Behavioral Health Care Software And Services Market Size, Share & Trends Analysis Report By Component, By Delivery Model, By Function, By End Use, By Disorder Type, By Region And Segment Forecasts, 2023 - 2030

Report Overview

The global behavioral health care software and services market size was valued at USD 3.3 billion in 2022 and is expected to expand at a CAGR of 12.8% from 2023 to 2030. Government funding, increasing adoption of mental health software, favorable behavioral health reforms in the United States, government initiatives to promote EHR adoption in psychiatry hospitals and facilities, and high demand for mental health services despite provider shortages are major factors contributing to the market growth.

The adoption of management software by healthcare providers is likely to improve the treatment of mental wellbeing issues. Also, the adoption of integrated 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 real-time monitoring system facilitates the connection between patients and care providers by removing barriers such as information sharing and confidentiality, which are particularly prevalent in substance abuse situations. Integrating modern technologies with established therapy modalities contributes to the improvement of care's effectiveness and efficiency.

Telepsychiatry utilizes video conferencing to enable care providers to communicate with patients from a distance. According to the United Nations, over 35 million individuals worldwide suffered from substance addiction disorders in 2019. Only one in seven of the individuals received the essential treatment. Governments are particularly concerned about high healthcare expenditures associated with the treatment of behavioral health-related disorders. Depression is a prevalent condition worldwide, affecting about 264 million individuals of all ages. According to the Lancet Commission research, the global cost of mental illness treatment was USD 2.5 trillion in 2020 and is expected to reach USD 6 trillion by 2030. Economic costs are mostly a result of the early onset of mental disease and lost productivity, with an anticipated 12 billion working days lost every year.

Additionally, depression and anxiety have a large economic impact. The World Health Organization (WHO) estimates that depression and anxiety cost the world economy USD 1 trillion each year in lost productivity. Mental problems cost Canada more than USD 50 billion per year, according to the Centre for Addiction and Mental Health. The requirement for and development of extensive paperwork (which results in doctors losing productivity), and ineffective revenue cycle management by service providers are the primary contributors to the high cost of treatments.

The need to address these concerns has increased the awareness and acceptance of mental health solutions as a means of decreasing drug errors and paperwork, increasing productivity through quick access to patient data, increasing workflow efficiency, and lowering healthcare costs. These benefits have accelerated the adoption of mental health software, particularly among large hospitals and community clinics.

COVID-19 behavioral health care software and services market impact: 20.4 % increase from 2019 to 2020

The COVID-19 pandemic has benefited the industry. Global demand for mental health applications has surged in the aftermath of the COVID-19 outbreak and lockdowns. According to ORCHA, the usage of apps to support depression increased by 86% post the implementation of the COVID-19 Mental Health and Wellbeing Recovery Action Plan in the U.K.

Consumers are increasingly reliant on their cellphones for everything from entertainment to exercise and shopping, and they are also seeking help for their mental well-being throughout this period. Additionally, software vendors are assisting in the resolution of the healthcare crisis.

Component Insights

The software segment dominated the market with a share of 83.3% in 2022. Increased adoption of technological solutions for the management of financial, administrative, and clinical functions of psychiatry 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. These solutions allow healthcare professionals to design and choose the optimal treatment plan for a person suffering from issues, such as depression, stress, anxiety, substance abuse, and addiction. They help design treatment plans based on clinical evidence and related patient records.

The segment is further bifurcated into integrated and standalone. Integrated software has all the functionalities combined in one single package. The services can vary from appointment scheduling, billing and claims management, e-prescription, telehealth, payroll management, etc. Standalone solutions cater to single functionality and are preferred by small organizations. Support services consist of maintenance and assistance required for the software solutions.

Delivery Model Insights

The subscription segment dominated the market with a share of 62.6% in 2022 and is anticipated to register the highest compound annual growth rate of 13.2% over the forecast period. Based on the delivery model, the market is segmented into ownership and subscription. 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, a lack of reimbursement limits the usage of EHRs in small-scale practices. Medical professionals hesitate to spend thousands of dollars on software solutions. With limited budgets, small-scaled practices prefer subscription-based solutions. Various affordable options are available that can provide optimal return on investment. Large facilities prefer purchasing and installing software solutions for smooth workflow management. Earlier, professionals had limited options to suit their particular needs. However, with the advent of technological advancements, varieties of options are now available in the market, thereby favoring the growth of the ownership segment.

End-Use Insights

Based on end-use, providers accounted for over 51.7% of the market revenue share in 2022. The market for mental health care software and services is segmented into providers, payers, and patients. The limited number of EHR providers specific to mental care increases the demand for software suppliers. On the other hand, the payer's segment is likely to witness the maximum compound annual growth rate (CAGR) of 13.96% during the forecast period due to the improving reimbursement scenario. Medicare provides insurance coverage for telepsychiatry services.

The patients segment is projected to witness lucrative growth of 12.81% compound annual growth rate (CAGR) in the coming years. The rising prevalence of anxiety and stress, increasing availability of a variety of mobile apps, and improving internet access are propelling the growth of the segment. Furthermore, the shift towards digital health is likely to bode well with the expansion of the segment.

Function Insights

Based on function, the clinical functions segment is expected to dominate the market with a revenue share of 51.3% in 2022 and maintain its prominent position 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. 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. Rapid changing reimbursement scenario, increasing adoption of RCM platforms, and increasing cost of care are boosting the growth of the financial function segment. The segment is further classified into RCM, managed care, payroll, and general ledger.

Regional Insights

North America held 41.6% of the market revenue share in 2022. In the U.S., Medicare provides reimbursement for telepsychiatry services, making the 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 mental health services delivered via telehealth.

In January 2017, the integration of new behavioral health integration codes helped to combine physical care and behavioral health treatment plans. In 2017, as part of the chronic care management services strategy, the CMS launched the behavioral health integration and psychiatric collaborative care models. On the other hand, Asia Pacific is expected to register the highest CAGR of 13.38% compound annual growth rate (CAGR) during the forecast period. Increasing smartphone and internet penetration and the rising geriatric population in China and Japan are anticipated to fuel regional growth. Asian countries such as China and India have a large number of smartphone users, providing huge opportunities for the market to propel.

Key Companies & Market Share Insights

The market is characterized by innovation in products due to evolving needs & demand for tools & software to manage & provide psychiatric services. In 2018, SimplePractice, LLC launched a telehealth platform for video conferencing in a behavioral health setting. Some of the prominent players in the global behavioral health care software and services market include:

• Cerner Corporation

• Core Solutions, Inc.

• Epic

• Meditab

• Holmusk

• Netsmart Technologies

• Qualifacts Systems, Inc.

• Welligent, Inc.

Behavioral Health Care Software And Services Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. 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, disorder type, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

    • Integrated

    • Standalone

  • Support Services

• Delivery Model Outlook (Revenue, USD Million, 2017 - 2030)

  • Ownership

  • Subscription

• Function Outlook (Revenue, USD Million, 2017 - 2030)

  • 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, 2017 - 2030)

  • Providers

    • Hospitals & Clinics

    • Community Centers

  • Payers

  • Patients

• Disorder Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Anxiety

  • Post-Traumatic Stress Disorder (PSTD)

  • Substance Abuse

  • Schizophrenia

  • Bipolar Disorders

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Denmark

    • Sweden

  • Asia Pacific

    • Japan

    • India

    • China

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait