Healthcare Quality Management Market Trends, Industry | 2031

Report Description

The global healthcare quality management market size was valued at USD 2.1 Bn in 2022 and is likely to reach USD 5.1 Bn by 2031, expanding at a CAGR of 13.4% during 2023–2031. The market is driven by the ­­increasing government initiatives and surging demand for quality management software among hospitals and other healthcare facilities.

Quality management in healthcare involves managing the organization and implementation of systems, policies, and procedures. The aim is to minimize or eradicate harm, while simultaneously enhancing patient care and achieving desirable outcomes. Healthcare quality management is a core part of the healthcare industry that focuses on ensuring patients receive safe and high-quality care. It encompasses various tools and techniques, including monitoring, evaluating, and improving patient care.

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Quality improvement is a systematic approach to enhancing healthcare quality by standardizing processes and structures to minimize variations and improve outcomes for patients. It aims to achieve consistent and predictable results for patients, healthcare systems, and organizations. Quality of care refers to the extent healthcare services increase the chances of achieving desired health outcomes. Quality management solutions help healthcare entities to effectively manage and report quality data leading to improved performance, patient safety, and value-based care.

The demand for healthcare quality management is increasing as the healthcare industry is facing issues and medical errors due to unorganized medical data. Healthcare quality management is a core part of the healthcare industry that focuses on ensuring patients receive safe and high-quality care. It encompasses various tools and techniques, including monitoring, evaluating, and improving patient care. With the growing integration of technology and AI for software to reduce errors in the medical industry, major companies are partnering with tech companies to launch healthcare quality management platforms that are expected to make big changes in the healthcare industry.

• For instance, on November 2, 2021, Crothall Healthcare’s Healthcare Technology Solutions (HTS), partnered with Intelex and launched, a dedicated web-based Quality Management System platform, teamQUEST.

The COVID-19 pandemic affected the healthcare quality management market. The pandemic has had a negative impact on quality and compliance management in healthcare due to factors such as reduced outpatient visits and social isolation measures. Hospital and healthcare center visits have significantly decreased as patients have avoided seeking healthcare services during the pandemic.

For instance, a study published in a British medical journal titled 'Impact of COVID-19 Pandemic on Utilization of Healthcare Services a Systematic Review' in February 2021 revealed that healthcare utilization declined by approximately one-third during the pandemic. Varying with more considerable decreases, particularly among individuals with milder health conditions. This decline in healthcare utilization has affected the quality management market.

However, post-pandemic, healthcare quality management software is expected to play a crucial role in helping businesses recover from the effects of the coronavirus. These software solutions can assist healthcare organizations in improving their operational efficiency, managing risks, and addressing other challenges. As the healthcare industry aims to bounce back and enhance quality and compliance management it is likely to increase the demand for healthcare quality management software over the forecast period.

Global Healthcare Quality Management Market Dynamics

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Major Drivers

Increasing healthcare costs is expected to drive the healthcare quality management market. Quality management solutions can help identify inefficiencies, reduce waste, and streamline processes. This solution leads towards the growth of disposable income, changing lifestyles, and consumer spending on healthcare without compromising patient outcomes.

Healthcare quality management is experiencing significant demand growth due to increasing regulatory requirements imposed by governments worldwide. These regulations compel healthcare providers to enhance the quality of care, improve physician performance, and prioritize patient safety.

Healthcare quality management can assist in better-allocating resources based on patient needs and outcomes. By identifying areas where resources are being underutilized or misallocated, organizations can redirect those resources to areas that deliver the most value and improve overall efficiency.

Medical errors and adverse events not only lead to patient harm but also result in significant financial costs for healthcare organizations. Quality management systems can help identify potential risks, implement preventive measures, and establish protocols to reduce medical errors, leading to cost savings.

Existing Restraints

Increasing regulatory and compliance burden is likely to hinder the market. Regulatory and authorization requirements create administrative burdens and compliance challenges for healthcare organizations. They are strictly required to ensure patient safety and reduce medical errors.

The regulations and legal requirements limit physicians’ practices which leads to an efficiency decline, increases compliance costs, and affects the ability to deliver high-quality care. Further. small clinics lack the willingness to pay for advanced healthcare software solutions. The lack of consistency in patient data puts a limit on getting quality outcomes, which can also hamper the market.

Major Opportunities

Increasing elderly population and advanced technologies in the medical industry are creating lucrative opportunities for the market. The performance of healthcare providers in both developed and underdeveloped countries is growing due to the rising number of chronic diseases globally.

The healthcare sector is subject to strict regulations and relies heavily on cutting-edge diagnostic technologies. Additionally, healthcare services are typically covered by insurance companies, government programs, or other third parties.

There is a need for systems that incorporate the latest technologies, comply with external regulations, and effectively utilize these technologies. These factors contribute to the global healthcare quality management market in the coming years.

Scope of the Global Healthcare Quality Management Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Healthcare Quality Management Market Segment Insights

Based on software, the global healthcare quality management market is divided into physician quality reporting, business intelligence, provider performance improvement, and clinical risk management. The business intelligence segment is expected to expand at a major growth rate during the projection period due to the rising demand for high-quality healthcare and government initiatives aimed at supporting value-based care.

Business intelligence software (BI) plays a significant role in the healthcare industry, including healthcare quality management. BI involves the use of data analysis, reporting, and visualization tools to gather insights and support decision-making processes.

