The global health care electronic data interchange (EDI) market size,valued at $2.7 billion in 2016, is expected to grow at a compoundedannual growth rate of 9.4 percent over the next decade, reaching$5.9 billion by 2025, according to a report by Grand View Research Inc.

|

The accelerated growth of the EDI market is being fueled by therising need to curb health care costs; technological advancements;the surge in number of end-users including payers, providers,pharmaceutical and medical device industries; and the increasingadoption of EDI, according to the report.

|

“The electronic data interchange helps in keeping health carecosts at an affordable level, improving the quality of health care delivery and its supportingprocess, and making accurate, fast, reliable, secure and detailedinformation,” the report says. “The use of paper form can becumbersome, incompetent and costlier when it needs to distribute,retrieve, consolidate, and look for data. The electronic datainterchange helps in minimizing these kinds of time-consumingprocess and streamlines the claim management processes.”

|

Technological advancements within web-based EDI solutions haveaddressed issues regarding confidentiality, authentication, dataintegrity, and developments in the American National StandardsInstitute (ANSI) X12 EDI formatting standard have made EDI usefulfor B2B transactions. The EDI industry’s growth is also beingexpedited by the emergence of extensible markup language (XML) andweb-based EDI standards.

|

As more health care organizations outsource EDI, the servicessegment is expected to dominate the market. There will be anaccelerated growth in EDI solutions such as e-invoicing, EDIFACTmanifests and others to reduce administrative costs, accelerateinformation processing, ensure data accuracy, eliminate certainbusiness transactions, streamline business procedures, andstrengthen customer or vendor relations.

|

Cloud-based EDI will “spearhead” the market, as more small andmedium-sized health care providers demand affordable, flexible andscalable solutions, with the mobile EDI segment registeringcomparatively higher CAGR due to technological advancements in thehealth care industry and increasing acceptance of mobile solutions among health careproviders.

|

End-use by payers will grow due to growing demand from insuranceplans, health care payer organizations for the evaluation ofinsurance claims before their payment settlement, prevention anddetection of fraudulent claims, and disease risk assessment.End-use by providers will grow even more due to the rising adoptionof EDI for operational intelligence, performance management, andfinancial management by physicians and clinicians, hospitals,clinics, and medical assessment centers.

|

North America held over 39 percent share in the market in 2016,owing to the higher adoption of health care information technology,and the presence of major market players such as McKesson Corp.,Cognizant, Optum Inc., The SSI Group, LLC, ZirMed Inc., andExperian Information Solutions Inc.

|

“North America is expected to dominate the health care EDImarket over the forecast period due to rising demand for innovativeIT solutions to streamline workflows coupled with increasingregulatory requirements regarding patient safety,” the reportsays.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.