U.S. Healthcare Information System Market (2025 - 2033) Size, Share & Trends Analysis Report By Application (Revenue Cycle Management, Hospital Information System), By Deployment (Web-based, On-premise, Cloud-based), By Component, By End use, And Segment Forecasts

U.S. Healthcare Information System Market Summary

The U.S. healthcare information systems market size was estimated at USD 238.45 billion in 2024 and is projected to reach USD 678.39 billion by 2033, growing at a CAGR of 12.40% from 2025 to 2033. The increasing prevalence of chronic diseases in the country is driving the adoption of remote patient monitoring. This growing trend is anticipated to enhance the demand for IT solutions within the healthcare industry in the U.S. In addition, the industry is expected to experience growth driven by several advantages, including operational cost reductions, a decrease in medical errors, and enhanced patient outcomes. Moreover, supportive government initiatives aimed at developing healthcare infrastructure and integrating IT solutions into existing facilities are anticipated to further stimulate industry expansion during the forecast period.

The push for interoperability is a key driver in the U.S. healthcare information systems market. Providers, payers, and patients require seamless access to data across different systems to support care coordination. Regulations under the 21st Century Cures Act mandate the elimination of information blocking, further accelerating the need for interoperable platforms. Systems that enable data exchange between hospitals, diagnostic centers, ambulatory care, and insurers are becoming essential. Such regulatory and operational demand is driving upgrades to existing healthcare IT infrastructures. For instance, in August 2025, Epic unveiled significant artificial intelligence (AI) features integrated into its electronic health record (EHR) platform, including AI-assisted charting to streamline documentation, Microsoft’s Cosmos AI for enhanced risk prediction, and revenue cycle management (RCM) improvements. These advancements aim to boost clinical efficiency, optimize patient care, and improve financial workflows for healthcare providers.

"We are combining the intelligence and curiosity of the human being with the investigative capabilities of gen AI. And then for the data, there's the EHR, the patient's medical record and integrated with the patient's MyChart. Then there is the Health Grid, plus the learnings from the huge amount of high-quality patient data in Cosmos. Instead of calling it artificial intelligence, we're calling it healthcare intelligence. We think these are going to make significant changes.”

-Epic CEO Judy Faulkner 

Moreover, the rapid adoption of telehealth services further fuels the need for integrated healthcare information systems. Virtual care requires platforms that manage patient scheduling, digital documentation, billing, and secure data sharing across providers. For instance, in October 2023, Glenn Gaunt, MD, announced its official launch, introducing an alternative to traditional healthcare. The platform offers accessible and convenient healthcare services, enabling patients to receive medical attention from the comfort of their homes. Information systems enabling seamless telehealth integration with EHRs and revenue cycle management are critical for operational continuity. This demand is expected to drive significant growth in the market.

Furthermore, the rise of precision medicine creates demand for healthcare information systems capable of managing genomic, molecular, and biomarker data. Providers require systems that can integrate these complex datasets with clinical records to support personalized treatment decisions. Advanced analytics and artificial intelligence (AI) tools integrated with healthcare IT platforms enable translating genomic insights into clinical practice. This capability is increasingly critical in oncology, rare disease management, and chronic condition treatment. For instance, in May 2024, Renovaro launched Augusta, an AI-powered precision neurology platform integrating multiomics, contingent AI, phenoclustering, and CRISPR screens. It accelerates neurology drug discovery, patient stratification, and biomarker identification, addressing challenges like symptom heterogeneity. The shift toward personalized care is a strong growth driver of the market.

Integration of Artificial Intelligence in the Healthcare Information Systems

AI integration within U.S. healthcare information systems is transforming clinical decision-making by enabling more accurate and timely diagnoses. AI tools help streamline medical coding, claims processing, and revenue cycle management. Predictive algorithms optimize scheduling and resource allocation, reducing wait times and improving patient throughput. For instance, in January 2025, IntelligentDX launched AI-powered software to optimize EHR and EMR systems in the U.S.

"Our mission is to simplify healthcare operations while maintaining a human-centered approach. By integrating AI with deep domain expertise, we empower healthcare providers to focus on what matters most--patient care," said Dr. Ajay Shukla, Co-Founder and COO of IntelligentDX.

Moreover, AI algorithms analyze large volumes of patient data, including imaging, laboratory results, and clinical records, to identify patterns clinicians may overlook. AI-driven decision support tools assist providers in risk stratification, treatment planning, and predicting disease progression. These capabilities improve diagnostic accuracy and help reduce medical errors. For instance, in May 2025, Philips partnered with NVIDIA to enhance MRI technology through AI advancements. This collaboration aims to develop a foundational model for MRI, improving image quality, reducing scan times, and streamlining workflows.

Furthermore, AI integration also supports patient engagement by enabling more personalized and interactive healthcare experiences. AI-powered platforms tailor care plans based on individual health records, genetic data, and lifestyle factors. For instance, in March 2025, Validic launched new Health IoT and remote patient management solutions powered by generative AI in the AWS Marketplace. These solutions focus on improving health monitoring and management to deliver better health outcomes and streamline healthcare processes for patients and providers. Personalized recommendations improve adherence and patient satisfaction while supporting preventive care. These patient-focused applications strengthen the role of healthcare information systems in delivering value-based, patient-centered care in the U.S.

Market Concentration & Characteristics

The chart below illustrates the relationship between industry concentration, industry characteristics, and industry participants. The x-axis represents the level of industry concentration, ranging from low to high. The y-axis represents various industry characteristics, including industry competition, level of partnerships & collaboration activities, degree of innovation, impact of regulations, and regional expansion. The U.S. healthcare information systems market is fragmented, with the presence of several emerging players entering the market. The degree of innovation, the level of merger & acquisition activities, the impact of regulations on industry, and the regional expansion of industry are high.

The U.S. healthcare information systems market experiences a high degree of innovation driven by technological advancements. The increasing adoption of artificial intelligence in smart health monitoring devices supports new innovations in the market.

The industry is experiencing a high level of merger and acquisition activities undertaken by several key players. This is due to the desire to gain a competitive advantage in the industry, enhance technological capabilities, and consolidate in a rapidly growing market.For instance, in January 2024, Veradigm LLC acquired Koha Health, a full-service revenue cycle management (RCM) service provider. This acquisition aims to strengthen Veradigm and further add to its depth of offerings and expertise to serve the needs of the market better.

The regulations for Healthcare Information Systems in the U.S. are primarily focused on protecting Personal Health Information (PHI) and ensuring secure data exchange. Furthermore, the Meaningful Use (MU) directives have led to the complete adoption of EHRs in healthcare. Thus, government initiatives supporting eHealth programs and incentives promoting EHR implementation are expected to drive the industry over the forecast period.

The industry is witnessing moderate geographical expansion. However, rising adoption of telemedicine and telehealth platforms, coupled with the growing focus on population health management, drives partnership and collaboration activities between healthcare payers, providers, and industry players. For instance, in June 2024, Pediatric Associates, the largest private pediatric primary care group in the U.S., selected Innovaccer’s AI-driven platform to enhance population health management and value-based care. 

Case Study: Streamlining Clinical Operations and Medication Management Across Senior Living Communities - The Navion Senior Solutions Journey

Navion Senior Solutions, a rapidly growing senior living provider operating over 50 communities across seven Southeastern U.S. states, faced the complex challenge of managing clinical inconsistencies across disparate electronic and paper-based medication management systems. Seeking to unify and standardize clinical workflows for enhanced medication accuracy and regulatory compliance, Navion embarked on a transformative journey leveraging ECP's technology platform.

Challenges

• Fragmented Systems: Navion's rapid growth through acquisitions resulted in operating multiple, inconsistent clinical systems, including several electronic Medication Administration Record (eMAR) systems and paper documentation.

• Inconsistent Clinical Practices: Lack of standardized workflows led to variations in medication management and care documentation across communities.

• Poor Visibility and Oversight: Regional leaders struggled with limited visibility into community-level clinical performance and medication compliance.

• Training and Onboarding Difficulties: Staff training was complicated by the varying clinical systems, making support and onboarding inefficient.

• Regulatory Compliance Risks: Inconsistent practices heightened the risk of medication errors and regulatory non-compliance.

Solution

Navion implemented the ECP clinical platform across more than 50 senior living communities. This technology enabled the standardization of medication management workflows and facilitated consistent care documentation practices. In 2025, the rollout evolved from a six-week onsite model to an innovative, fully virtual rollout model, enabling rapid onboarding of multiple communities simultaneously.

• Standardized Platform: Adoption of a unified clinical solution ensured "one system, one standard" across all communities.

• Virtual Training and Onboarding: Regional nurses led virtual training sessions, drastically reducing rollout time and eliminating costly onsite visits.

• Real-Time Oversight Tools: Dashboards and audit tools empowered regional clinical leaders to monitor compliance, adoption, and performance efficiently.

• Focused on Medication Compliance: Initial focus on medication workflows helped drive measurable improvements and regulatory adherence.

Results/Outcome

• Exceptional Medication Compliance: Navion managed over 8.8 million scheduled medications in 2024, achieving a missed medication rate of just 0.1%, well below the internal benchmark of 5%.

• Operational Efficiency: The virtual rollout model allowed Navion to onboard 13 communities daily, streamlining training and reducing travel costs.

• Improved Medication Availability: The rate of medications unavailable at administration was kept at 0.2%, surpassing targets.

• Progress in Timeliness: Despite an 8% late medication rate in 2024, Navion saw a significant drop from 12.3% earlier in the year, with ongoing efforts to reduce it further.

• Scalable and Consistent Operations: The unified system created consistent clinical workflows, enabling Navion to scale rapidly without sacrificing quality.

• Strong Leadership and Accountability: The engagement of regional clinical leaders ensured oversight and quality control while supporting rapid expansion.

Conclusion

Navion's transformation into a standardized, virtual-first clinical platform has set a new industry precedent for scalability, operational consistency, and medication compliance in senior living. By leveraging ECP's technology and strong regional leadership, Navion significantly improved medication safety and clinical operations while enabling accelerated growth. Their commitment to evolving internal standards and using real-time data for training and coaching positions them as a model for future-ready senior living providers.

Application Insights

Based on application, the revenue cycle management segment held the largest revenue share of 72.23% in 2024. The increasing number of data silos and unorganized workflows in healthcare settings is leading to market development & growth. In addition, the increasing need for reducing medical billing errors and reducing reimbursements in healthcare, the shifting trend toward development of synchronized management systems, and the increasing need for optimization of workflow in healthcare facilities are propelling market growth. For instance, in March 2025, Titan Health launched Revenue Cycle Management as a Service (RCMaaS) for healthcare providers, providing them with tailored revenue cycle management solutions.    

The hospital information systems segment is anticipated to register the fastest growth over the forecast period, owing to several technological benefits such as low healthcare expenditure and high operational efficiency. Moreover, the subsequent need to reduce healthcare costs is among the key factors attributed to the segment growth.

Deployment Insights

Based on deployment, the web-based segment held the largest revenue share of 45.27% in 2024. Web-based systems are favored for their accessibility, cost efficiency, and scalability. They allow healthcare professionals to access data remotely, reducing hardware costs and enabling easy scalability. These systems facilitate the integration of various healthcare technologies, enhancing efficiency and data sharing. For instance, in October 2024, Xybion launched Pristima Web 10.0, a new and enhanced AI-powered web-based SaaS platform designed to optimize preclinical research. This version includes advanced features that facilitate the creation of effective protocols and integrate various lab execution needs into a single, unified system.

Cloud-based deployment is expected to grow the fastest CAGR from 2025 to 2033, owing to its widespread utility and ease of operation. Cloud-based technology usage has surged due to security breaches in on-premises and web-based systems. Traditional systems necessitate regular investments in software and system upgrades. As IT infrastructure needs and business requirements evolve, information sharing becomes crucial.

Component Insights

Based on component, the services segment held the largest revenue share of 37.89% in 2024. The rise of digital health and connected care significantly increases the demand for healthcare IT services and platforms. These technologies enhance disease monitoring, diagnosis, and prevention by improving accessibility, streamlining workflows, and enabling more accurate and timely patient care. Advancements in software and hardware are anticipated to propel the demand for these services further.

In addition, healthcare IT services, including installation, training, and system upgrades, are fundamentally dependent on the evolution of these platforms, thereby contributing to overall market growth. By integrating advanced technology and expert support, it aims to optimize revenue recovery, reduce claim denials, and improve overall financial performance.

The software and systems segment is expected to grow at the fastest CAGR over the forecast period due to the rising demand for integrated platforms that streamline clinical, financial, and administrative workflows. Software solutions facilitate real-time access to patient data, cross-platform integration, and secure information sharing, all essential for effective coordinated care delivery. Ongoing advancements in population health management, telehealth, and revenue cycle management platforms further stimulate investment in this sector. For instance, in March 2025, a team of Epic alumni launched ProsperityEHR, a cloud-based electronic health record designed to improve operations in behavioral health organizations.

End Use Insights

Based on end use, the hospitals and ambulatory services segment held the largest market share of 74.82% in 2024, as these providers need comprehensive platforms to manage high patient volumes and complex clinical workflows. Hospitals deploy electronic health records (EHRs), clinical decision support systems (CDSS), and revenue cycle management (RCM) tools to streamline operations and improve care quality. Advanced interoperability solutions are increasingly adopted to enable seamless data exchange between departments and across multi-facility health systems. For instance, in February 2025, Cibolo Health, a healthcare services company, selected TruBridge, Inc. as a preferred partner for revenue cycle management technology and services.

Ambulatory services need integrated scheduling, billing, and clinical documentation systems, fueling investment in scalable digital platforms. Regulatory incentives promoting interoperability and patient data access further support adoption among ambulatory providers.

The diagnostic centers segment is expected to grow at the fastest CAGR from 2025 to 2030. The rising demand for advanced imaging, pathology, and molecular testing services is factor contributing to the segment’s growth. The rising incidence of chronic and lifestyle-related diseases has heightened the demand for timely diagnostics, prompting healthcare centers to embrace digital platforms that optimize workflows and improve reporting accuracy.

Key U.S. Healthcare Information Systems Company Insights

Key players operating in the U.S. healthcare information systems market are undertaking various initiatives to strengthen their market presence and increase the reach of their products and services. Strategies such as new product launches and partnerships play a key role in propelling market growth.

Recent Developments

• In May 2025, Adit introduced an orthodontic-specific version of its all-in-one practice management platform, enhancing treatment tracking, scheduling, communication, and payment processing.

• In May 2025, RevenueWell partnered with Mila Health to introduce an advanced AI-powered assistant for dental practices. This assistant enhances patient experience with 24/7 service, automates 90% of care management tasks, and significantly reduces no-show rates.

“At RevenueWell, we are leaders in modernizing oral care in 11,200 practices and over 4 MM patients. With this launch, we are bringing the next-generation artificial intelligence (AI) tools to our customers to reinvent the way they reach their patients for oral health, and increase revenue, while automating complex tasks such as treatment plan follow-up and pre-procedure preparation.”

-Katherine Shuman, CEO of RevenueWell.

• In September 2024, HealthEC and VirtualHealth partnered to integrate HealthEC’s advanced population health analytics with VirtualHealth’s HELIOS care management platform. 

• In November 2023, the Healthcare Financial Management Association (HFMA) partnered with FinThrive, Inc. to launch a five-stage RCM Technology Adoption Model (RCMTAM). This model helps health systems assess current RCM technology maturity and build best-practice plans using industry benchmarks.

• In April 2023, Microsoft extended its strategic partnership with Epic to integrate & develop generative AI into healthcare through the combination of the scale of Microsoft’s Azure OpenAI Service and Epic’s advanced EHR software.

• In April 2023, Workday, Inc., a provider of cloud-based enterprise management solutions, formed a strategic partnership with Alight, Inc. to offer HR and payroll professionals a simplified & integrated payroll solution.

U.S. Healthcare Information Systems Market Report Scope

U.S. Healthcare Information Systems Market Report Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented U.S. healthcare information systems market report based on application, deployment mode, component, and end use.

• Application Outlook (Revenue, USD Million, 2021 - 2033)

  • Hospital Information System

    • Electronic Health Record

    • Electronic Medical Record

    • Real-time Healthcare

    • Patient Engagement Solution

    • Population Health Management

  • Pharmacy Automation Systems

    • Medication Dispensing System

    • Packaging & Labeling System

    • Storage & Retrieval System

    • Automated Medication Compounding System

    • Tabletop Tablet Counters

  • Laboratory Informatics

  • Revenue Cycle Management

  • Medical Imaging Information System

    • Radiology Information Systems

    • Monitoring Analysis Software

    • Picture Archiving and Communication Systems

• Deployment Outlook (Revenue, USD Million, 2021 - 2033)

  • Web-based

  • On-premises

  • Cloud-based

• Component Outlook (Revenue, USD Million, 2021 - 2033)

  • Hardware

  • Software & Systems

  • Services

• End Use Outlook (Revenue, USD Million, 2021 - 2033)

  • Hospitals & Ambulatory Services

  • Diagnostic Centers

  • Academic And Research Institutes