The increased usage of Big Data analytics to identify complex health patterns and offer predictive analytics is driving healthcare IT spend in 2018. The focus on Artificial Intelligence, Machine Learning, Blockchain and Virtual/Augmented Reality in unlocking insights to drive improved healthcare delivery may be associated with this shift. M&A is also expected to rise throughout 2018 driven by an increasingly competitive marketplace and the billions of cash to be repatriated to the US. The healthcare IT market is expected to reach US $280B by 2021 at a CAGR of 16.9% according to MarketsandMarkets.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening, but the average growth rate is still 19%.
- Current gross profit margin is less than the average of the last 3 years gross profit margins.
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants.