Technology Spending on Core Administration in Healthcare Market
Technology Spending on Core Administration in Healthcare Market (Solution - In-house (Hardware, Software, and Services) and Outsource; Deployment - Cloud-based and On-premise; End User - Payers (Insurance Companies and Government) and Providers (Hospitals)) - Global Industry, Size, Share, Growth, Trends and Forecast 2016 - 2024
Press Release :
Global Technology Spending on Core Administration in Healthcare: Snapshot
The healthcare industry has witnessed a huge transformation from principally paper-based and manually-operated procedures to digitally-enabled connected processes and operations in the past few years. Factors such as growing government interventions to encourage technology-driven affordable healthcare services and improving healthcare infrastructure across developing countries have led to a vast rise in the money spent on making core administration in the healthcare sector technologically-rich and more effective. Moreover, rising patient-base across the globe and increasing healthcare spending will drive the need to outsource IT solutions for optimal healthcare management and a greater focus on core administrative operations.
Transparency Market Research states that in terms of value, the global technology spending on core administration in healthcare will increase at a CAGR of over 5.7% during the period between 2016 and 2024.
Healthcare Payers Take Lion’s Share in Global Spending on Technology on Core Administration
On the basis of end users, the global technology spending on core administration in healthcare market is segmented into payers and providers. The payer segment is further divided into insurance companies, and government whereas the provider segment is further segmented into hospitals and other providers.
The payers segment accounted for the larger chunk of spending on core administration in healthcare, holding a nearly 88% of the overall market in 2015. The segment is also expected to remain the most lucrative end-user segment over the forecast period, with the segment expected to exhibit a 5.9% CAGR over the period between 2016 and 2024. The usage of a variety of data management and processing solutions for core administrative services such as fraud detection, claim management, and research and development has significantly increased across private and public insurance companies and government agencies in the past years.
The trend is expected to remain strong over the forecast period as well, with the payer end-use segment accounting for over 89% of the total spending on technology for core administration across the healthcare sector over the forecast period. Spending on technology for core administration across healthcare providers such as hospitals is expected to expand at a 4.4% CAGR from 2016 through 2024.
North America to Continue to Remain Leading Spender
Geographically, North America is the leading spender on technology for core administration in healthcare. Of the total funds devoted for making core administration technology-rich in the healthcare industry, over 50% were spent in North America. The region is expected to remain ahead of other regional markets in terms of technology spending the core administration in the healthcare sector over the forecast period as well. Factors such as rising scarcity of resources for undertaking patient-centric processes and the lack of technologically skilled healthcare staff for managing administrative processes will play a key role in highlighting the need for technological optimization of healthcare processes in the region.
North America is a steadily growing market, but will continue to account for a bigger stake compared to other regional markets, expanding at a 5.7% CAGR from 2016 through 2024. Asia Pacific will emerge as the most promising investment destination for technology in core administration for the healthcare industry over the said period. Technology spending in this area will swell at a promising 6.7% CAGR from 2016 to 2024 in Asia Pacific.
The region has emerged as the IT outsourcing destination due to growing public–private funding structures and low in-house expertise for healthcare IT. The robust and active medical tourism industry, rising spending power of the consumer on technologically advanced services, and rising international investments in the healthcare industry will continue to drive spending on technology in the Asia Pacific healthcare sector.
Some of the players in the global core administration system in healthcare are Plexis Healthcare Systems, DST Systems, Inc., HealthEdge Software, Inc., ikaSystems Corporation, TriZetto Corporation, Health Solutions Plus, Inc., Aldera Holdings, Inc., Wonderbox Technologies, UPP Technology, Inc., and HealthAxis Group, LLC.
High Investment on Technology in the Healthcare Sector to Benefit Technology Spending on Core Administration in Healthcare Market
Over the next few years, the global demand for technology investment on healthcare core administration is projected to expand at a healthy pace. In recent years, the healthcare sector has undergone major changes, and a range of measures have been initiated to keep the industry afloat. Technology advances have assisted in the development of many countries' healthcare metrics. It is clear that advances in healthcare have resulted from a wide range of improvements in the sector's infrastructure, institutional structure, and technical environment. As disease rates rise, better administrative facilities are becoming increasingly important for managing large groups of patients. Clinics and hospitals are eager to implement hacks that are likely to assist them in successfully treating patients. This is a critical point for the growth of the global technology spending on core administration in healthcare market, thereby fuelling demand for the same in the years to come. The increasing healthcare spending and burgeoning population have necessitated a versatile IT infrastructure capable of managing the industry's operations, which is predicted to work in favor of the global technology spending on core administration in healthcare market in near future.
