The U.S. long term care software market size was valued at USD 1.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.49% from 2023 to 2030. LTC is gaining high importance in the U.S. mainly due to the increasing health needs of the rapidly aging population. LTC software helps people with their medical and personal care and enables them to live independently. The rising adoption of EHRs and increasing utilization of LTC centers are playing a vital role in expanding the market. Besides this, the increasing prevalence of chronic conditions and the growing geriatric population is boosting the market. Long-term care (LTC) is becoming essential due to aging baby boomers and rising chronic disabilities. According to the WHO, the number of people aged over 60 years and over is expected to increase from 1 billion in 2020 to 2.1 billion by 2050. As older people need more care, this will drive the adoption of LTC software.
The growth of the market is being driven by increasing government programs and initiatives to improve their healthcare infrastructure and deliver affordable care solutions to older people. Medicare and Medicaid provide reimbursement for LTC, which is boosting the market's expansion.
Further, the high prevalence of chronic disorders is a major cause of disabilities requiring medical attention. Based on the data from American Hospital Association, about 133 million Americans, nearly half of the U.S. population, suffer from at least one chronic disease, such as heart disease, arthritis, and hypertension. As per CDC, nearly 1 in 4 American adults have some type of disability. During 2015-2019, around 18.2 million, or 36% of the people aged 65 and above, had at least one disability according to the American Community Survey.
LTC provides efficient workflow techniques that save time and money. They include a centralized database, integrated EHRs, and solutions for revenue cycle management, payroll management, resident care, medication management, clinical documentation, and others. This help to provide effective care to the patients, improve compliance, and reduce cost. In recent years, the shortage of nursing staff and increasing burnout among healthcare professionals in the U.S. has boosted the adoption of healthcare IT solutions.
The COVID-19 pandemic significantly impacted the elderly population, especially those living in long-term care facilities. Many nursing homes succumbed to the infection as nearly 80% of the residents there belonged to a highly vulnerable group. The report from the American Medical Association and the National Center for Support and Living (AHCA / NCAL) in June 2021 surveyed 616 long-term care facilities and found that 94% were understaffed. The high spread of infection and shortage of staff boosted the use of software to manage patients Moreover, the pandemic has increased the adoption of EHR and interoperability solutions in LTC facilities.
Based on mode of delivery, the cloud-based segment held the leading revenue share in 2022. The segment growth is attributed due to the advantages of cloud-based solutions such as cost-effectiveness, fewer operational issues, low investment, flexible cost and usage, and easy implementation procedure with advanced security. The segment is anticipated to witness the highest CAGR during the forecast period.
The cloud-based solutions help in remote monitoring of people and create opportunities for LTC technologies in the market. In addition, increasing demand is expanding the need for cloud-based solutions and the development of new products. For instance, in September 2022, RedSail Technologies, in partnership with Guardian Pharmacy of Indiana, launched Axys, an LTC pharmacy software focused on modern technology and the needs of LTC pharmacies.
The web-based segment is expected to grow owing to the increased use of online platforms. The web-based platforms are considered more susceptible and broader networks as compared to cloud-based and easily accessible by people, these factors are leading the segment growth. On-premise solutions are installed at the user location mostly workstations. This involves high upfront costs, hampering the segment's growth.
In terms of application, the U.S. long term care software market is segmented into electronic health records (EHR), electronic medication administration records (eMAR), revenue cycle management. resident care, staff management, and others. The EHR segment held the largest market share and is expected to grow at the fastest CAGR during the forecast period. The development of long-term care EHR systems is being fueled by increasing public and private financial incentives for EHR implementation.EHR can improve the quality of care in LTC facilities by lowering medication-related errors, enhancing clinical documentation and decision-making, and facilitating health information exchange.
The electronic medication administration record (eMAR) segment is expected to witness a significant growth rate during the forecast period owing to the increasing need for solutions for medication management and adherence. The complex reimbursement process is driving the growth of the revenue cycle management segment.
In terms of end-use, the market is segmented into home healthcare, hospice & palliative care, nursing homes, and assisted living facilities. The nursing homes segment dominated the market with a share of 40.1% in 2022. Increasing awareness about nursing care services, rising EHR implementation in SNFs, and high patient safety are key factors contributing to the growth of the segment.
Non-communicable diseases are becoming more prevalent due to increasing life expectancy. A sedentary lifestyle is the leading cause of the rise in the prevalence of lifestyle diseases such as diabetes, hypertension, and others. Furthermore, with old age susceptibility to infectious diseases increases. This is increasing the number of admissions in nursing homes, thereby favoring segment growth.
The home healthcare agencies segment is projected to exhibit the maximum CAGR during the forecast period. Increasing preference for care at home among the elderly and a rising number of remote monitoring solutions enabling independent living are rendering high growth to the segment. The segment is likely to benefit from technological advancements such as telemedicine, mhealth apps, and internet-enabled home monitoring.
Some of the strategies undertaken by key players to strengthen their market presence include collaborations, software enhancements, and mergers & acquisitions. For instance, in February 2022, to improve transparency in its 92 skilled nursing institutions, Creative Solutions in Healthcare (CSNHC) introduced a new software platform called Connected Care Center With the help of this platform, patients and their families can access health data from anywhere at any time. In October 2022, the American Health Care Association (AHCA) announced a partnership with PointClickCare for Long-Term Care Data Cooperative. The companies will work together to develop a comprehensive health records solution. Some of the prominent players in the U.S. long term care software market include:
Allscripts Healthcare, LLC
Oracle
MatrixCare
Yardi Systems, Inc.
Netsmart Technologies, Inc.
eFileCabinet, Inc.
VITALS SOFTWARE
PointClickCare
Medtelligent, Inc.
AL Advantage, LLC
Genexod Technologies LLC
Report Attribute |
Details |
Revenue forecast in 2030 |
USD 2.9 billion |
Growth rate |
CAGR of 11.49% from 2023 to 2030 |
The bases year for estimation |
2022 |
Historical data |
2018 - 2020 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD million and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Mode of delivery, application, end-use |
Country scope |
U.S. |
Key companies profiled |
Allscripts Healthcare, LLC ; Oracle; MatrixCare; Yardi Systems; Inc.; Netsmart Technologies, Inc.; eFileCabinet, Inc.; VITALS SOFTWARE; PointClickCare; Medtelligent, Inc.; AL Advantage, LLC; Genexod Technologies LLC |
Customization scope |
Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. long term care software market report based on mode of delivery, application, and end-use:
Mode of Delivery Outlook (Revenue, USD Million, 2018 - 2030)
Cloud-based
Web-based
On-premises
Application Outlook (Revenue, USD Million, 2018 - 2030)
Electronic Health Records
Electronic Medication Administration Record (eMAR)
Revenue Cycle Management
Resident Care
Staff Management
Others
End-use Outlook (Revenue, USD Million, 2018 - 2030)
Home Healthcare Agencies
Hospice & Palliative care
Nursing Homes
Assisted Living Facilities
b. The U.S. long term care software market size was estimated at USD 1.3 billion in 2022 and is expected to reach USD 1.4 billion in 2023.
b. The U.S. long term care software market is expected to grow at a compound annual growth rate of 11.49% from 2023 to 2030 to reach USD 2.9 billion by 2030.
b. The EHR segment dominated the U.S. long term care software with a share of 32.4% in 2022. The growth of segment is attributed due to increased government initiative for the implementation of EHR in healthcare facilities.
b. Some key players operating in the U.S. long term care software include Allscripts Healthcare, LLC ; Oracle; MatrixCare; Yardi Systems, Inc.; Netsmart Technologies, Inc.; eFileCabinet, Inc.; VITALS SOFTWARE; PointClickCare; Medtelligent, Inc.; AL Advantage, LLC; and Genexod Technologies LLC
b. Key factors that are driving the market growth include the increasing geriatric population, growing prevalence of chronic diseases, and rising government efforts to boost healthcare software adoption in the healthcare system.
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