News Feature | June 5, 2015

Care Coordination Software Market To Grow At 26.1 Percent CAG

Katie Wike

By Katie Wike, contributing writer

Job Growth

The market for care coordination software is poised for growth, according to a Frost & Sullivan report.

A report from Frost and Sullivan says to expect huge growth in the market for coordinated care software over the next five years. From 2015 to 2020, the market is predicted to grow at a compound annual growth rate of 26.1 percent.

“Care coordination is an expansion of the traditional care management function assumed mostly by payers,” said Frost & Sullivan Principal Connected Health Analyst Nancy Fabozzi in an announcement. “Hospitals and physicians will increasingly look to deploy new IT to manage this function as they take on more risk, but key purchasing decisions for care coordination are likely to remain entrenched in the enterprise (e.g., health plans, IDNs, ACOs).”

iHealth Beat reports that the market is divided into three sectors:

  • The ambulatory practice market at a 43.2 percent compound annual growth rate
  • The hospital market at a 33.2 percent compound annual growth rate
  • The payer market at a 21.5 percent compound annual growth rate

According to Fierce Health IT, payers will see benefits from this growth because the software will provide better data for predictive analytics needed to drive population health programs. For hospitals, this will improve patient care, allowing them to avoid financial penalties associated with federal mandates; achieving higher patient satisfaction scores; and gaining a more competitive market position. For physicians, this market growth will mean information gaps and loopholes will be closed; and new revenue streams will be created from chronic care management and quality improvements.

“In the next six years, the digital health market is likely to experience a continuous flurry of new products and services specifically designed to help smooth the pain points associated with transitioning from fee-for-service,” according to Fabozzi. “The move to value-based reimbursement is already a key driver for health IT, and efforts toward developing solutions for care coordination and population health management will accelerate significantly.”