Investment Thesis Report: Prior Authorization

Prior authorization is a large burden on the healthcare system. While it was conceived as a way to cut unnecessary healthcare costs, the infrastructure of the prior authorization process has failed to innovate as rapidly as the rest of the healthcare industry, leaving providers and patients frustrated. Aside from the complexities surrounding the process as a whole, PA has been listed by physicians as the #1 cause of burnout. The volume of PAs are increasing by 20% per year due to the increasing number of medical treatments on the market.

Here is a brief excerpt from the report: “Overall, PA costs the healthcare industry anywhere from $23-31 billion dollars annually. For an industry that is only 7% digitized, the market for digital healthcare is valued at over $294 billion, with a CAGR of 15.1% until 2028. By 2022, the healthcare utilization market is expected to reach $6.5 billion. By 2025, PA is expected to reach a market size of $4 billion based on averaging several confidential sources.”

Click here for a direct link to the investment thesis report (PDF). Thanks to Keeley Parker for authoring the report.