Electronic data interchange or EDI exchanges documents via electronic medium. This electronic communication system is more than 30 years old and is being used for transferring invoices, purchase orders, shipping notices and such other orders from one place to the other. Healthcare EDI helps the healthcare providers to transfer specifically formatted data to the payers or other healthcare organizations and accessories suppliers. Easy accessibility and maintenance of crucial data is making these systems popular across the world. Increasing expenditure on healthcare services and government initiatives to promote advanced technology across the sector are driving the healthcare EDI market at a healthy rate. Healthcare providers from around the world are adopting these systems at a rapid rate, which is expected to be a vital sign for the global market.
Segments in EDI for Healthcare Market
The global healthcare EDI market is segmented on the basis of the types of its components, end-users, transaction, delivery modes and such other factors. Apart from that, geographic regions are also taken into consideration in order to track most demanding regions in the global industry. The basic components in the market include EDI services and software programs. Different modes of delivery in the industry are categorized into point-to-point, web-based, mobile, VAN and via AS2 EDI delivery. Types of transactions include payment remittance, claims status, premium payments, referral certification authorization, eligibility verification, enrollment/disenrollment, & premium payments. End-users in the market include healthcare providers, healthcare payers, hospitals, and equipment/accessory providers.
Market Drivers, Trends and Forecasts
Portability and accountability of the healthcare insurance is considered to be a major driver for the global healthcare EDI market. However, governmental concerns and efforts in adopting these systems are considered to be the biggest influence on the global industry. Increasing outsourcing of the EDI services is also expected to create better business opportunities in global marketplace. Conversion from Icd-8 to Icd-10 is also expected to pacify the business activities in the market. Major restraints, for the industry, however, include data security, high cost of this software, low rate of investment, and management of EDI. Despite these hindrances, the market players are seeking growth from mobile EDI and demand from distribution and manufacturing end-users in the market.
According to the latest research reports, the global healthcare EDI market is expected to grow at a CAGR of over 13% from 2014, to reach $1,681.1 million by the end of the year 2018. During the next four to five years, the global industry is expected to be driven by North America. Well-established healthcare IT market and increasing investments are expected to play a crucial role in is rise in demand.