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The Healthcare Revenue Cycle Management (RCM) Software market size is estimated to grow at a CAGR of 11.37% between 2022 and 2027. The market size is forecast to increase by USD 36.19 billion. The growth of the market depends on several factors, including the growing need for reducing revenue leakage in the healthcare system, the rise in the adoption of electronic health records (EHR), and the increase in healthcare-related spending. Healthcare RCM software helps to streamline medical practices' financials. This software helps healthcare service providers to manage their business processes effectively. Some of the key findings include managing patient records, insurance status, and payment information. Integrating healthcare RCM software reduces denied claims, tracks unpaid claims, and reduces revenue leakages. hospitals, medical labs, and physicians are the end-users of this software.
This healthcare revenue cycle management (RCM) software market report extensively covers market segmentation by deployment (cloud-based and on-premises), end-user (hospitals, physicians, and medical labs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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One of the key factors driving the healthcare revenue cycle management (RCM) software market growth is the increase in healthcare-related spending. Some of the key factors which significantly contribute to the growth of the global healthcare RCM software market include a rise in investments in building new hospitals and an increasing focus on paperless systems in hospitals. Additionally, there is a growing demand for cloud-based and web-based healthcare information system solutions in order to improve cost reduction and enhance operational efficiency.
Moreover, the emerging trend in the market is digital healthcare which comprises the use of electronic devices, smartphones, and advanced medical devices in the healthcare sector. It integrates several new technologies such as Big Data Analytics, cloud computing, and virtualization technology to provide quality healthcare services. Thus, it is expected to positively impact the healthcare revenue cycle management software market growth. Hence, such factors are expected to drive market growth during the forecast period.
A key factor shaping the healthcare revenue cycle management (RCM) software market growth is the growing awareness of cybersecurity. There is rising awareness and acceptance of cybersecurity due to the increasing connectivity and growing technological maturity across the healthcare sector. Due to the lack of end-to-end quality control, the security issues are more profound in the case of RCM services. Several prominent companies in the market are increasingly exposed to different security threats and vulnerabilities, which has fuelled the implementation of a more forward approach and adoption of best practices related to enterprise IT security.
Hence, there is increasing adoption of a more profound network security approach in order to efficiently manage this diverse technology environment and improve the general network security capabilities in a healthcare organization. Thus it is expected to positively impact the healthcare RCM software market growth. Hence, such factors are expected to drive market growth during the forecast period.
The growing number of malfunction cases related to healthcare RCM software is one of the key challenges hindering market growth. The increase in the number of software malfunctioning cases is significantly hampering the market reputation of this software which in turn is negatively impacting the market growth. Also, there is a rise in the number of cases where the healthcare RCM software malfunctioned, resulting in huge monetary losses for healthcare service providers.
Therefore, such malfunction issues are resulting in severe loss to market players in terms of money and reputation. As a result, there is a decline in the adoption of RCM software across healthcare service providers, especially small-scale hospitals and clinics. Thus, it is expected to negatively impact the healthcare RCM software market growth. Hence, such factors are hindering the healthcare revenue cycle management (RCM) software market growth during the forecast period.
The cloud-based segment is estimated to witness significant growth during the forecast period. Some of the key factors which are significantly contributing to the growth of the cloud-based segment include quick deployment, improved flexibility and scalability, real-time data visibility, and customization capabilities. The main advantage of the cloud-based segment is that it allows automation to integrate with other healthcare software solutions, such as online booking software and Internet-based payment and billing software.
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The cloud-based segment was the largest segment and was valued at USD 22.75 billion in 2017. These functionalities of the cloud-based segment are offered by service providers along with flexible payment options including monthly subscriptions and pay-as-you-go models. Therefore, there is increasing adoption of cloud-based segments across industries due to their cost-effectiveness. Other advantages of the cloud-based deployment model include scalability and reduction in IT costs as well as enabling solutions to offer scalability, which helps organizations scale up or down resources as per their demand. which is expected to fuel the growth of this segment and is expected to drive the market growth during the forecast period.
The increasing adoption of electronic health record (EHR) systems in the hospital segment is expected to increase market growth. There is increasing adoption of RCM software in the hospital segment for multiple revenue cycle management applications, such as patient insurance status checking, payment processing, insurance denial claims, and tracking unpaid claims. There is also a growing implementation of EHR software across hospitals which assists help administrators in managing patients' records electronically. Thus the integration of both EHR and healthcare RCM software will support the healthcare service providers in handling the entire business process electronically. Hence, such factors are expected to drive market growth during the forecast period.
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North America is estimated to contribute 55% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is a significant growth in healthcare spending due to factors such as the rise in the aging population as well as an increase in per capita healthcare costs. As a result, it has led to growth in the number of healthcare facilities and patient registrations. For example, in March 2022, UnitedHealth Group Incorporated (UNH) announced it would buy LHC Group Inc (LHCG) for about USD 5.4 billion in cash as the largest US health insurer expands its home health services. It has resulted in tremendous data generation.
Hence, several healthcare facilities are integrating EHRs and healthcare RCM software to manage patient records. Additionally, several healthcare providers are partnering with healthcare RCM software providers to enhance their operational efficiency and manage financials efficiently. Hence, such factors are expected to drive the global healthcare revenue cycle management (RCM) software market growth in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global healthcare revenue cycle management (RCM) software market witnessed a significant slowdown. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in healthcare units. Such factors are expected to drive the market during the forecast period.
The Healthcare Revenue Cycle Management (RCM) Software Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Healthcare Revenue Cycle Management (RCM) Software Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co: The company offers healthcare revenue cycle management software that includes CDI, coding, patient classification methodologies, and the 3m cloud platform which helps organizations control costs, increase access to quality care and analyze reliable metrics.
Change Healthcare Inc: The company offers healthcare revenue cycle management software that includes revenue cycle management, patient engagement, financial clearance, claims, and denials management.
Cognizant Technology Solutions Corp: The company offers healthcare revenue cycle management software that includes hospital RCM, self-pay and bad debt, accounts receivable management, and eligibility solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The healthcare revenue cycle management (RCM) software market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Healthcare Revenue Cycle Management (RCM) Software Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.37% |
Market growth 2023-2027 |
USD 36.19 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.46 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 55% |
Key countries |
US, Canada, Japan, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., ALLSCRIPTS HEALTHCARE SOLUTIONS INC., athenahealth Inc., Change Healthcare Inc., Chetu Inc., Cognizant Technology Solutions Corp., CompuGroup Medical SE and Co. KGaA, Computer Programs and Systems Inc., Epic Systems Corp., Experian Plc, International Business Machines Corp., OSP, Providence Health and Services, Quest Diagnostics Inc., QWay Healthcare Inc., R1 RCM Inc., The SSI Group LLC, Waystar Inc., WellSky Corp., and ZH Healthcare Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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