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Healthcare Analytics Market Overview
In the coming years, the healthcare analytics market size is forecast to grow significantly, as a result of the increasing adoption of electronic medical records (EMR), investments in healthcare information technology (HIT), demand to reduce the expenditure on healthcare, need to enhance patient outcomes, and usage of big data in the domain.
Software, services, and hardware are the various offerings of the players in the industry. Among these, services occupy the largest healthcare analytics market share, and they would also experience progress at the highest CAGR in the near future. This is attributed to the increasing adoption of HIT solutions, which raise the requirement for various services. Analysis in the sector can be prescriptive, descriptive or predictive, among which descriptive analytics presently dominates the industry, as without the first, the latter two processes cannot be always fruitful.
The reason behind this is that it efficiently studies historical data and comes up with actionable insights for the future, thereby acting as the first step prior to predictive and prescriptive analysis. In the coming years, the fastest growth in the healthcare analytics market would be witnessed by prescriptive analytics, as it can correctly predict the outcomes of various decisions as well as their impact on critical business areas.
These solutions have three major applications: operational and administrative management, financial management, and clinical management. Historically, financial management was the largest application in the healthcare analytics market, as the incidence of insurance frauds is increasing, and payers now require quick detection of such anomalies to avoid losses. In addition, the rising focus on making healthcare cost-effective for patients, without compromising on its quality, is also helping in the rising usage of healthcare analytics for financial management. In the coming years, the use of such solutions in the industry would increase the fastest for clinical management, as it helps limit healthcare expenditure and enhances the access to the network of healthcare providers.
In the healthcare analytics market, financial management is done for revenue cycle management, claims, waste, payment integrity and fraud, risk adjustment and assessment, and abuse. Similarly, operational and administrative management involves analyzing the workforce, supply chain, and strategies. Clinical decision support, quality improvement and clinical benchmarking, comparative analytics/effectiveness, reporting and compliance, medical imaging analytics, precision health, and population health are the various purposes for which clinical management is done.
The healthcare analytics market comprises several end users, which include providers, including post-acute-care organizations, hospitals and clinics, and ambulatory settings, and payers, including government agencies, private insurance companies, and employers. Among these, payers are expected to hold the largest share in the industry, owing to the escalating healthcare costs and rising number of fraudulent claims, which often weigh heavy on the payers, as well as the rising need to have more members, enhance provider networks, increase operational costs, and deal with stiff competition.
North America is currently the largest healthcare analytics market, as a result of the surging usage of EMRs. This has led to an increase in the medical data volume, which is, in turn, creating the need for effective analysis solutions. Additionally, in the region, a large number of IT firms operate, regulations are being implemented to make healthcare affordable and ensure the use of HIT solutions, and the government is offering support for population health management, personalized medicine, and value-based reimbursements. In future, Asia-Pacific (APAC) would observe the fastest industry growth due to the increasing research and development activities.
Healthcare Analytics Market Dynamics
A major healthcare analytics market growth driver is the increasing popularity of personalized medicine. To offer customized treatment options, the anatomy of individual patients needs to be studied, so that the specific reactions that drugs have on them can be identified. This results in the creation of huge volumes of genome-centric data, which needs to be properly studied, in order to come up with the most effective medication or treatment course for individual patients, thereby driving the industry progress.
Healthcare Analytics Market Competitive Landscape
The players in the healthcare analytics market are taking several strategic measures, such as partnerships, mergers, collaborations, geographical expansion, acquisitions, and product launches to gain a competitive edge. For instance, in 2016, IBM paid $2.6 billion to acquire Truven Health Analytics, in an effort to better its Watson Health portfolio and reach out to more clients. Further, in 2019, the technology giant and the Michael J Fox Foundation began a partnership to better track the progression of Parkinson’s disease in patients.
Other major healthcare analytics market players are Verisk Analytics Inc., Oracle Corporation, McKinsey & Company, Cerner Corporation, SAS Institute Inc., Koninklijke Philips N.V., Napier Healthcare Solutions Pte. Ltd., Dell Technologies Inc., Allscripts Healthcare Solutions Inc., Sisense Inc., UnitedHealth Group, NextHealth Technologies Inc., SCIOInspire Corp., SAP SE, TIBCO Software Inc., Tableau Software Inc., VitreosHealth, Verscend Technologies Inc., and Wipro Limited.
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