Healthcare Information Exchange to Reach $1.5 Billion in Value by 2020
Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.
Reportlinker Review in a nutshell
- Increase in electronic records contributing to growth
- Internet of Things focused on improving healthcare
- Technology not without privacy risks
The Health information exchange will reach $1.5 billion in 2020, growing at a compound annual growth rate (CAGR) of 9.3%, a recent article by Reportlinker says. The market, which makes it easier for the healthcare field and shareholders to collaborate, was valued at $990.6 million last year.
The largest markets are North America, Europe and Asia-Pacific.
Growth has been driven by a variety of factors including the increase use of electronic health records (EHR), government mandates and reduced healthcare costs. Despite this, the market does face challenges including the existing infrastructure and customer concerns over privacy and data security.
The healthcare industry is one of the few industries left that uses primarily pen and paper for record keeping.
“The healthcare industry is plagued with paper, post-its, clipboards, mailings, multiple blank sheets, and redundant information that adds no value whatsoever but does add cost,” Dr. John Patrick told HealthPayerIntelligence.com. “If companies like Amazon and others utilized the technology approach of the healthcare industry, they would be bankrupt.”
This, however, is rapidly changing as an increasing number of records are being digitalized. In 2013, 80% of U.S. hospitals were using EHRs, up from 16% in 2009.
The digitalization of records enables patients to access their records without a doctor’s visit, make appointments electronically and download forms. Physicians have access to patient information on smartphone apps.
The Internet of Things (IoT) also is contributing to a change in the industry. In 2020, the market for healthcare IoT devices will be valued at $646 million, BI Intelligence forecasts.
IoT devices are used to monitor conditions like high blood pressure, to distribute accurate medication doses and adjust patients’ beds.
Top players in the global health information exchange market include Orion Health in New Zealand and in the United States Allscripts Healthcare Solutions, Inc., Cerner Corp., Epic Corporation Inc., NextGen Healthcare Information Systems, Medicity, Inc. and Optum, Inc..
With new technology comes patients’ concerns that their information could be compromised.
As part of medical research, patients’ records are often turned over to private and government institutions. This information is used for a variety of reasons including medical-device testing.
Personal information such as names and addresses are removed. However, if not enough information is removed, information from other databases, such as voter-registration lists, can be used to identify patients.
While privacy is rarely compromised, it proves that there is always the danger of this happening. Several organizations, including the Council of Canadian Academies and the Health Information Trust Alliance, have adopted standards aimed at reducing risk when information is shared with third parties.
Key Statistics – Healthcare Information Technology Market (source: BCC Research)
- In 2019, the market is forecasted to reach $19.7 billion in value, growing at a CAGR of 4.8%.
- The clinical healthcare information technologies market in the U.S. was valued at $14.1 billion in 2013 and $15.6 billion 2014.