Population Health Management 2024
01 October 24
| Andy Paulsen and Benjamin Cassity
In recent years, purchasing energy in the population health management (PHM) market has cooled among large acute care organizations—only 10% of interviewed organizations report a recent or in-progress PHM purchase decision. This trend is largely the result of healthcare organizations deprioritizing initial investments in new solutions and instead focusing on cost reduction and improved ROI through vendor consolidation, better data access and utilization, and improved functionality that supports value-based initiatives (i.e., care management, whole-person care, downside risk contracts). Physician-led ACOs don’t always face the same challenges as large acute care organizations (the majority of the sample included in this data set), so they may make decisions differently. With fewer decisions being made for acute care organizations, there is greater pressure on vendors to more thoroughly prove their platform’s capabilities during the RFP process. To help healthcare organizations navigate purchasing decisions in this market, this report draws from 40 purchase decisions validated by KLAS between July 2022 and June 2024 to examine (1) which vendors’ customer bases are growing, being maintained, or decreasing amid market shifts and (2) which factors contribute to current buying energy. Satisfaction data from current customers is also included.