U.S. Healthcare ERP Market Size, Share & Trends Analysis Report By Function, By Deployment (On-premise, Cloud), And Segment Forecasts, 2019 - 2025

Industry Insights

The U.S. healthcare ERP market size was valued at USD 1,425.9 million in 2018 and is expected to register a CAGR of 5.6% over the forecast period. Several industry verticals in the U.S. are aggressively adopting ERP solutions and healthcare is not an exception to that. The ease in breaking of data silos across multiple business functions, automation of daily tasks, and streamlining information across various departments have triggered the adoption of ERP solutions in every industry across the U.S., including healthcare. The adoption of ERP in the U.S. healthcare sector can be attributed to various advantages, such as an increase in caregiving efficiency and better utilization of resources, offered by ERP software.

Switching from legacy ERP systems to cloud-based ERP systems is benefitting the U.S. healthcare sector in the form of several functionalities and personalization features. Cloud-based ERP systems can provide healthcare organizations with universal access to data at any given time and from any location, thereby enhancing the efficiency of critical business functions. Given that all the information is centralized, the approach also brings healthcare providers, patients, and insurance providers in the U.S. under a single platform. Thus, with the rise of cloud deployment services in the healthcare sector are expected to drive the growth of the market over the forecast period.

The healthcare sector generates large volumes of financial data and other information. Most of the information is related to the revenue generated from patients, insurance claims, and other expenses, among others. To eliminate this silo of data, healthcare administrators have started adopting ERP systems that provide disparate software for processing and storing data. Such systems can be typically beneficial because of their ability to increase the efficiency, provide real-time data and analytical solutions, and data security due to encryption of database. These benefits are encouraging healthcare organizations in the U.S. to opt for ERP systems.

The integration of artificial intelligence (AI) in ERP solutions is benefitting the healthcare sector significantly. Healthcare providers in the U.S. have started integrating AI in the electronic healthcare record (EHR) management system to gain actionable insights and to help in providing personalized patient care at lower costs. The growing preference for healthcare ERP solutions featuring AI capabilities is opening new opportunities for vendors offering various financial applications, business intelligence packages, and ERP systems. Integrating natural language processing (NLP) programs and machine learning (ML) along with AI in healthcare ERP systems can also help in identifying patients proactively.

Healthcare ERP solutions integrated with AI are assisting care managers in determining the conditions of patients and providing them with the necessary care. AI chatbots can particularly enhance the experience by responding to the patients’ questions. According to the National Institute on Drug Abuse, more than 130 people die of overdosing on opioids in the U.S. every day. Hence, healthcare professionals in the U.S. are trying to derive actionable insights from AI and analytical solutions and utilize those to tackle the looming opioid epidemic.

Function Insights

Based on function, the U.S. healthcare ERP market has been further segmented into inventory and material management, supply chain and logistics management, patient relationship management, finance and billing, and others. The inventory and material management segment accounted for the largest market share in 2018 and expected to remain the dominant segment over the forecast period. An ERP system can enhance patient relationship management (PRM) by synchronizing the patient database and modernizing the healthcare IT system. Hence, the patient relationship management segment is estimated to register the highest CAGR from 2019 to 2025 in the market for healthcare ERP in the U.S.

Healthcare administrators in the U.S. are focusing on improving the efficiency of the operations and simultaneously optimizing the backend operations to reduce costs. Toward this end, an ERP system can help in enhancing the quality of patient care and delivering personalized care, thereby strengthening the relationship with patients. PRM software provides practicing doctors, clinics, and hospitals with tools to improve healthcare outcomes, optimize marketing efforts, and ensure transparency and trust between patients and doctors. An ERP system can also help in reducing overheads by integrating the functions related to finance, inventory, and human resources, among others.

Deployment Insights

Based on deployment, the market has been further segmented into on-premise and cloud. The on-premise segment accounted for a market share of more than 80% in 2018. However, the cloud segment is expected to register double-digit growth over the forecast period. Cloud computing is allowing enterprises to store their data on a remote server and access it using the internet. Advances in cloud computing are facilitating agility, scalability, reliability, and flexibility, thereby encouraging the adoption of cloud computing in the healthcare ERP market in the U.S.

ERP solutions enable operational improvements in the overall business process and benefit in terms of profitability, productivity, and growth. The dynamics of the healthcare system in the U.S. are changing rapidly as automation continues to proliferate in the healthcare sector. At this juncture, cloud computing is allowing vendors to cater to the needs to their clients through various delivery models, including software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). These models can allow customers to pay according to the usage and reduce their IT infrastructure costs. These advantages are driving the adoption of cloud-based healthcare ERP solutions in the U.S.

U.S. Healthcare ERP Market Share Insights

Some of the leading ERP solution providers in the U.S. include Epicore Software Corporation; Infor; Oracle Corporation; Microsoft Corporation; Sage Software Solution Pvt. Ltd.; and QAD Inc.; among others. To remain competitive in the market, manufacturers are trying to anticipate the needs of their customers and innovating accordingly. To meet the changing customer requirements and identifying cost-saving opportunities, ERP systems providers are focusing on adopting new technologies and pursuing new objectives. For instance, in March 2019, Oracle Corporation added new capabilities to Oracle Enterprise Performance Management (EPM) Cloud and Oracle Enterprise Resource Planning (ERP) Cloud. The new additions include intelligent assistants and AI capabilities for financial controls, improved accuracy, reduction in manual processes, and compliance. Market players are also focusing on mergers & acquisitions and strategic partnerships to strengthen their foothold in the market. For instance, in March 2018, Broad Point, Inc. acquired the Technology Solutions division of Jitasa, Inc. to increase its customer base.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the U.S. Healthcare ERP market report based on function and deployment.

• Function Outlook (Revenue, USD Million, 2014 - 2025)

  • Inventory and material management

  • Supply chain and logistics management

  • Patient relationship management

  • Finance and billing

  • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)

  • On-premise

  • Cloud