Population Health Management Market to Hit $ 663.75 Bn by 2034

Population Health Management Market Size, Shares and Segmental Growth

The global population health management market was estimated at US$ 70.10 billion in 2023 and is projected to grow to US$ 663.75 billion by 2034, rising at a compound annual growth rate (CAGR) of 22.05% from 2024 to 2034.

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Major Key Insights of the Population Health Management Market

• North America dominated the market by 47% share in 2023.
• By region, Asia Pacific is expected to grow at the fastest rate during the forecast period.
• By product, the services segment held the largest share of the market in 2023.
• By delivery mode, the cloud-based segment dominated the population health management market in 2023 and is estimated to grow at the fastest rate during the forecast period.
• By end-use, the healthcare providers segment held the dominant share of the market in 2023.

Population Health Management Market: Better Health

The purpose of this market is to provide resources (financial and care models) for improving clinical health outcomes of defined groups by using better care coordination and better patient engagement. Population health management (PHM) includes care coordination, return on investment (ROI), healthcare quality, resource management, healthcare reform, outcomes assessment, health economics, provider incentives, compliance programs, and clinical case reports and studies on the management of public health conditions. PHM uses healthcare data to make evidence-based decisions to create better health systems. Technology is used for data aggregation, data analytics, and data governance.

Population Health Management Market Trends

• Rapidly Changing Demographics: The rapidly changing demographics, especially in developing countries, promote the population health management market.
• Improved Patient Outcomes: The growing demand for personalized treatment leading to improved patient outcomes drives the market.
• Technological Advancements: Advanced technologies are used for analyzing and suggesting treatment for patients, which boosts the market.

How can AI Improve the Population Health Management Market?

Artificial intelligence plays a crucial role in PHM by providing support in predictive analytics, data management, data analysis, task allotment, and so on. AI can be useful in improving patient care and reducing costs. With the help of predictive analysis, AI can help analyze at-risk and emerging risks, which will help with using minimal resources. Other PHM processes in which AI can be used include the estimation of potential effects of policy change, better identification of subgroups who need healthcare, scientific literature translation, assisting in systematic reviews, emergency prediction, preparedness, and response.

For instance,

• In February 2024, in partnership with Microsoft, Persistent Systems, a pioneer in global digital engineering and enterprise modernization, unveiled a cutting-edge population health management (PHM) solution powered by generative artificial intelligence. The Solution, which is in line with value-based care models, uses the Social Determinants of Health (SDoH) to ascertain the non-clinical demands of patients and to more accurately forecast the costs of care that are driven by clinical disorders.

Better Patient Health Outcomes Drive the Market

The entire purpose of PHM is to ensure better health outcomes while using minimal resources. There is always a growing demand for better patient health outcomes, which drives the population health management market. PHM addresses patient values, needs, and preferences. PHM also promotes patient-centered care by providing favorable interventions and reducing hospital readmission rates. PHM provides real-time data to healthcare providers, which helps the professional to make evidence-based decisions that improve the overall quality of patient care, patient satisfaction, and quality of life.

For instance,

• In June 2024, in order to support public health monitoring and emergency response, a research team at Flinders University is constructing what may be Australia's first integrated, AI-driven public health and clinical data repository. In order to facilitate near real-time cooperation and communication between public health authorities, healthcare facilities, and laboratories, SMART-PH, the data platform, will serve as a single digital infrastructure. SMART-PH has received about A$3 million ($2 million) in financing from the Medical Research Future Fund.

Cyber Security Challenges Can Restraint the Market

A large amount of medical, patient-related, financial, and other clinical data is generated in PHM. The data is majorly stored on cloud storage systems, which puts it at a high risk of getting stolen, deleted, or misused, which restrains the growth of the population health management market. Cyber attacks can hamper the overall research, develop ethical issues, cause financial losses, and ultimately hamper the reputation of a company or an organization. It becomes highly essential for organizations, hospitals, and third-party service providers to develop strong security systems to avoid any invasion into systems.

Value-Based Medicine Can Promote Market’s Growth in the Future

Value-based medicine is a more contemporary method of providing healthcare that integrates patient-centered care, evidence-based medicine, and cost-effectiveness to concentrate on the aspects of therapy that patients find useful. Population health is now at the forefront of health policy formation as a result of the shift in emphasis from a fee-for-service to a value-based paradigm. A growing number of payers are supporting risk-sharing payment models, and creative, non-traditional payer-provider partnerships are emerging. As a result, the emphasis has shifted from individual healthcare payments at the point of care to comprehensive healthcare management for a specific or defined population or population health management.

For instance,

• In April 2024, the first version of Arbitral Health's platform for value-based contract adjudication was released. Arbital Health is a technology startup that aims to speed up the healthcare sector's shift to value-based care.

The Services Segment Dominated the Market in 2023

By product, the services segment held the largest share of the population health management market in 2023. There are various services associated with population health management. Many healthcare providers hire third-party organizations for PHM services, which gives healthcare providers better solutions and better cost management. With the growing prevalence of chronic conditions and advancement in healthcare services, the demand for PHM services is growing.

For instance,

• In July 2024, Innovaccer, a top healthcare AI platform provider, and the San Mateo County Health (SMCH) department partnered, establishing a patient-centric agenda to provide high-quality, reasonably priced services. With the goal of transforming healthcare services nationwide, Innovaccer's population health management solutions and Healthcare AI platform will usher in a new phase of technological infrastructure modernization in the medical field.

The Cloud-Based Segment Dominated the Market in 2023

By delivery mode, the cloud-based segment dominated the population health management market in 2023 and is estimated to grow at the fastest rate during the forecast period. Cloud-based delivery mode has become the need for transferring, storing, and managing the large amount of data generated in PHM. It can become tedious and time-consuming if data is stored on local servers. Cloud-based systems make it easy to access data from anywhere and by anyone. With growing telehealth and telemedicine, and providing healthcare services in remote areas, cloud-based systems become really essential for healthcare providers and third-party organizations that provide PHM.

For instance,

• In March 2023, a new cloud-based platform that enables the safe gathering, storing, and use of health and health-related data was announced by Japanese ICT supplier Fujitsu. The new platform, which is built on Microsoft Azure, has the ability to automatically convert medical data from EMR systems to meet the latest HL7 FHIR standards, making data interchange and usage simple.

The Healthcare Providers Segment Dominated in 2023

By end-use, the healthcare providers segment held the dominant share of the population health management market in 2023. Healthcare providers use PHM the most because the main purpose of PHM is to improve the quality of care and develop new processes to enhance the patient experience while ensuring that the overall cost is within budget. Healthcare providers use PHM data to analyze diseases, patient needs, patient response, economics, and other aspects. The analysis is then used to develop better solutions. With growing research and development, technological advancements, chronic conditions, rare diseases, population, and environmental changes, the PHM will continue to grow, and the demand for it from healthcare providers will also grow in the future.

Growing Use of Technology in Healthcare Drives North America

By region, North America dominated the population health management market share by 47% in 2023. Technological advances play a crucial role in population health management, and North America leads the market in terms of technological advancements. There are multiple organizations and government authorities that promote and invest in the growth and development of technology. Apart from this, the region is known for its well-developed healthcare infrastructure, research and development in healthcare, advanced systems, and well-trained professionals that further help in the growth of the market. The major countries that contribute to the growth of the market in North America are the U.S. and Canada.

The U.S. held the dominant share of the population health management market in North America. The country has organizations such as the FDA, AHA, OASH, and WHO that help in the growth and development of PHM. For instance, the OASH launched the Health People 2030 initiatives to improve the health Application, software, machine learning, AI, and many more technologies used in PHM, which are readily available in North America due to various third-party service providers. and well-being of people over the next decade. Apart from this, there are various key population health management market players that provide PHM services in the U.S.

For instance,

Case Study of U.S. Based Company: USI

Of all the main brokerages in the U.S., USI has one of the largest and most extensive networks of Population Health Managers (PHM). With over 10,000 colleagues spread throughout more than 200 offices countrywide, USI now generates more than $2.7 billion in sales. The organization saw a 62% increase in preventative visits after putting USI's suggested CORE HEALTH plan into practice. Preventative visits are essential for spotting possible high-cost claims. Additionally, a 40% decrease in ER visits was attributed to an increase in primary care visits. Compliance with diabetes treatment improved, saving the self-funded plan around $145K in chronic illness management. As a consequence, the business's average renewal hikes decreased from over 10% in the previous two years to less than 5% in the most recent three, saving the company almost $1.1 million.

Developing Healthcare Infrastructure Drives Asia Pacific

By region, Asia Pacific is expected to grow at the fastest rate during the forecast period. With growing research and development, the healthcare infrastructure in Asia Pacific is growing, which is increasing the demand for the population health management market. The development of healthcare infrastructure in the region is due to the growing prevalence of diseases, the growing population, and the growing healthcare initiatives in developing & underdeveloped countries. Countries like China, India, Japan, and South Korea are the major contributors to the market’s growth.

The Indian government is taking major steps to improve India's healthcare infrastructure. For instance, the Ministry of Health and Family Welfare launched SAKSHAM, which is a health-related training program for developing a better healthcare workforce. There are 26,508 SAKSHAM users, 303 medical courses, 278 public health courses, 244 instructors, 5,02,298 TIMS users, and 1,024 total physical training through TIMS.

Japan also contributes to the growth of the population health management market. Japan has long been an active partner of WHO and a fervent advocate for world health, working to ensure that everyone has access to healthcare and that no one is left behind. Japan contributes to the strengthening of other nations' health systems, the battle against drug-resistant bacteria that jeopardize drug efficacy, and the promotion of healthy aging, diet, and other factors. The Global Outbreak Alert and Response Network (GOARN), a WHO network of over 250 technical partners, is supported by Japanese institutions and organizations. Its purpose is to provide manpower and resources to acute public health emergencies.

Latest Announcement by Industry Leaders

Justin Neece, CEO of i2i Population Health, commented on collaboration with CureMD that the company aims to make population health management more accessible, scalable, and effective for healthcare organizations. He also added that the company will utilize CureMD’s EHR platform with its tools to enable providers to take proactive action on patient care, leading to better outcomes and higher efficiency.

Recent Developments in the Population Health Management Market

• In August 2024, the Government Health AI Data and Analytics Platform (GHAAP) launched, according to a statement from top healthcare AI business Innovaccer Inc. With an initial focus on Medicaid and Public Health Modernization, the award-winning platform is among the first for end-to-end integration, interoperability, analytics, and AI created for the public sector.
• In April 2024, FeelBetter, the industry leader in polypharmacy patient management technology and the creator of Pharmaco-Clinical Intelligence, announced today that researchers from Boston's Brigham and Women's Hospital would be working with them on a prospective research project. The study will evaluate how FeelBetter's AI-powered Precision Population Health Platform affects the treatment of patients with polypharmacy.
• In September 2023, the Population Health Services Organization (PHSO), a nationwide value-based services platform, was established by CommonSpirit Health with the goals of reducing healthcare costs, increasing access to fair treatment, and enhancing quality and results. The PHSO will offer a range of services, including advanced population health analytics, network management, care coordination, data management and analytics, technological infrastructure, reporting, and more, to help providers and provider networks achieve the best possible outcomes in value-based care.

Top Companies in the Population Health Management Market

• Oracle
• Tuesday Health
• Conifer Health Solutions, LLC
• Veradigm LLC
• UKRI
• Optum, Inc.
• Athenahealth, Inc.
• McKesson Corporation
• Welltok (Virgin Pulse)
• Medecision
• Enli Health Intelligence (Cedar Gate Technologies)
• eClinicalWorks
• Koninklijke Philips N.V.

US$ 60 Million Investment in Tuesday Health

£35 Million Investment in UKRI 

Segments Covered in the Report

By Product

• Software
• Services

By Delivery Mode

• On-Premise
• Cloud-based

By End-use

• Providers
• Payers
• Employer Groups

By Region

• North America
  • U.S.
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait