PHM allows the transition to value-based care by understanding the patient population and knowing the most effective ways to treat them.

PHM facilitates healthcare transformation telehealth/telemedicine, remote patient monitoring, and evolving staffing models associated with different levels of health risk. The aim is to minimize the impact of an acute episode of care and/or chronic health condition for the population.

Population Health Management leverages technology for data aggregation, data governance, predictive analytics, and business intelligence for transformation. Possessing and analyzing data allows providers to identify the greatest needs of the patient population. For example, if the majority of a patient population is suffering from a particular disease, say diabetes, obesity and also the corresponding social determinants of health. PHM allows providers to predict and identify patients at risk for hospital admissions, allows providers to create patient-specific care plans, and helps providers understand their patient population health trends.