10 Reasons Behind the Significant Growth in The Global Smart Hospital Market
According to a recent study by Orbis Research, the Smart Hospital Market size will increase from USD 17.46 Bn in 2017 to USD 62.28 Bn by 2023.
Government initiatives to support technology in healthcare and the increase in the number of skilled IT professionals in the industry are some of the easily visible factors contributing to this growth. Let’s delve deeper into the top reasons behind this sharp growth in the global smart hospital market.
1. The Need for Cost-effective Operational Efficiency
The increasing workload on hospitals is leading them to look for ways to bring in operational efficiency while keeping the costs down. Healthcare institutions are now looking for ways to provide the best services to their patients while optimizing costs.
Hospitals want to improve their outcomes, automate tedious and repetitive processes, enhance workflows, and use intuitive software solutions that can help them achieve cost optimizations. The limited availability of healthcare institutions is also a critical factor that comes in when hospitals define the availability of resources and intend to use them optimally.
2. Rising Investment in the Healthcare Industry Across the Globe
Investments in technology for healthcare are increasing across the globe. Virtual health and telehealth services, for instance, are critical investments aimed to bend the cost curve and yield better patient experiences. AI-powered patient interaction and intelligent virtual assistants are also getting more and more commonplace, thanks to the inclination toward investing in the latest technology in the healthcare segment. There is an exponential increase in the pace and scale of the emergence of digital healthcare innovations, a Deloitte report confirms.
3. The Increasing Proliferation of Connected Devices and Instruments
The Internet of Medical Things market is expected to grow up to USD 158.1 Bn by 2022. To deliver better care and improve healthcare outcomes, institutions are engaging in research and development. Significant advancements in technology are leading to an increasing number of connected devices, presenting an opportunity for healthcare companies to leverage them and build a smarter ecosystem.
4. Higher Per Capita Income Levels
In developing markets, an increase in the number of higher-income households and rising customer expectations are factors pushing the need for smart healthcare. A rise in the per capita income increases the ability of the population to afford various added expenses and receive the experience they demand.
This supports the need for high-quality, smarter healthcare – even if it comes at a higher cost.
5. The Need to Manage Customer Data and Increase its Availability
Healthcare institutions need to combine the power of analytics and mobile health devices and other non-traditional sources to capture a holistic picture of patient health and make it available to the caregivers and doctors anytime, anywhere, on any device. This can help them increase the value to care delivery tremendously. Smart hospitals are becoming a raging demand because of the need to collect, analyze, store this data, and make it available to improve the pace and quality of care delivery.
6. Advancements in Technologies
The pace of advancements in the latest technologies and the rapid commercialization of the same is a leading reason for the growth in smart hospitals. Technologies such as AI and ML create process efficiencies and improve decision-making to boost the quality of care. Blockchain can advance the security of medical transactions, while IoT and cloud computing can make data analysis and data capturing easy.
7. The Increasing Shortage of Health Workers, Skills, and Equipment
There is an inadequacy in the number of workers, skills, and equipment required to deliver satisfactory care (especially in developing countries). This is true for 57 countries that face a total shortage of 2.5 Mn doctors and nurses. The required skills for care delivery are getting rare to find, and there is a limit to what hospitals can spend on equipment and machinery.
Smart healthcare promises to automate parts of the process, thereby reducing the time patients have to spend in a facility – freeing up space and resources for hospitals to address more patients. Automation also decreases the number of doctors needed per patient in a healthcare organization.
8. The Growing Focus on Patient Satisfaction
Patient satisfaction and experience have become strong differentiators for healthcare organizations. As a result, there is a need for quality care delivery and seamless experiences, which can be facilitated only through the right use of the latest technology. Smart solutions look attractive to patients, and they chase comfort and convenience.
9. Healthcare Consumerism
Healthcare consumerism is a visible phenomenon where patients want to be active participants in their healthcare. This is possible when health data is captured, converted into layman understandable terms, and made available to patients for reference and planning. Patients want to actively engage with their care providers, research about their conditions, and continually interact with doctors for accelerated outcomes.
Smart healthcare systems such as EHRs and EMRs shared across healthcare providers, make this a reality and smart hospital environments deliver to this patient expectation.
10. Increasing Pressure on Hospitals to Provide Better Quality of Care
Competing against the giants in their space, healthcare providers are now aware of what it takes to provide high-quality care. As the pressure to deliver better and better mounts up on healthcare institutions, they look out for ways to optimize care delivery using digital initiatives. At the same time, healthcare organizations need to control costs and offer care at practical prices. The shift from value-based care delivery is prompting healthcare organizations to aim at the superior quality of care to drive revenue.
The smart hospital market is beyond slowing down. And, to get a ride on the rising wave, healthcare organizations need to notch up their smart hospital strategy. The need for smart solutions is a result of the many factors worth considering, but the change will take time and a shift from what’s legacy and comfortable to something that’s new and valuable.