U.S. Practice Management System Market (2025 - 2033) Size, Share & Trends Analysis Report By Product (Integrated, Standalone), By Component, By Delivery Mode, By End Use, And Segment Forecasts

Market Size & Trends

The U.S. practice management system market size was estimated at USD 5.89 billion in 2024 and is projected reach USD 13.70 billion by 2033, growing at a CAGR of 10.03% from 2025 to 2033. The rising need to achieve operational efficiency, enhanced documentation with minimal errors, and financial viability for physicians' practice are the key facilitators for the adoption of practice management systems.

Moreover, complexity in data management due to the rising prevalence of chronic diseases, growing adoption of telehealth care, rapid penetration of IT, and a rising number of supportive federal initiatives in the U.S. to integrate health records on a single platform are further anticipated to provide lucrative growth opportunities to the market. Increasing pressure to curb healthcare costs along with changing dynamics of hospital/healthcare settings is fueling the demand for practice management systems in the U.S. Factors such as a rise in focus on implementation of high-quality care and cost-effective are also likely to contribute toward the market development. Healthcare institutes are witnessing a paradigm shift as a result of the changing dynamics of the business models in the U.S.

Strategic initiatives such as partnership agreements, collaborations, and mergers by the key players to provide cloud-based solutions to their customers are expected to drive market growth. For instance, in November 2023, Thoma Bravo acquired NextGen Healthcare, a cloud-based healthcare technology solutions provider, for USD 1.8 billion. This move was expected to strengthen Thoma Bravo’s position in the software investment industry.

The development of new value-added services such as integration of practice management systems with other healthcare IT solutions, such as laboratory information systems and Computerized Physician Order Entry (CPOE), is anticipated to propel the market demand in the U.S. over the next few years. For instance, in April 2023, eClinicalWorks announced integrating ChatGPT and AI models into its practice management system and EHR solutions. This integration brings several advancements that are expected to improve workflow efficiencies and enhance the point-of-care experience for clinicians. By leveraging AI technology, eClinicalWorks aims to reduce clicks and enable clinicians to access relevant data seamlessly.

Evolution of Practice Management System:

Furthermore, the rise in telehealth care further fuels the U.S. practice management system industry. With increasing demand for remote healthcare services, medical practices require integrated solutions that support virtual consultations, remote patient monitoring, and online scheduling. Practice management systems equipped with telehealth features enable seamless coordination between patients and providers, improving accessibility and efficiency. For instance, a U.S.-based study published in the National Library of Medicine in December 2022 examined the evolution of telehealth before and after the COVID-19 pandemic. It highlighted how changes during the pandemic accelerated telemedicine adoption, transforming healthcare delivery in the U.S.

Market Characteristics

The industry is experiencing a high level of innovation, as multiple market participants roll out new products to enhance their market presence. For instance, in May 2024, Athena health launched customizable specialty electronic health records (EHRs) in the U.S., enabling healthcare providers to tailor clinical workflows, templates, and documentation tools to meet the unique needs of various medical specialties.

The market players are leveraging strategies such as collaborations and partnerships to promote the reach of their offerings and increase their product capabilities in the country. For instance, in September 2023, Veradigm LLC partnered with On Belay Health Solutions, Inc., a primary care provider. This collaboration would help primary care providers with improved patient health results and enhance their practices.

The impact of regulations on the U.S. practice management systems industry is medium to high. Government initiatives such as the HITECH Act and compliance mandates from the Health Insurance Portability and Accountability Act (HIPAA) have compelled healthcare providers to adopt secure, interoperable digital systems. These regulations promote standardized electronic health records, secure patient data handling, and streamlined administrative processes. In December 2024, the U.S. Department of Health and Human Services (HHS) proposed updates to the HIPAA Security Rule to enhance cybersecurity protections for electronic protected health information (ePHI).

Market players leverage the strategy of product expansion to increase their product capabilities and promote the reach of their product offerings. For instance, in February 2023, Henry Schein announced a lineup of new products and software in the U.S., including Dentrix Detect AI and Dentrix Ascend Voice, to optimize dental practice management and enhance patient care efficiency.

The level of geographical expansion in the market is moderate. Some prominent companies in the market are implementing various strategies to strengthen their market position across the country. For instance, in May 2023, P1 Dental Partners selected Henry Schein, Inc.’s software: Dentrix Ascend, a cloud-based dental practice management software, and Jarvis Analytics, a dental analytics tool. Selection aims to provide P1 Dental Partners dentists with a seamless practice management workflow across over 40 practices, helping elevate patient care and drive practice success.

Product Insights

The integrated segment led the market with the largest revenue share of 75.03% in 2024 and is expected to witness at the fastest CAGR during the forecast period. The growth is driven by the increasing demand for comprehensive solutions that combine scheduling, billing, electronic health records (EHR), and telehealth functionalities within a single platform. Integrated systems streamline workflows, reduce data redundancy, and improve communication across departments, enabling healthcare providers to enhance operational efficiency and deliver better patient care. In line with this growth, several key companies are launching products. For instance, in October 2024, Oracle launched its next-generation electronic health record (EHR) system in the U.S.. It features advanced AI capabilities and cloud integration to improve clinical workflows and enhance patient care efficiency. Integrated segment is further bifurcated into Electronic Health Records (EHR), e-Rx, patient engagement, and billing systems.

Standalone systems prioritize the billing and administrative aspects of an organization, especially scheduling. Practice management systems, on the other hand, can seamlessly integrate with other software to improve efficiency and communication among various departments. This integration is particularly favored in large-scale facilities, as it reduces administrative and medical errors.

Component Insights

The software segment led the market with the largest revenue share of 66.23% in 2024, owing to the increasing reliance on advanced software solutions to streamline administrative and clinical workflows. Software-based PMS offers flexibility, scalability, and ease of integration with other healthcare technologies, such as electronic health records (EHR) and telehealth platforms. The cloud-based software enables healthcare providers to manage appointments, billing, and patient data efficiently while ensuring compliance with regulatory standards, enhancing overall practice productivity.

The services segment is expected to experience at the fastest CAGR during the forecast period. Constant product launches, along with improvements in the existing versions, are also supporting the segment development. For instance, in November 2023, Veradigm LLC launched Veradigm Intelligent Payments to help improve payment time, increase payment rates, and reduce reconciliation time for healthcare provider practices. The solution was included in Veradigm Payerpath through a partnership with RevSpring, a provider of healthcare payment and engagement solutions.

Delivery Mode Insights

The web-based segment led the market with the largest revenue share of 47.93% in 2024, owing to its accessibility, cost-effectiveness, and ease of deployment. These cloud-based solutions allow healthcare providers to access patient data and practice management tools anytime and anywhere, facilitating remote work and telehealth services. In addition, web-based systems reduce the need for costly on-premise infrastructure and maintenance, making them especially attractive for small to mid-sized practices seeking scalable and secure options that comply with healthcare regulations.

The cloud-based segment is expected to witness at the fastest CAGR over the forecast period, due to its enhanced reliability and faster processing compared to other delivery models. In February 2025, the American Oncology Network (AON) launched LabVizor, a cloud-based laboratory information system developed by SigmaCore, to streamline pathology reporting and enhance diagnostic workflows in oncology practices across the U.S. The cloud-based practice management systems provide easily accessible information that can be retrieved from remote locations. This technology is being widely adopted nationwide.

End Use Insights

The physician back office segment led the market with the largest revenue share of 56.17% in 2024 and is projected to witness at a lucrative CAGR during the forecast period. The growth is attributed to the increasing need for efficient management of administrative tasks such as appointment scheduling, billing, claims processing, and patient record maintenance within physician offices. As practices strive to reduce operational costs and improve revenue cycle management, adopting specialized back-office PMS solutions that streamline workflows and ensure regulatory compliance is becoming essential, driving strong demand in this segment.

The pharmacies segment is expected to grow at the fastest CAGR over the forecast period due to rising prescription volumes, expanding clinical services, and stricter regulatory oversight. Practice management systems help pharmacies by easing the handling of prescriptions, track medicine stock, and dealing with insurance. These systems also help connect pharmacists with doctors and insurance companies, leading to better service for patients and fewer mistakes in medicine handling.

Key U.S. Practice Management System Company Insight

The market is fragmented, with the presence of multiple major players. Some of the emerging companies operating in the U.S. market include ABELMed, ACOM Health, Aprima, ClinicTracker Connect, First Medical Solutions, and MDSuite.

Recent Developments

• In January 2025, PracticeSuite launched AI capabilities within its U.S.-based cloud platform, aiming to enhance healthcare delivery by streamlining workflows, reducing repetitive tasks, and improving patient and provider experiences.

“To me, AI is not about inventing a technology to replace frontline workers. That is not progress. At PracticeSuite, we embrace AI innovation responsibly for the right reasons, at the right place to deliver higher value in our platform for our customers. With rising complexity in reimbursements and payers stacking up AI engines to process and deny claims, this makes the traditional billing model a losing proposition without AI in the hands of billers to counter payer AI. Therefore, our objective at PracticeSuite is to enable our customers to elevate billers’ expertise plus judgment with AI to stack up against payers adjudication AI engines.”

-V.K. Vinod Nair, founder and CEO of PracticeSuite.

• In December 2024, Veradigm launched its AI Scribe solution in the U.S. to support small and independent medical practices by automating clinical documentation and enhancing physician efficiency and patient engagement.

“Any clinician can go out and just download an ambient scribe, and certainly, most likely save a little bit of time and improve productivity a bit. We really wanted to bring in a partner that could deeply integrate into our platform ecosystem, so we could maximize that benefit. So instead of saving a few minutes per encounter, we really wanted to push the envelope.”

-Ian Maurer, vice president of technology at Veradigm

• In May 2024, athenahealth launched a new suite of tailored specialty solutions in the U.S. to support specialty care practices with customized workflows, clinical tools, and administrative efficiencies.

“athenahealth empowers ambulatory care clinicians to deliver the best care, while enabling their practices to operate efficiently and thrive in a complicated and competitive healthcare landscape. We’ve developed a deep understanding of how practices work, the specific needs - and goals - of specialties, and how technology can help them deliver the best possible care. That makes us uniquely qualified, and uniquely positioned to meet the needs of specialty practices with solutions that work the way they do and remove administrative complexity. It’s exactly what our specialty-tailored athenaOne solutions provide.”

-Bob Segert, chairman and chief executive officer at athenahealth

• In January 2024, Rectangle Health launched an all-in-one platform in the U.S. designed to drive growth for healthcare providers by integrating payment processing, patient engagement, and revenue cycle management solutions.

“We are innovating to help our more than 36,000 practices fill schedules quicker, get paid faster, and simplify the business side of healthcare. Practice Management Bridge represents a single unified platform that automates interactions between patients and providers, while significantly enhancing practice profitability."

-Sid Singh, CEO of Rectangle Health.

• In January 2024, CareCloud, Inc. partnered with Kovo HealthTech Corporation, a healthcare technology and billing-as-a-service company. This partnership aims to empower healthcare providers with the latest technology and streamline their operations for improved patient care with advanced PM software, EHR solutions, and other solutions.

“This partnership is not just about meeting industry demands; it’s about setting new standards. We are committed to driving the future of healthcare technology through innovation, cost optimization, and delivering unparalleled value to healthcare providers and their patients.”

-Greg Noble, CEO, Kovo

• In January 2024, Henry Schein One partnered with 42 North Dental in the U.S. to implement cloud-based solutions aimed at enhancing operational efficiency and improving patient care across dental practices.

"Together with 42 North Dental, we're raising the standard of care for patients, empowering practices to deliver exceptional, personalized experiences through cutting-edge technology. We're just streamlining practice management - we're partnering with our customers to achieve their vision and become essential health accelerators, driving positive change within the dental industry."

-Alan Rencher, Chief Technology Officer, Henry Schein One.

U.S. Practice Management System Market Report Scope

U.S. Practice Management System Market Report Segmentation

This report forecasts revenue growth, country level 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 the U.S. practice management system market report based on product, component, delivery mode, and end use.

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

  • Integrated

    • Integrating Software

    • EHR/EMR

    • e-Rx

    • Patient Engagement

    • Others

  • Standalone

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

  • Software

  • Services

• Delivery Mode Outlook (Revenue, USD Million, 2021 - 2033)

  • On Premise

  • Web-Based

  • Cloud-Based

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

  • Physician Back Office

  • Pharmacies

  • Diagnostic Laboratories

  • Other Settings