Global Healthcare EDI Market - Segmented by Component, Transaction, Type, Services, End User, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global healthcare EDI market is expected to register a CAGR of 8% during the forecast period, 2018 to 2023. Electronic data Interchange (EDI) can be defined as a structured way to transmit data between computer systems, governed by agreed standards. EDI document has a standardized format, which ensures that data can be quickly interpreted on both sides.
Adoption of Big Data in Healthcare
Increasing population and decreasing death rate, rapidly changing treatment delivery model, and many other decisions behind those changes are being driven by data. Due to its unstructured nature and open source roots, big data is much less expensive to own and operate than a traditional relational database.
Recent government initiatives supporting healthcare resulting in efforts and concerns regarding adopting these systems, especially in BRICS nations, are the biggest influence on the EDI industry. Management of data in the healthcare field, such as patient history records, medication data, and emergency services records have always been critical and a time consuming task. However, EDI helped to manage this huge data in an efficient, systematic, and accessible manner, thereby reducing the time taken. The complex nature of managing the entire claims management process is another factor contributing to the rapid growth of the global market.
Other factors, such as emergence of data analytics, favorable policy implementation, and the initiatives and incentive programs launched by different governments to promote healthcare IT, are driving the growth of the market.
Data Privacy and Security Concerns
Exchanging of medical records, as well as other documents electronically is convenient with regard to time consumed and ease of exchanging. However, electronic data interchange applications need to be implemented with evidentiary and admissibility safeguards. Currently, available applications come with limited security parameters, and thus, are becoming a target for fraud and misuse of information. Communication between trading partners takes places with the help of various message handling systems, which due to a lack of encryption, can give rise to leaking of sensitive information. Several countries in today’s world do not have stringent guidelines and laws to prevent data theft. This lack of guidelines and rules for protection of electronic data can be a major cause of reluctance to use electronic forms of data for hospitals and other healthcare institutions. The applications used for EDI do not use very strong levels of encryption, and thus, are vulnerable to attack by hackers. Hospitals have started using electronic form of medical records for easy exchanging across multiple healthcare providers. This data contains patient records that should not be allowed to be accessed publically for obvious reasons. Leaking such data can, thus, lead to invasion of patients’ privacy, and hence, acts as a major restraint to using EDI in healthcare services. Other factors, such as EDI management, expensive software, and reimbursement issues, are hindering the market growth.
Asia-Pacific is Expected to Grow at a Good CAGR
Asia-Pacific has high market potential for the growth of the healthcare EDI market, due to the presence of several policy reforms and economically growing IT industry, which are expected to drive the market in this region. North America has the highest share in this market, followed by the Europe.
Key Developments in the Market