The healthcare business analytics market is forecasted to swell from $14 billion this year to $50.5 billion by 2024, at a compound annual growth rate of 28.3 percent, driven by clinical, financial, administrative and population health analytics.
The ReportsnReports analysis noted the financial analytics market is segmented into revenue cycle management; claims processing; payment integrity and fraud, waste and abuse; and risk adjustment and risk assessment.
In 2019, North America is expected to account for the largest share of the healthcare analytics market, which is expected to register the highest CAGR during the forecast period.
Factors such as growing federal healthcare mandates to curb rising healthcare costs and provide quality care; increasing regulatory requirements; growing electronic health record adoption; and rising government initiatives focusing on personalized medicine, population health management, and value-based reimbursements, are expected to drive market growth.
The services segment is expected to dominate the healthcare analytics market during the forecast period. It accounted for the largest share of the market last year. With the increasing need for business analytics services and the introduction of technologically advanced healthcare analytics software -- which requires extensive training to use, as well as regular upgrades -- the services segment is expected to grow at the highest CAGR over that time.
Key restraints for growth of the healthcare analytics market include a lack of skilled analysts (which limits the use of healthcare solutions), the high cost of these solutions, and operational gaps between payers and providers.
A sizeable chunk of healthcare executives anticipate dedicating 15 percent or more of their budget to predictive analytics in 2018.
Perhaps the reason they're pledging a healthy slice of their budget is the savings potential they see in predictive analytics. Fifty-eight percent of execs say they'll save 15 percent or more over the next five years, a 5-point increase over 2017, according to a report from the Society of Actuaries.