San Francisco, 31 January 2025: The Report U.S. Population Health Management Market Size, Share & Trends Analysis Report by Product (Software, Services), By End Use (Providers, Payers, Employer Groups), And Segment Forecasts, 2023 - 2030

The U.S. population health management market size is expected to reach USD 103.7 billion in 2030, registering a CAGR of 19.54% from 2023 to 2030, according to a new report by Grand View Research, Inc. Increase in healthcare expenditure, need for value-based healthcare delivery, and effective disease management across different care settings are among the key factors expected to drive the market during the forecast period.

In the U.S., poor healthcare management results in the loss of productivity and a significant portion of healthcare costs. Adoption of PHM software by employers helps in the management of their healthcare budget as they can keep a track of the employees’ health status. The market is likely to witness rapid growth in the coming years due to the growing demand for healthcare IT services and solutions that encourage healthcare delivery reliant on value, resulting in a transition from Fee-For-Service to a value-based payment model.

Population health management is built on a Fee-for-Service (FFS) reimbursement method, wherein physicians and other healthcare providers are reimbursed by government agencies and insurance companies on basis of the number of services offered to patients. The new payment model allows reimbursement based on the quality of care delivered and provides comprehensive tools to handle financial and clinical risk for value-based care delivery.

The COVID-19 pandemic has changed the outlook of healthcare in the U.S. with the advanced use of web-based technology in healthcare. Healthcare providers are increasingly investing in PHM software to offer better outcomes. PHM can also be used for tracking the vital signs of patients discharged from hospitals, which can then be analyzed to offer meaningful insights into a patient’s health. The lockdown has disrupted the existing system and PHM systems are the current need to manage the patient population.

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The market is majorly driven by the growing demand for healthcare IT services and solutions that support value-based healthcare delivery, resulting in a transition from Fee-For-Service (FFS) to a Value-Based Payment (VBP) model.

U.S. Population Health Management Market Report Highlights

• An increase in healthcare expenditure, the need for value-based healthcare delivery, and effective disease management across different care settings is expected to drive the market
• The services segment dominated the global market in 2022, while the software segment is likely to register the fastest CAGR over the forecast period
• The market is now shifting to a value-based payment model. The value-based contracts are expected to grow substantially in the coming years

Increasing healthcare expenditure and the rising need for value-based healthcare and effective disease management across different care settings are expected to drive the market in the U.S. More than 130 million people in the U.S. suffer from at least one chronic condition. Chronic conditions are responsible for around 70% of deaths in the U.S. each year, resulting in 1.7 million deaths.

Managing comorbidities is challenging due to the large target population in the region. Implementation of PHM can help in the identification of unwell patients and improve disease prevention and management, leading to financial savings. To encourage the adoption of PHM systems, the Centers for Medicare & Medicaid Services (CMS) has introduced the Value-Based Payment Modifier. It provides differential payment to a group of physicians based upon the quality of care provided as opposed to the cost of care during their performance period.

U.S. Population Health Management Market Report Scope

The market players are increasing their interactions with healthcare systems and organizations leading to multi-level networking within the healthcare industry. The key players are undertaking strategic activities including research initiatives, launching new products, regional expansion, partnerships & collaborations, and mergers & acquisitions to gain a competitive advantage. For Instance, In May 2020, Medecision announced a few important enhancements to its Aerial Platform, to enable customers to support vulnerable patients and members during the COVID-19 crisis.