The global behavioral/mental health care software & services market size was valued at USD 1.9 billion in 2018 and is expected to expand at a CAGR of 13.1% over the forecast period. Adoption of the software by care providers is likely to improve treatment prospects and management of mental health issues. Behavioral health practices can adopt integrated Electronic Health Records (EHRs) for cost savings and effective practice management. Tele-mental health or tele-psychiatry involves video conferencing, which helps care providers to coordinate with patients from any location.
The real-time monitoring system simplifies communication between patients and care providers. Such improved technologies are capable of overcoming barriers such as confidentiality and information sharing, especially in the cases specific to substance use and mental health information.
Around 21.5 million people in U.S. were reported to be suffering from substance abuse disorders in 2014. Of those, only 2.5 million people actually received the treatment. Hence, there is a wide scope for the improvement in care delivery of behavioral health care. According to the U.S. Department of Health and Human Services, the healthcare budget for substance abuse treatment services was estimated to be around USD 35 billion in 2014.
Although around 74% of medical professionals in the U.S. have installed EHR systems, only 29% have the ability to share data with other care providers and payers. Around 31% of primary care providers completely lack the ability to share data. In addition, less than 15% of the behavioral and mental care organizations can actually share data in order to facilitate proper care coordination. This is due to low awareness about the benefits of implementing behavioral health software solutions. The delivery of these needs to shift toward patient-centric model rather than the clinic-centric model.
Software segment led behavioral health care market in 2018 and is also likely to witness the fastest CAGR over the forecast period. Increased adoption of technological solutions for the management of clinical, administrative, and financial functions of mental health care practices is responsible for the growth of the market. Consumers can directly access the required services and information with the help of mobile EHRs. Patients and care providers can connect with each other through a secure and user-friendly portal. Claims and billing functionality is integrated into the EHR systems. Complex long term billing procedures can be managed with the help of EHRs. Revenue cycle management is used to streamline the claims process.
Behavioral healthcare software solutions are available for purchase as well as for subscription. The subscription services held a majority of the market share in 2018. Moreover, the subscription segment is likely to witness the fastest CAGR over the forecast period. With limited budgets, small-scale practices prefer subscription-based software solutions. Various options are available in the market that are affordable for mental health professionals and can provide optimal return on investment.
On the basis of end use, the market has been divided into providers, payers, and patients. Providers led the end use segment in behavioral/mental health care software & Services market in 2018 in terms of revenue share. It is expected to retain the leading position throughout the forecast period. Payers segment is likely to register the highest CAGR over the forecast years due to rising reimbursement for mental disorders.
Clinical functions led the mental health care software and services market in terms of revenue in 2018. Small-scale healthcare facilities opt for standalone solutions as these solutions target a specific area that needs improvement and are cost effective. Large-scale mental health facilities have a wide pool of potential users.
Hence, integration of clinical functions with their systems is required. Clinical functions are anticipated to maintain their position in the market throughout the forecast horizon, followed by administrative functions. Administrative functions are projected to exhibit the fastest growth over the same period.
North America led the market in terms of revenue in 2018. Europe is the second largest market closely followed by Asia Pacific. Asia Pacific is expected to witness the fastest growth in the forthcoming years. Rising geriatric population in Japan and China is anticipated to help the regional growth.
In 2017, CMS introduced the psychiatric collaborative care model and behavioral health integration under the successful chronic care management services initiative. In January 2017, new behavioral health integration codes were introduced. It has become easier to combine behavioral and physical care treatment plans.
In U.S., the reimbursement scenario for behavioral healthcare software is promising. Medicare provides reimbursement for tele-mental health services. The covered costs include consultation charges, clinic visits, psychotherapy, pharmacology management, and interactive audio and video sessions. In 2012, Medicare introduced diagnostic codes for the reimbursement of tele-mental healthcare services. In U.S., around 39 states have established guidelines related to telehealth reimbursement.
Some of the key players operating in themarket are Cerner Corporation; Core solutions, Inc.; Epic; Netsmart Technologies; Welligent, Inc.; and others. There is high competition among the players as the market is driven by technologically advanced management solutions. Due to the nature of patients, a notable portion of the market will remain based on community centers and non-profits. However, the adoption of integrated care models and partnerships between local healthcare systems are likely to provide impressive outcomes.
In March 2017, Qualifacts Systems, Inc. introduced a software solution for mobile behavioral health. The solution offers fully functional mobile apps for behavioral healthcare staff. In September 2017, Netsmart Technologies collaborated with Metrocare Services for advanced behavioral healthcare. Metrocare Services is a provider of mental health services, especially for children.
Base year for estimation
Actual estimates/Historical data
2015 - 2017
2019 - 2026
Revenue in USD Million & CAGR from 2019 to 2026
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 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global behavioral/mental health care software & services market report based on component, delivery model, function, end use, and region:
Component Outlook (Revenue, USD Million, 2015 - 2026)
Delivery Model Outlook (Revenue, USD Million, 2015 - 2026)
Function Outlook (Revenue, USD Million, 2015 - 2026)
Clinical Decision Support
Revenue Cycle Management
End Use Outlook (Revenue, USD Million, 2015 - 2026)
Hospitals & Clinics
Regional Outlook (Revenue, USD Million, 2015 - 2026)
Middle East & Africa
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