for Health Cloud integrates with electronic health records to find and reserve appointments for patients with their preferred doctors.
- Therefore, the adoption of cloud-based electronic health records and increasing company activities are expected to fuel the growth of the studied segment over the forecast period.
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North America is Expected to Have the Significant Market Share Over the Forecast Period
- North America is poised to hold a significant share of the market during the forecast period, mainly due to various factors such as the increasing adoption of healthcare IT solutions related to technological advancements, rising awareness of insurance policies, and the growing utilization of provider network management systems and solutions. Additionally, the region's market growth is expected to be fueled by factors such as the rising awareness of electronic health records (EHRs), the high utilization of healthcare IT solutions, and the growing elderly population.
- The increasing healthcare expenditure in the region is expected to boost market growth by driving the adoption of technologically advanced software and solutions that automate various healthcare payer processes, leading to savings in time and costs compared to traditional manual procedures. According to the Centers for Medicare & Medicaid Services (CMS) 2021 data, the National Health Expenditure (NHE) increased by 2.7% to USD 4.3 trillion (USD 12,914 per person), which accounted for 18.3% of GDP. Private health insurance spending also increased by 5.8% to USD 1.2 trillion in 2021. Other third-party payers and programs and public health activity were USD 596.6 billion in 2021, and hospital expenditures grew by 4.4% to USD 1.3 trillion in 2021.
- Moreover, the rising trend of companies adopting various business strategies, such as collaboration and partnership, is also contributing to market growth in the region during the forecast period. For instance, in December 2021, Stonebrook Risk Solutions partnered with Mphasis to develop a disruptive digital platform that transforms healthcare across the United States. The platform connects regional health plans, insurance companies, pharmacy benefits, consumer-directed health programs, and medical management companies into a nationwide network of providers.
- Additionally, the increasing number of products, software, and solutions launched in the region is also contributing to market growth. For example, in June 2021, McKesson Canada launched the most comprehensive set of integrated digital solutions in Canada, designed to improve specialty physicians' capacity to support their patients across their entire healthcare journey. This program builds on continuing efforts to improve Canadians' digital offerings. Given these factors, the market is expected to grow significantly during the forecast period.
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