U.S. Behavioral Health EHR Market Size, Share & Trends Analysis Report By End Use (State-owned, Private), And Segment Forecasts, 2022 - 2030

Report Overview

The U.S. behavioral health EHR market size was valued at USD 176.2 million in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 11.07% from 2022 to 2030. Increasing government efforts to boost healthcare IT adoption among healthcare facilities and rising awareness among mental care professionals about the benefits of electronic health record (EHR) are primary factors driving the market. With the advent of technological advancement, physicians can use the same EHR software not only for storing patient data but also for telehealth, e-prescribing, clinical assessment documentation, and other clinical and administrative work. This, coupled with specific needs for behavioral care practices, is propelling the market growth.

Furthermore, increasing funding on start-up businesses is propelling the growth of the market. For instance, in May 2020, Holmusk obtained USD 21.5 million in Series A funding led by Health Catalyst Capital (HCC) and Optum Ventures (OV).

Over the past few years, the prevalence of mental disorders in the U.S. is increasing. Work stress, unhealthy lifestyle, COVID-19 pandemic, loss of loved one, and substance addiction are major factors contributing to the prevalence of mental disorders in the country. According to John Hopkins Medicine, every one in four adults has a diagnosable psychiatric disorder. In addition, 18% of the U.S. population has anxiety disorders. According to the Anxiety and Depression Association of America, around 19 million adults have specific phobias. Obsessive-Compulsive Disorder (OCD) affects 2.2 million people in the U.S. This is resulting in high demand for behavioral care services and visits to psychiatric hospitals and rehabilitation centers, in turn favoring the market growth.

New forms of technology are targeting the way professionals document their time spent with patients. Clinicians frequently move from patient to patient, which places a cognitive strain on them. Providers confront difficulties at the end of the day when they must make up for lost documentation. A possible solution to this problem is to include a well-designed EHR scribe tool into the EHR workflow. IKS Health created Scribble, an EHR scribe tool that documents the entire case from beginning to end, reducing cognitive load.

Moreover, the industry is focusing on voice-enabled EHR add-ons. Amazon, in particular, is seeking to reduce the number of mouse clicks, switching of computer screens, and eventually cognitive stress by introducing voice-enabled technology. AWS announced the debut of Amazon Transcribe Medical, a voice recognition service that converts physician and patient speech to text. Not only will the technology assist physicians in more effectively documenting short notes in an EHR or mobile app, but it will also transcribe complete discussions into text using proper punctuation. Such technological advancements are expected to drive the market.

COVID-19 U.S. Behavioral Health EHR Market Impact: 18.8% increase from 2019 to 2020

The cost burden of behavioral care is gradually increasing in the U.S. The requirement for and development of extensive documentation (which results in doctors losing productivity) and inadequate revenue cycle management by behavioral care organizations are among the primary factors contributing to treatment costs being so high. The urgency of resolving these difficulties has increased interest in and use of behavioral care EHR software. It helps in decreasing paperwork and prescription errors, increasing productivity by assuring speedy access to patient data, improving workflow efficiency, and reducing healthcare expenditure. These benefits have accelerated the adoption of behavioral health electronic health records, especially among major hospitals and community clinics.

End-use Insights

The private segment accounted for the largest revenue share of over 80.0% in 2021. To attract more patients, private facilities are always focusing on delivering high-quality infrastructure and clinical services. Increased private hospital enrollment and consolidation of healthcare facilities are expected to support the growth of the private segment. Moreover, private mental care practices utilize integrated EHRs to maximize cost savings and practice management effectiveness.

The state-owned segment is estimated to grow at a significant pace during the forecast period owing to the growing awareness regarding substance abuse management and the increasing prevalence of mental disorders. Due to the increasing awareness about the use of software, healthcare providers are adopting software solutions to increase their service efficiency. In June 2020, North Central Health Care (NCHC) opted to implement Cerner Corporation’s EHR at its three behavioral healthcare facilities across Wisconsin. This technology is expected to provide NCHC nurses, therapists, and physicians with near real-time patient data to help improve care quality.

In addition, some state-owned hospitals serve rural areas, while others serve small communities outside of major cities. The implementation of EHR will help in information transfer when patients are referred to large, specialized hospitals. This is boosting the adoption of EHR in state-owned facilities.

Key Companies & Market Share Insights

The market is highly fragmented due to the presence of a large number of players. Qualifacts Systems, Inc., Welligent, and Netsmart Technologies, Inc. are some of the leading players in the market. Established players in the market are constantly involved in innovation due to evolving needs and demand for tools and software to manage and provide mental healthcare. For instance, in December 2021, Qualifacts Systems, Inc. announced the acquisition of InSync Healthcare Solutions. The acquisition enables the combined business to serve a broader behavioral health and human services market with innovation, technology, customer support, and complementary products.

Some prominent players in the U.S. behavioral health EHR market include:

• Core Solutions, Inc.

• Meditab

• Holmusk

• Netsmart Technologies, Inc.

• Qualifacts Systems, Inc.

• Welligent

• Valant

• Therapynotes, LLC

• Nextstep Solutions

U.S. Behavioral Health EHR Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the country level 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 U.S. behavioral health EHR market report based on end use:

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

  • Private

  • State-owned