Practice Management System Market Size, Share & Trends Analysis Report By Product (Integrated, Standalone), By Component (Software, Services), By Delivery Mode (Cloud, Web-based), By End User, And Segment Forecasts, 2022 - 2030

Report Overview

The global practice management system market size was valued at USD 12.9 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 8.8% from 2022 to 2030. The growing adoption of these management systems can be attributed to its increasing need for reduction in healthcare costs along with the ability to generate sufficient income for healthcare professionals. Furthermore, favorable initiatives undertaken by the government coupled with increasing penetration of IT in the healthcare sector are expected to fuel the market growth. For instance, in May 2020, the federal government proposed the Federal IT Strategic Plan 2020-2025, which focuses on improvising the access, exchange, and usage of electronic health information.

Practice management system vendors and organizations have initiated to help in curbing the pandemic by making telehealth a mainstream alternative, enhancing data access through EHRs, and scheduling patient appointments using the practice management software. The introduction of a practice management system for operating medical and healthcare practices during the COVID-19 pandemic has eased the process, as data entering into computerized systems is more convenient than paper-based methods. The upsurge in the demand for achieving efficiency in operations and documentation with nominal errors is boosting the market growth.

In addition, the rising number of technological developments coupled with the varying dynamics of healthcare/hospital settings have paved ample opportunities for market growth. Moreover, the increasing focus on high-quality care & cost-effective treatment is also anticipated to drive the market growth. Furthermore, a rise in the R&D investments and demand for practice management systems is expected to fuel the market growth over the forecast period. There is high competition between key players, which has prioritized collaborations and partnerships between other companies to enhance the practice management system market.

Moreover, according to the Congressional Research Service report, in 2018, the federal funding for research & development in the U.S. has risen from USD 2.8 billion in 1953 to USD 127.2 billion in 2018. Such factors are driving R&D activities and are expected to support market growth. The growing geriatric population is also expected to propel the market. Elderlies are susceptible to chronic diseases, such as diabetes and cardiovascular diseases, that often lead to hospitalizations. Thus, the increasing geriatric population is expected to increase the patient pool for several chronic diseases. Furthermore, the growing incidences of drug resistance have fueled the demand to maintain & track patient history and medical data.

Product Insights

On the basis of products, the global market has been further divided into integrated and standalone systems. The integrated systems accounted for the largest revenue share of more than 71.5% in 2021 owing to associated benefits with their usage. The standalone system segment is anticipated to register the fastest growth rate over the forecast period. The integrated solutions comprise e-Prescription, Electronic Health Records (EHR), and billing systems & patient engagement. These systems offer several benefits, such as systematic medical billing, streamlined practitioner & patient communication, etc.

The rising complexities associated with patient care and payments coupled with the centralization in the healthcare industry is fueling the segment growth. Moreover, the standalone system segment growth can be attributed to the freedom for physicians to access all facets of practice & business, including prescribing, practice administration, billing as well as patient communication portals. In addition, the standalone systems focus primarily on functions associated with administrative & billing, particularly scheduling.

Component Insights

The component segment includes software and services offered by the key players. The software segment accounted for the largest revenue share of more than 58.00% in 2021. Software is easy to install, use, and retrieve records owing to intuitive user interfaces and continuous product upgrades. They are used by providers, hospitals, and health systems to drive the quality of care and increase patient satisfaction. Regulatory authorities, especially in the developed nations, are also focused on the wider implementation of practice management software for improving the delivery of healthcare services, which is also expected to boost the market growth. Furthermore, various product launches along with improvements in the existing versions also support the dominant share of the software segment. For instance, in May 2018, Kareo launched Kareo Analytics for billing professionals to reduce complexity by delivering transparency and valuable insights.

However, the services segment is expected to witness the fastest CAGR over the forecast period owing to the rising demand for training and assistance in installing the software and upgrading the system in line with the escalating growth of IT technology. Services form a vital part of the effective operation of the practice management systems. They assist in leveraging and optimizing practice management systems as per the requirements of the healthcare practice and maximize patient health outcomes. These include consulting, implementation and training, support and maintenance, and other services, such as interoperability and access to EHR data. A major factor contributing to the segment’s growth is the untapped opportunities in developing economies. Furthermore, the high installation cost of software is also shifting the focus towards the services segment.

Delivery Mode Insights

On the basis of products, the global market has been further divided into on-premise, web-based, and cloud-based. The web-based delivery mode segment accounted for the largest share of more than 50% of the global revenue in 2021. The web-based management system is gaining popularity as it automatically gets updated as the changes occur, thus causing little disruption to the workflow. On-premise solutions provide patient data security, easy retrieval, and ease of access. The inclination toward on-premise solutions is primarily due to the complete access to the information within the premises. For large healthcare systems and organizations, which can store large data, pay high upfront costs, and maintain servers, on-premise systems are a much more reliable option.

