The market for healthcare predictive analytics should hit $19.5 billion by 2025, according to a new report by Grand View Research.
This is largely due to government authorities, health organizations and private players who are striving to decrease healthcare expenditures. Predictive analytics can help bend the cost curve by optimizing an organization's existing clinical workflow, operations and payment strategies.
The data that feeds this trend is flowing freely. With the advent of the internet of things in healthcare and wearable technology, people are more closely tracking their health by the numbers, generating a huge amount of patient data on things like diet habits, physiological parameters and vital signs. Predictive modeling based on this data helps in understanding disease patterns, as well as key therapy trends and outcomes.
Among the study's other findings, financial applications of healthcare predictive analytics held a significant share of around 30.0 percent in 2015. Revenue cycle management and fraud detection are key financial applications. The increasing focus on population health management makes it one of the most lucrative new segments of the healthcare predictive analytics market.
Key players in this area include IBM, McKesson Corporation, Oracle, Optum and MedeAnalytics. North American, being a pioneer in IT technology, is currently dominating the global market.