Shift from Volume-based Model to Value-based Model to Leave Positive Impact on the Market
The amount of information available about patients' wellbeing and other aspects of the healthcare industry is enormous. It is essential for health care industry to handle all of this information in order to better medical treatments and facilities. As a result, the requirement for IT outsourcing for data processing has arisen, and many healthcare centres choose to store their data at IT solution hubs. This has increased consumer demand and provided market participants with potential for advancement. In addition, there have been significant changes in the reimbursement policies for medical treatments, which necessitate a robust core administration. Consumers are more and more reliant on digital technology in the contemporary situation, which is also a trend in healthcare industry. The insurance companies are making every effort to persuade the healthcare industry to move from a volume model to a value-based model for reimbursement in a high price competition scenario. This is likely to expose healthcare providers to financial threats, pushing up demand for core administration. These factors are likely to work in favor of the global technology spending on core administration in healthcare market in years to come.
Global Technology Spending on Core Administration in Healthcare: Scope of the Report
This report provides forecast and analysis of the technology spending on core administration in healthcare on the global and regional levels. It provides historical data of 2015 along with forecast from 2016 to 2024 in terms of revenue (US$ Mn). The report also includes macroeconomic indicators along with an outlook on core administration systems in healthcare. It includes drivers and restraints of core administration in healthcare and impact on each region during the forecast period. The report also comprises the study of applications and opportunities for core administration solutions and services vendors. It also includes detailed analysis by deployment, solution, end users and the workflow process.
In order to provide users of this report with a comprehensive view of the core administration landscape, we have included a detailed competitiveness analysis and company players with unique propositions. The dashboard provides a detailed comparison of core administration solution and services vendors on parameters such as revenue sales, ranking of global players, strategic consolidations, i.e. mergers & acquisitions, licensing activities, and R&D activities. The study encompasses market attractiveness analysis, by solution, deployment, end-user and region.
Global Technology Spending on Core Administration in Healthcare: Segmentation
The report includes the revenue generated from sales of core administration solutions in all regions and important countries in these regions. By solution, the technology spending on core administration in healthcare has been segmented into in-house and outsource. The in-house segment is further divided into hardware, software, and services. By deployment, the technology spending on core administration in healthcare is segmented into cloud-based and on-premise. On the basis of end users, the technology spending on core administration in healthcare is segmented into payers and providers. The payer segment is further divided into insurance companies, government, and others and the provider segment is further divided into hospitals and others. On the basis of region, the technology spending on core administration in healthcare is segmented into North America, Europe, Asia-Pacific, Latin America and the Middle East and Africa.
Global Technology Spending on Core Administration in Healthcare: Research Methodology
Market numbers have been estimated based on technology spending on core administrative solutions in healthcare by solution, and the revenue is derived from regional pricing trends. Technology spending and forecasts for each segment have been provided in the context of global and regional markets. The technology spending on core administration in healthcare has been analyzed based on expected demand. Prices considered for the calculation of revenue are regional average prices obtained through primary quotes from numerous regional core administration solutions vendors, suppliers, and system integrators. All key end users have been considered, and potential applications have been estimated on the basis of secondary sources and feedback from primary respondents. Regional demand patterns have been considered while estimating the spending on various solutions marketed in different regions. Top-down approach has been used to estimate the technology spending on core administration in healthcare by regions. Market numbers for solution, deployment, end-user and regional segments have been derived using the bottom-up approach, which is cumulative of each region’s demand. The company-level market share has been derived on the basis of revenues reported by key vendors. The market has been forecast based on constant currency rates.
A number of primary and secondary sources were consulted during the course of the study. Secondary sources include Factiva, press releases, company news, Google Books, company annual reports, white papers, other websites, and publications.
Global Technology Spending on Core Administration in Healthcare: Competitive Dynamics
The report provides detailed competitive and company profiles of some of the key participants operating in the global market. Some of the players in core administration systems in healthcare include Plexis Healthcare Systems, DST Systems, Inc., HealthEdge Software, Inc., ikaSystems Corporation, TriZetto Corporation, Health Solutions Plus, Inc., Aldera Holdings, Inc., Wonderbox Technologies, UPP Technology, Inc., and HealthAxis Group, LLC.
The market has been segmented as below:
Global Technology Spending on Core Administration in Healthcare – By Solution
Global Technology Spending on Core Administration in Healthcare – By Deployment
Global Technology Spending on Core Administration in Healthcare – By End Users
- Insurance Companies
Global Technology Spending on Core Administration in Healthcare– By Region
- North America
- Rest of Europe
- Asia Pacific (APAC)
- New Zealand
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- Saudi Arabia
- Rest of Middle East & Africa