U.S. Behavioral Health Care Software And Services Market to Touch USD 8.23 Billion by 2032
The U.S. behavioral health care software and services market size was exhibited at USD 2.6 billion in 2022 and is projected to hit around USD 8.23 billion by 2032, growing at a CAGR of 12.21% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Behavioral Health Care Software And Services Market Report Scope
| Report Attribute | Details |
| Market Size in 2023 | USD 2.92 Billion |
| Market Size by 2032 | USD 8.23 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 12.21% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Component, Delivery model, Function, End use, and by disorder type |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Cerner Corporation; Core Solutions, Inc.; Epic; Meditab; Holmusk; Netsmart Technologies; Qualifacts Systems, Inc.; Welligent, Inc.: SimplePractice, LLC; TherapyNotes, LLC; TheraNest |
The emerging technologies for behavioral health management, rising awareness regarding substance abuse, and expanding reimbursement coverage are contributing to market growth. The adoption of behavioral health care software by care providers is likely to improve the management of mental health issues and treatment prospects. The providers of behavioral health can adopt integrated EHRs for effective practice management and cost savings.
For instance, in May 2022, Osmind, a San Francisco-based firm, raised USD 940 million in Series B financing to expand its technology. The company is dedicated to developing e-health record software for the psychiatrist and its EHR technology is aimed at novel therapies such as psychedelic drugs and neuromodulation treatments including transcranial magnetic stimulation (TMS). The communication between the care providers and patients is simplified by the real-time monitoring system. Integration of new technologies with other treatment approaches assists to improve the effectiveness and productivity of care. Video conferencing is provided by telepsychiatry or Tele-mental health, which helps care providers coordinate with the patients from a distant location.
The U.S. government is particularly concerned about high healthcare expenditures associated with the treatment of behavioral health-related disorders. For instance, the overall impact of substance abuse including treatment is approximately USD 600 billion annually in the U.S., according to the Substance Abuse and Mental Health Services Administration (SAMHSA). The administration stated that substance abuse leads to loss of productivity and increases the burden on public healthcare.
Value-based medicine programs by behavioral health care providers help in reducing the costs related to substance abuse. For instance, in May 2022, the Department of Health and Human Services announced a nearly USD 15 million budgetary opportunity for a 3-year federal grant to create a Substance Abuse and Mental Health Services Administration program. This will improve behavioral health care delivery to citizens of nursing homes and other long-term care facilities. This initiative will construct a Center of Excellence for Capacity Building in Nursing Centers to Serve Patients with Behavioral Health Conditions, which will be funded by the Centers for Medicare & Medicaid Services.
The COVID-19 pandemic opened new opportunities for mental wellness apps. There is a shift to virtual care for patients seeking psychiatric treatment. Software providers are undertaking initiatives to help tackle the health crisis. Cerner Corporation provided its associates with online fitness and wellbeing tools and activities for encouraging mental and physical health. Moreover, it worked in association with public authorities, such as CDC, to accelerate data sharing and reduce the overall burden on healthcare facilities. Furthermore, the download and use of mental wellbeing apps such as Calm, Headspace, Reflectly, and Meditopia increased to multiple folds during the pandemic.
Component Insights
The software segment dominated the market with a share of 83.7% in 2022. Behavioral health care software provides care providers to design and choose the optimal treatment plan for a person suffering from mental illnesses such as depression, stress, anxiety, substance abuse, and addiction. The mental wellness software designs the treatment plans based on clinical evidence and related patient records. The software segment is further segmented into integrated and standalone. Integrated software has all the functionalities combined in one single package. It includes governance, billing, appointment scheduling, e-prescription, telehealth, business intelligence, patient management, and other features in a single platform. Based on the component, the market is bifurcated into software and support.
The companies operating in the market are launching new platforms to aid the growth of the market. For instance, in March 2022, NextGen Healthcare, Inc. updated its NextGen Behavioral Health Platform. The suite is the sector's first platform to integrate complete physical, mental health, human services, and dental care in one software solution, and it builds on the company's award-winning NextGen Enterprise e-health record and practice management system. Providing behavioral care during the COVID pandemic demanded certain changes in the software. For instance, COPE Community Services updated its EHR software AXiOM, provided by Health Information Management Systems (HiMS) to include COVID-19 diagnostic tests HCPCS codes, and CPT codes for testing purposes.