Increasing demand for data security & sharing and digitalization expenditure is expected to promote the growth of on-premise solutions during the forecast period. On the other hand, the cloud-based segment is estimated to expand at the fastest CAGR owing to the advantages associated with it like higher reliability & faster processing. Cloud-based solutions allow easy accessibility of readily available information even at remote locations. In turn, improved communication capacity, data storage, lowered IT costs, scalability, accessibility, and other benefits have contributed to the growth of this segment. However, the adoption of cloud-based delivery mode is comparatively low in rural areas but is anticipated to increase over the forecast period.

End-user Insights

On the basis of end-users, the global market has been segmented into physician back offices, diagnostic laboratories, pharmacies, and other settings. The physician back-office segment held the majority of the revenue share of 43% of the global market in 2021. This segment is further divided into ambulatory settings and others. The segment growth can be attributed to the digitization of documents and databases. Furthermore, the increasing technological advancements in these settings have boosted work efficiency. Such factors are propelling the growth of the physician back-office segment.

The software manages operations including accounting, billing, and scheduling, and enhances the work efficiency of the healthcare settings, which further boosts the market growth for the physician’s back-office segment. This, in turn, is anticipated to drive demand for the software in dental clinics over the forecast period. The other settings segment comprises emergency care centers, nursing stations, community health centers & hospitals, and clinic workstations. The increasing patient pool coupled with greater financing capabilities is boosting the growth of the other settings segment.

Rising investments by hospitals, healthcare centers, and clinical workstations for workflow digitalization & centralization are also anticipated to fuel the market growth. Practice management systems integrated with revenue cycle management, patient portals, and clinical intelligence systems, support this centralization. Furthermore, a rise in the number of these facilities is anticipated to lead to higher revenue generation. The pharmacies and diagnostics laboratories segments are also expected to witness significant growth over the forecast period due to the high product demand in these settings, as they help in better management of their facilities.

Regional Insights

On the basis of geographies, the global market has been further segmented into North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa (MEA). North America held the dominant share of around 52% of the global market in 2021 and was followed by the European nations due to high digital literacy rates, investment in health care expenditure, and high patient awareness. Furthermore, the presence of developed healthcare IT infrastructure in these regions is also fueling the market growth. Moreover, favorable government initiatives like EHR incentive programs by Medicaid and Medicare are driving the market. On the other hand, Asia Pacific is likely to experience the fastest CAGR during the forecast period.

Factors such as the rising geriatric population, prevalence of chronic disorders that generate a greater patient pool, and increased demand for quality healthcare solutions at lower costs in these emerging markets are expected to drive the market growth over the years to come. Furthermore, the improving healthcare infrastructure, growing investments by healthcare IT companies, and improving economic conditions are facilitating the high demand. Henry Schein entered the market for dental practice management software in Japan by investing in Iwase Dental Supply Inc. The continuous development of technology, the presence of highly-skilled dentists, and the extensive adoption of digital solutions will also fuel the region’s growth.

Key Companies & Market Share Insights

Key players are involved in business activities, such as strategic collaborations, new product launches, and regional expansion as emerging countries are still in the loop of adopting these systems. For instance, in July 2019, Elite Computer Italia, a dental practice management software company, was acquired by Henry Schein to increase its regional presence. In September 2020, CloudMD Software & Services Inc. acquired the majority of the shares of Benchmark Systems, which is a fully integrated cloud-based healthcare solution provider. The aforementioned initiatives are projected to further encourage market growth. Some of the prominent players in the global practice management system market include:

• Henry Schein, Inc.

• Allscripts Healthcare, LLC

• AdvantEdge Healthcare Solutions

• Athenahealth

• Cerner Corporation (Oracle)

• Epic Systems Corporation

• GE Healthcare

• McKesson Corporation

• Accumedic Computer Systems, Inc.

• NXGN Management, LLC

• eClinicalWorks

• CoreCloud

• Kareo, Inc.

• Practice Fusion, Inc.

• AdvancedMD, Inc.

• DrChrono, Inc.

• CollaborateMD Inc.

• Greenway Health, LLC

• OfficeAlly Inc.

• PracticeSuite Inc.

Practice Management System 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 in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global practice management system market report on the basis of product, component, delivery mode, end-user, and region:

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

  • Integrated

    • EHR/EMR

    • e-Rx

    • Patient engagement

    • Others

  • Standalone

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

  • Software

  • Services

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

  • Web-based

  • Cloud-based

  • On-premise

• End-user Outlook (Revenue, USD Million, 2017 - 2030)

  • Physician Back Office

    • Ambulatory Settings

    • Others

  • Pharmacies

  • Diagnostic Laboratories

  • Other Settings

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia