Population Health Management Market Size, Share, Growth & Industry Analysis, By Component (Software and Services), By Delivery Mode (On-premises and Cloud-based), By End User (Healthcare Providers, Healthcare Payers, and Others), and Regional Analysis, 2024-2031

Population Health Management Market Size

Global Population Health Management Market size was recorded at USD 26.54 billion in 2023, which is estimated to be at USD 29.61 billion in 2024 and projected to reach USD 70.87 billion by 2031, growing at a CAGR of 13.28% from 2024 to 2031. In the scope of work, the report includes services offered by companies such as Oracle, Altera Digital Health Inc., Veradigm LLC, Medecision, Persistent Systems, Conifer Health Solutions, LLC, athenahealth, eClinicalWorks, IBM Corporation, MCKESSON CORPORATION, and others.

Growing integration of artificial intelligence and machine learning is driving market growth. The increased adoption of telehealth services represents a significant trend in the global population health management market. This trend has been accelerated by the COVID-19 pandemic, which highlighted the need for remote healthcare solutions. Telehealth services offer a convenient and efficient way to deliver healthcare, reducing the need for in-person visits and thereby minimizing the risk of infection transmission.

Moreover, telehealth extends the reach of healthcare providers, allowing them to offer care to patients in remote or underserved areas. This capability is particularly valuable in managing chronic conditions, where regular monitoring and consultations are essential. Telehealth also facilitates better patient engagement and adherence to treatment plans by providing easy access to healthcare professionals.

Furthermore, advancements in telehealth technologies, such as high-definition video consultations and remote patient monitoring devices, have significantly improved the quality and reliability of remote care. These technologies enable healthcare providers to collect and analyze real-time health data, leading to more accurate diagnoses and personalized treatment plans. As healthcare systems worldwide continue to adapt to new challenges and patient expectations, the adoption of telehealth services is expected to surge, driving innovation and efficiency in population health management.

Population health management (PHM) is a systematic approach to improving the health outcomes of a specific population by focusing on the overall health status and care needs of individuals within that group. PHM aims to enhance the quality of care, reduce healthcare costs, and improve the health outcomes of the population through proactive and coordinated care strategies. Solutions in PHM involve the use of data analytics to identify at-risk individuals, track health metrics, and predict potential health issues before they become critical.

These solutions are delivered through a combination of health information technologies, such as electronic health records (EHRs), patient registries, and care management systems, which facilitate the integration and analysis of health data from various sources. Applications of PHM range from managing chronic diseases and coordinating care for complex conditions to implementing preventive health programs and engaging patients in their own health management.

• By leveraging data-driven insights and collaborative care models, PHM seeks to create a more efficient and patient-centered healthcare system that address the diverse needs of the population.

Analyst’s Review

The population health management market is poised to observe significant growth, driven by the increasing demand for efficient healthcare solutions and the rise in chronic disease prevalence. Key players in the market are adopting various strategies to strengthen their positions and capitalize on emerging opportunities. A primary strategy involves the integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) to enhance data analytics capabilities.

These technologies enable the analysis of vast amounts of health data, providing actionable insights that improve patient outcomes and optimize care delivery. Another critical imperative for market leaders is the focus on strategic partnerships and collaborations. By partnering with technology firms, healthcare providers access cutting-edge solutions and expand their service offerings.

Additionally, investments in telehealth and remote patient monitoring are becoming increasingly important as these services offer the potential to reach a broader patient base and improve care accessibility. To address data privacy and security concerns, companies are also prioritizing robust cybersecurity measures and compliance with regulatory standards.

• Furthermore, the development of personalized health management programs tailored to individual patient needs is gaining traction, offering manufacturers a competitive edge in the market.

Population Health Management Market Growth Factors

Advancements in health information technology (HIT) are driving significant progress in the population health management (PHM) market. These advancements encompass a wide array of innovations, including electronic health records (EHRs), health information exchanges (HIEs), and advanced data analytics platforms. EHRs have revolutionized the way patient data is recorded, stored, and accessed, enabling more comprehensive and coordinated care.

HIEs facilitate the seamless exchange of health information across different healthcare systems, enhancing the ability to track patient histories and manage care more effectively. Additionally, sophisticated data analytics platforms allow healthcare providers to analyze vast amounts of health data, identifying patterns and trends that inform proactive care strategies. These technologies also support predictive analytics, enabling early intervention for at-risk patients and improving overall health outcomes.

The integration of HIT solutions streamlines administrative processes, reduces errors, and enhances patient engagement through personalized health management tools. As healthcare providers continue to adopt and integrate these advanced technologies, the efficiency, accuracy, and effectiveness of PHM initiatives are expected to improve, ultimately leading to better patient outcomes and reduced healthcare costs.

Data privacy and security concerns pose significant challenges to the population health management market. As PHM relies heavily on the collection, storage, and analysis of vast amounts of patient data, ensuring the confidentiality and integrity of this information is paramount. Healthcare providers must navigate a complex landscape of regulatory requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States, which mandates strict standards for data protection.

Breaches of patient data lead to severe consequences, including legal penalties, financial losses, and damage to the reputation of healthcare organizations. Moreover, the increasing sophistication of cyberattacks exacerbates these concerns, as hackers target sensitive health information for malicious purposes. To address these challenges, healthcare providers must implement robust cybersecurity measures, such as encryption, secure access controls, and regular security audits.

Additionally, fostering a culture of security awareness among healthcare staff is crucial to preventing data breaches caused by human error. Despite these efforts, the ever-evolving nature of cyber threats means that data privacy and security will remain a critical concern, requiring continuous vigilance and investment in advanced security technologies.

Population Health Management Market Trends

The growing integration of artificial intelligence (AI) and machine learning (ML) into population health management (PHM) is transforming the way healthcare providers analyze and utilize health data. AI and ML technologies enable the processing of large datasets to uncover patterns and insights that might be missed by traditional analytical methods. These technologies facilitate predictive analytics, allowing for early identification of potential health risks and enabling proactive interventions.

• For example, AI algorithms analyze patient data to predict the likelihood of hospital readmissions, thereby helping healthcare providers develop targeted care plans to prevent such occurrences.

ML models also personalize treatment recommendations based on individual patient characteristics and historical outcomes, enhancing the effectiveness of care. Additionally, AI-driven tools improve operational efficiencies by automating routine tasks, such as data entry and patient scheduling, freeing up healthcare professionals to focus on more complex and critical aspects of patient care.

As AI and ML continue to evolve, their applications in PHM are expected to expand is a vital trend of population health management market. The adoption of these advanced technologies is poised to significantly enhance the quality and efficiency of population health management, ultimately leading to better patient outcomes and reduced healthcare costs.

Segmentation Analysis

The global market is segmented based on component, delivery mode, end user, and geography.

By Component

Based on component, the market is categorized into software and services. The software segment captured the largest population health management market share of 56.05% in 2023, largely attributed to the increasing adoption of advanced healthcare IT solutions by healthcare providers. The need for efficient data management systems and the integration of electronic health records (EHRs) have driven the demand for comprehensive software solutions in population health management (PHM). These software systems facilitate the collection, storage, and analysis of vast amounts of patient data, enabling healthcare providers to deliver more coordinated and personalized care.

Additionally, the growing emphasis on value-based care models, which focus on patient outcomes and cost efficiency, has necessitated the use of sophisticated data analytics and predictive modeling tools offered by PHM software. The ability of these software solutions to provide actionable insights, streamline administrative processes, and enhance patient engagement has thereby fueled their adoption.

Furthermore, continuous advancements in software technologies, such as the integration of artificial intelligence (AI) and machine learning (ML), have improved the functionality and effectiveness of PHM systems, making them indispensable tools for modern healthcare management.

By Delivery Mode

Based on delivery mode, the PHM market is classified into on-premises and cloud-based. The cloud-based segment is poised to record a staggering CAGR of 13.51% through the forecast period, driven by the numerous advantages cloud-based solutions offer over traditional on-premises solutions. Cloud-based population health management (PHM) systems provide unparalleled scalability, allowing healthcare organizations to easily expand their data storage and processing capabilities as their needs grow. This flexibility is particularly beneficial for managing large and complex datasets required for effective PHM.

Additionally, cloud-based solutions offer significant cost savings by eliminating the need for substantial upfront investments in hardware and IT infrastructure. They also reduce maintenance costs and provide automatic updates, ensuring that the system is always equipped with the latest features and security enhancements. The accessibility of cloud-based PHM systems from any location with internet connectivity facilitates better collaboration among healthcare providers and supports telehealth initiatives, which have become increasingly important.

Moreover, these systems offer robust data security measures and compliance with regulatory standards, addressing concerns about data privacy and protection. The combination of these benefits makes cloud-based PHM solutions an attractive option for healthcare organizations, which is driving their rapid adoption and substantial segment growth.

By End User

Based on end user, the population health management market is divided into healthcare providers, healthcare payers, and others. The healthcare providers segment garnered the highest revenue of USD 11.24 billion in 2023, propelled by the increasing focus on delivering high-quality, value-based care. This shift toward value-based care models, which prioritize patient outcomes and cost efficiency over the volume of services provided, has driven healthcare providers to adopt advanced population health management (PHM) solutions. These solutions enable providers to better manage patient populations, identify at-risk individuals, and implement targeted interventions to improve health outcomes.

Additionally, the rising prevalence of chronic diseases has necessitated more comprehensive and coordinated care strategies, thereby boosting the demand for PHM systems. The integration of electronic health records (EHRs) and advanced data analytics tools has allowed healthcare providers to leverage data-driven insights to enhance patient care and operational efficiency. Moreover, government initiatives and regulatory mandates aimed at improving healthcare quality and reducing costs are incentivizing the adoption of PHM solutions among healthcare providers.

Investments in telehealth and remote patient monitoring technologies have also contributed to revenue growth, enabling providers to extend their reach and deliver care to remote and underserved populations. These factors combined have driven significant revenue growth for healthcare providers in the market.

Population Health Management Market Regional Analysis

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

The North America Population Health Management Market share stood around 36.08% in 2023 in the global market, with a valuation of USD 9.58 billion, reflecting the region's advanced healthcare infrastructure and high adoption rates of health IT solutions. The countries have been proactive in implementing comprehensive health policies and regulations that promote the implementation of population health management (PHM) solutions. The region's robust public healthcare systems and substantial investments in health IT infrastructure have facilitated the integration of electronic health records (EHRs) and data analytics tools, enhancing care coordination and patient management.

Additionally, Europe's focus on preventive healthcare and chronic disease management has led to increased demand for PHM solutions. Collaborative efforts between healthcare providers, governments, and technology firms have thereby accelerated the deployment of advanced PHM systems across the region.

Asia-Pacific is poised to grow at the highest CAGR of 14.19% between 2024 and 2031, backed by the region's rapidly expanding healthcare sector and increasing investments in health IT infrastructure. Countries in Asia-Pacific are experiencing significant economic development, which is leading to improved healthcare access and quality.

Additionally, the rising prevalence of chronic diseases and the growing aging population in the region necessitate effective population health management (PHM) solutions to manage and prevent health conditions. Governments across Asia-Pacific are implementing supportive policies and regulations to promote the adoption of advanced healthcare technologies, including PHM systems. The increasing awareness and acceptance of digital health solutions, coupled with the region's burgeoning telehealth market, are thereby contributing to the rapid growth of the PHM market.

Moreover, the collaboration between public and private sectors to enhance healthcare delivery and the entry of international health IT firms into the Asia-Pacific market are expected to drive significant advancements and investments in PHM solutions.

Competitive Landscape

The population health management market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Population Health Management Market

• Oracle
• Altera Digital Health Inc.
• Veradigm LLC
• Medecision
• Persistent Systems
• Conifer Health Solutions, LLC
• athenahealth
• eClinicalWorks
• IBM Corporation
• MCKESSON CORPORATION

Key Industry Developments

• April 2024 (Launch): McKesson Corporation launched Project Oasis, an initiative to advance health equity for at-risk populations in underserved communities. Led by McKesson's Global Impact Organization, the project addresses pharmacy deserts, focusing on urban areas where access to essential pharmacy services is significantly challenged.
• March 2024 (Launch): Altera Digital Health unveiled Paragon Denali, a cloud-native electronic health record (EHR) system designed for rural, critical access, and community hospitals. Built on Microsoft Azure, this EHR will deliver advanced cloud capabilities and containerized services to enhance healthcare organization operations.
• March 2024 (Product Upgrade): Oracle announced major upgrades to Oracle Health Data Intelligence, introducing a generative AI service to boost care management efficiency. Previously known as HealtheIntent, this modular cloud suite empowers healthcare and government stakeholders to leverage ecosystem-wide data to enhance patient health, care delivery, and operational efficiency.
• February 2024 (Launch): Persistent Systems, in collaboration with Microsoft, launched an innovative Generative AI-powered Population Health Management (PHM) Solution. Aligned with value-based care models, this solution identifies Social Determinants of Health (SDoH) to address patients' non-clinical needs and accurately predict care costs driven by clinical conditions.
• February 2024 (Partnership): Conifer Health Solutions announced the renewal of its multi-year partnership with Dartmouth Health. With this renewal, Conifer will remain the exclusive provider of end-to-end revenue cycle management (RCM) services for Dartmouth Health’s hospitals, physician services, and related entities.

The Global Population Health Management Market is Segmented as:

By Component

• Software
• Services

By Delivery Mode

• On-premises
• Cloud-based

By End User

• Healthcare Providers
• Healthcare Payers
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • 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 the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America