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State of the Market
Healthcare Provider State of the Market – Trends, Service Provider Performance in 2019, and Outlook for 2020
March 04, 2020Now more than ever, the healthcare provider industry is expected to improve care outcomes, keep pace with changing regulatory policies, and stay competitive in the face of disruptions, all the while keeping healthcare costs in check. The entry of BigTech players that leverage their core business and technology strengths to bring innovative solutions to the market is also threatening traditional providers. The ongoing transition is resulting in the consolidation of providers, including hospital and health system mergers, collaborations between payers and providers, and more accountable care organizations setting up. Consumer-centric healthcare policies, growing awareness of wellness themes, and the increasing need for efficient information exchange have all shaped modern consumers’ expectations, compelling providers to adopt emerging technologies to cater to these demands. In 2020, we expect providers to adopt newer methods of care delivery, with a sharp focus on telehealth and telemedicine to enable remote health monitoring and management. Improving customer experiences through applications, growing adoption of value-based care, and latent data assets will be some of the other focus areas. This report examines the global 2019 healthcare ITS service provider landscape and covers themes expected to garner greater interest in 2020. It captures key global healthcare market trends in the healthcare provider space and provides a snapshot of the PEAK Matrix® healthcare assessments carried out in 2019. Scope Geography: global (with a focus on the US) Service providers assessed: Accenture, CGI, Cognizant, Deloitte, DXC Technology, Fujitsu, GAVS Technologies, HCL Technologies, IBM, NTT DATA, Optum, Unisys, and Wipro Contents The report is structured into four sections: US healthcare provider market trends Demand overview List of healthcare PEAK Matrix® assessments published in 2019 Outlook for 2020 Membership(s) Healthcare IT Services (ITS) -
PEAK Matrix®
Healthcare IT Security Services PEAK Matrix™ Assessment with Service Provider Landscape 2020
Dec. 13, 2019Healthcare challenges, such as changing business and care delivery models to support patient-centricity and consumerism, growing competition from both within and outside the industry, and increasing regulatory pressures, are leading to increased investments in data and technology by enterprises. Point-to-point upgrades, coupled with high technical debt levels, have increased security vulnerabilities to a large extent. The healthcare industry has been slow to respond to cyber threats and has lagged behind other industries when it comes to IT security investments, making healthcare a lucrative target for hackers. As a result, the past few years have seen some of the biggest attacks on healthcare enterprises resulting in theft of millions of patient records. As a result, senior executives in healthcare enterprises acknowledge the seriousness of the threats (such as loss of goodwill, large penalties by regulators for data breaches, and partial or complete shutdown of operations resulting in lost revenues) that cyberattacks pose to their business. Security is considered not only an IT initiative, but also a business imperative. In this research, we present fact-based trends impacting the IT security services market, along with assessment and detailed profiles of 13 healthcare IT service providers featured on the healthcare IT security services PEAK Matrix. Each service provider profile gives a comprehensive picture of their security services vision, services capabilities, scale of operations, key solutions, and partnerships. The assessment is based on Everest Group’s annual RFI process conducted over Q2 and Q3 2019, interactions with leading healthcare IT security service providers, and analysis of the healthcare IT security services marketplace. Service providers covered: Accenture, CGI, Cognizant, Deloitte, DXC Technology, Fujitsu, GAVS Technologies, HCL Technologies, IBM, NTT DATA, Optum, Unisys, and Wipro Scope Industry: Healthcare payers and providers Services: Healthcare IT security services digital services Geography: Global Service providers: 13 leading healthcare IT security service providers Contents This report comprises an executive summary and three sections, each containing insights about the healthcare IT security service providers’ landscape, as outlined below: Summary of key messages Healthcare IT security services market trends PEAK Matrix assessment of healthcare IT security service providers Profiles of 13 healthcare security service providers Membership(s) Healthcare IT Services (ITS) -
Thematic Report
BigTechs in Healthcare: Reimagining the Ecosystem
Nov. 15, 2019BigTechs such as Amazon, Apple, Facebook, and Google have a track record of disrupting industries such as retail and telecommunications. The tech giants are now eyeing healthcare – with many having already made significant investments in the industry. This interest is driven by factors such as increasing healthcare spend, demand for data analytics, and rising member/patient expectations. The maximum disruption has been created in areas largely outside the traditional (payer, provider, PBM, etc.) scope of the healthcare industry. In this report, Everest Group assesses the healthcare investments of 11 large technology firms. We analyze BigTechs’ role across payer and provider value chains, their healthcare investments and initiatives, the ecosystem-driven approach they are taking to gain headway in healthcare, and the challenges they face in the domain – especially care delivery. Scope Profiles of 11 large technology firms: Amazon, Apple, Facebook, Google, IBM, Lyft, Microsoft, Oracle, Salesforce, SAP, and Uber Contents The report spans five sections: The healthcare market: current state BigTechs’ partnership ecosystem Role of BigTechs in healthcare Challenges and outlook for BigTechs Profiles of 11 large technology firms Memebership(s) Healthcare IT Services (ITS) -