BI helps organizations monitor and assess various quality metrics, such as patient outcomes, safety incidents, and adherence to best practices. By analyzing these metrics, healthcare providers can identify areas for improvement, implement targeted interventions, and track the effectiveness of their quality improvement initiatives.

The physician quality reporting segment is anticipated to expand at a significant growth rate during the forecast period, due to increasing the need for efficient and accurate reporting of quality data. The physician’s quality reporting software plays a crucial role in enabling accurate measurement of quality performance and facilitating continuous quality improvement efforts among physicians and healthcare providers. These software solutions help to enhance efficiency, accuracy, and transparency in reporting and management, which leads to improved patient care outcomes.

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On the basis of delivery mode, the global market is segregated into on-premise and web/cloud-based. The web/cloud-based segment is projected to register a considerable CAGR during the forecast period due to the flexibility to operate from remote locations, affordability, and automated update features.

Web/cloud-based facilitates technologies that are used in healthcare including mobile health apps, electronic medical records, and patient portals. This software provides hassle-free flexibility and scalability that helps to improve the ultimate decision-making process. These systems eliminate the physical data storage space and reduce the risk of data damage or loss.

The on-premise segment is anticipated to gain significant revenue shares in the market during the assessment period due to data control and security. on-premise delivery, the healthcare organization has full control over its data, as it is stored and managed within the organization's own infrastructure. This can provide a higher level of data security and privacy, as the organization has direct control over access and security measures.

On the basis of application, the global healthcare quality management market is bifurcated into risk management and data management. The data management segment is expected to register a robust growth rate during the forecast period owing to the exponential increase in large volumes of inconsistent data and the influence of government regulations.

This involves the systematic identification and analysis of potential risks in healthcare processes, such as medical errors, adverse events, regulatory non-compliance, data breaches, and financial risks. Risk management strategies aim to proactively identify and prioritize these risks.

These solutions help healthcare organizations collect, organize, and analyze vast amounts of data to extract meaningful insights and improve quality management processes. Regulatory organizations are placing a greater emphasis on quality reporting with stringent standards. Healthcare providers are required to submit accurate and high-quality reports to meet regulatory compliance. Effective data management solutions play a crucial role in ensuring data accuracy, integrity, and the generation of reliable reports that meet the required standards.

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Organizations are increasingly adopting advanced data management solutions to address the challenges of inconsistent data and meet regulatory requirements, enabling them to enhance quality management practices and deliver better patient care monitoring.

Based on the end-user the global healthcare quality management market is segregated into hospitals, clinics, and research institutes. The hospitals segment is expected to hold a major market share during the forecast period, due to the healthcare providers‘ growing emphasis on patient safety, healthcare spending, and government mandates to comply with quality standards.

The complexity and diversity of healthcare services raise challenges for hospitals that face unique quality management. They require robust systems and processes to monitor, measure, and improve quality across multiple departments and service areas.

Hospitals have a strong emphasis on patient safety, as it is a critical aspect of delivering high-quality care. Quality management initiatives in hospitals often prioritize patient safety, infection control, medication safety, and reducing medical errors.

Hospitals are subject to stringent regulatory requirements and accreditation standards, which necessitate robust quality management practices. Compliance with regulations and standards is crucial for maintaining operational licenses, funding, and public trust.

Healthcare providers, such as outpatient clinics, ambulatory care centers, long-term care facilities, and physician practices, also play a crucial role in healthcare quality management. These providers contribute to the overall delivery of healthcare services, and their quality management efforts are essential for maintaining patient safety, improving care outcomes, and meeting regulatory standards.

The clinics segment is projected to expand at a considerable growth rate during the projection period due to specialized care and low cost. Clinics include outpatient clinics, ambulatory care centers, and specialty clinics, which play a vital role in delivering healthcare services to patients outside of a hospital setting. They are characterized by their focus on specific medical specialties or healthcare services.

Clinics often specialize in specific medical specialties, such as cardiology, orthopedics, dermatology, or women's health. This specialization allows them to provide focused care, leverage expertise, and develop specialized quality management protocols tailored to their specific areas of practice.

Clinics generally have lower operating costs compared to hospitals, making them a cost-effective option for healthcare services. This affordability factor attracts patients seeking quality care at a lower cost propelling the healthcare quality management market.

Regional Outlook

In terms of region, the global healthcare quality management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period due to government mandates that enforce quality reporting, increasing healthcare spending, and rapid growth in the aging population.

North America has a significantly high healthcare spending rate compared to other regions. The investment in healthcare infrastructure, research and development, and advanced medical technologies contributes to driving the market in the region.

The aging population comes with an increased demand for healthcare services and a greater emphasis on quality care, patient safety, and care coordination. Healthcare quality management solutions play a vital role in addressing these needs and improving the overall quality of care for the aging population.

Europe is expected to grow rapidly in the global healthcare quality management market due to the active involvement of governments in providing quality management services and offering improved reimbursement facilities. Europe offers enhanced reimbursement facilities for healthcare quality management services. The availability of favorable reimbursement policies encourages healthcare organizations to implement quality improvement measures and helps to invest in technologies that support quality management.

European governments are actively engaged in promoting and implementing healthcare quality management initiatives. They prioritize patient safety, quality improvement, and the delivery of high-quality care. Government policies and regulations in Europe frequently focus on quality standards and require healthcare providers to report on and improve the quality of care.

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