Global Healthcare Provider Network Management Market Overview
The key driver impacting the healthcare provider network management market is the rising implementation of healthcare mandates in various countries. For instance, In the U.S., healthcare mandates such as the Patient Protection and Affordable Care Act (PPACA), which comprises Medical Loss Ratio (MLR) and Administrative Loss Ratio (ALR). It has forced payer organizations to manage their provider networks effectively and to decrease operating costs. It improves benefit coverage and customer satisfaction levels. PPACA aims to provide insurance coverage to every US citizen by 2014. Also, rising technological and developments connected to healthcare IT solutions are positively impacting the market growth. Moreover, the growing focus on improving the effective use of payer reporting requirements contributes to the healthcare provider network management market growth in the coming years.
According to Value Market Research, the global healthcare provider network management market size was valued at around USD 2915 million in 2020, and it is estimated to grow at a CAGR of about 14% during the forecast period 2021 to 2027.
The growing focus on improving the quality of care through the effective use of payer reporting requirements is estimated to augment healthcare provider network management in the forecast period. Also, the need to restrict escalating healthcare costs. For instance, The World Health Organization health expenditure 2019 report shows that worldwide spending on health continues to climb. In 2017, it was US$ 7.8 trillion, or about 10, even faster than the economy. During the period 2000 to 2017, global health spending in actual terms is increased by 3.9% per year, whereas the economy expands by 3.0% a year. However, unforeseen costs associated with outsourcing services may hamper the market in the long run. Also, IT infrastructural constraints in developing countries negatively impact the market. The current industry trends, such as the advancement in data analytics and the rising innovation in medical costs, service inquiry, and patients care plans, are expected to offer new lucrative market opportunities for the key players.
The healthcare provider network management market is vast, with many local and global players. The healthcare provider network management market is extensive, with many regional and international players. The important market leaders follow numerous strategies to improve their market position, such as acquisitions, extending product portfolio, contracts, amalgamation, contracts, acquisitions, product upgrades to enlarge their market share across the globe. For instance, in May 2020, Appian signed an amalgamation partnership with Box, It is a leading cloud content management platform. With this partnership, the company made enterprise collaboration more valuable, secure, and efficient. The significant players studied in the report include Ayasdi, Inc., Appian, Optum, Inc., Aldera, Inc., Centene Corporation, McKesson Corporation, Salesforce.com, Inc., Genpact Limited, TriZetto Corporation, Infosys BPO, Ltd., Mphasis Limited, Vestica Healthcare, LLC, Skygen USA, LLC, and Syntel, Inc.
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In this research report, the healthcare provider network management market is segmented by component, end-user, and region.
Analysis by Component:
By component, the report is categorized into Services and Software. Services segment dominates the service type segment with over 30% share in 2020. It is sub-segmented into in-house services and outsourced services. It is due to the extensive adoption of services owing to their associated benefits such as decrease of overall costs, enhancement of operational efficiencies, and attainment of regulatory compliance. Moreover, increasing applications scope of network management solutions across service providers and integration and deployment service contributes to the massive demand for the healthcare provider network management services segment in the forecast period.
Analysis by End-User:
By end-user, the report is categorized into payer, private, and public health insurers. The private locking segment dominates the end-user segment with over 40% share in 2020. It is due to the high adoption of healthcare provider network management software and services in private healthcare organizations. Moreover, the increasing competitiveness among private payers to improve their capabilities and offerings contributes to private health insurer's segment growth in the forecast period.
Analysis by Region:
In the regional outlook of the global healthcare provider network management market, the North America region dominates globally with a 35% market share in the forecast period. It is due to the rapidly rising growth of health insurance coverage as per the Patient Protection and Affordable Act (PPACA) in the U.S. Also, the growing IT industry in the region and strong government focus on Canada's healthcare IT solutions are adding growth in the region. Moreover, escalating need to reduce healthcare costs in the U.S region contributes to tremendous market growth across North America.
Market Segmentation covered in the Report:
By Component
By End-User
- Payer
- Private
- Public Health Insurers
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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