State of the Market
Guidebook for Blockchain Adoption in Healthcare and Life Sciences: A Compilation of Insights from 40+ Blockchain Projects
March 29, 2019Healthcare and Life Sciences (HLS) industry is adopting blockchain technology as a lever to redefine processes and drive efficiency and transparency. It has witnessed adoption of multiple use cases such as cold chain logistics, device condition provenance flow, provider credentialing, and healthcare record interoperability. The industry is witnessing a phasing out of the hype that has surrounded blockchain technology, which is allowing real enterprise blockchain use cases with pragmatic business value to see the light of the day. Some of these use cases have started to show early signs of blockchain business value realization. Enterprise investments in blockchain technology were at an all-time high in 2018 and we expect it to more than double in 2019. In this report, we have analyzed 40+ blockchain projects to identify the blockchain adoption journey in the HLS industry. We have identified and listed down 15 use cases across the HLS industry to bring out proof points of blockchain adoption. This report suggests that HLS enterprises will need to partner with blockchain ecosystems to scale beyond proof of concepts. This report will provide a roadmap of blockchain adoption to HLS enterprise executives leading blockchain initiatives. It will guide them to extract maximum value by studying current value delivered and build pragmatic hypothesis on potential value. It will demystify the blockchain technology landscape and help identify the right set of partners for the business use case. This report also highlights the challenges that HLS enterprises face along their blockchain adoption journey and the ways to overcome some of them. CONTENT Everest Group "BINGO" framework for blockchain adoption B: Business value articulation I: Invest in the right use case N: Network effect for scaling blockchain G: Guide to technology investments O: Overcome challenges Blockchain use case compendium Membership(s) Healthcare IT Services (ITS) Life Sciences IT Services (ITS) -
Thematic Report
Healthcare Report Card 2018 – A Guidebook of Key Trends and Service Provider Performance
March 29, 2019The U.S. healthcare market witnessed a series of activities in 2018. On one side, payers continued their quest for consolidation across the value chain by merging with PBMs, acquiring physician practices, and investing in technology consortia; on the other side, healthcare providers too tried to expand their influence through large mergers as well as by acquiring small physician practices. The entry of technology firms, such as Amazon, Apple, and Microsoft, further complicated the market scenario. In addition to the stakeholders’ quest for control of the market, the ongoing issues pertaining to value-based care transition, regulations, and cybersecurity also continued to push the payers and providers to invest in new technologies (analytics, automation, IoT, cloud, etc.). With this slew of changes, the healthcare in the United States is at an inflection point, with everything from member/patient engagement to administrative management to care delivery being transformed. For payers and providers, the path ahead lies in transforming the way they typically work by imbibing technology. The third-party technology and service providers will play a significant role in helping the payers and providers achieve that. This report card covers key trends that impacted the healthcare market in 2018 along with details on how well-placed BP service providers are to capture the opportunities arising from them. The report is divided into two parts: Key trends that impacted healthcare market in 2018 and Everest Group’s prediction for market in 2019 Ranking of top 15 healthcare service providers based on four healthcare PEAK Matrix™ BP and IT services evaluations done in 2018 Membership(s) Healthcare & Life Sciences BPO Healthcare IT Services (ITS) Life Sciences IT Services (ITS) -
Thematic Report
Dr. Robot Will See You Now: Unpacking the State of Artificial Intelligence in Healthcare – 2019
Oct. 30, 2018The definition of AI is continually evolving, and understanding of its capabilities and applications varies widely across the healthcare industry. While AI is a relatively new area in the healthcare space and its adoption is in the nascent stage, digitalization of healthcare is accelerating enterprises’ interest in AI. AI presents unique opportunities for healthcare enterprises, allowing them to improve customer experience, achieve operational efficiency, enhance employee productivity, cut costs, accelerate speed-to-market, and develop more personalized products. With CEOs and CIOs acknowledging the transformative power of AI, enterprises are rapidly building appropriate AI strategies. To help healthcare gain better visibility into the impact of AI, Everest Group has analyzed the market from the vantage point of 27 leading healthcare enterprises. This report demystifies AI adoption across the healthcare ecosystem and assess leading enterprises on AI investments. We have unpacked the distinctive attributes of the leaders that are far ahead of the other industry participants in terms of AI capability maturity, especially in areas such as vision and strategy, talent, and next-generation technology adoption. In this report, we have identified the leaders' best practices, illustrated the impact generated, and helped enterprises understand the AI innovation ecosystem. We have also proposed a roadmap for market stakeholders.This report also delves into the future of AI adoption in healthcare. This report is structured across six key sections: Adoption of AI in healthcare and across industries The healthcare AI supplier ecosystem Assessment of U.S. healthcare enterprises’ AI capability and maturity Identification of AI leaders and their features across all assessment dimensions Snapshot of healthcare enterprises' capability maturity and outcomes evaluated on the assessment model Challenges and outlook for the AI market Membership (s) Healthcare & Life Sciences IT Services (ITS) -
