Population Health Management Market 2030: The Shift Towards Preventative Healthcare

The global population health management (PHM) market was valued at USD 70.0 billion in 2023 and is projected to grow at a robust compound annual growth rate (CAGR) of 22.0% from 2024 to 2030. This significant growth can be attributed to the ongoing digital transformation within the medical industry, as healthcare systems shift from traditional paper-based methods to more efficient digital platforms. This transformation is driving an increased demand for healthcare IT services, which are essential for streamlining medical practices and improving patient outcomes.

In addition to the growing digitization of healthcare, there is a noticeable shift in the way healthcare systems are reimbursed for services. The demand for solutions that support healthcare providers in this transition has led to a movement away from the Fee-For-Service (FFS) payment model, which compensates healthcare providers based on the volume of services delivered, to the Value-Based Payment (VBP) model, which rewards providers based on the quality of care and patient outcomes. This shift aims to improve patient care, reduce costs, and promote more efficient use of healthcare resources, driving further growth in the population health management market.

Gather more insights about the market drivers, restrains and growth of the Population Health Management Market

The increasing need for effective disease management strategies is another major factor fueling market expansion. As healthcare providers and insurers focus more on managing populations' health outcomes rather than simply treating illnesses as they arise, the demand for PHM solutions is expected to rise significantly. These solutions help in tracking patient health data, predicting health risks, and providing timely interventions, ultimately leading to better overall health management and cost savings.

During the COVID-19 pandemic, the healthcare sector was put under immense pressure. Hospitals and medical institutions worldwide were overwhelmed by the sudden surge in patient numbers, highlighting the need for more efficient, reliable, and scalable healthcare solutions. The pandemic underscored the importance of having systems in place to manage large patient populations effectively and provide continuous care despite overwhelming challenges.

Regional Insights

North America
North America led the population health management (PHM) market in 2023, capturing a substantial revenue share of 46.2%. The region is expected to continue its dominant position and grow lucratively throughout the forecast period. Several factors contribute to this growth, including reduced medical costs, the expanding role of cloud computing in healthcare, and evolving regulatory frameworks that support the adoption of digital healthcare solutions. Additionally, the growing use of information technology (IT) in healthcare systems and the rising prevalence of various diseases are also driving market growth in the region.

The U.S., in particular, is a key hub for commercialized PHM services, with more than 100 companies currently operating in the market. This concentration of healthcare companies in the U.S. has spurred innovation and competition, which, in turn, accelerates the adoption of PHM solutions. The high potential of the market is attracting both new players and existing ones, prompting many to expand and enhance their service offerings. Value-based care models are becoming increasingly popular in the region, with healthcare providers and insurers adopting these approaches to improve patient outcomes while reducing costs. To stay competitive, many established players are incorporating new, value-based services into their portfolios, opening up fresh market opportunities and further contributing to the market’s growth.

Asia Pacific
The Asia Pacific region is expected to experience the fastest growth in the population health management market over the forecast period. This rapid expansion is driven by developing healthcare infrastructure and an increase in healthcare expenditure across many countries in the region. As economic growth continues in countries like China and India, there is a greater focus on improving healthcare systems and expanding access to quality care, which creates a significant demand for advanced PHM solutions.

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Key Companies & Market Share Insights

Companies' strategic initiatives to strengthen their market presence include mergers and acquisitions, providing customized solutions, and business partnerships with other key players. Furthermore, as part of their commercialization strategies, companies are investing significant sums of money in developing new products and platforms with enhanced and improved features.

For instance, in January 2023, Gainwell Technologies was awarded a USD 600 million contract by the California Department of Health Care Services as part of the CalAIM initiative for population health management services.
In October 2022, MEDITECH introduced Expanse Population Insight, a population health management product. The product is supported by the Innovaccer Data Platform and offers data aggregation and curation along with care delivery and data analytics.

Key Population Health Management Companies: