Technology and software development companies are stepping up to fill gaps created by ICD-10 overhauls with big data and consumer facing solutions.
"Shrinking margins, higher claim disbursement, and increasing competition have forced health insurers to look at outsourcing at this point in time to prove efficiencies and focus resources toward the core functions of product development and innovation," said Doug Brown, managing partner of Black Book Research Group.
Black Book surveyed 829 health plan information technology outsourcing users from the second quarter to the fourth quarter of 2015 to discern trends in the shifting marketplace of service providers and client expectations.
Below are seven key findings:
1. The payer IT outsourcing market is expected to grow over 40 percent in the next two years.
2. Less than one in ten health plan IT executives are considering comprehensive third-party solutions.
3. For both large and small insurers, the survey projects largest sector growth in security and privacy projects and IT cloud initiatives.
4. Health plans are narrowing IT outsourcing decisions to US-based service vendors only, owing to increased data-security fears and privacy issues for 2016.
5. Greater interest in consumer facing mobile apps, remote health monitoring, and virtual care initiatives is predicted to increase demand for big data and analytics tools.
6. Claims modernization, big data/population health, security and analytics outsourcing services is projected to rise at a 39 percent compound annual growth rate.
7. Dell led the healthcare payer sector in overall IT outsourcing client satisfaction in 2015.
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