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1 MarketsandMarkets Publisher Sample Phone: (US) or or (Int'l) Hours: Monday - Thursday: 5:30am - 6:30pm EST Fridays: 5:30am - 5:30pm EST customerservice@marketresearch.com MarketResearch.com
2 POPULATION HEALTH MANAGEMENT MARKET By Component (Software & Services), Delivery Mode (On-premise, Web, & Cloud), End-User (Provider, Payer, Employer Groups & Government Bodies) s MarketsandMarkets sales@marketsandmarkets.com
3 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, banking and financial services, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2014 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. MarketsandMarkets Sample Page 2
4 1 EXECUTIVE SUMMARY FIGURE 1 GLOBAL POPULATION HEALTH MANAGEMENT MARKET SIZE SNAPSHOT ( ) Population Health Management Market, By Component Population Health Management Market, By Delivery Mode Market Size ($Billion) Services ABC Software CDE Cloud-based ABC On-premise CDE Web-based FGH Source: Press Releases, Center for Population Health Sciences, The Institute for Health Technology Transformation (iht2), Healthcare Information and Management Systems Society (HIMSS), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population Health (University of Manchester), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, CaisseNationaled'AssuranceMaladie des TravailleursSalariés (CNAMTS) (France), Expert Interviews, and MarketsandMarkets Analysis The population health management market by components is predominantly driven by the softwares which account for a share of % of the population health management market, at an estimated $ billion in It is expected to reach $ million by 2018, growing at an estimated CAGR of % from 2013 to This growth in population health management software can be attributed to the benefits these software provide such as helping reduce MarketsandMarkets Sample Page 3
5 patient readmissions in hospitals, reducing patient no show rates, and increasing patient outreach and engagement. By delivery mode, the web-based market will continue to hold the largest market share during the forecast period. This is mainly due to the minimum requirement of hardware and software for using web-based population health management solutions, which helps in cutting down the upfront installation costs. However, the cloud-based market also poses a strong growth opportunity. This growth is attributed to its advantages such as on-demand self-serving population health management solutions, no up-front capital investment for hardware, and extreme capacity flexibility. Healthcare providers are the largest group of end users in the PHM market having a market share of %. However employer groups are predicted to grow at the fastest rate of an estimated CAGR of % between 2013 and FIGURE 2 GLOBAL POPULATION HEALTH MANAGEMENT MARKET, GEOGRAPHIC RANKING 35.0% 30.0% ABC DEF GHI 25.0% CAGR %( ) 20.0% 15.0% 10.0% JKL 5.0% 0.0% Rank Source: Press Releases, Center for Population Health Sciences, The Institute for Health Technology Transformation (iht2), Healthcare Information and Management Systems Society (HIMSS), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population Health (University of Manchester), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, CaisseNationaled'AssuranceMaladie des TravailleursSalariés (CNAMTS) (France), Expert Interviews, and MarketsandMarkets Analysis MarketsandMarkets Sample Page 4
6 2 POPULATION HEALTH MANAGEMENT : OVERVIEW & INSIGHTS 2.1 INDUSTRY SPEAKS DEMAND SIDE INDUSTRY SPEAKS Demand Side (1/3) We have been able to understand our patient populations better than we ever could before. We knew the value of our electronic health record data, but until now, we had not been able to easily extract, analyze and put this data to use for the health of our patients. Our ability to assess gaps in care and predict risk has improved dramatically with the population health analytics platform. - Vice President and CIO, Nonprofit Healthcare Organization, U.S. We can't improve the health of all patients in the entire population without technology such as population health management solutions. These solutions allow engagement and monitoring of patients outside our facility. - Head, Patient Centered Medical Home Initiative, Leading Healthcare System, U.S. With population health, patient outcomes are improved through a more structured, team-based approach that deals with key areas such as improving quality, managing costs, and enhancing the experience of the entire population. - Vice President, Leading Health System, U.S. It is important for physicians to start thinking beyond the confines of their clinics. They need to think not just about the patients who visit them but also the hundreds that don t come to the clinic. Focus needs to shift from treating individuals to treating a population effectively. - Director, Healthcare Provider, U.S. An important way of ensuring the success of a PHM program is by having a patient centric approach that takes into account upstream causes of poor health, such as substance abuse, poor nutrition, and lack of physical activity. - President, Leading Hospital, U.S. MarketsandMarkets Sample Page 5
7 3 POPULATION HEALTH MANAGEMENT MARKET, BY DELIVERY MODE 3.1 INTRODUCTION Population health management solutions are delivered to end users through three modes - web-based, on-premise, and cloud-based. The phenomenal pace of technological advancements is modifying the way healthcare organizations run information technology systems and solutions. Increasing numbers of healthcare organizations are shifting from onpremise to cloud-based or web-based models for core applications. All the delivery modes have pros and cons. The ideal combination is a solution that leverages both on-premise and cloud models where the end user uses both the delivery modes from different vendors. This cross model adds complexity and increases costs as the end users have to buy two different technologies and support it. FIGURE 3 GLOBAL POPULATION HEALTH MANAGEMENT MARKET, BY DELIVERY MODE, 2013 ($BILLION) CAGR % ( ) ABC GHI DEF Market Size ($ Billion) Source: Press Releases, Center for Population Health Sciences, The Institute for Health Technology Transformation (iht2), Healthcare Information and Management Systems Society (HIMSS), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population Health (University of Manchester), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, CaisseNationaled'AssuranceMaladie des TravailleursSalariés (CNAMTS) (France), Expert Interviews, and MarketsandMarkets Analysis MarketsandMarkets Sample Page 6
