U.S. Behavioral Health EHR Market Size, Share & Trends Analysis Report By End Use (State-owned, Private), And Segment- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. Behavioral Health EHR market size was estimated at USD 243.91 million in 2022 and is expected to surpass around USD 696.94 million by 2032 and poised to grow at a compound annual growth rate (CAGR) of 11.07% during the forecast period 2023 to 2032.

Key Takeaways:

• In terms of end use, the private segment dominated the market in 2022. An increase in the number of private behavioral care providers and consolidation of healthcare facilities are expected to boost the segment growth
• Private facilities have gradually advanced their technology to better serve mental care patients. In February 2018, AltaPointe Health, an Alabama-based behavioral care provider, has adopted the Carequality framework to connect Netsmart’s EHR with other providers across AltaPointe’s multiple hospital systems
• The state-owned end-use segment is estimated to grow at a significant pace during the forecast period. An increase in behavioral health coverage and a rise in government expenditure are likely to drive the adoption of management software solutions in the coming years in state-owned hospitals
• According to the National Association of State Mental Health Program Directors' Research Institute, Inc. (NRI) 2019 consumer report, 41 states have used EHR in their state-operated mental institutions in 2018, while no state used an all-inclusive EHR

U.S. Behavioral Health EHR Market Report Scope

Electronic health records (HER) software is extremely advantageous for behavioral care practices since it promotes communication among clinicians, hence avoiding unnecessary duplication of services. With clinical and financial consequences at stake, behavioral care practitioners are adopting health IT solutions such as EHR technology at a faster rate than that in previous years.

According to a recent study published in Perspectives in Health Information Management, usability and a clear grasp of the benefits of EHRs are among the primary factors driving health IT adoption in the mental healthcare field. Additionally, a study published in PLOS One revealed that psychiatric hospitals using certified EHR technology were having a higher level of overall patient experience and patient satisfaction with care transition. In addition, their implementation resulted in improvements in healthcare information availability for patients. Positive patient perception toward hospitals is boosting the adoption of EHR among behavioral care providers.

According to the National Center for Drug Abuse Statistics, in 2020, around 20 million people were suffering from substance abuse disorders in the U.S. Of these, only 2.5 million people received treatment. Hence, there is a wide scope for improvement in the care delivery of behavioral healthcare. According to the U.S. Department of Health and Human Services, the healthcare budget for drug control was estimated to be around USD 35 billion in 2020. EHR utilization is critical in drug abuse treatment because it promotes improved care coordination and clinical care quality. Improved care coordination is anticipated to result in improved treatment outcomes since a physician can share treatment alternatives and other key clinical information with another physician.Lastly, the use of EHRs provides a wide potential for enhancing the care of those living with this illness. All these factors are expected to drive the market.

The COVID-19 pandemic increased population stress, concern, despair, frustration, and dread, potentially increasing the prevalence of mental care issues. Thus, as mental care problems grow, demand for online diagnostic and treatment platforms will increase, propelling the market growth. Additionally, the COVID-19 pandemic has heightened awareness regarding the need for mental health EHR systems to deal with the crisis. For example, Netsmart (US) collaborated with the California Department of Veterans Affairs in April 2020. (CalVet, US). This collaboration aided CalVet in implementing Netsmart's person-centered EHR platform, myUnity, to improve the clinical and operational performance of its day-to-day care delivery to residents.

End-use Insights

The private segment accounted for the largest revenue share of over 80.0% in 2021. To attract more patients, private facilities are always focusing on delivering high-quality infrastructure and clinical services. Increased private hospital enrollment and consolidation of healthcare facilities are expected to support the growth of the private segment. Moreover, private mental care practices utilize integrated EHRs to maximize cost savings and practice management effectiveness.

The state-owned segment is estimated to grow at a significant pace during the forecast period owing to the growing awareness regarding substance abuse management and the increasing prevalence of mental disorders. Due to the increasing awareness about the use of software, healthcare providers are adopting software solutions to increase their service efficiency. In June 2020, North Central Health Care (NCHC) opted to implement Cerner Corporation’s EHR at its three behavioral healthcare facilities across Wisconsin. This technology is expected to provide NCHC nurses, therapists, and physicians with near real-time patient data to help improve care quality.

In addition, some state-owned hospitals serve rural areas, while others serve small communities outside of major cities. The implementation of EHR will help in information transfer when patients are referred to large, specialized hospitals. This is boosting the adoption of EHR in state-owned facilities.

Key Companies & Market Share Insights

The market is highly fragmented due to the presence of a large number of players. Qualifacts Systems, Inc., Welligent, and Netsmart Technologies, Inc. are some of the leading players in the market. Established players in the market are constantly involved in innovation due to evolving needs and demand for tools and software to manage and provide mental healthcare. For instance, in December 2021, Qualifacts Systems, Inc. announced the acquisition of InSync Healthcare Solutions. The acquisition enables the combined business to serve a broader behavioral health and human services market with innovation, technology, customer support, and complementary products.

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

• Core Solutions, Inc.
• Meditab
• Holmusk
• Netsmart Technologies, Inc.
• Qualifacts Systems, Inc.
• Welligent
• Valant
• Therapynotes, LLC
• Nextstep Solutions

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 EHR market.

By End-use 

• Private
• State-owned