Healthcare Payer IT Market Poised for Substantial Growth
- Recently, ReportsnReports released a forecast and analysis of the healthcare payer IT market from 2013 through 2018. According to the numbers, the North American payer IT industry is the largest contributor in the global healthcare payer IT market. It accounted for a share of 58.92 percent in 2013. Through 2018, the marketplace is projected to grow at a combined annual growth rate (CAGR) of 5.7 percent.
The United States is responsible for a majority of the North American market with a share of 92.15 percent and is forecasted to grow at a CAGR of 5.8 percent. However, the Canadian segment is expected to be the fastest growing market in the region to grow at a CAGR of 6.5 percent from 2013 through 2018.
“With the increasing number of patients, the demand for a cost-effective and efficient accounting and recording system is increasing in the region, where payer IT solutions have been observed to meet these demands most effectively,” the report reads. “In addition, a high return on investment in healthcare IT sector has attracted heavy investments from the governments as well as top companies in the region.”
The report adds that the North American healthcare payer IT market is expected to grow significantly in the coming years because of the previous mentioned factors. On top of that, healthcare expenditure is one of the most important macroeconomic variables impacting the growth of the healthcare payer IT systems market.
This forecast echoes similar reports from the last year that have pointed to the growth potential of the healthcare payer IT market. Research firm MarketsandMarkets examined the healthcare information technology sector for 2012-2013 and extrapolated through 2017. The study found that the market is segmented on the basis of applications, delivery modes and components and is comprised of hardware, software and services. Through 2017 it is expected to grow at a CAGR of 7.4 percent to reach $31.3 billion from $21.9 billion in 2012 due to the demand for clinical information technology, administrative solutions and services.
“Major factors driving the growth of the healthcare information technology market are rise in pressure to cut healthcare costs, growing demand to integrate healthcare systems, high rate of return on investment, financial support from the U.S. government, government initiatives (e-health, health connect, pay-for-performance (P4P) program, e-Health Ontario and Alberta Netcare), rise in aging population, growing demand for CPOE adoption in order to reduce medication errors, and rise in incidences of chronic disorders,” the report states.
The report does mention constraints to the potential growth. These include the growth cost of healthcare IT systems, maintenance and service costs, interoperability issues, shortage of qualified professionals and technology challenges.
