Digital EMR/Practice Management Market Size (2024 – 2030)

The digital EMR/Practice management market was valued to be at USD 12.9 billion in 2023. The market is anticipated to witness a compound annual growth rate (CAGR) of 8.5% over the forecast period of 2024 - 2030. The rising use of these management solutions can be associated with an increasing desire to reduce healthcare expenses while still providing enough remuneration for healthcare workers. Moreover, supportive government measures, together with rising IT integration in the healthcare industry, are likely to drive market expansion.

INDUSTRY OVERVIEW

Digital EMR/Practice management software is a kind of software that is used to administer day-to-day operations in health centers. It can be desktop software, client-server software, or web-based software. Patients’ heath matrices can be tracked, appointments can be scheduled, charge capture can be managed, accounting operations can be performed, and reports may be generated for staff members using this software. Claims processing, patient scheduling, and reporting capabilities are the three main components of the digital EMR/Practice management software. The most significant benefit of a Digital EMR/Practice management system is that it reduces reimbursement time by removing the need for traditional invoicing and documentation. The leading factor driving growth in the practice management system market is the increase of electronic data in the health care industry.

Medical practice management systems are growing more popular since they increase the capacity to fulfill crucial regulatory standards and guarantee that key regulatory data items are submitted by the practitioner simply by getting a notification alert, all while saving time and money. These systems also include improved and more comprehensive billing and insurance data, as well as alerts for early beneficiary notice, which helps to prevent claim rejections. The health care facilities are widely adopting the practice management software tools since it saves time and resources in the long run, which in turn is propelling the market growth

COVID-19 IMPACT ON THE DIGITAL EMR/PRACTICE MANAGEMENT MARKET

The COVID-19 epidemic is predicted to have a big influence on the Digital EMR/Practice Management System market, since there has been a substantial increase in COVID-19 infected patients, and these solutions are intended to assist in the smooth workflow during the treatment process. As a result, almost all of the major firms are focusing on developing solutions to help medical systems tackle the outbreak. Innovaccer, for example, introduced the COVID-19 Management System in March 2020, which allows clinicians to analyze risk profiles and triage the inflow at medical offices and primary care clinics during the pandemic using free telemedicine services and analytics. COVID-19 is projected to have a major influence on the digital/EMR practice management market because of the aforementioned factors.

MARKET DRIVERS: 

An increasing number of investment initiatives by the government is propelling the market expansion

The implementation of a range of investment projects is one of the most apparent trends in the digital EMR/Practice management market, and it is likely to contribute substantially to the industry's growth throughout the forecast period. As per a study by the Congressional Research Service, government research and development expenditure in the United States increased from USD 2.8 billion in 1953 to USD 127.2 billion in 2018. These factors are propelling R&D and are projected to boost market expansion. This rapid speed of investment initiatives has several benefits. One of the benefits of these activities is the growing availability of more simple and cost-effective solutions, which leads to more usage of these medical services.

The advent of COVID 19 has paced up the digitalization process in various sectors and the health care sector is one of them

Companies and organizations associated with practice management software have taken steps to assist in combat the pandemic by making telemedicine a mainstream option, improving data availability through EHRs, and employing practice management software to schedule patient visits. During the COVID-19 pandemic, a practice management scheme was applied to help run medical and healthcare operations more efficiently, like data entry into computerized systems is more efficient than manual methods.

The rise in the geriatric population is fueling the wide adoption of digital EMR/Practice management solutions eventually driving the market

The market is likely to be influenced extensively by the expanding elderly population. Chronic disorders, such as diabetes and cardiovascular disease, are common among the elderly and can result in hospitalization. Healthcare centers and medical practitioners are adopting these solutions to streamline activities and bring more operational efficiency.  As a result, the aging population is likely to expand the patient pool for a variety of chronic illnesses.

MARKET RESTRAINTS:

The cost for setting up and maintenance of the IT infrastructure is on the higher side which is hampering the wide adoption of the system.

The high cost for the setup and installation of the IT infrastructure required for a digital EMR/Practice management system is acting as a barrier to market development. A Digital EMR/Practice management system requires specialized servers and expensive high-speed web connections. Moreover, to generate value, specialized IT professionals are required to focus on studying the data and altering set points and configurations. Additionally, these systems require regular maintenance and checkup for smooth functioning which further increases the input cost which is not favorable for many organizations.

Concerns regarding the privacy and security related issues are a major factor inhibiting the growth of the Digital EMR/Practice management market

The high possibility of hackers gaining access to system data and illegal access to data might be used for malevolent or criminal purposes, posing a danger. Some people are cautious to share personal information on such platforms because they are concerned about privacy issues. The increased use of digital platforms raises concerns about security and privacy. Breach of sensitive data, such as patient addresses and critical health indicators, might cause harm to the patient, resulting in a trust deficit. As a result, rules are continually altered to meet changing demands. The surge in instances of data breaches and cyber-attacks, as well as rising data security concerns, are negatively influencing the market growth.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET REPORT COVERAGE:

This research report on the Digital EMR/practice management market has been segmented and sub-segmented based on Product Type, By Component, By Delivery Mode, By End User, and By Region.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY PRODUCT TYPE

• Integrated

  • EHR/EMR

  • e-Rx

  • Patient engagement

  • Others

• Standalone

Based on product type, the Digital EMR/Practice management market is broadly segmented into Integrated and Standalone types. Among these, the integrated system dominated the market capturing over 71.5% of the market share in 2021 because of the accompanying benefits of their usage. E-Prescription, Electronic Health Records (EHR), billing systems, and patient interaction are among the few integrated solutions offered by these systems. These systems have several advantages, including simplified practitioner and patient communication. The segment's growth is being fueled by the increasing complexity of patient care and payments, as well as the healthcare industry's centralization.

The Standalone segment is also poised to contribute significantly to the market growth and is anticipated to grow at the fastest rate over the forecast period. The ability for doctors to manage all parts of their operation and business, such as prescriptions, practice governance, invoicing, and patient communication portals, has spurred the growth of the standalone system category. Furthermore, the standalone systems are mostly concerned with management and billing operations, notably scheduling.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET – BY COMPONENT

• Software

• Services

Based on Component, the Digital EMR/Practice management market is segmented into Software and Services. In 2021, the software category had the highest revenue share of more than 58.00 percent. Due to clear user interfaces and ongoing product improvements, the software is simple to install, operate, and extract data. They are used by physicians, hospitals, and health systems to improve patient experience and treatment quality. Regulatory authorities, particularly in developed countries, are focusing on the widespread use of practice management systems to enhance healthcare delivery and accessibility, which is projected to fuel market growth. Moreover, many product releases, as well as upgrades to current versions, contribute to the software segment's leading position.

However, due to the increased need for training and support in installing software and updating systems at pace with the increasing evolution of IT technology, the services category is predicted to grow at the quickest CAGR throughout the forecast period of 2023 - 2030. The efficient running of practice management systems is dependent on services. They help to maximize patient health outcomes by leveraging and optimizing practice management systems according to the needs of the healthcare practice. Consulting, installation and training, support and maintenance, as well as ancillary services like compatibility and connectivity to EHR data are all offered. The unexplored prospects in developing economies are a crucial element contributing to the segment's growth.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY DELIVERY MODE

• Web-based

• Cloud-based

• On-premise

Based on delivery mode, the Digital EMR/Practice management market is segmented into Web-based, Cloud-based, and On-premise. In 2021, the web-based distribution method sector was the most profitable, accounting for more than half of all revenue. The adoption of the web-based management system is growing since it instantly updates as changes occur, causing minimal disturbance to the operation. On-premise, the system is also widely used by organizations that are fueling the market expansion of the segment. Over the forecast period, on-premise systems are likely to be driven due to the growing demand for data security and sharing, as well as increased spending on adopting digital alternatives. Patient data is secure, retrievable, and accessible via on-premise deployment systems. The preference for on-premise solutions originates mostly from the total access to information on-site. On-premise solutions are a far more stable alternative for major healthcare systems and businesses that can store a lot of data, and maintain servers.

