The global behavioral health care software and services market size was valued at USD 2.1 billion in 2019 and is expected to expand at a CAGR of 11.1% over the forecast period. The adoption of management software by healthcare providers is likely to improve the treatment for mental health issues. The adoption of integrated electronic health records (EHRs) can help behavioral health practices in effective practice management and cost-saving. Tele-mental health involves coordinating with patients at distant locations via video conferencing.
The simplified communication between patients and care providers and overcoming barriers such as information sharing and confidentiality, especially in the substance use cases and mental health information, is facilitated by real-time monitoring system. Around 21.5 million people in the U.S. were reported to be suffering from disorders related to substance abuse in 2014. Of those, only 2.5 million people received the necessary treatment. According to the Department of Health and Human Services, the U.S. president's budget granted USD 5.5 billion for the Substance Abuse and Mental Health Services Administration (SAMHSA) for the fiscal year 2020. Although more than 74% of medical professionals have installed EHR systems, only 29% have the capability to share data with other payers and care providers. The proportion of primary care providers who completely lack the ability to share data is around 31% due to a lack of awareness regarding the benefits of implementation of behavioral health software.
The software segment dominated the behavioral health care software and services market in 2019. Increased adoption of technological solutions for the management of financial, administrative, and clinical functions of mental health care practices is responsible for the segment growth. EHR systems have integrated claims and billing functionality that can manage complex billing procedures, and its mobile version enables patients to access services on the go.
The software provides revenue cycle management to streamline the claims process. The software solutions allow mental health professionals to design and choose the optimal treatment plan for a person suffering from mental health issues, such as depression, stress, anxiety, substance abuse, and addiction. Mental health software help design treatment plans based on clinical evidence and related patient records.
Behavioral healthcare software solutions are available for purchase as well as for subscription. The subscription services segment held the majority of the market share in 2019 and is likely to register the fastest CAGR over the forecast period. Unlike large medical practices or hospitals, most small-scale mental healthcare professionals have limited capital to invest in technological solutions. In addition, due to the small scale of their practice, these professionals are unable to qualify for incentives for meaningful use of EHRs. Hence, lack of reimbursement limits the usage of EHRs in small-scale mental health practices. Mental health professionals hesitate to spend thousands of dollars on software solutions. With limited budgets, small-scaled practices prefer subscription-based software solutions. Various options affordable options are available for mental health professionals that can provide optimal return on investment.
On the basis of end use, the market for behavioral health care software and services has been trifurcated into providers, payers, and patients. Providers accounted for the largest market share in terms of revenue in 2019. The limited number of EHR providers specific to mental health care increases the demand for software suppliers. The payers segment is likely to witness the fastest CAGR over the forecast period due to improving reimbursement scenario. Medicare provides insurance coverage for teleservices for mental health.
Clinical functions dominated the market in terms of revenue share in 2019 and is expected to maintain its pole position in the market throughout the forecast period. Behavioral health software provides clinical services such as claim filings, documentation, scheduling appointments, billing, and coding. Market players offer standalone solutions as well as all-inclusive solutions.
The administrative functions, on the other hand, are anticipated to be the fastest growing segment in the forthcoming years. Behavioral health facilities, especially large-scale centers, usually require centralized scheduling systems to view multiple providers in one place. Administrative functions such as scheduling are beneficial as it provides timely care delivery at a lower cost. In addition, document management can reduce data overload in healthcare settings.
North America held the largest behavioral health care software and services market share in 2019 in terms of revenue. On the other hand, Asia Pacific is expected to register the fastest CAGR during the forecast period. Rising geriatric population in China and Japan is anticipated to fuel regional growth. In January 2017, the integration of new behavioral health integration codes helped to combine physical care and behavioral treatment plans. The CMS introduced the behavioral health integration and psychiatric collaborative care model in 2017 under the chronic care management services initiative.
In the U.S., Medicare provides reimbursement for tele-mental health services and makes the behavioral healthcare software reimbursement scenario promising. Increasing awareness regarding mental health software has led to constant improvements in Medicare policies. For instance, in November 2019, the Telemental Health Expansion Act (HR 5201) was introduced in the U.S. Congress, which aims at exempting the regional restrictions in the guidelines for the mental health services delivered via telehealth.
Report Attribute |
Details |
Market size value in 2020 |
USD 2.3 billion |
Revenue forecast in 2027 |
USD 5.0 billion |
Growth Rate |
CAGR of 11.1% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million and CAGR from 2020 to 2027 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Component, delivery model, function, end use, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Japan; China; India; Brazil; Mexico; South Africa |
Key companies profiled |
Welligent, Inc.; Cerner Corporation; Netsmart Technologies; Epic; Core solutions, Inc. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global behavioral health care software and services market report based on component, delivery model, function, end use, and region:
Component Outlook (Revenue, USD Million, 2016 - 2027)
Software
Integrated
Standalone
Support Services
Delivery Model Outlook (Revenue, USD Million, 2016 - 2027)
Ownership
Subscription
Function Outlook (Revenue, USD Million, 2016 - 2027)
Clinical
EHRs
Clinical Decision Support
Care Plans
E-prescribing
Telehealth
Administrative
Patient/Client Scheduling
Document Management
Case Management
Workforce Management
Business Intelligence
Financial
Revenue Cycle Management
Managed Care
General Ledger
Payroll
End-use Outlook (Revenue, USD Million, 2016 - 2027)
Providers
Hospitals & Clinics
Community Centers
Payers
Patients
Regional Outlook (Revenue, USD Million, 2016 - 2027)
North America
The U.S.
Canada
Europe
The U.K.
Germany
France
Italy
Spain
Asia Pacific
Japan
China
India
Latin America
Brazil
Mexico
Middle East & Africa
South Africa
b. The global behavioral/mental health care software & services market size was estimated at USD 2.1 billion in 2019 and is expected to reach USD 2.3 billion in 2020.
b. The global behavioral/mental health care software & services market is expected to grow at a compound annual growth rate of 11.1% from 2020 to 2027 to reach USD 5.0 billion by 2027.
b. North America dominated the behavioral/mental health care software & services market with a share of 43.1% in 2019. This is attributable to the increasing awareness regarding mental health software and improved Medicare policies.
b. Some key players operating in the behavioral/mental health care software & services market are Welligent, Inc.; Cerner Corporation; Netsmart Technologies; Epic; and Core solutions, Inc.
b. Key factors that are driving the behavioral/mental health care software & services market growth include the adoption of management software by healthcare providers to improve the treatment for mental health issues. The simplified communication between patients and care providers and overcoming barriers such as information sharing and confidentiality.
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