Global Health Economics and Outcomes Research (HEOR) Services Market Analysis

Global Health Economics and Outcomes Research (HEOR) Services Market Executive Summary

The Global Health Economics and Outcomes Research (HEOR) Services Market is projected to grow from $1.5 Bn in 2022 to $3.6 Bn by 2030, registering a CAGR of 11.2% during the forecast period of 2022-30.

The Global Health Economics and Outcomes Research (HEOR) Services Market is a growing market that is expected to grow significantly in the coming years. HEOR services are becoming increasingly important in the healthcare industry as they provide valuable insights into healthcare treatments and interventions' economic and clinical value. This information helps healthcare decision-makers, such as governments, payers, and healthcare providers, to determine the most cost-effective and clinically appropriate treatments for patients.

HEOR services can include activities such as market access strategy development, health technology assessment (HTA), real-world evidence (RWE) generation, and health economics modeling. These services are used by pharmaceutical and medical device companies and healthcare providers, payers, and government agencies.

The growth of the HEOR services market is driven by a number of factors, including increasing demand for cost-effectiveness and value-based healthcare, the need for better decision-making in the healthcare industry, and the growing use of RWE and real-world data in healthcare decision-making. The market is also driven by the increasing regulatory requirements for HTA and health economics evaluations, particularly in developed countries such as the United States, Europe, and Japan.

Overall, the Global Health Economics and Outcomes Research (HEOR) Services Market is expected to continue to grow in the coming years, driven by increasing demand for cost-effective and evidence-based healthcare and the growing use of RWE and real-world data in healthcare decision-making.

The Role of HEOR in Improving Healthcare Decision Making

Health outcomes research and health economics together give important information and tools to healthcare decision-makers from the intervention level to the level of the healthcare system, according to multidisciplinary experts in HEOR. While both health economics and outcomes research can be carried out independently, their synergy ensures that even complex healthcare issues can be rationally assessed by fusing the appropriate data (from outcomes research) with careful (health) economic analyses based on multiple stakeholder perspectives. This is HEOR's special strength in the healthcare industry. While some experts specialize in one area or another, HEOR experts are able to delve deeply into their field while also appreciating the value of incorporating the opinions and results from related fields. They work to bridge the gap between data and economic analysis, frequently beginning the data plan with the end in mind so that all pertinent results can be applied or gathered from various data sources and analyzed from various viewpoints.

Assessors of health technologies in particular are familiar with this method. They understand that evaluating long-term costs and benefits is frequently impossible without collecting reliable data from every aspect of the healthcare system and over the course of a health technology's entire existence (even when extrapolated). In budget-constrained situations like healthcare, this technique offers a solid evidence base to help choose the most economical option. For instance, Ireland's Health Information and Quality Authority (HIQA) recommended that both boys and girls receive the human papillomavirus vaccine based on cost-effectiveness studies. 5 The National Institute for Health and Care Excellence (NICE) in the United Kingdom, the Institute for Clinical and Economic Review (ICER) in the United States, and the Health Insurance Review and Assessment Service (HIRA) in South Korea are additional examples of organizations that rely on health technology assessment (HTA).

HTA2 is used by single (government) payers and has been for many years. A greater emphasis is being placed on the convergence of HEOR as a critical evidence-generating aspect for assessment due to value-based healthcare evaluation (including value-based insurance design and pricing), learning healthcare systems, and an increased emphasis on placing patients at the center of healthcare decisions. To pay for value, it is necessary to first define what value is and to whom it matters (from what perspective), measure the care provided in real-time, then feed that information back into the system so that changes can be made appropriately to reward and remunerate high-value care. Methods that have been developed over the last three decades compare the clinical, financial, and ethical effects of alternative medicines and lay the groundwork for tackling issues like customized medicine, curative therapies, and aging populations. In terms of time horizon, societal benefit, opportunity cost, and affordability, new methodologies must adopt a comprehensive approach. When it comes to healthcare evaluations, HEOR specialists and methodologies are frequently at the forefront, using novel, dynamic techniques to handle the environment's ongoing change.

Market Dynamics

Top 10 Global Health Economics and Outcomes Research (HEOR) Trends

1. Real-World Evidence: Using real-world evidence in healthcare decision making
2. Value Assessment: Informing value-driven healthcare decisions
3. Health Equity: Addressing disparities in healthcare
4. Healthcare Financing: Funding innovative health technologies
5. Patient Engagement: Infusing the "patient voice" in healthcare research
6. Drug and Healthcare Pricing: Improving price transparency
7. Public Health: Focusing on key priorities
8. Health Technology Assessment: Supporting cross-country HTA cooperation
9. Health Data: Addressing infrastructure and interoperability
10. Artificial Intelligence: Leveraging AI and advanced analytics

Market Growth Drivers

There are several key drivers that are driving the growth of the Global Health Economics and Outcomes Research (HEOR) Services market:

1. Increasing demand for cost-effectiveness analysis: With healthcare costs rising, pharmaceutical companies and healthcare providers are seeking to demonstrate the value of their products and services through cost-effectiveness analysis. This has led to an increased demand for HEOR services.
2. Government initiatives: Governments across the world are taking initiatives to promote the use of cost-effectiveness analysis in healthcare decision-making, which is driving the growth of the HEOR services market
3. Rising prevalence of chronic diseases: The rising prevalence of chronic diseases such as diabetes, cancer, and cardiovascular diseases is driving the demand for more effective and cost-efficient treatments, which in turn is driving the growth of the HEOR services market
4. Advances in technology: Advances in technology, such as big data analytics and artificial intelligence, are enabling the development of more sophisticated and accurate HEOR models, which is driving the growth of the HEOR services market
5. Growing emphasis on patient-centered outcomes: There is a growing emphasis on patient-centered outcomes in healthcare decision-making, which is driving the demand for HEOR services that can provide insight into the real-world impact of treatments on patients

Overall, these drivers are contributing to the growth of the Global Health Economics and Outcomes Research (HEOR) Services market and are expected to continue to do so in the coming years.

Market Restraints

There are several key restraints that are affecting the growth of the Global Health Economics and Outcomes Research (HEOR) Services market:

1. Lack of standardization: There is a lack of standardization in the methods used for conducting HEOR studies, which can lead to inconsistencies and inaccuracies in the results. This can limit the credibility and acceptability of HEOR results, which is a restraint on the growth of the HEOR services market.
2. The complexity of models: The complexity of HEOR models can make it difficult for decision-makers to understand and interpret the results, which can limit the use and impact of HEOR in healthcare decision-making
3. High costs: Conducting HEOR studies can be expensive, which can limit the uptake of HEOR services, especially among smaller organizations and in low- and middle-income countries
4. Regulatory barriers: There are regulatory barriers to the use of HEOR results in healthcare decision-making, such as the need for approval by regulatory agencies before HEOR results can be used to inform pricing and reimbursement decisions
5. Lack of data: There can be a lack of data or data of poor quality, which can limit the accuracy and robustness of HEOR results. This can be a restraint on the growth of the HEOR services market

These key restraints are affecting the growth of the Global Health Economics and Outcomes Research (HEOR) Services market and may continue to do so in the future unless addressed through efforts to improve standardization, data quality, and regulatory frameworks.

Competitive Landscape

There are several top companies in the Global Health Economics and Outcomes Research (HEOR) Services market, including:

• IQVIA: IQVIA is a leading provider of HEOR services, offering a wide range of services, including economic modeling, real-world data analytics, and health technology assessments
• Optum: Optum is a leading provider of HEOR services, offering a range of services, including economic modeling, real-world data analytics, and health technology assessments
• Parexel: Parexel is a leading provider of HEOR services, offering a range of services, including health technology assessments, cost-effectiveness analysis, and patient-centered outcomes research
• Evidera: Evidera is a leading provider of HEOR services, offering a range of services, including health technology assessments, cost-effectiveness analysis, and patient-centered outcomes research
• McKesson Corporation
• Syneos Health
• Medpace, Inc.
• Certara, Inc.
• Precision Health Economics
• Analysis Group
• HealthEconomics.Com
• The Gill Associates
• Inovalon

These are some of the top companies in the Global Health Economics and Outcomes Research (HEOR) Services market, offering a range of services to help decision-makers understand the value of healthcare interventions and products

Healthcare Policies and Regulatory Landscape

The global health economics and outcomes research (HEOR) services market is highly influenced by healthcare policies and regulations. The policies and regulations can either positively or negatively impact the market growth.

Healthcare policies play a significant role in determining the reimbursement and coverage of drugs, medical devices, and other healthcare services. The policies also regulate the pricing and market access of these products and services, which directly affects the demand and revenue generation in the HEOR services market.

On the other hand, regulations related to clinical trials and drug approval processes also impact the HEOR services market. These regulations ensure the safety and efficacy of drugs and medical devices, but they can also increase the time and cost of bringing a new product to the market.

The US health economics and outcomes research (HEOR) services market is heavily influenced by healthcare policies and regulations set by the US government. Some of the key regulations and policies that shape the market include:

Affordable Care Act (ACA): The ACA, also known as Obamacare, has had a significant impact on the HEOR services market. It has expanded health insurance coverage to millions of Americans and has also implemented various policies to control the cost of healthcare.

Food and Drug Administration (FDA) Regulations: The FDA regulates the approval and marketing of drugs and medical devices in the US. Companies seeking to bring a new product to the market need to comply with FDA regulations, which can increase the cost and time required to bring a new product to the market.

Centers for Medicare & Medicaid Services (CMS) Reimbursement Policies: CMS is responsible for setting reimbursement policies for healthcare services in the US. The reimbursement policies determine the amount of money that healthcare providers receive for their services, which affects the demand for HEOR services.

Patent and Intellectual Property Protection: The US has strict laws for protecting the intellectual property rights of companies, including patents for drugs and medical devices. This protection allows companies to recoup their research and development costs, but it can also increase the cost of drugs and medical devices for consumers.