Market Trends of Global Healthcare Financial Analytics Industry
Cloud Based Segment is Expected to Show Significant Growth over the Forecast Period
Based on deployment, the market is segmented into on-premise, and cloud-based. The cloud-based segment is expected to show better growth during the forecast period, owing to the Increasing adoption of cloud platforms. The financial analytics market is driven by the rising application of cloud analytics as it allows organizations to incorporate data from all sources. In addition, the demand for better claims and revenue management systems in healthcare and cloud computing acceptance across various industries has pushed financial planning to a new level and is expected to have a positive effect on the healthcare financial analytics market. Governments in several European nations are launching initiatives to encourage the development of information technology in healthcare. For example, over two million National Health Services (NHS) mail mailboxes were transferred to Exchange Online, a component of Microsoft's Azure Cloud, in February 2021 as part of the United Kingdom government's initiative to adopt a fully connected cloud-driven health service. As a result, communication between staff members of NHS organizations and departments will be easier and more effective, and the information available will be increased. This will improve market expansion and increase the use of Health Information Technology (HCIT) Change Management services in the United Kingdom. The combined actions undertaken by regional market participants and governmental agencies are also contributing to the sector's expansion. For instance, Deutsche Telekom's T-Systems has teamed with Google Cloud to develop and deploy sovereign cloud services to German businesses, healthcare providers, and the general public starting in September 2021. Together, the businesses will innovate to provide a wide range of next-generation sovereign cloud infrastructure and products. The business is thinking of constructing a comparable sovereign cloud for Austria and Switzerland. Thus, the abovementioned factors are expected to increase the market growth.
North America Dominates the Healthcare Financial Analytics Market
The healthcare infrastructure in North America is expected to reflect positive trends in the financial analytics domain, owing to factors such as technological advancements, and high requirements for management of big data generated from hospitals and other healthcare facilities. Furthermore, the growing popularity of software in the management of data reduces the manpower leading to increased adoption of healthcare financial analytics. Hence, the rising demand for advanced technologies across various verticals is expected to enhance the growth of the studied market. Through several laws and programs, the federal government promotes the use of its healthcare data. The Department of Health and Human Services is permitted to publish data that encourages transparency in the markets for healthcare and medical insurance under the terms of the Affordable Care Act (ACA), the most significant piece of healthcare legislation in the United States. The government has taken the necessary steps to release data from organizations like the Centers for Medicare and Medicaid Services, the Food and Drug Administration, and the Centers for Disease Control. It is also providing financial incentives for healthcare providers to use electronic medical records. Similar to this, the healthcare analytics market is being driven by strategic initiatives taken by major market participants to improve the standard of healthcare. In March 2020, Definitive Healthcare and ESRI collaborated to create a platform that allows for the study and monitoring of hospital bed capacity and possible COVID-19 risk by geographic regions in the United States. As a result, the market in the area is likely to develop. Government payers, including Medicare and Medicaid, are quickly embracing value-based purchasing and capitated payment models where outcomes will be tracked and rewarded. Predictive analytics will become just as important to the success of this new model as the suppliers. As a result, the increased demand for and use of analytical tools and solutions is anticipated to fuel market expansion.
