By 2030, the hospital risk management market is expected to reach $3,482.3 million in sales, growing at a CAGR of 13.5% from 2021 to 2030. This is due to the growing prevalence of chronic illnesses and the rising incidence of medical errors. The need for risk management and safety services, together with the rise in medical mistakes and worries about patient data protection, are all contributing to an increase in player rivalry.
A hospital risk manager sometimes referred to as a risk management director actively seeks to avoid circumstances that can bring about losses or liabilities. Situations in a hospital context might include invasions of patient privacy, mistakes in diagnosis or treatment, and dangerous circumstances. More than 3 million individuals every year pass away as a result of medical error, which is more than fatalities from illnesses like malaria, HIV, and TB combined.
The fastest CAGR, over 14%, is predicted to be achieved by risk and compliance management in the hospital risk management market. This is due to the growing concerns about patient safety, the need to reduce healthcare costs, and increase in the frequency of hospital-acquired infections. As per the government organization, in 2020 there will be a 25% growth in the frequency of CLABSI and an over 30% growth in the hospital-onset MRSA infection rate.
As per the government organization, the majority of medical mistakes take place in LMICs, which experience more than 130 million unfavorable hospital occurrences annually. Additionally, the need for hospital risk management is being influenced by the expanding use of IT in the healthcare infrastructure, fast digitization, and an increase in government efforts.
In 2030, it is expected that large hospitals would account for the majority of shares, or around 60% in the hospital risk management market. This is due to an increase in large hospitals, increasing medical spending, and the use of EHRs in hospitals. For example, over 90% of American hospitals are now working to validate EHRs. Hospital risk management is essential for the efficient operation of EHR systems and the elimination of medical mistakes. With about 12.4, 12.8, 8.0, and 7.9 beds per 1,000 people, respectively, South Korea, Japan, Russia, and Germany have the highest hospital bed densities.
Risks in the healthcare industry include medical misconduct, treatments, defective equipment, and other dangers. To keep patients, secure and safe and to control costs, the health care sector must effectively manage these and other risks. Hospitals, long-term care institutions, and other healthcare organizations can reduce the possibility of loss once risk management methods are in place.
For example, every year, hospital medication errors cause about 10,000 American deaths. An increase in healthcare costs as a result of the growing incidence of medical errors also contributes to the market’s expansion. About $40 billion is spent in the U.S. Annually on patients who have medication errors. Preventable medical mistakes in hospitals are the leading cause of death from risks including AIDS, breast cancer, and auto accidents.
