The global behavioral/mental health care software and services market size was valued at around USD 1.84 billion in 2017. It is expected to witness a CAGR of 11.8% over the forecast period. Adoption of behavioral health care software by care providers is likely to improve treatment prospects and management of mental health issues.
Behavioral health practices can adopt integrated 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.
Real-time monitoring system simplifies communication patients and care providers. Such improved technologies are capable of overcoming barriers such as confidentiality and information sharing, especially in cases specific to substance use and mental health information.
Around 21.5 million people in the U.S. were reported to be suffering from substance abuse disorders in 2014. Of those, only 2.5 million people actually received treatment. Hence, there is a wide scope for 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 74.0% of healthcare professionals have installed EHR systems in the U.S., only 29.0% have the ability to share data with other care providers and payers. Around 31.0% of primary care providers completely lack the ability to share data. In addition, less than 15.0% of the behavioral and mental healthcare organizations can actually share data in order to facilitate proper care coordination. This is due to low awareness regarding benefits of implementing behavioral health software solutions. Delivery of mental healthcare needs to shift toward patient-centric model rather than clinic-centric model.
The support & maintenance segment dominated the market in 2017. Post-contract client assistance is responsible for revenue generation in the segment. Increasing adoption of technological solutions for management of clinical, administrative, and financial functions of mental health care practices is contributing to the growth of the market. Software is poised to be the fastest growing segment in the coming years.
Consumers can directly access required services and information with help of mobile EHRs. Patients and care providers can connect with each other through secure and user-friendly portal. Claims and billing functionalities are integrated into EHR systems. Complex long term billing procedures can be managed with the help of EHRs. Revenue cycle management is used to streamline claims process.
Behavioral healthcare software solutions are available for purchase as well as for subscription. The subscription services held the leading share in the market in 2017. The segment is estimated to maintain its position, expanding at the highest CAGR of 12.1% during the forecast period. With limited budgets, small-scale practices prefer subscription-based software solutions.
In addition, several times, professionals are unable to qualify for incentives for meaningful use of EHRs due to the small scale of their practice. Owing to these factors, subscription-based software and services are increasingly emerging as the preferred choice. Various options are available in the market that are affordable for mental health professionals and can provide optimal return on investment.
Clinical functions dominated the behavioral/mental health care software and services market in 2017 in terms of revenue. 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.
On the basis of end users, the market has been divided into providers, payers, and patients. Providers dominated the market in 2017 in terms of revenue share. They are expected to retain their leadership in the arena throughout the forecast period. By 2025, the segment is poised to account for just over half of the market. Payers are likely to experience the highest CAGR of 13.1% over the forecast years due to rising reimbursement rates for mental health conditions.
North America dominated the overall market in terms of revenue in 2017. Europe is the second largest market closely followed by Asia Pacific. Asia Pacific is estimated to register the fastest growth over the coming years. Rising geriatric population in Japan and China is anticipated to help the regional market gain tremendous momentum over the forecast period.
Around 18.5% adults in the U.S., nearly 43.8 million, experience mental illnesses. Serious mental diseases are responsible for losses worth USD 193.2 billion every year. The reimbursement scenario in the U.S. for behavioral health software is promising. Medicare provides reimbursement for tele-mental health services. Covered costs include consultation charges, clinic visits, psychotherapy, pharmacology management, and interactive audio and video sessions. In 2012, Medicare introduced diagnostic codes for reimbursement of tele-mental health services. In the U.S., around 39 states have established guidelines related to telehealth reimbursement.
There is a high competition among market players as behavioral health software market is driven by technologically advanced management solutions. Due to nature of patients served in the market, a notable portion of the market will remain based on community centers and non-profits. However, adoption of integrated care models and partnerships between local health systems are projected to provide impressive outcomes.
In March 2017, Qualifacts Systems, Inc. introduced software solution for mobile behavioral health. The solution offers fully functional mobile apps for behavioral health 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
2014 - 2017
2018 - 2025
Revenue in USD Million & CAGR from 2018 to 2025
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 of the market at global, regional, & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the behavioral/mental health care software and services market based on component, delivery model, function, end use, and region:
Component Outlook (Revenue, USD Million, 2014 - 2025)
Support & Maintenance Services
Delivery Model Outlook (Revenue, USD Million, 2014 - 2025)
Function Outlook (Revenue, USD Million, 2014 - 2025)
Clinical Decision Support
Revenue Cycle Management
End Use Outlook (Revenue, USD Million, 2014 - 2025)
Hospitals & Clinics
Regional Outlook (Revenue, USD Million, 2014 - 2025)
Middle East & Africa
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