8 As of 2013, the market size for Web-hosted is the largest, followed by On-Premise, and Cloudbased. However, Cloud-based is poised to grow at a highest CAGR, followed by Web-hosted, and On-premises during the forecast period. TABLE 1 GLOBAL POPULATION HEALTH MANAGEMENT MARKET, BY DELIVERY MODE, ($BILLION) Delivery Mode CAGR% ( ) Web Based On-premise Cloud based Total Source: Press Releases, Center for Population Health Sciences, The Institute for Health Technology Transformation (iht2), Healthcare Information and Management Systems Society (HIMSS), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population Health (University of Manchester), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, CaisseNationaled'AssuranceMaladie des TravailleursSalariés (CNAMTS) (France), Expert Interviews, and MarketsandMarkets Analysis The web-based market accounted for the largest share of global population health management market, by delivery mode, at an estimated $ billion in This is mainly due to the minimum requirement of hardware and software for using web-based analytics solutions, which helps in cutting down the upfront installation costs. The cloud-based solutions market is poised to grow at the highest CAGR of % to reach $ billion by 2018 from $ billion in This growth is attributed to its advantages such as on-demand self-serving analytics, no up-front capital investment for hardware, and extreme capacity flexibility. MarketsandMarkets Sample Page 7
9 4 GEOGRAPHIC ANALYSIS 4.1 INTRODUCTION The population health management market is a well-established, yet lucrative market in North America. When compared to other healthcare IT markets, the population health management market is growing at a double-digit rate. This is because the market offers various opportunities for growth as population health management is increasingly adopted by healthcare organizations to reach the ultimate healthcare goals of better quality care and lower healthcare costs. The European market is the second-largest market, growing at a comparatively lower rate due to the economic crisis as well as due to the various cultural barriers that hinder the adoption of analytics for decision-making. The Asian market is a relatively new market, and various factors such as increasing government initiatives for HCIT adoption as well as outsourcing are expected to drive this market. Australia also has developed healthcare IT markets, and is setting example for the use of population health management solutions in the rest of the world. MarketsandMarkets Sample Page 8
10 FIGURE 4 POPULATION HEALTH MANAGEMENT MARKET, BY GEOGRAPHY, ($BILLION) Market Size ($Billion) JKL GHI DEF ABC Year Source: Press Releases, Center for Population Health Sciences, The Institute for Health Technology Transformation (iht2), Healthcare Information and Management Systems Society (HIMSS), American Medical Group Association (AMGA), International Association of Health Policy (IAHP), Institute of Population Health (University of Manchester), Institute of Population and Public Health (IPPH), Public Health Agency of Canada, CaisseNationaled'AssuranceMaladie des TravailleursSalariés (CNAMTS) (France), Expert Interviews, and MarketsandMarkets Analysis MarketsandMarkets Sample Page 9
11 5 COMPETITIVE LANDSCAPE 5.1 INTRODUCTION In the competitive landscape, this report studies the growth strategies adopted by companies in the population health management market during 2012 to The payers in this market have adopted various strategies to expand their presence and increase their market share. The major strategies adopted by payers are agreements, contracts, partnerships, and collaborations; acquisitions; client acquisitions; marketing and promotion activities; new product launches; and others. FIGURE 5 KEY GROWTH STRATEGIES, % % % % % % ABC Client Acquisition DEF Agreement, Partnersh GHI Marketing and Promo JKL New Product Launch LMN Acquisition OPQ Others Sources: Annual Reports and MarketsandMarkets Analysis MarketsandMarkets Sample Page 10
12 Disclaimer: MarketsandMarkets strategic analysis services are limited publications containing valuable market information provided to a select group of customers in response to orders. Our customers acknowledge, when ordering, that MarketsandMarkets strategic analysis services are for our customers internal use and not for general publication or disclosure to third parties. Quantitative market information is based primarily on interviews and therefore, is subject to fluctuation. MarketsandMarkets does not endorse any vendor, product or service depicted in its research publications. MarketsandMarkets strategic analysis publications consist of the opinions of MarketsandMarkets' research and should not be construed as statements of fact. MarketsandMarkets disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. MarketsandMarkets takes no responsibility for any incorrect information supplied to us by manufacturers or users. All trademarks, copyrights and other forms of intellectual property belong to their respective owners and may be protected by copyright. Under no circumstance may any of these be reproduced in any form without the prior written agreement of their owner. No part of this strategic analysis service may be given, lent, resold or disclosed to noncustomers without written permission. Reproduction and/or transmission in any form and by any means including photocopying, mechanical, electronic, recording or otherwise, without the permission of the publisher is prohibited. MarketsandMarkets Sample Page 11
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