Report Code: 11458 | Available Format: PDF
The global practice management systems market was valued at $13,173.2 million in 2022, and the market size is predicted to reach $25,320.7 million by 2030, advancing at a CAGR of 8.5% during 2022–2030. The market is driven by the changing dynamics of healthcare, rising demand for value-added services, increasing pressure to curb healthcare costs, and improving infrastructure and digitalization of healthcare.
The healthcare industry is extremely vast, and its centralization will help in synchronizing the entire work process, along with providing economic benefits. The sector is aiming at achieving lean management and six-sigma incorporation in the work culture, to optimize resource usage and increase efficiency. The rising demand of patients for better and faster healthcare provisions and the increasing disposable income further propel the centralization process. Practice management software for financial, administrative, diagnostics, and reporting purposes aids in this transformation.
These solutions allow for collaboration among various organizations and internal centralization, to create a single platform for medical practice. The technology enables care providers to ascertain the challenges faced by patients, while monitoring them 24/7. The usage of cloud computing is would further enhance peer-to-peer sharing, providing patients with access to their information on demand. Overall, centralization would lead to advancements in the healthcare ecosystem and higher patient satisfaction.
The awareness of these tools in LATAM can be attributed to the presence of government bodies and non-government organizations trying to develop databases and implementing health information exchange systems in the region. Already, the availability of advanced treatments at a considerably lower cost compared to North America and Europe has been leading to an increase in medical tourism in the region.
The governments of these countries are focused on improving their healthcare facilities. As a result, patients from developed countries, such as Canada, the U.S., and Germany, are likely to travel to various LATAM countries for disease treatment. This will further lead to an increase in the size of patient databases, eventually supporting the development of advanced patient management solutions.
Software held the larger share, around 60%, in the global market in 2022. The deployment of healthcare information systems is high, with several vendors offering customized software. This reduces workload in medical practice and streamlines workflows, which benefits healthcare personnel by allowing them to discharge their core duties, for improved patient outcomes. It also saves the time spent on activities including checking insurance eligibility, submitting claims, and scheduling appointments.
Moreover, such software helps drive revenue via the streamlining of the revenue cycle management (RCM) process. EHR dashboards help check insurance claim submission, eligibility, rejection, and acceptance. Additionally, the management software provides error- and hassle-free operations. Medical coding also helps ensure proper coding for smooth operations. Additionally, medical management software can allow healthcare professionals to perform claims scrubbing, for quick reimbursement, and reduce errors.
The cloud-based category will witness the fastest practice management systems market growth in the forecast period, at a CAGR of around 10%. Cloud-based practice management solutions enable the smooth control of office workflows and invoicing through a customizable dashboard, thus reducing the time spent in producing reports and allowing doctors to spend more time on actually caring for patients. For a better experience, many vendors even integrate these solutions with their own electronic health records.
Additionally, many cloud-based practice management tools allow users to automate various aspects of the business. This can include document management, appointment scheduling, lead generation, job management, and even a client portal where clients can simply upload, download, and read case files or pay invoices.
Report Attribute | Details |
Historical Years |
2017-2022 |
Forecast Years |
2023-2030 |
Market Size in 2022 |
$13,173.2 Million |
Revenue Forecast in 2030 |
$25,320.7 Million |
Growth Rate |
8.5% CAGR |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Component; By Product; By Delivery Mode; By End User; By Region |
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Hospitals held the largest share, over 30%, in 2022 as these solutions enable doctors and office personnel to plan and confirm appointments, as well as managing schedules across different providers, locations, and days of the week. Patients can also book appointments online via many systems. Moreover, these tools allow physicians and other staff members to access not only the basic patient information, such as name, address, phone number, birth date, employer, and insurance provider, but also extensive clinical data, such as medical history, medications, and reasons for previous visits, in a matter of seconds. Hospital administrations can even automatically verify a patient’s insurance coverage prior to their visit.
The system checks bills and claims to ensure they not only adhere to the payor standards but also include the proper diagnosis codes. If the system detects an error or contradicting information that may cause the payment to be delayed, staff personnel are notified so that the issue can be handled. They will also be notified if any claims or patient payments are past due. If the medical practice management system is cloud-based, new billing and procedural codes and rules will be updated immediately, ensuring that the healthcare establishment never employs out-of-date codes.
The provision of value-added services, i.e., the integration of practice management systems with other healthcare information technology (HIT) solutions, such as EHR, computerized physician order entry (CPOE), and laboratory information system (LIS), is expected to propel the demand for these solutions over the forecast period. E-prescriptions allow for real-time interaction between pharmacies and healthcare professionals, which minimizes communication error and improves prescription accuracy.
This system improves efficiency, is cost-efficient, provides patient safety, along with expanding the reach of healthcare facilities, and integrates practice management with e-prescriptions. In particular, the integration of EHRs with these platforms leads to the elimination of repetitive data entry, reduced cost, improved process management, and streamlining of administrative data with medical information. These high-end features of integrated practice management systems have led to their increasing adoption by healthcare providers, thus boosting the growth of the market.
North America accounted for the largest revenue share, around 40%, in the global practice management systems market in 2022. The North American market is expected to continue to maintain its leading position during the forecast period, primarily attributable to the presence of key HIT vendors and the encouraging federal initiatives taken in the region to amalgamate health records on a single platform. Moreover, the increasing awareness of such solutions, coupled with the high government spending on the healthcare sector, is expected to accelerate the growth of the market in the region.
Moreover, electronic medical record adoption among primary-care physicians in Canada is showing continued growth. All Canadian citizens have at least one clinical report available in the electronic form, which can be accessed by physicians from anywhere. This interoperability of EHR systems is projected to drive the Canadian market over the forecast period.
The growth of the European market is credited to the government initiatives for continued improvements in the exchange of health-related information. For instance, the European Health Information Initiative (EHII) is a World Health Organization (WHO) network involved in establishing health policies in Europe. The EHII provides support for the exchange of expertise, building of capacity, and improvement of the process of health data collection and reporting. Moreover, the European Association of Public Health (EUPHA) works with the EHII in this field, thereby widening the scope for the adoption of these solutions.
The market in the U.K. is expected to grow considerably due to the presence of public organizations, such as NHS, that provide information to public and healthcare professionals and promote research activities concerning practice management systems. Moreover, the NHS provides funds and reimbursements to general practitioners for software and hardware procurement, maintenance, and upgradation, thereby augmenting the growth of the overall market.
The study uncovers the biggest trends and opportunities in the market, along with offering segmentation analysis at the granular level for the period 2017 to 2030.
Based on Component
Based on Product
Based on Delivery Mode
Based on End User
Geographical Analysis
During 2022–2030, the market for practice management systems will grow by 8.5%.
The practice management systems industry 2022 value is $13,173.2 million.
The market for practice management systems is segmented by component, product, delivery mode, end user, and region.
Hospitals generate the highest practice management systems industry revenue.
North America is the largest and Europe the second-largest market for practice management systems.
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