Insights into the future of cloud-based EHMHow Enterprise Healthcare Management Improves the Health of Enterprises and Their Employees

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An affordability crisis has created chaos in the employer-provided healthcare market. With $620 billion in employer-paid costs to U.S. healthcare in 2014 and an annual increase that ranges from 4.7 percent to 10.3 percent a year, employers seek both improved utilization of programs and cost reductions.1 In addition, 55 percent, or more than half of all Americans, receive healthcare benefits from employer-sponsored programs.2

While early solutions provided transactional management and benefit design, newer solutions have incorporated insight and analytics to improve not only the efficacy of healthcare for employees, but also identify new opportunities. These opportunities not only reduce costs, but also create new programs based on usage patterns, identify opportunities to improve health and wellness, and allow employees to balance out the cost versus quality equation.

EHM is a new category of software that helps organizations select, deploy, manage, and influence the outcomes of their healthcare investments to align with business goals such as incentivizing employees to make responsible healthcare decisions; guiding employees to obtain and maximize available benefits; improving visibility into healthcare efficacy for employee and employer; reducing unnecessary or inappropriate care; and revealing usage patterns that could result in new programs.

Constellation expects this category to play a key role in improving the future of work by improving the efficacy of health benefits programs while driving down cost through transparency. 


Purpose & Intent: 

Enterprise healthcare management (EHM) technology is a category of software that enables employers to maximize their health care investments to influence and meet business objectives. 

This report provides an overview of the EHM market. 

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