Healthcare Predictive Analytics Market
Predictive analytics uses different statistical techniques from machine learning, statistics, modeling, artificial intelligence, data mining, predictive modeling and other advanced computing techniques that analyze historical and present facts to make future predictions.Patients, healthcare providers (hospitals, doctors, nurses, physicians, etc.), payers (healthcare insurance companies), pharmaceutical organizations, regulatory authorities, and research firms are major stakeholders of the healthcare system. Predictive analytics provides variety offerings to each stakeholder.
Patients: Patient can get the comfort of personalized treatment and improved care at affordable cost.
Healthcare Providers: Healthcare providers can benefit in terms of novel and personalized patient care, more efficient treatment options and increased profitability.
Payers: The predictive analytics help in determining the optimized costing for the right treatment. Further, the predictive analytics can also help the payers in an effective risk including management system, demand management, payment fraud detection, and prevention, etc.
Regulatory authorities: Public Health Surveillance, Population Health Management, Diagnosis, and Treatment Protocols are some of the advantages that can be taken by using predictive analytics.
Technological advancement in the field of healthcare, increasing demand for personalized medicines, growing adoption of Electronic Health Records (EHR) systems and Electronic Medical Records (EMRs), stringent regulatory guidelines and rising demand for improved healthcare facilities are driving the healthcare predictive analytics market. Healthcare industry produces the enormous amount of data in form of medical records of patient, patient history, personal details, blood group, healthcare claims, medication data, and emergency department records. Predictive analytics use this data to predict the possible future scenarios and outcomes. It also has the ability to consider the patient lifestyle, genetic structure, parental history, surrounding environment, and other factors. This in turn, is expected to boost the demand for predictive analytics system across the globe.
Rising adoption services such as health app, telehealth, mHealth, etc., rising use of Big Data Analytics in healthcare, increasing demand for personalized medicine, growing investments by private healthcare companies, rising pressure to lower the healthcare costs, demand to improve healthcare quality in developed countries, demand for value-based care, implementation of the Affordable Care Act (ACC) in the U.S., rapidly growing healthcare IT (HCIT) infrastructure and services including EHR and EMR, and rising number of accountable care organizations (ACO) are resulting in rapidly rising global healthcare predictive analytics market.
Personalized medicine involves tailor-made medication and treatment for individual or group of the patient where the patients are divided on the basis of treatment or medical decision. Personalized medicine can be helpful in areas such as drug developments and clinical trials. Growing adoption of software’s such as patient management system, Electronic Health Records (EHR) systems, Electronic Medical Records (EMRs), e-prescribing systems, ambulatory care management systems, and hospital information systems are also further driving the healthcare predictive analytics market.However, the limited technological access in some of the developing countries, data security, lack of skilled professionals, and the high cost of installation of predictive analytics system are some of the factors that may restrain the growth of healthcare predictive analytics market in the near future.
Analytics involves the collection of huge data, which also includes patients’ personal records. Rising cyber crimes incidents may also act as a major constraint in terms of providing the secure system to patients. Most of the countries lack the stringent laws and systems to avoid cyber-attacks and data theft. This can be a major restraint for the healthcare predictive analytics market.Currently, there are few experts and professionals working in the field of healthcare predictive analytics.
The global healthcare predictive analytics market is segmented on the basis of type, application, component, delivery model, and end-user. On the basis of type, the market is divided into predictive analytics, descriptive analytics, and prescriptive analytics. Based on the application the market is segregated into financial analytics, clinical analytics, population health analytics, and operational and administrative analytics. The financial analytics is further sub-divided into claims processing, revenue cycle management, fraud, waste, and abuse (FWA), payment integrity and risk adjustment& assessment, the clinical analytics. By component, the market is segmented into software, services, and hardware. The predictive analytics services segment is accounted for the largest share of the global healthcare predictive analytics market owing to the increasing demand among hospitals, clinics, and nursing homes.On the basis of a delivery model, the market is classified into an on-demand (web & cloud model) and on-premise model. The cloud-based segment takes the largest market share in the global healthcare predictive analytics market and it is also expected to grow at the highest CAGR during the forecast period.
Based on end-user, the healthcare predictive analytics market is segmented into providers, payers and ACOs, HIEs,TPAs, and MCOs. Providers market is sub-divided into hospitals, IDNS and physician practices, post-acute care organization, and ambulatory care organizations. The payers include private insurance companies, government agencies, and employers.
North America accounts for the largest share of the global healthcare predictive analytics market. The large share of this region can be attributed to the well-established healthcare predictive analytics infrastructure in U.S. and Canada, availability of skilled professionals, high awareness about healthcare and related services among the general population as well as high healthcare expenditure. The implementation of the Affordability Care Act (ACA), rising regulatory requirements to ensure patient safety, and the presence of IT giants in the region, are few more factors contributing towards the growth of North American healthcare predictive analytics market. Moreover, the Asia-Pacific is the fastest-growing region in the healthcare predictive analytics market. Rapidly growing IT outsourcing, rising population, rising investments in healthcare predictive analytics sector in countries such as Japan, China, and India, increasing patient health data and rising medical tourism in India, Thailand, Indonesia, etc are some of the major factors driving the Asia-Pacific healthcare market at highest CAGR.
Key players in the healthcare predictive analytics market include McKesson Corporation (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), MedeAnalytics Inc., Optum, Inc. (U.S.), Cerner Corporation (U.S.), Verisk Analytics Inc., SAS, and IBM (U.S.).
These players adopt different strategies like the new product launch, geographic expansion, product differentiation, and merger & acquisition, in order to gain the market share and competitive advantage.For instance, in May 2018, Allscripts has successfully acquired HealthGrid, patient communication app maker, for $60 million.