Growth Opportunities in the Asia-Pacific Population Health Management Solutions Market, Forecast to 2022
Population Health Management (PHM) has many connotations ranging from an ideal or a concept to a real market segment. As a concept it refers to the reduction of disease risk and the attached financial burden at a population level. Execution of the concept entails intricate interaction between telehealth technologies, software solutions, and healthcare services. Globally, health systems are gravitating toward value-based care models, whereby each country is critically analyzing what the value drivers for its health system should be. Unfortunately, transitioning from volume- to value-based care has been a slow and painful process for Asia-Pacific (APAC) and will continue to be so in the near future. This transition requires not only dramatic changes in the regulatory framework and payment models but also significant dollar investment and cultural and consumer behavior shift. PHM is one form of value-based care that shifts the industry focus from episodic and individualized healthcare approaches to collective action against the cost and burden of disease in a society. Its biggest role in APAC would be to channelize healthcare resources toward population segments that are in most need for services, thus addressing the formidable challenge of improving healthcare access and equity in the region.
Frost & Sullivan estimates that PHM solutions (software that enable data capture, integration, analytics, and action, in line with PHM goals) will generate over $600 million in revenue by 2022 in APAC. The assumption here is that public agencies will drive infrastructure and regulatory reform to ensure that high-quality information is captured and disseminated throughout the system. On the other hand, private sector takes the lead in ensuring that quantitative outcomes data is collected to demonstrate the return on investments tied to PHM solutions. A critical market gap that will need to be addressed by various stakeholders is the lack of conceptual knowledge, technical and practical know-how, and technology impact of PHM solutions among end users. Generating education and awareness among end users is an important role of solution vendors and government agencies. Small countries such as Singapore and Hong Kong are better positioned to harness the power of Electronic Health Record (EHR) databases compared to developed digital health markets such as the US due to the high penetration of EHR among the population and the governments’ early efforts in minimizing challenges around data quality and interoperability. There is a strong potential for direct-to-consumer solutions that enable PHM due to rising healthcare consumerism, digital health adoption, and growing influence of medical tourism in the region. While providers are an intuitive target for PHM solution vendors, home healthcare and aged-care companies are also contributing to market development by either leveraging on partner solution of developing in-house software that helps them reduce their own cost and manage their clients better. Beyond clinical care, integration of wellness platforms and services that improve overall patient and care-giver experience will also help augment the value proposition of PHM solutions.
In this research, Frost & Sullivan discusses:
The current state and future evolution of PHM solutions in APAC
Challenges and unmet market needs with respective to PHM
Opportunities for APAC to innovate over other regions
Vendor strategies to drive adoption in APAC