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 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 provide revenue cycle management to streamline the claims process. The software solutions allow mental health professionals to design and choose the optimal treatment plan for person suffering from mental health issues, such as depression, stress, anxiety, substance abuse, and addiction. Mental health software help design the 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 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 the insurance coverage for tele services for mental health.
Clinical functions dominated the market in terms of revenue share in 2019 and is expected to maintain its pole position the market throughout the forecast period. Behavioral health software provide 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, is 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 at one place. Administrative functions such as scheduling is beneficial as it provides timely care delivery at a lower cost. In addition, document management can reduce the 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 the 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 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.
Some of the key market players are Welligent, Inc.; Cerner Corporation; Netsmart Technologies; Epic; and Core solutions, Inc. The technologically advanced management solutions are driving the market, generating competition among the solution providers. A notable portion of the market will be based on non-profits and community centers, due to the type of patients. The partnerships among local healthcare systems and the increasing adoption of integrated care models are likely to provide impressive outcomes.
In July 2019, The Echo Group entered into a partnership with Mend, a telehealth solutions provider, for integrating its fiscal behavioral health software - EchoVantage with Mend’s HIPAA-approved video conferencing. In September 2017, Netsmart Technologies collaborated with Metrocare Services, a provider of mental health services for advanced behavioral healthcare.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Million & CAGR from 2020 to 2027
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
U.S., Canada, U.K., Germany, France, Italy, Spain, Japan, China, India, Brazil, Mexico, South Africa
Revenue forecast, company share, competitive landscape, growth factors & trends
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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)
Delivery Model Outlook (Revenue, USD Million, 2016 - 2027)
Function Outlook (Revenue, USD Million, 2016 - 2027)
Clinical Decision Support
Revenue Cycle Management
End-use Outlook (Revenue, USD Million, 2016 - 2027)
Hospitals & Clinics
Regional Outlook (Revenue, USD Million, 2016 - 2027)
Middle East & Africa
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