Healthcare Financial Analytics Market

Global Healthcare Financial Analytics Market Size (2023 to 2028)

The global healthcare operational analytics market size is predicted to grow at a CAGR of 16.42% from 2023 to 2028.

Healthcare Financial Analytics is a healthcare solution that includes data on service lines, planning and budgeting, usage analysis, and cost allocations. Healthcare financial analytics assists healthcare providers with various budgeting and financial tasks. The medical institution generates reports, financial statements, and costs for risk management, credit risk management, revenue growth management, accounting and financial reporting, treasury management, planning, budgeting, and forecasting. Financial analytics are becoming increasingly crucial as hospitals and physicians progress toward value-based care and risk-based reimbursement. Revenue cycle management, fraud detection, risk adjustment, and claims processing are some of the tools it employs.

MARKET DRIVERS:

Rising demand for improved medical claims and revenue cycle management are majorly driving the global healthcare financial analytics market.

The growing demand for improved medical claims and revenue cycle management drives the healthcare analytics industry forward. The increasing expense and complexity of claims necessitate improved claims for patients. Denying claims causes most healthcare providers to lose money. According to the Centers for Medicare and Medicaid Services, 30% of claims are denied, lost, or ignored. As a result, patients are clamoring for more comprehensive claims. Furthermore, Healthcare's income generator is revenue cycle management. Hence, many healthcare institutions are implementing revenue cycle management software and systems due to the data shift. The demand for revenue cycle management is increasing due to clinical documentation improvement (CDI), claims and rejection management, medical coding and billing, patient insurance eligibility verification, payment remittance, electronic health record (EHR), and several other activities. As a result, the demand for financial analysts has grown to make this process go more smoothly.

Technological advancements are further expected to boost the global healthcare financial analytics market growth.

The expansion of the healthcare financial analytics market is also attributed to technological advancements. Technology is continually evolving, and when new developments are embraced, they have a favorable influence on the healthcare analytics industry, particularly financial analysis. Similarly, the need for data analytics is increasing as technology advances. Financial analytics has become more important as machine learning, logical approaches, computer intelligence, and data mining have advanced. EHR data aggregation and analytics IT business enable value-based performance management for providers and payers to change healthcare. The use of AI, Blockchain, and visualization has revolutionized the way financial technologies are supplied substantially. The use of Blockchain and smart contracts in healthcare can considerably simplify claims adjudication and processing, reducing major friction from today's transactional procedures in the healthcare industry, which accounts for more than 20% of overall healthcare spending. As a result, the health IT technology platform for financial analytics is showing tremendous growth.

MARKET RESTRAINTS:

Lack of coordination may limit the market for healthcare financial analytics. For example, financial analytics gathers information from a variety of departments. In these cases, a lack of cooperation between departments and employees within the same departments creates confusion with data analysis. In addition, there has been a functional gap between payers and providers, which has influenced analytics outcomes. As a result, the healthcare financial analytics market is growing at a slower pace.

Impact of COVID-19 on the global healthcare financial analytics market:

COVID-19 accelerates the demand for healthcare financial analytics. SARS-CoV-2 has been declared a public health emergency since the end of January 2020. The necessity for financial data analytics grew as a result of the covid – 19 pandemic. The pandemic has rendered the usual strategy based on historical data outdated, emphasizing the need for health systems to develop a new, effective financial response to COVID-19. Using historical financial data to forecast the future does not reflect a health system's financial demands during a pandemic. As the coronavirus evolves and poses a financial danger, health systems cannot rely on government financing or a quick conclusion to the epidemic. Instead, they must adopt a more strategic, data-driven strategy to stay afloat. This condition necessitates the use of healthcare financial analytics.

Furthermore, starting in July 2020, hospitals have exchanged data, insights, and key performance indicators gathered from various hospitals and health systems to assess COVID-19's financial effect. Increased unemployment and changes in the payer mix posed further issues affecting budgetary planning and priorities in the pandemic. According to the Healthcare Financial Management Association (HFMA), around 55 % of members experienced a negative impact on operating margin. Financial analytics play a crucial role in addressing this issue. This in-depth analysis helps management have a better understanding of their company's revenue and expenditure structure and which procedures and cases contribute the most to margins. In addition, management can better understand how to use each hospital section by analyzing revenue, cost, and quality statistics regularly. For example, Organizations are balancing resources with demand using analytics-enabled capacity planning solutions.

Furthermore, COVID-19 directly impacts business continuity when activities decrease, supply networks dry up, and demand falls. Liquidity concerns, covenant pressure, re-financing requirements, and increased third-party risk are all possible outcomes of these concerns. Therefore, using a reputable financial analyst to handle COVID-19 claims is also a huge relief for hospitals. Financial analytics also aids hospitals in the management of in-house medical codes and invoicing.

REPORT COVERAGE:

This research report on the global healthcare financial analytics market has been segmented and sub-segmented based on type, component, deployment, and region.

Healthcare Financial Analytics Market – By Type:

• Claim Analytics
• Revenue Cycle Management
• Risk Management Analytics
• Others

Healthcare Financial Analytics Market – By Component:

• Software and Services
• Hardware

Healthcare Financial Analytics Market – By Deployment:

• On-Premise
• Web and Cloud-based

Healthcare Financial Analytics Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

KEY MARKET PLAYERS:

A few of the promising companies operating in the global healthcare financial analytics market profiled in this report are IBM, McKesson Corporation, Cerner Corporation, Tenet Healthcare Corporation, Evolent Health, Oracle, SCIO Health, Optum Health, Allscripts Healthcare Solutions, Athena Health, GE Healthcare, Mede Analytics, Vitreos Health, Verisk Analytics, Vizient, Sutherland, and others.

These players focus on launches, joint ventures and consolidations, and acquisitions to expand their global reach while improving their product portfolio.

RECENT MARKET DEVELOPMENTS:

• On 17 May 2020, Sentry Data Systems acquired Agilum Healthcare Intelligence to improve and grow its financial analytics through its medical platform.
• On 21 June 2018, the financial analytics solution for hospitals and health systems has been launched by Innovaccer, a San Francisco-based healthcare data platform firm. The new service will be developed on top of InData, the cutting-edge healthcare data platform, and will be included in the InGraph analytics module.