PEAK Matrix®
Healthcare Provider IT Services – Service Provider Landscape with Services PEAK Matrix™ Assessment 2017
Nov. 30, 2017The Healthcare and Life Sciences (HLS) landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels). This combination of disruptive and legacy factors has driven HLS firms to adopt new technologies, while also revamping their existing systems, processes, and interfaces As the technology mandate for HLS enterprises evolves, so do their relationships with IT service providers. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in HLS IT services across the three major market segments – payer, provider, and life sciences. Everest Group’s HLS IT research program addresses this market requirement by analyzing outsourcing trends and service provider capabilities specific to IT services in the healthcare and life sciences vertical. In this report, we analyze the capabilities of 21 IT service providers specific to the global healthcare sector. These service providers are mapped on the Everest Group PEAK Matrixs™, which is a composite index of a range of distinct metrics related to a provider’s vision & capability and market impact. We focus on: Provider IT market trends The landscape of service providers for provider IT Assessment of the service providers on a number of capability-related dimensions Implications for provider IT buyers and service providers Service providers covered: Accenture, Atos, BT Global, Capgemini, CGI, Cognizant, CompuCom, DXC Technology, EPAM, GAVS Technologies, HCL Technologies, Hexaware, IBM, NTT DATA, Optum, Syntel, Tech Mahindra, Unisys, Virtusa, and Wipro Scope of the analysis Industry: Healthcare providers Services: Multi-year (>3 years) and annuity-based IT services Geography: Global (though with a slight skew towards the U.S. payer market, given dominant market activity) Contents This report is structured across three key sections, each containing insights into the healthcare provider IT services provider landscape: Executive summary Summary of key messages Key takeaway: Buyer feedback for service providers Implications for key stakeholders Provider market trends PEAK Matrix for healthcare provider IT services Mapping of healthcare provider IT services providers on the Everest Group PEAK Matrix Analysis of individual service provider capabilities in the healthcare provider IT services space along the following dimensions: Vision and capability: Vision and strategy Scope of services offered Innovation and investments Delivery footprint Market impact Market adoption Portfolio mix Value delivered Commentary on the specific characteristics of PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants) Profiles of healthcare provider IT services providers covering the following aspects: General overview of the provider’s healthcare provider IT services business – scale, overall focus, and extent of adoption of the provider’s healthcare provider IT services business across enterprise segments and geographies Overview of the provider’s healthcare provider IT services – overall portfolio of services and relative focus across service lines Assessment of the provider’s healthcare provider IT services delivery capability, domain investments & innovation, key solutions, and key partnerships Strategic focus areas and market success for healthcare provider IT services areas Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report. Membership(s) Healthcare & Life Sciences ITO -
PEAK Matrix®
Healthcare Consulting – Service Provider Landscape with Services PEAK Matrix™ Assessment 2017
Nov. 30, 2017The healthcare landscape has been subject to significant turbulence on account of a gamut of factors including escalating costs, widespread regulatory amendments, changing business models, and evolution of the patient-centric paradigm (with mobile computing, social media platforms, “anytime-anywhere” information access, and self-service channels). This combination of disruptive and legacy factors has driven the healthcare firms to devise innovative business strategies and adopt new technologies. Healthcare consulting firms are helping enterprises effectively navigate through these uncertain times. This, in turn, is driving the need for relevant research and market intelligence on demand and supply trends in the healthcare consulting market across healthcare payers and providers. Everest Group’s Healthcare & Life Sciences IT research program realizes the change in the market situation and has come up with a research report that addresses this particular need. In this report, we analyze the capabilities of 20 healthcare consulting service providers specific to the global healthcare sector. These service providers are mapped on the Everest Group PEAK Matrix, which is a composite index of a range of distinct metrics related to a provider’s vision, capability, and market impact. We focus on: Service providers covered: Accenture, Alvarez and Marsal, Bain & Company, The Boston Consulting Group, Chartis Group, Cognizant, Deloitte Consulting, Ernst & Young, FTI Consulting, Huron Consulting Group, Impact Advisors, KPMG, McKinsey & Company, Navigant, North Highland, NTT DATA, Oliver Wyman, Optum, Perficient, and PwC Scope of the analysis: Global consulting and healthcare consulting market trends The landscape of service providers for healthcare consulting Assessment of the service providers on a number of capability-related dimensions Industry:Healthcare payers and providers Services:Healthcare consulting Geography:Global Contents This report is structured across three key sections, each containing insights into the healthcare consulting services provider landscape: Executive summary Summary of key messages Key takeaway: Buyer feedback for service providers Healthcare consulting market trends PEAK Matrix for healthcare consulting Mapping of healthcare consulting service providers on the Everest Group PEAK Matrix Analysis of individual service provider capabilities in the healthcare consulting services space along the following dimensions: Vision and capability: Vision and strategy Scope of services offered Innovation and investments Delivery footprint Market impact Market adoption Portfolio mix Value delivered Commentary on the specific characteristics of PEAK Matrix clusters (Leaders, Major Contenders, and Aspirants) Profiles of healthcare consulting services providers covering the following aspects: General overview of the provider’s healthcare consulting services business – scale, overall focus, and extent of adoption of the provider’s healthcare consulting services business across enterprise segments and geographies Overview of the provider’s healthcare consulting services – overall portfolio of services and relative focus across service lines Assessment of the provider’s healthcare consulting services delivery capability, domain investments & innovation, key solutions, and key partnerships Strategic focus areas and market success for healthcare consulting services areas Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report. Membership(s) Healthcare & Life Sciences IT Outsourcing -
State of the Market
Healthcare Provider Annual Report 2017: Will the Real Value-Based Care (VBC) Please Stand Up?
Oct. 06, 2017Amidst consistent regulatory uncertainty, falling profit margins, and decreasing in-patient volumes, the demand in the healthcare provider IT market is rebounding with primary focus on value-based care initiatives. More than 50% of provider IT spending by 2025 is expected to be driven by value-based care initiatives. This will be fueled by factors such as investment in patient engagement and compliance & care performance evaluation initiatives. More than 75% of provider organizations have either adopted or are looking to adopt value-based care in the near future, which further reinforces the secular trends driving the next wave of IT investments among healthcare providers. Demand in the provider IT market has been concentrated in the larger health systems. To truly unpack the current and future state of value-based care driven IT investments, it is essential to evaluate the large health systems in their journey towards adopting value-based care. On one hand, this analysis helps the providers assess their current standing and on the other hand, it helps the service providers to target particular health systems with specific offerings. In this annual report, we analyze the current state of adoption of value-based care and evaluate the 40 largest health systems based on their value-based care performance and financial health. The report also provides actionable frameworks for the health systems to accelerate their value-based care initiatives and for the service providers to develop the requisite expertise to support these health systems. This report is structured across four key sections, covering current state of value-based care, evaluation of 40 largest health systems, and implementation and service capability frameworks for health systems and service providers respectively. Value-based care: Market trends and current state of adoption Value-based care driven IT trends Industry wide state of adoption Value-based care performance evaluation: Analyzing the 40 largest health systems Evaluation methodology and details Analysis of value-based care performance matrix Implications for providers: Framework for creating a successful value-based care model Aspects covering people and culture, process improvement, stakeholder engagement and health information and technology infrastructure Implications for service providers: Service capability framework Aspects covering the required expertise and service capabilities Membership(s) Healthcare & Life Sciences IT Outsourcing -
Thematic Report
Exploring the Middle East Healthcare Opportunity
Aug. 18, 2017The healthcare market in the Middle East is gaining significant traction on account of various factors including government initiatives to encourage medical tourism, evolving health insurance policies, and growing propensity among the local population to consume digital health services. Global healthcare enterprises see this as a major growth opportunity and are trying to figure out the right business model to enter/expand into this market. As the growth strategies for healthcare enterprises evolve, so do their relationships with technology vendors / IT service providers, especially as technology has become an integral part of healthcare financing and delivery. As market stakeholders try and explore various options, we felt the time was ripe to synthesize our perspective on this emerging opportunity. Hence, we have leveraged our HLS ITS market experience and research capabilities to analyze the market and have captured the findings in this report. The report is structured across six key sections. They are: Market overview Global healthcare provider market Middle East healthcare provider market Key growth drivers Key markets and players Country-wise healthcare market attractiveness Key investors and players Market opportunities Market challenges Implications for IT service providers Membership(s) Healthcare & Life Sciences IT Outsourcing