Healthcare Management Market Size, Share, Growth & Industry Analysis, By Services Type (Hard Services, Construction Services, Energy Services, Healthcare Analytics Software Services, Others), By End User (Hospitals and Clinics, Nursing Homes, Others) and Regional Analysis, 2024-2031

Healthcare Management Market Size

The global Healthcare Management Market size was valued at USD 4.21 billion in 2023 and is estimated to reach USD 8.44 billion by 2031, growing at a CAGR of 9.09% from 2024 to 2031. The growth of the healthcare management market is mainly driven by improving healthcare access and facilities. The healthcare industry is witnessing a surge in services and products related to healthcare management, primarily stimulated by advancements in data and software technology. This is fueling the overall growth of the market and promoting the adoption of modern services across various sectors of the healthcare industry. In the scope of work, the report includes solutions offered by companies such as Veradigm Inc., Cerner Corp., Conifer Health Solutions, LLC, EClinicalWorks, GE HealthCare, McKesson Corp., Medecision, Koninklijke Philips N.V., CitiusTech Inc, Novartis, and others.

Increasing focus on improving healthcare services and facilities has led to the overall development of the entire healthcare sector. Healthcare services are often under the purview of various laws and regulations, including the HIPAA (Healthcare Information Portability & Accountability Act), which aims to ensure the confidential handling of patient information, and HITECH (Health Information Technology & Clinical Health Act), which addresses the standardization of electronic patient records. In the U.S., the OSHA (Occupational Health and Safety Administration) enforces workplace regulatory standards. There are various other laws and regulations in place that cover other aspects of management based on the facility involved such as diagnostic services, and clinics, among others.

Furthermore, the focus on the improvement of palliative healthcare is prompting regulatory bodies and healthcare institutions to develop regulations, protocols, and standards to ensure high quality patient care. The rise in the geriatric population, along with the growing incidences of cardiovascular diseases among various sections of society, highlights the need for the development of efficient healthcare management systems.

Healthcare management ensures effective operations in healthcare facilities such as hospitals or clinics. This includes the ‘hard services’ such as the air conditioning, plumbing, mechanical, and other maintenance; ‘construction services’ including the building construction, repair, and maintenance; ‘energy services’, and ‘analytics and software’ related services.

Analyst’s Review 

The healthcare management market is rapidly progressing due to various factors, including advancements in medicine and healthcare capabilities and the transformative impact of AI and other technologies. This necessitates seamless integration of various services and technologies across the value chain to optimize operations thereby impacting both growth and demand for healthcare management services.

Major players in the industry are focused on innovation, which is poised to significantly influence the market in the upcoming years. By investing in AI and data analysis, these companies aim to gain a competitive advantage by providing quality services to end consumers.

Healthcare Management Market Growth Factors

The increasing expenditure on healthcare globally is driven by the prevalence of chronic diseases, rapidly aging populations, and advances in medical technology. These factors are influenced by the rapidly evolving consumer lifestyle patterns due to the paradigm shift in the nature of services from labor intensive to desk-based jobs. This emphasizes the need for more efficient management of healthcare services and resources.

For Instance, BMC (Brihanmumbai Municipal Corporation) initiated a plan to implement HMIS (Healthcare Management Information System) for the citizens of Mumbai in India. RailTel, a PSU (Public Sector Undertaking) under the Ministry of Railways, is set to undertake the supply, installation, testing, maintenance, and other operational aspects of the system. These advancements are contributing to market expansion by meeting evolving healthcare needs while fostering innovation in healthcare management. 

Moreover, rapid advancements in healthcare technologies such as electronic health records (EHRs), telemedicine, artificial intelligence (AI), and health analytics are transforming the overall landscape of healthcare. These advancements are encouraging efficiency, accuracy, and accessibility of data, allowing for improvements across the healthcare domain.

For instance, in March 2024, Machinify, an AI-based startup, introduced a suite of three AI based apps. These apps are designed to address the entire healthcare claims lifecycle from prior authorization to the final payment process. This novel AI based system is designed with the aim of reducing costs and benefitting players, providers, and the patients themselves. Startups such as Machinify mark a significant shift toward leveraging technological innovations to transform existing healthcare architecture.

Healthcare Management Market Trends

The demand for analytics-based solutions is being fueled by volumetric data generated from different sources across industries, including electronic health records, wearable devices such as smartwatches, and IoT (Internet of Things) devices. This crucial data is utilized to extract critical data in order to improve the existing architecture and address concerns such as longer patient wait times and delays in accessing medical aid caused by documentation-related obstacles. This facilitates decision-making by key personnel, improves patient outcomes, and enhances operational efficiency.

There is a trend within the healthcare industry, including mergers and acquisitions among hospital chains and other healthcare organizations. This creates the need for efficient management practices and systems that help integrate operations and standardize organizational processes.

For instance, in April 2023, Kaiser Foundation Hospitals and Geisinger Health entered into a merger agreement to establish Risant Health. This collaboration aims to expand the company's outreach to accelerate access to value based care, underscoring the pivotal role of healthcare management services in hospitals and other medical facilities. Due to this, the healthcare management market is expected to grow over the estimated timeframe.

Segmentation Analysis

The global healthcare management market is segmented based on the services type, end users, and region.

By Services Type

Based on services type, the market is segmented into hard services, construction services, energy services, healthcare analytics software services, and others. The healthcare analytics software services segment led the market in 2023, with a valuation of USD 1.47 billion. The versatile applications of software services, coupled with advancements in technologies such as AI, are revolutionizing the healthcare management landscape. This is facilitating the implementation of efficient and precise healthcare management and administration systems.

By End User

Based on end user, the market is segmented into hospitals & clinics, nursing homes, and others. The hospitals & clinics segment held the highest valuation at USD 2.85 billion in 2023. This notable growth is propelled by various factors such as the shift in value based care. Furthermore, the ongoing transition from fee-for-service reimbursement models to value-based care models is further impacting the growth of the segment. This incentivizes healthcare organizations to focus on outcomes, patient satisfaction, and cost-effectiveness, thereby prompting the adoption of management strategies and tools that support this shift.

Healthcare Management Market Regional Analysis

Based on region, the global healthcare management market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America Healthcare Management Market share stood around 32.54% in 2023 in the global market, with a valuation of USD 1.37 billion. This dominance is attributed to robust investments in research and development, a well-established healthcare infrastructure, and extensive adoption of advanced technologies across various industries.

For instance, in October 2022, the USDA (United States Department of Agriculture) announced an investment of USD 110 million by the US administration in the form of grants for the improvement of healthcare facilities in rural towns. This initiative aims to improve the critical outreach of existing healthcare services for approximately 5 million people across the States.

Asia-Pacific is poised to witness significant growth over the forecast period at a CAGR of 10.02%. This growth is propelled by increasing investments in research and development, expanding healthcare infrastructure, and rising adoption of advanced healthcare management technologies across various sectors.

According to data provided by the National Health Commission of China in 2021, there were 36,570 hospitals operating in the country, with approximately 7.4 million beds and accommodating roughly 3.88 billion patient visits. This highlights the country’s existing healthcare infrastructure capabilities, which are influencing the Asia-Pacific healthcare management market. Additionally, the burgeoning population and rising healthcare awareness in the region are anticipated to contribute to favorable market conditions, positioning the region as a hub in the global healthcare management market.

Competitive Landscape

The global healthcare management market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Major players are adopting various strategies such as partnerships, mergers, innovations, and expansions to broaden their service range and market reach. Investments in research, new facilities, and supply chain improvements are expected to generate growth opportunities.

List of Key Companies in Healthcare Management Market

• Veradigm Inc.
• Cerner Corp.
• Conifer Health Solutions, LLC
• EClinicalWorks
• GE HealthCare
• McKesson Corp.
• Medecision
• Koninklijke Philips N.V.
• CitiusTech Inc
• Novartis

Key Industry Developments 

• March 2024 (Acquisition): Veradigm Inc., a prominent provider of healthcare data and other technology products, solutions, and services, announced the finalization of its acquisition of ScienceIO. Science IO is an AI platform and foundational model provider within the healthcare industry. This acquisition highlights the industry's rapid development and the proactive steps taken by leading players to leverage technological innovations to broaden their product portfolios.
• March 2024 (Innovation): Oracle Corporation Japan announced the implementation of Oracle's Clinical Trial Management System (CTMS) Cloud Service at ONO PHARMACEUTICAL CO., LTD., serving as an IT platform. This step is a part of the company's digital transformation strategy, enabling centralized management of clinical trial data. This is expected to significantly improve the efficiency of the existing system management workload globally. The renovation of its IT infrastructure is aimed at improving the company's drug discovery value chain, and fostering sustainable growth through the development and production of new drugs.

The Global Healthcare Management Market is Segmented as:

By Services Type

• Hard Services
• Construction Services
• Energy Services
• Healthcare Analytics Software Services
• Others

By End User

• Hospitals and Clinics
• Nursing Homes
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America