The cloud-based category, on the other hand, is expected to grow at the quickest CAGR due to benefits such as improved dependability and faster performance. Cloud-based solutions make it possible to access easily available information from any place. As a result, increased communication bandwidth, data storage, cheaper IT expenses, scalability, accessibility, and other advantages have helped this industry flourish. In rural regions, however, cloud-based delivery method adoption is still low, although it is expected to rise throughout the projected period.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY END-USER

• Physician Back Office

• Pharmacies

• Diagnostic Laboratories

• Other Settings

Based on End - User, the Digital EMR/Practice management market is segmented into Physician Back Office, Pharmacies, and Diagnostic Laboratories among others. In 2021, the physician back-office category commanded a 43 percent revenue share of the worldwide market. The digitalization of records and datasets is attributed to the segment's rise. Moreover, technological developments in these contexts have increased job productivity. The physician back-office segment is expanding as a result of these factors. Due to increasing product demand in these settings, which helps in improved facility management, the pharmacies and diagnostics laboratories segments are anticipated to contribute significantly to the market expansion during the projection period.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY REGION

• North America

• Europe

• The Asia Pacific

• Latin America

• The Middle East 

• Africa

Based on region, the digital EMR/practice management market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America emerged as the largest regional market for the Digital EMR/Practice management market and is expected to continue the trend during the forecast period.  Because of strong digital literacy rates, growing investments in health care and medical setting, and high patient awareness, North America owned a significant share of roughly 52 percent of the worldwide market in 2021. Furthermore, the existence of well-developed healthcare IT infrastructure in these areas is supporting market expansion. Additionally, attractive government efforts such as Medicaid and Medicare EHR incentive programs are propelling the industry.

The Asia Pacific, on the other hand, is expected to grow at the quickest rate throughout the projection period. Factors such as the growing proportion of older people, the prevalence of chronic diseases that provide a larger patient pool, and increased demand for high-quality healthcare at reduced prices are projected to drive market expansion in the coming years. Moreover, expanding healthcare infrastructure, increasing investments by healthcare IT businesses, and better economic conditions are all contributing to the development of the practice management market in the Asia Pacific region.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY COMPANIES

The market for digital/EMR practice management market is competitive. The prevalence of many key organizations makes the industry competitive. The major market players are undergoing strategies like Product launches, clinical trials, innovative research, and seeking approvals from government agencies to expand their global footprints and product ranges. Some of the prominent players operating in the digital EMR/practice management market are:

1. Henry Schein, Inc.

2. Allscripts Healthcare, LLC

3. AdvantEdge Healthcare Solutions

4. Athenahealth

5. Cerner Corporation (Oracle)

6. Epic Systems Corporation

7. GE Healthcare

8. McKesson Corporation

9. Accumedic Computer Systems, Inc.

10. NXGN Management, LLC

11. eClinicalWorks

12. CoreCloud

13. Kareo, Inc.

14. Practice Fusion, Inc.

NOTABLE HAPPENING IN THE DIGITAL EMR/PRACTICE MANAGEMENT MARKET

• PRODUCT LAUNCH- In November 2020, as part of the NextGen Ophthalmic Suite, NextGen Healthcare introduced a specialized optometric workflow to improve the comprehensive quality of clinical eye care for patients while also optimizing financial outcomes for practitioners by merging practice and optical management for effective charge capture.

• ACQUISITION- In July 2019, Henry Schein bought Elite Computer Italia, a dental practice management software business, to expand its regional footprint.

• PRODUCT LAUNCH- In June 2020, Athena Health has introduced a new EHR-integrated telehealth solution that enables medical practitioners to perform virtual consultations without having to download additional software or utilize a third-party app.