ID: MRFR/HC/6374-HCR | February 2021 | Region: Global | 85 pages
The pharmacy benefit management services market can expect to record a 5.8% CAGR during the appraisal period, says MRFR (Market Research Future).
Pharmacy benefit management can be highly flexible and diverse ranging from mid to large to small in size. A few areas under the pharmacy benefit manager are assessment of clinical programs for huge populations; information about tablet splitting, medication therapy management programs; mail order service, and low-cost therapeutic alternative. The pharmacy benefit management industry can benefit from the rampant need for abatement of medication errors, rising regionalization of the pharmacies, expanding elderly populace, and the rise in labor costs.
The pharmacy benefit manager market will be bolstered by the escalating demand for effective prescription products, surging focus on reducing drug cost, need for better management of the member’s health conditions, and regulatory guidelines. Major regulatory requirements driving the pharmacy benefit manager market are evolving owing to healthcare reforms, NCPDP regulations, and Medicare Part-D guidelines.
But the reluctance among companies to use pharmacy automation systems as well as the strict regulatory guidelines with respect to client confidentiality can hinder the expansion of the pharmacy benefit management market. On the contrary, heightened awareness level among the pharmacists as well as healthcare providers regarding cost reduction tactics and the services offered by the pharmacy benefit manager can offer lucrative opportunities in the years to follow.
Pharmacy Benefit Management Services Market Segmentation
The global pharmacy benefit management services market has been segmented on the basis of service, end-user, and region.
On the basis of service, the market has been classified as retail pharmacy services, specialty pharmacy services, benefit plan design and consultation, drug formulary management, and others
By end user, the market has been segmented into healthcare providers, employers, drug manufacturers, and others.
The market has been segmented, by region, into the Americas, Europe, Asia-Pacific, and the Middle East & Africa. The pharmacy benefit management services market in the Americas has further been segmented into North America and South America, with the North American market divided into the US and Canada.
The European pharmacy benefit management services market has been segmented into Western Europe and Eastern Europe. Western Europe has been sub-segmented into Germany, France, the UK, Italy, Spain, and the rest of Western Europe.
The pharmacy benefit management services market in Asia-Pacific has been divided into Japan, China, India, South Korea, Australia, and the rest of Asia-Pacific. The pharmacy benefit management services market in the Middle East & Africa has been segmented into the Middle East and Africa.
Regional Market Summary
Global Pharmacy Benefit Management Services Market Share, by Region, 2018 (%)
Source: MRFR Analysis
Americas is likely to dominate the pharmacy benefit management services market during the forecast period owing to the advanced technologies, increasing number of hospitals and healthcare centers in the region, increasing healthcare spending, and a large pool of insurance protected population. According to the American hospital association, the number of healthcare centers in the US is continuously increasing, and in the year 2016 number of registered hospitals in the US was 5,534, roughly 2000 hospitals were present in a rural area, and 3000+ hospitals were operating in an urban area. Additionally, according to the Centers for Medicare & Medicaid services healthcare expenditure grew 3.9% in 2017 and reached 3.5 trillion which is USD 10,739 per person.
The European region is expected to be the second-largest market in the global pharmacy benefit management services market owing to the rising prevalence of chronic disorders, adoption of advanced technology, fair per capita health expenditure, and favorable reimbursement policies. According to the survey conducted by The Organization for Economic Co-operation and Development (OECD), in the year 2017, the average per head spending on healthcare in Europe was USD 4,077.
The Asia-Pacific market is expected to hold a significant share in the pharmacy benefit management services market. The market growth in this region can be attributed to the rise in demand for advanced healthcare management services, increasing awareness of pharmacy benefit management services, rising geriatric population, and rising investments in healthcare. Also, countries such as India and China are considering the fastest growing region due to a government focused toward adopting advanced technology to improve the healthcare sector. According to united nations data, in 2016, approximately 12.4 percent of the population in the region was 60 years or older, but this is projected to increase to more than a quarter or 1.3 billion people by 2050.
The market in the Middle East & Africa is expected to account for the smallest share of the global pharmacy benefit management services market due to an underdeveloped healthcare sector, lack of technical knowledge, and poor medical facilities.
Some of the key players in the global pharmacy benefit management services market are Abarca health LLC., CVS Health, Express Scripts, Humana Pharmacy Solutions, Magellan Rx Management, McKesson Corporation, Medimpact Healthcare, MeridianRx, OptumRx (UnitedHealth), Prime Therapeutics, Sea Rainbow, Vidalink, and others.
The pharmacy benefits management firm, Green Shield Canada (GSC) has acquired NKS Health, an advanced specialty pharmacy with prime focus on complex disease management. This will allow GSC to have additional ability in the management of drug costs for the employers while elevating the patient health outcomes.
Inovalon, a reputed provider developer of cloud-based platforms focused on accelerating data-driven healthcare, has introduced ScriptMed Cloud Infusion Management. Powered by its own Inovalon ONE Platform, the specialty pharmacy module brings along an innovative infusion management functionality, substantially enhancing n the cost efficiency, clinical outcomes and patient experience that are associated with infusion pharmacy operations.
Pharmacy Benefit Management Services Market, by Service
Pharmacy Benefit Management Services Market, by End User
Pharmacy Benefit Management Services Market, by Region
|Market Size||Significant Value|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service, End-user, and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Abarca health LLC., CVS Health, Express Scripts, Humana Pharmacy Solutions, Magellan Rx Management, McKesson Corporation, Medimpact Healthcare, MeridianRx, OptumRx (UnitedHealth), Prime Therapeutics, Sea Rainbow, Vidalink|
|Key Market Opportunities||Advanced technology|
|Key Market Drivers||Increasing digitalization and growing healthcare industry are the key factors driving the pharmacy benefit management services market.|
Frequently Asked Questions (FAQ) :
Increasing digitalization and growing healthcare industry are the key factors driving the pharmacy benefit management (PBM) services market.
The Americas is expected to dominate the pharmacy benefit management services market.
Safety of patients’ data may limit the pharmacy benefit management services market growth.
Different end users of the pharmacy benefit management services market include drug manufacturers, employers, healthcare providers, and others.