Delivery Model Insights
The subscription segment with 62.9% held the majority of the market share in 2022. The segment is anticipated to register the highest CAGR over the forecast period. Behavioral healthcare software solutions can be either subscribed to or purchased, depending on factors such as the availability of capital for investment. Due to limited capital available for investment, small-scale healthcare professionals opt for subscriptions. Based on the delivery model, the market is segmented into ownership and subscription. The ownership segment is expected to witness lucrative growth during the forecast period. This can be attributed to the development of incentive policies for the mental health EHR in the U.S.
For instance, the U.S. government introduced the Improving Access to Behavioral Health Information Technology Act in 2018. Under the act, mental healthcare providers such as psychologists, psychiatric hospitals, and community healthcare centers are eligible for financial incentives for the implementation of the behavioral health EHR system. Large mental health facilities however prefer purchasing and installing software solutions for smooth workflow management. Factors such as the type of Electronic Medical Records (EMRs), requirements of clinicians, and financial requirements are the factors to be considered while installing in-house mental wellness software.
Function Insights
Based on function, the clinical functions segment dominated the market with a share of 51.11% in 2022. Large-scale psychiatry hospitals require the integration of clinical functions with their systems as they have a high patient inflow. This is propelling the market growth. Clinical functions are likely to retain their top position during the forecast period, followed by administrative functions. Mental wellness apps provide clinical services such as scheduling appointments, claim filings, documentation, coding, and billing. Market players offer all-inclusive solutions as well as standalone solutions. Based on the function, the market is categorized into clinical, administrative, and financial.
The administrative segment is expected to witness highest growth with a CAGR of 12.88% during the forecast period. The segment includes patient scheduling, documentation management, case monitoring, employee management, and business intelligence. The documentation management sub-segment is estimated to witness significant growth from 2023 to 2032. Specific customizable templates, organized data, and result metrics are required in electronic papers. In hospitals, clinics, long-term care units, and rehabilitation facilities, document management helps reduce the danger of data overload.
End-use Insights
Based on end-use, providers accounted for 51.19% share of the market in 2022. The payers segment is projected to report a considerable CAGR of 13.37% during the forecast period. This can be attributed to the improving reimbursement policies for psychiatric treatment. For instance, according to the Congressional Office Budget Data of the Healthcare cost institute, approximately 43% more is paid by private players to mental healthcare providers, and 53% greater for psychotherapy. The healthcare cost institute data includes 39 million claims from Humana, UnitedHealthcare, and Atena members. Based on the end-use, the market is classified into providers, payers, and patients.
The payers segment is expected to acquire a significant share in the market during the forecast period. This can be attributed to the improvements in the reimbursement rates for behavioral health care software. The lower reimbursement rates could prevent clinical practitioners from entering the business, thus hindering patients’ access to mental healthcare.
Some of the prominent players in the U.S. Behavioral Health Care Software And Services Market include:
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 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Behavioral Health Care Software And Services market.
By Component
By Function
By Delivery Model
By End-use
By Disorder Type
Chapter 1. Methodology And Scope
1.1 Market Segmentation & Scope
1.2 Estimates And Forecast Timeline
1.3 Research Methodology
1.4 Information Procurement
1.4.1 Purchased Database
1.4.2 Nova one advisor’s Internal Database
1.4.3 Secondary Sources
1.4.4 Primary Research
1.5 Information Or Data Analysis
1.5.1 Data Analysis Models
1.6 Market Formulation & Validation
1.7 Model Details
1.7.1 Commodity Flow Analysis (Model 1)
1.7.2 Volume Price Analysis (Model 2)
1.8 List Of Secondary Sources
1.9 List Of Abbreviations
1.10 Objectives
1.10.1. Objective - 1
1.10.1. Objective - 2
Chapter 2. Executive Summary
2.1 Market Outlook
2.2 Segment Outlook
2.2.1 Component
2.2.2 Delivery Model
2.2.3 Function
2.2.4 End Use
2.2.5 Disorder Type
2.3 Competitive Insights
Chapter 3. Market Variables, Trends & Scope
3.1 Market Lineage Outlook
3.1.2 Parent Market Outlook
3.1.2 Related/ Ancillary Market Outlook
3.2 Penetration & Growth Prospect Mapping
3.3 Market Dynamics
3.3.1 Market Driver Analysis
3.3.1.1 Emerging Technologies In Behavioral Health Care And Management
3.3.2.2 Rising Awareness Of Substance Abuse Management
3.3.3.3 Expanding Reimbursement Coverage In Developed Countries
3.3.2 Market Restraint Analysis
3.3.2.1 Inadequate Funding And Low Awareness Of Mental Health Issues
3.3.2.2 Lack Of Skilled Clinicians
3.4 U.S. Behavioral Health Care Software & Services Market: Business Environment Analysis Tools
3.4.1 Porter’s Five Forces Analysis
3.4.1.1 Threat Of New Entrants: Moderate
3.4.1.2 Bargaining Power Of Buyers: Low
3.4.1.3 Competitive Rivalry: High
3.4.1.4 Threat Of Substitutes: High
3.4.1.5 Bargaining Power Of Suppliers: High
3.4.2 Pestel Analysis
3.4.2.1 Political & Legal
3.4.2.2 Economic
3.4.2.3 Technological
3.5 Impact Of Covid-19 On U.S. Behavioral Health Care Software & Services Market
Chapter 4. U.S. Behavioral Health Care Software & Services Market: Component Analysis
4.1 U.S. Behavioral Health Care Software & Services Component Market Share Analysis, 2023 & 2032
4.2 U.S. Behavioral Health Care Software & Services Component Market: Segment Dashboard
4.3 Market Size & Forecasts And Trend Analyses, 2020 To 2032 For The Component Segment
4.3.1 Software
4.3.1.1 Software Market, 2020 - 2032
4.3.1.2 Integrated Software
4.3.1.2.1 Integrated Software Market, 2020 - 2032
4.3.1.3 Standalone Software
4.3.1.3.1 Standalone Software Market, 2020 - 2032
4.3.2 Support Services
4.3.2.1 Support Services Market, 2020 - 2032
Chapter 5. U.S. Behavioral Health Care Software & Services Market: Delivery Model Analysis
5.1 U.S. Behavioral Health Care Software & Services Delivery Model Market Share Analysis, 2023 & 2032
5.2 U.S. Behavioral Health Care Software & Services Delivery Model Market: Segment Dashboard
5.3 Market Size & Forecasts And Trend Analyses, 2020 To 2032 For The Delivery Model Segment
5.3.1 Ownership
5.3.1.1 Ownership Market, 2020 - 2032
5.3.2 Subscription
5.3.2.1 Subscription Market, 2020 - 2032
Chapter 6. U.S. Behavioral Health Care Software & Services Market: Function Analysis
6.1 U.S. Behavioral Health Care Software & Services Function Market Share Analysis, 2023 & 2032
6.2 U.S. Behavioral Health Care Software & Services Function Market: Segment Dashboard
6.3 Market Size & Forecasts And Trend Analyses, 2020 To 2032 For The Function Segment
6.3.1 Clinical
6.3.1.1 Clinical Function Market, 2020 - 2032
6.3.1.2 EHR
6.3.1.2.1 EHR Market, 2020 - 2032
6.3.1.3 Clinical Decision Support
6.3.1.3.1 Clinical Decision Support Market, 2020 - 2032
6.3.1.4 Care Plans
6.3.1.4.1 Care Plans Market, 2020 - 2032
6.3.1.5 E-Prescribing
6.3.1.5.1 E-Prescribing Market, 2020 - 2032
6.3.1.6 Telehealth
6.3.1.6.1 Telehealth Market, 2020 - 2032
6.3.2 Administrative
6.3.2.1 Administrative Function Market, 2020 - 2032
6.3.2.2 Patient/Client Scheduling
6.3.2.2.1 Patient/Client Scheduling Market, 2020 - 2032
6.3.2.3 Document Management
6.3.2.3.1 Document Management Market, 2020 - 2032
6.3.2.4 Case Management
6.3.2.4.1 Case Management Market, 2020 - 2032
6.3.2.5 Workforce Management
6.3.2.5.1 Workforce Management Market, 2020 - 2032
6.3.2.6 Business Intelligence
6.3.2.6.1 Business Intelligence Market, 2020 - 2032
6.3.3 Financial
6.3.3.1 Financial Function Market, 2020 - 2032
6.3.3.2 Revenue Cycle Management
6.3.3.2.1 Revenue Cycle Management Market, 2020 - 2032
6.3.3.3 Managed Care
6.3.3.3.1 Managed Care Market, 2020 - 2032
6.3.3.4 General Ledger
6.3.3.4.1 General Ledger Market, 2020 - 2032
6.3.3.5 Payroll
6.3.3.5.1 Payroll Market, 2020 - 2032
Chapter 7. U.S. Behavioral Health Care Software & Services Market: End-Use Analysis
7.1 U.S. Behavioral Health Care Software & Services End-Use Market Share Analysis, 2023 & 2032
7.2 U.S. Behavioral Health Care Software & Services End-Use Market: Segment Dashboard
7.3 Market Size & Forecasts And Trend Analyses, 2020 To 2032 For The End-Use Segment
7.3.1 Providers
7.3.1.1 Providers Market, 2020 - 2032
7.3.1.2 Hospitals & Clinics
7.3.1.2.1 Hospitals & Clinics Market, 2020 - 2032
7.3.1.3 Community Centers
7.3.1.3.1 Community Centers Market, 2020 - 2032
7.3.2 Payers
7.3.2.1 Payers Market, 2020 - 2032
7.3.3 Patients
7.3.3.1 Patients Market, 2020– 2032
Chapter 8 Behavioral/Mental Health Care Software & Services Market: Disorder Type Analysis
8.1 Behavioral/Mental Health Care Software & Services Disorder Type Market Share Analysis, 2023 & 2032
8.2 Behavioral/Mental Health Care Software & Services Disorder Type Market: Segment Dashboard
8.3 Market Size & Forecasts And Trend Analyses, 2020 To 2032 For The Disorder Type Segment
8.3.1 Anxiety
8.3.1.1 Anxiety Market, 2020– 2032
8.3.2 Post-Traumatic Stress Disorder (Pstd)
8.3.2.1 Post-Traumatic Stress Disorder (Pstd) Market, 2020– 2032
8.3.3 Substnce Abuse
8.3.3.1 Substance Abuse Market, 2020– 2032
8.3.4 Schizophrenia
8.3.4.1 Schizophrenia Market, 2020– 2032
8.3.5 Bipolar Disorders
8.3.5.1 Bipolar Disorders Market, 2020– 2032
8.3.6 Others
8.3.6.1 Others Market, 2020– 2032
Chapter 8. Competitive Analysis
8.1 Recent Developments & Impact Analysis, By Key Market Participants
8.2 Strategic Framework/ Competition Categorization
8.3 company Market Position Analysis
8.4 Company Profiles
8.4.1 Cerner Corporation
8.4.1.1 Company Overview
8.4.1.2 Financial Performance
8.4.1.3 Product Benchmarking
8.4.1.4 Strategic Initiatives
8.4.2 Core Solutions, Inc.
8.4.2.1 Company Overview
8.4.2.2 Financial Performance
8.4.2.3 Product Benchmarking
8.4.3 Epic
8.4.3.1 Company Overview
8.4.3.2 Financial Performance
8.4.3.3 Product Benchmarking
8.4.4 Meditab
8.4.4.1 Company Overview
8.4.4.2 Product Benchmarking
8.4.4.3 Strategic Initiatives
8.4.5 Holmusk
8.4.5.1 Company Overview
8.4.5.2 Product Benchmarking
8.4.5.3 Strategic Initiatives
8.4.6 Netsmart Technologies
8.4.6.1 Company Overview
8.4.6.2 Financial Performance
8.4.6.3 Product Benchmarking
8.4.6.4 Strategic Initiatives
8.4.7 Qualifacts Systems, Inc.
8.4.7.1 Company Overview
8.4.7.2 Financial Performance
8.4.7.3 Product Benchmarking
8.4.7.4 Strategic Initiatives
8.4.8 Welligent, Inc.
8.4.8.1 Company Overview
8.4.8.2 Financial Performance
8.4.8.3 Product Benchmarking
8.4.8.4 Strategic Initiatives
8.4.9 Simplepractice, Llc
8.4.9.1 Company Overview
8.4.9.2 Financial Performance
8.4.9.3 Product Benchmarking
8.4.9.4 Strategic Initiatives
8.4.10 Therapynotes, Llc
8.4.10.1 Company Overview
8.4.10.2 Financial Performance
8.4.10.3 Product Benchmarking
8.4.10.4 Strategic Initiatives
8.4.11 Theranest
8.4.11.1 Company Overview
8.4.11.2 Financial Performance
8.4.11.3 Product Benchmarking
8.4.11.4 Strategic Initiatives
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers