Healthcare EDI Market Synopsis
Market Research Future (MRFR) asserts that the global healthcare electronic data interchange (EDI) market is slated to register 8.8% CAGR during the forecast period (2018-2023). The growing need to curb healthcare costs is predicted to drive the market growth globally. Electronic data interchange is referred to as a concept of electronic business communication which enables the interchange of computer-processable electronic healthcare data in the form of a user-friendly format. The data can be interchanged among healthcare professionals, healthcare institutions, and patients. EDI finds applications in medical and dental patient database management, insurance and reimbursement data management, and regulatory data management and clinical trials.
Healthcare EDI Market Potential and Pitfalls
The healthcare electronic data interchange is gradually stealing the limelight with its augmenting adoption for performance management and operational intelligence. EDI healthcare transactions enable the elimination of paper trials and digitize all the transactions which further leads to lower handling costs of the processing healthcare documents. As per the estimations of the Workgroup for Electronic Data Interchange, the healthcare players can generate savings of USD 1 per claim for health plans, USD 0.86 for hospitals, USD 1.49 for physicians, and USD 0.83 for others, with the help of EDI. Such factors are considered to create opportunities for the market growth. The market will experience a sturdy growth owing to factors such as rising demand to curb the cost of healthcare and growing support from the government for healthcare IT projects. Also, with the growing adoption of EDI software by the pharmaceutical companies, benefits associated with the adoption of EDI such as cost savings, standardization, faster processing, and improved productivity, and implementation of favorable funding policies, the market is likely to flourish.
On the contrary, concerns related to data security, the high cost of implementation of EDI software, and the hesitance to switch from conventional techniques are some of the top barriers considered to curb the market growth throughout the appraisal period. Despite such hiccups, the utilization of EDI offers affordable solutions for the medium-sized as well as small-sized healthcare providers along with improved flexibility and scalability, thereby triggering its demand across the globe.
Global Healthcare Electronic Data Interchange (EDI) Market: Segmental Analysis
The global healthcare electronic data interchange (EDI) market has been segmented on the basis of transaction, delivery mode, component, and end user.
By mode of component, the global healthcare electronic data interchange (EDI) market has been segmented into services and software. Among these, the services segment accounts for a significant share owing to the increased complexity coupled with the scale of EDI solutions as they need extensive training programs.
By mode of delivery, the global healthcare electronic data interchange (EDI) market has been segmented into EDI value-added network (VAN), web and cloud-based EDI, mobile EDI, and direct (Point-to-Point) EDI. Among these, the web & cloud-based EDI segment is considered to occupy a significant share owing to the non-requirement of software installations and low cost of web and cloud-based EDI.
By mode of transaction, the global healthcare electronic data interchange (EDI) market has been segmented into eligibility inquiry and response, claims & encounters and payment & remittance advance, claim status and response, claim attachments, referral certification and authorization, and enrollments.
By mode of end-users, the global healthcare electronic data interchange (EDI) market has been segmented into healthcare providers, healthcare payers, pharmaceutical & medical device industries, and others. Among these, the healthcare payers segment is considered to occupy the largest market share due to the increased adoption of EDI for financial management by the clinicians and physicians.
Healthcare EDI Market Regional Insights
Geographically, the healthcare electronic data interchange (EDI) market span across regions namely, Europe, America, Asia-Pacific, and the Middle East & Africa.
Considering the global scenario, the healthcare electronic data interchange (EDI) market is dominated by the American region due to the increasing expenditure on healthcare. With the growing participation of market players coupled with the technological advancements in the EDI software, the market is likely to flourish. For instance, PLEXIS Healthcare Systems had announced the expansion of EDI services with the formal launch of Ignite EDI back in 2016.
The European region is considered to occupy the second-largest share and is likely to retain its growth in the coming years. The growth is credited to the favorable policy implementation coupled with the rising funding from the government.
On the other hand, Asia Pacific is likely to expand at the fastest CAGR due to the surging expenditure on information technology in this region. As per the India Brand Equity Foundation, spending on IT in India is likely to reach USD 87.1 billion and rise over 9% in 2018.
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Healthcare EDI Industry Updates
August 16, 2018: A leader in the healthcare technology solutions and products has recently partnered with the AWS in order to host HL7 managed services and HIPAAS healthcare EDI. They have announced to migrate the legacy workloads for their customers and also create a secure cloud-based solution on AWS for the healthcare sector.
Healthcare EDI Market Competitive Dashboard
The prominent players operating in the healthcare electronic data interchange (EDI) market comprises McKesson Corporation, ZirMed Inc., Schreiner Group, GE Healthcare, Passport Health Communications, Emdeon Inc., Siemens Healthineers, The SSI Group LLC, HealthFusion, Optum Inc., Allscripts Healthcare Solutions Inc., Cognizant, Experian Information Solutions Inc., and others.