Rising Medical Errors Boost Demand for Hospital Risk Management Solutions

According to the latest market research study published by P&S Intelligence, the hospital risk management market is projected to reach USD 3,482.3 million by 2030, expanding at a CAGR of 13.5%. This surge is largely attributed to the rising frequency of medical errors and the global prevalence of chronic diseases.

Cloud-based risk management solutions accounted for over 80% of market revenue in the past and are anticipated to grow at a rate of 14% in the future. The increasing demand for interoperability across hospitals and companies, enabling seamless data exchange between databases and systems while reducing operating costs, is driving this growth. The adoption of electronic health records (EHRs), e-prescriptions, mHealth, and telehealth is further fueling industry expansion.

Leading market players are strengthening their positions through acquisitions to enhance cloud-based risk management solutions. For instance, in February 2022, IBM Corporation acquired Neudesic LLC to expand its portfolio of hybrid multi-cloud services.

Large hospitals are expected to dominate the market with a 60% share by 2030, driven by the rising number of large hospitals, increased hospital spending, and the growing use of EHRs. In the U.S., over 90% of hospitals are currently in the process of validating EHRs.

Effective hospital risk management is crucial for the smooth functioning of EHR systems, helping to minimize medical errors. Countries like Japan, South Korea, Russia, and Germany lead in hospital bed density, with ratios of 12.8, 12.4, 8.0, and 7.9 beds per 1,000 people, respectively.

North America leads the global hospital risk management market, with a strong presence of industry players in the U.S. The shift from on-premises to cloud-based healthcare IT solutions and the increasing use of data analytics to optimize hospital workflows are key growth drivers. Additionally, the rising number of medical errors contributes to market expansion. For example, approximately 10,000 Americans die each year due to medication errors, costing the U.S. around USD 40 billion annually.

The growing rate of preventable medical errors, surpassing deaths from car accidents, breast cancer, and AIDS, is expected to continue driving demand for hospital risk management solutions.