Medical Network Solution Market Size & Share, by Deployment Type (Cloud, On-Premises); Organization Size (Large Enterprises, Small and Medium Enterprises); Component (Services, Internal, Outsourcing Services, Software); End-User (Payer, Private, Public Health Insurers) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5307
  • Published Date: Oct 12, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Medical Network Solution Market size is predicted to cross USD 31 Billion by the end of 2036, growing at a CAGR of 18% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of medical network solution was over USD 4 Billion. The demand for provider network management payer services, which are expected to drive market growth, is supported by the increased use of healthcare insurance in managing medical expenses such as treatments, hospitalizations, and health checks. In November 2022, the Indian Brand Equity Foundation released a report on the Insurance Sector, which indicated an increased number of persons purchasing insurance policies. From 2021 to 2022, the net first-year premium increases for life insurers rose by 6,94%, amounting to USD 29.54 billion in India. According to the report, in May 2021 new business premiums of life insurance increased by 88.64% from USD 3.12 billion.

In addition, in the event of acquisition, merger or expansion medical network solutions are helping to connect new locations in these organizations. Therefore, an important contributor to the growth of medical network solutions markets is that healthcare organizations are able to operate as a single unit much more quickly with this type of medical network solutions.

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Medical Network Solution Market: Key Insights

Base Year


Forecast Year



~ 18%

Base Year Market Size (2023)

 ~ USD 4 Billion

Forecast Year Market Size (2036)

 ~ USD 31 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Medical Network Solution Market: Growth Drivers and Challenges


Growth Drivers

  • Implementation of Stringent Federal Mandates- In order to reduce operating costs while simultaneously improving the coverage of benefits and increasing customer satisfaction, the implementation of healthcare mandates such as the Patient Protection and Affordable Care Act, including the Medical Loss Ratio and the Administrative Loss Ratio, has forced payer organizations to effectively manage their provider networks. Additionally, under regulations like Medical Loss Ratio (MLR) health insurance, issuers are required to spend 80% to 85% on medical care and efforts to improve the quality of healthcare; the remaining portion can be used for administrative expenses. Payers are turning to provider network management as a result of the implementation of strict federal regulations, an expanding customer base, and a growing demand to reduce operational and administrative expenses.
  • Advanced Data Analytics- Owing to the dynamic nature of the healthcare industry, payers face various challenges in maintaining provider networks and managing medical loss ratios. As a result, healthcare payers are increasingly focusing on employing highly advanced IT technologies such as data analytics. With a focus on managing medical loss ratios, it is critical for payers to use data analytics to retain current members and implement effective care management programs. Payers can use analytics in clustering, optimization, unbiased predictive modeling, and propensity score shaping. Many payers have started using patient data analytics, which makes extensive use of data, enables statistical and quantitative analysis, and use predictive models to drive better fact-based decision-making. This improves performance in areas such as provider contracting.
  • Rising patient population- The rising patient population is expected to propel the growth of the medical network solution market going forward.  The number of patients going to hospitals is also increasing because of the growing patient population. The network solution facilitates the monitoring of patients' records to predict their hospitalization and readmissions, which enables healthcare providers to manage healthcare management programs. For example, more than 33.35 million hospital admissions were registered in the United States during the year 2020, according to the American Hospital Association, a US-based organization representing all types of hospitals and healthcare networks in its annual 2020 survey.
  • IT infrastructure constraints in developing countries- One of the biggest obstacles to implementing HCIT solutions is cost issues. There are significant costs associated with network management software provided by the provider. The costs associated with maintaining and updating the network management systems provided by providers can be higher than that of software. The recurrent cost of support and maintenance is nearly 30% of the total ownership costs, which includes software upgrades. Moreover, training for end users is necessary in order to maximize the effectiveness of providers' network management systems due to a lack of internal information technology expertise within the healthcare sector. This, in turn, leads to higher costs of ownership for such systems. It is difficult to assess information systems in the healthcare sector. Consequently, smaller healthcare organizations are precluded from investing in medical network solutions due to the heavy costs associated with deployment and maintenance.
  • There is intense competition in the market for medical network solutions. In order to differentiate and succeed, it is necessary to face competition pressures and understand the strategies of competitors.
  • The disruption of the supply chain may lead to interruptions in operations, which can have an impact on product availability. To maintain a smooth operation, it is essential that these interruptions are anticipated and mitigated.

Medical Network Solution Segmentation

Deployment Type (Cloud, On-Premises)

The cloud segment is anticipated to account for 65% share of the global medical network solution market during the forecast period. The growth of the segment is due to the high number of cloud software and services available in the market and healthcare providers' increasing use of these technologies. In addition, market growth is expected to be driven by increased company involvement in the development of software and solutions that are increasingly sophisticated. Furthermore, cloud computing offers cost-efficient solutions for the administration and storage of healthcare data to smaller hospitals by giving them strong computing capacity, effective storage, or advanced analytics about healthcare data. It is estimated that the benefits of cloud computing software are enabling healthcare institutions to adopt it, which in turn will support segment growth. In 2022, 66% of healthcare professionals plan to migrate their technology infrastructure to the cloud, and this number will grow to 96 % by 2024 according to a report published in June 2022.

Component (Services, Internal, Outsourcing Services, Software)

Medical network solution market from the services segment is expected to hold the largest share of about 48% during the forecast period.  The reduction in the cost of health system services, improved claims auto judication rates, efficiency, and provider relationship are reasons why this segment holds a significant share.

Our in-depth analysis of the global market includes the following segments:

Deployment Type

  • Cloud
  • On-premises

Organization Size

  • Large Enterprises
  • Small and Medium Enterprises


  • Services
  • Internal
  • Outsourcing Services
  • Software

End User

  • Payer
  • Private
  • Public Health Insurers

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Medical Network Solution Industry - Regional Synopsis

North American Market Forecast

Medical network solution market in North America is anticipated to hold the largest revenue share of about 32% during the forecast period. The adoption of technology-enabled software and solutions such as electronic health records that facilitate various payment processes by reducing time and costs as compared to traditional manual procedures is expected to increase market growth due to the increasing expenditure on healthcare in the region. The national health expenditure (NHE) increased by 2.7% to USD 4.3 trillion, accounting for 18.3% of GDP, according to data from the Centres for Medicare &Medicaid Services (CMS) 2021. In addition, in 2021 private health insurance spending increased by 5.8% to USD 1.2 trillion. In 2021 another USD 596.6 billion will be paid by third parties and programs and public health activities, with hospital expenditures increasing by 4.2 percent to USD 1.3 trillion. Moreover, there has been a strong government focus on healthcare IT solutions in countries such as Canada, boosting the growth of the market in the region.

European Market Statistics

The medical network solution market in Europe is estimated to hold 25% revenue share during the forecast period. In view of the massive investments and spending in healthcare technologies, as well as the adoption of cloud-based IT solutions. The UK has around a hundred new start-ups in the area of health solutions, based on Tech Nation's Data Commons research. In addition, it is estimated that in the country there could be as much as 1 billion dollars’ worth of business created by entrepreneurs. A package of GBP 1.25 billion is also set up for the development of entrepreneurship by the United Kingdom Government

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Companies Dominating the Medical Network Solution Landscape

    • Cognizant
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ayasdi, Inc.
    • Change Healthcare
    • Optum, Inc.
    • Genpact Limited
    • Infosys BPM Ltd.
    • Atos Syntel, Inc.
    • Mphasis, ltd.
    • Evolent Health, Inc.


In The News

In the News

  •  Change Healthcare today announced it has acquired PROMETHEUS Analytics from Altarum. PROMETHEUS Analytics is a leading reimbursement approach based on medical episodes of care, used by payer-provider collaborations nationwide, uniquely providing a fair and realistic blueprint for value-based payments. It includes more than 90 episode of care definitions outlining the entire range of treatment that include all covered services across providers that would typically treat a patient for a single procedure, illness or condition.
  • Cognizant has been named a Leader of healthcare cloud-based core administration in a new report by Everest Group. In its review of 14 IT healthcare service providers, Everest Group recognized Cognizant's TriZetto practice as a Leader for its extensive portfolio of services, strong vertical and technical capabilities, and positive client feedback.

Author Credits:  Radhika Gupta, Shivam Bhutani

  • Report ID: 5307
  • Published Date: Oct 12, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Implementation of stringent federal mandates and advanced data analytics are the major factors driving the growth of the medical network solution market.

The market size of medical network solution is anticipated to attain a CAGR of 18% over the forecast period, i.e., 2024-2036.

The major players in the market are Ayasdi, Inc., Change Healthcare, Optum, Inc., Genpact Limited, Infosys BPM Ltd., Atos Syntel, Inc., Mphasis, ltd., SKYGEN USA, and others.

The cloud segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North America region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Medical Network Solution Market Report Scope

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