A survey done by Black Book revealed that the healthcare payer IT outsourcing market could grow by 40 percent in the next two years. Insurers plan to use outsourcing as a solution for the sudden, unexpected increase in expenses, but didn’t produce the expected results.
However, less than 10 percent of healthcare leaders who joined the survey are willing to subcontract IT functions outside US due to cyber security concerns. In fact, 75 percent of reporting health plans were very careful when it came to their outsourcing strategies, citing data breaches and possible cyberattacks can lead to unsafe operations.
Doug Brown, Managing Partner of Black Book Research Group, stated in the survey announcement that IT outsourcing clients in the health plan sector have been more cautious and are doing intensive research to safeguard data privacy and avoid security issues.
Insurers are said to be raising outsourcing budgets to 20 percent for next year for certain functions such as application support as well as desktop and help desk support. The survey also indicated that nearly 80 of participants said they are considering outsourcing in the next 12 months.
Other functions that health plans are planning to invest on are mobile applications, virtual care, and remote health monitoring. These processes are anticipated to create a demand for big data and analytics for population health initiatives.
Despite having a potential market in the population health management, FierceHealthPayer reports that healthcare providers are still unequipped with the necessary tools for IT administrative work and data gathering capabilities on patient populations.