Healthcare Quality Management Market Forecasts to 2028 – Global Analysis By Software Type (Provider Performance Improvement Solutions, Physician Quality Reporting Solutions, Clinical Risk Management Solutions, Delivery Mode (On-Premise Solutions, Web & Cloud Based Solutions), End User (Payer, Hospitals), and By Geography
According to Stratistics MRC, the Global Healthcare Quality Management Market is accounted for $2.98 billion in 2022 and is expected to reach $8.03 billion by 2028 growing at a CAGR of 15.2% during the forecast period. In healthcare, quality management refers to the administration of systems design, policies, and processes that minimize, if not eliminate, harm while optimizing patient care and outcomes. This function is being implemented by hospitals and medical clinics in order to show diligence to take optimal care of their patients. With the help of quality management, effectiveness of treatment can be improved along with better patient satisfaction.
The U.S. Department of Health and Human Services (HHS) defines quality improvement efforts as “systematic and continuous actions that lead to measurable improvement in healthcare services and the health status of targeted patient groups.” The Institute of Medicine goes further in stating that quality is the degree to which care increases desired health outcomes. According to the study published on ‘Preventing the medication errors in hospitals: A qualitative study’ in ‘International Journal of Africa Nursing Sciences’ in August 2020, the prevalence of medication errors is 32.1% and general practitioners (39%,) nurses (38%), and pharmacists (23%) were responsible for medication errors. This will lead to the incline in adoption of healthcare quality management systems. According to the NHQDR, half of all patient safety measures improved, with a median improvement of 3.6 percent per year. Notably, there was a 17 percent reduction in hospital-acquired conditions (including pressure ulcers, falls, and infections), resulting in approximately 50,000 fewer patient deaths and $12 billion in healthcare cost savings. A significant reduction in adverse drug reactions was also found.
Market Dynamics:
Driver:
Growing amount of unorganized data
The increasing amount of unorganized data in the healthcare industry is one of the major factors driving the market. Over 80% of medical data remains unorganized and untouched for long periods of time after creation. Hospital systems and electronic records have trouble managing such data. Medical entities largely ignore and abandon the issue for an extended period of time. Further, a great deal of the data created is being used to conduct research into artificial intelligence and big data. Hence healthcare quality management act as great help in managing these data.
Restraint:
High investments in infrastructure
The processes of an organization are essential to its success. However, when they try to change them for the better, there are always some costs involved, which can be higher than usual. Quality Management is expensive to implement. Implementation often comes with additional costs, team-development costs, infrastructural improvement costs, consultant fees. The system also requires continuous investment. This is one of the major factor restraining the market growth.
Opportunity:
Rising healthcare cost to pave way for the growth of the market
An insurance company or a government program or any other third party generally covers the cost of healthcare services. The occurrence of these issues demands a quality management system for the healthcare sector. These factors also call for a system that adopts the latest technologies and complies with external regulations along with the effective use of those technologies, thereby supporting the growth of the market. Numerous governments across the globe mandate healthcare professionals to improve and report the quality of the care provided, which is likely to encourage the growth of the market in foreseeable future. In addition to that, the rise in the volume of unstructured healthcare-related data together with the need to cut down on the costs of healthcare and rising medical errors are likely to emerge as prominent factors offering lucrative growth opportunities for the market over the forecast period.
Threat:
Data privacy
The sensitive issue of data privacy and security are faced by many organizations. With the implementation, consumer and enterprise data privacy issues have been put to the forefront. Security concerns are cropping up as organizations feed more consumer and vendor information into advanced, AI-fuelled algorithms to create new bits of sensitive data, unbeknownst to affected consumers and employees. This is prevalent in the few sectors, where enterprise data could lead to trade secrets being revealed. These data privacy concerns will threatens the market growth.
The Hospitals segment is expected to be the largest during the forecast period
The Hospitals segment is estimated to have a lucrative growth, owing to the growing HCIT adoption, increasing focus on patient safety, significant growth in healthcare spending, rising medical error rates, increasing healthcare costs, and government mandates to follow quality measures are the major factors supporting the adoption of healthcare quality management solutions in hospitals.
The Business Intelligence and Analytics segment is expected to have the highest CAGR during the forecast period
Business intelligence and analytics solutions segment holds a significant market share in the market studied. The segment growth is mainly being attributed to the need of healthcare providers to reduce the soaring operating costs, rising demand for quality healthcare, government measures to promote value-based care, and the increasing number of claims denied from insurers.
Region with highest share:
North America is projected to hold the highest market share during the forecast period. Factors such as rise in healthcare expenditure, government mandates for healthcare providers to report quality & improve the performance of care provided, upsurge in the volume of unstructured data in the healthcare industry, rapid growth in the aging population, high rate of medication errors, and increase in funding by government agencies are driving the growth of the market in North America.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, due to rising geriatric population & burden of chronic diseases and improving health IT infrastructure drive the market in Europe. Moreover, the effective use of health IT and quality management tools is considered one of the most effective strategies for improving the health system performance, care quality and patient satisfaction. The large share of this region is primarily attributed to rising need to curtail growing healthcare costs and improves patient outcomes, stringent legislative and accreditation requirements regarding healthcare quality reporting shift from fee-for-service to value-based care, and high awareness and adoption of healthcare IT technologies in the province.
Key players in the market
Some of the key players profiled in the Healthcare Quality Management Market include Verscend Technologies, Truven Health Analytics (A Subsidiary of IBM Watson Health) , Quantros, Inc., Premier, Inc., Nuance Communications, Inc., Medisolv, Inc., McKesson Corporation, IBM, Enli Health Intelligence, Dolbey Systems, Inc., Citiustech Inc., Cerner Corporation, Altegra Health, Francisco Partners.
Key Developments:
In January 2022: Francisco Partners, in collaborated with technology enterprises, and IBM signed a formal agreement under which Francisco Partners would purchase healthcare data and analytics assets from IBM's Watson Health division.
In July 2017, Google Inc. had acquired Halli Labs, a four-month-old start-up out of Bengaluru that is developing artificial intelligence and machine learning solutions. Halli Labs is applying modern ML techniques to old problems and domains to help technology march on in its timeless purpose.
Software Types Covered:
• Provider Performance Improvement Solutions
• Physician Quality Reporting Solutions
• Clinical Risk Management Solutions
• Business Intelligence and Analytics
Delivery Modes Covered:
• On-Premise Solutions
• Web & Cloud Based Solutions
Applications Covered:
• Risk Management
• Data Management
End Users Covered:
• Payers
• Hospitals
• Ambulatory Care Centers
• Accountable Care Organizations (ACOs)
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
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- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
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