U.S. Behavioral Health EHR Market Size, Share & Trends Analysis Report By Product (Web/Cloud-based EHR, On-premise EHR), By End-use (Government Owned, Private),- Industry Analysis, Size, Share, Growth, Trends, and Forecast 2025-2034

U.S. Behavioral Health EHR Market Size and Growth

The U.S. behavioral health EHR market size was exhibited at USD 316.5 million in 2024 and is projected to hit around USD 849.73 million by 2034, growing at a CAGR of 10.38% during the forecast period 2025 to 2034.

U.S. Behavioral Health EHR Market Key Takeaways:

• Based on product, the web/cloud-based EHR segment held the largest revenue share of over 83.52% in 2024.
• Based on end use, the private segment held the largest revenue share in 2024 and is anticipated to grow fastest from 2025 to 2034.

Report Scope of U.S. Behavioral Health EHR Market

Increasing government efforts to boost healthcare IT adoption among healthcare facilities and rising awareness among mental health professionals about the benefits of EHR are primary factors driving the market. With the advent of technological advancement, physicians use the same EHR software for storing patient data and telehealth, e-prescribing, clinical assessment documentation, & other clinical & administrative work. This, coupled with specific needs for behavioral health practices, is expected to propel market growth over the forecast period.

Rising awareness about substance abuse management is driving market growth. According to the United States National Survey on Drug Use and Health (NSDUH), in 2023, around 48.5 million people in the U.S. were suffering from substance abuse disorders. Of these, only 23% received treatment. This highlights the significant opportunity to enhance behavioral healthcare delivery. According to the U.S. Department of Health and Human Services, the healthcare budget for drug control was estimated to be around USD 11.9 billion in 2024.

EHR utilization is crucial for advancing drug abuse treatment by fostering better care coordination and improving the quality of clinical care. Effective health information technology systems help organize and optimize clinical data, benefiting patients, healthcare providers, and health system leaders by supporting treatment coordination, collaborative decision-making, and quality improvement initiatives.

Moreover, the increasing government initiatives to promote EHR adoption in behavioral health fuel market growth. The behavioral health sector was excluded from the healthcare technology boom for a long time since the government aimed to boost health IT adoption, which primarily targeted physicians. EHR technology utilization has quickly become the industry standard, regardless of specialty. However, this scenario is changing due to various factors, and EHR adoption and behavioral health are expected to grow. For instance, approximately 60% of psychiatrists employ EHR technology in their practices. The following are some government initiatives contributing to the increased adoption of EHR technology in behavioral health.

H.R. 3331 bill - It amends a section of the Social Security Act to encourage the testing of government incentive payments to behavioral health practitioners who employ Certified EHR Technology (CEHRT). This bill aims to eliminate any existing digital division between behavioral healthcare and other care fields, such as primary care, wherein EHR use, health data interchange, and health data analytics are more prevalent and valued.

The Senate passed the S.1732 bill in May 2018, allowing CMS to reward providers for using behavioral health EHRs. The Act provides financial assistance to providers who are not eligible for EHR Incentive Program.

U.S. Behavioral Health EHR Market By Product Insights

Based on product, the web/cloud-based EHR segment held the largest revenue share of over 83.52% in 2024 and is anticipated to grow at the fastest growth rate over the forecast year. Web-based EHR systems specifically designed for behavioral health are increasingly vital in U.S. healthcare. These platforms cater to the unique needs of mental health and substance use treatment, enhancing care delivery, improving patient outcomes, and facilitating integrated care across various settings. The increasing adoption of web/cloud-based EHR solutions and the availability of technologically advanced solutions contribute to market growth. For instance, in May 2023, NorthSight Recovery, a behavioral health agency in Arizona, adopted a cloud-based EHR system to enhance data usage for improving patient outcomes. The agency emphasizes the importance of technology in addressing the U.S. mental health crisis, particularly amidst rising opioid addiction rates.

The on-premises EHR segment is anticipated to grow significantly over the forecast year. On-premises systems allow for greater customization tailored to the specific workflows of behavioral health settings. In addition, efficient storage of large volumes of patient health data is a key factor boosting the segment. In addition, data accessibility on-premises EHRs is better than others, which can positively impact the market.

U.S. Behavioral Health EHR Market By End-use Insights

Based on end use, the private segment held the largest revenue share in 2024 and is anticipated to grow fastest from 2025 to 2034. Private facilities have gradually advanced their technology to serve mental care patients better by providing high-quality infrastructure and clinical services. An initiative in the U.S. targeting Behavioral EHR is primarily driven by a collaboration between the Substance Abuse and Mental Health Services Administration (SAMHSA) and the Office of the National Coordinator for Health Information Technology (ONC) in February 2024. This initiative, known as the Behavioral Health Information Technology (BHIT) Initiative, aims to enhance health information technology in behavioral health settings with an investment of over USD 20 million over the next three years. Such initiatives are anticipated to drive the segment growth over the forecast period.

Government owned segment is anticipated to grow significantly over the forecast year. An increase in behavioral health coverage and a rise in government expenditure on behavioral health is expected to drive the adoption of management software solutions in the coming years in state-owned hospitals. The new government initiatives are anticipated to accelerate the adoption of behavioral health EHRs nationwide. For instance, in August 2023,  Lawmakers proposed a new bill that, if approved, would provide funding for EHRs and other technologies to support behavioral health providers. The Behavioral Health Information Technology Coordination Act proposes USD 20 million annually in grant funding over five years (2025 to 2029) to support behavioral health providers acquiring or upgrading EHR systems. This bill is co-sponsored by Ron Estes (R-Kan.) in the House, Reps. Sharice Davids (D-Kan.,) Catherine Cortez Masto (D-Nev.) in the Senate, Senators Markwayne Mullin (R-Okla.)

Some of the prominent players in the U.S. behavioral health EHR market include:

• Core Solutions, Inc.
• Meditab
• Holmusk
• Netsmart Technologies, Inc.
• Qualtrics
• Welligent
• Valant
• TherapyNotes, LLC.
• NextStep Solutions
• Cerner Corporation (Oracle)
• TheraNest
• ICANotes
• Streamline Healthcare Solutions
• Practice Fusion, Inc.
• Opus Behavioral Health Inc.

U.S. Behavioral Health EHR Market Recent Developments

• In April 2024, Core Solutions, Inc. launched the Core Clinician Assist: Symptom Tracking, the newest addition to its suite of innovative behavioral health AI solutions. This advanced tool leverages AI to analyze large datasets, identify behavioral health symptoms, and link them to relevant diagnoses. It enables providers to track patient care over time and apply evidence-based, actionable insights to improve treatment outcomes.
  
  
• In January 2024, Spectrum Healthcare, one of Arizona's  largest nonprofit healthcare providers, partnered with NextGen Healthcare to tackle the state's primary and behavioral health resources shortage. This collaboration aims to enhance access to integrated care for underserved communities across Arizona.
  
  
• In June 2023, Holmusk and Streamline Healthcare Solutions announced a strategic partnership to introduce a behavioral health predictive analytics tool to the U.S. market.
  
  
• In February 2022, Holmusk collaborated with Metrocare Services on the utilization of real-world data to lead to the creation of mental health care improvement tools. Metrocare Services is North Texas's leading provider of developmental disability and mental health services, serving more than 55,000 people and children annually.

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 2021 to 2034. For this study, Nova one advisor, Inc. has segmented the U.S. behavioral health EHR market

By Product

• Web/ cloud-based EHR
• On-premise EHR

By End-use

• Government Owned
• Private

By Regional

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa (MEA)