U.S. Population Health Management (PHM) Solutions Market

U.S. Population Health Management (PHM) Solutions Market Outlook (2021-2028)

The population health management (PHM) solutions market in the U.S. estimates industry expansion at an impressive CAGR of 14.8% from 2021 to 2028.

The U.S. population health management solutions market stood at US$ 11.2 Bn in 2020, and is predicted to surge and reach a valuation of US$ 34.59 Bn by the end of 2028. Health management services are projected to account for a dominant market share of more than 50% over the coming years.

Report Attributes	Details
U.S. Population Health Management Solutions Market Size (2020)	US$ 11.2 Bn
Projected Year Value (2028F)	US$ 34.59 Bn
Market Growth Rate (2021-2028)	14.8% CAGR
Services Segment Market Share (2020)	>50%
Key Companies Profiled	Caradigm Conifer Health Solutions Health Catalyst Healthagen LLC International Business Machines (IBM) Corporation Lumeris NextGen Healthcare Information Systems LLC Optum Health Inc. Persivia Premier Inc. Verisk Health Wellcentive Inc. ZeOmega Inc.

PHM programs have proven their efficiency in the U.S. for the effective management of patient data and improved quality of healthcare; hence, demand for population health management solutions in the country is anticipated to remain high over the coming years.

Population Health Management Solution Demand Analysis (2017-2020) in Comparison to Market Growth Forecasts (2021-2028)

The healthcare infrastructure in the U.S. is highly advanced and regarded as one of the most efficient ones in the world hence is a highly lucrative market for all healthcare technologies. In an effort to further bolster the quality of healthcare services, focus on better patient engagement and clinical decision-making has increased which subsequently drives demand for PHM programs.

Increasing demand for value-based care, a paradigm shift from fee-for-service trends, rising demand for reducing per capita cost of healthcare services, and increasing technological penetration are other factors that will influence demand for population health management solutions in the U.S. through 2028.

Increasing prevalence of chronic diseases and high healthcare expenditure are other major factors that will drive the adoption of PHM programs in the U.S. Population health management solutions are also crucial in identifying high-risk patients and provides a better opportunity of managing population health in case of community spread as it was in the COVID-19 pandemic.

Rising support from the government and increasing government funding for the implementation of PHM systems is also expected to boost market potential in the U.S. Demand for population health management systems in the U.S. is predicted to evolve at a stellar CAGR of 14.8% from 2021 to 2028.

What is Propelling Demand for PHM Programs in the U.S.?

“Implementation of Affordable Care Act (ACA) to Favor Growth of Value-based Care”

The Affordable Care Act (ACA) that was enacted in March 2010 is aimed at reducing the per capita cost of healthcare and is also responsible for majorly changing the healthcare infrastructure working to reduce the burden on patients and healthcare providers.

With ACA patients do not have to pay for unnecessary re-admissions which makes the hospitals financially responsible for any re-admissions within 30 days of patients being discharged.

In order to keep a track of all this crucial data and provide better healthcare, institutions are anticipated to adopt PHM programs and reduce overall healthcare costs for patients. The fee-for-service trend is expected to be left out as ACA promotes focus on value-based care services.

“Increasing Rate of Chronic Diseases in the Country”

The U.S. has witnessed a substantial increase in its population being affected by chronic diseases and this can be attributed majorly to increasing obesity and deteriorating lifestyle habits of the population.

The nation has recorded a substantial increase in the incidence of cancers, cardiovascular disorders, obesity, diabetes, etc., and this is also expected to propel the adoption of population health management systems in the U.S.

To reduce hospitalization and reduce per capita costs, PHM programs can be deployed to enable home monitoring and not disrupt treatment procedures as well.

Increasing availability of e-health and m-health applications will also further aid patient engagement via integrated data management through electronic medical records (EMRs) created by advanced population health management systems.

“Rising Geriatric Population Also Bolsters Need for Patient Engagement”

The aging population of the U.S. is increasing and this has created a new demand for healthcare solutions and services in the nation. As the geriatric population increases and the risk of chronic diseases as well this will propel the adoption of population health management systems in the U.S.

Patient engagement will be an area of prime focus since the popularity of home care is increasing among the geriatric population.

Category-wise Insights

What is the Outlook for PHM Services Over the Forecast Years?

“PHM Services to Hold Dominant Market Share”

The PHM solutions market in the U.S. is further segmented into services and software. The services segment is anticipated to account for a share of more than 1/2 of the U.S. population health management solutions market by the end of the forecast period.

Increasing demand for post-purchase assistance for population health management systems is expected to boost demand for this segment through 2028.

Meanwhile, the PHM software segment is projected to rise at a high CAGR owing to rising demand for advanced software solutions for PHM programs.

Will Web-based PHM Systems Have a Good Demand Outlook?

“Web-based PHM Solutions to Lead Market Growth Potential”

Web-based solutions are expected to hold a major market share and are expected to lead the population health management solutions market in the U.S. throughout the forecast period. These solutions enable simultaneous tracking of progress for patients and healthcare providers at multiple locations and hence are preferred over premise-based and cloud-based solutions which offer limited benefits.

Increasing use of cloud-based technologies in healthcare IT solutions and services is expected to provide new opportunities for cloud-based population health management systems throughout the forecast period.

Did COVID-19 Speed up the Adoption of PHM Programs in the U.S.?

In 2020, as coronavirus infections plagued the world and created a pandemic situation all the countries struggled to find a balance for their healthcare infrastructure with the increasing caseload of coronavirus infected people. Since this was an unprecedented outbreak, healthcare systems and governments were not equipped for this which resulted in huge financial losses for hospitals.

In order to mitigate these losses and reduce the overall healthcare expenditure, healthcare institutions are anticipated to move towards the adoption of PHM programs as spending on healthcare IT increases in the nation. The use of new and advanced population health management systems will also promote better clinical decision-making.

In the post-pandemic era, PHM systems are expected to provide healthcare professionals with electronic medical records (EMRs) that will contain crucial patient data to enhance healthcare quality and reduce per capita costs. Demand for population health management systems is anticipated to have a bright outlook through 2028 in the U.S.

Competitive Landscape

Key population health management solution providers in the U.S. are focusing on the integration of advanced technologies to enhance their offerings and boost revenue. Key players are also focusing on mergers, collaborations, and acquisitions to enhance their market presence in the U.S. industry landscape.

• In April 2022, Medecision a leading name in digital care management announced the initiation of a strategic partnership with Clearstep Health to pioneer enhanced patient engagement for existing as well as new health plans and systems.

Key Segments Covered in U.S. PHM Solutions Industry Research

• U.S. PHM Solutions Market by Source:

  • Population Health Management Software
  • Population Health Management Services

• U.S. PHM Solutions Market by Mode of Operation:

  • Premise-based PHM Solutions
  • Cloud-based PHM Solutions
  • Web-based PHM Solutions

• U.S. PHM Solutions Market by End User:

  • Government Insurance Providers
  • Healthcare Providers
  • Private Insurance Providers
  • Pharmaceutical Companies
  • Medical Device Organizations
  • Others (Employers, Diagnostic & Imaging Centers, and Research Institutions)