U.S. Healthcare ERP Market Size, Share & Trends Analysis Report By Function, By Deployment (On-premise, Cloud), And Segment - Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. healthcare ERP market size was exhibited at USD 4.45 billion in 2022 and is projected to hit around USD 8.04 billion by 2032, growing at a CAGR of 6.1% during the forecast period 2023 to 2032.

Key Takeaways:

• The patient relationship management segment is expected to emerge as the fastest-growing segment over the forecast period as medical care providers are finding it challenging to strengthen their relationships with patients owing to the continued enrolment of new patients
• The integration of artificial intelligence (AI) in healthcare ERP solutions is allowing to provide personalized patient care by determining the condition of patients and providing them with the necessary care
• The initiatives undertaken by the government to improve healthcare facilities are expected to open opportunities for the growth of the market
• Medical care administrators in the U.S. are focusing on integrating natural language processing (NLP) programs and machine learning (ML) in their ERP systems to employ predictive analytics in proactively identifying patients

U.S. Healthcare ERP Market Report Scope

Several industry verticals in the U.S. are aggressively adopting ERP solutions and healthcare is not an exception to that. The ease in breaking of data silos across multiple business functions, automation of daily tasks, and streamlining information across various departments have triggered the adoption of ERP solutions in every industry across the U.S., including healthcare. The adoption of ERP in the U.S. healthcare sector can be attributed to various advantages, such as an increase in caregiving efficiency and better utilization of resources, offered by ERP software.

Switching from legacy ERP systems to cloud-based ERP systems is benefitting the U.S. healthcare sector in the form of several functionalities and personalization features. Cloud-based ERP systems can provide healthcare organizations with universal access to data at any given time and from any location, thereby enhancing the efficiency of critical business functions. Given that all the information is centralized, the approach also brings healthcare providers, patients, and insurance providers in the U.S. under a single platform. Thus, with the rise of cloud deployment services in the healthcare sector are expected to drive the growth of the market over the forecast period.

The healthcare sector generates large volumes of financial data and other information. Most of the information is related to the revenue generated from patients, insurance claims, and other expenses, among others. To eliminate this silo of data, healthcare administrators have started adopting ERP systems that provide disparate software for processing and storing data. Such systems can be typically beneficial because of their ability to increase the efficiency, provide real-time data and analytical solutions, and data security due to encryption of database. These benefits are encouraging healthcare organizations in the U.S. to opt for ERP systems.

The integration of artificial intelligence (AI) in ERP solutions is benefitting the healthcare sector significantly. Healthcare providers in the U.S. have started integrating AI in the electronic healthcare record (EHR) management system to gain actionable insights and to help in providing personalized patient care at lower costs. The growing preference for healthcare ERP solutions featuring AI capabilities is opening new opportunities for vendors offering various financial applications, business intelligence packages, and ERP systems. Integrating natural language processing (NLP) programs and machine learning (ML) along with AI in healthcare ERP systems can also help in identifying patients proactively.

Healthcare ERP solutions integrated with AI are assisting care managers in determining the conditions of patients and providing them with the necessary care. AI chatbots can particularly enhance the experience by responding to the patients’ questions. According to the National Institute on Drug Abuse, more than 130 people die of overdosing on opioids in the U.S. every day. Hence, healthcare professionals in the U.S. are trying to derive actionable insights from AI and analytical solutions and utilize those to tackle the looming opioid epidemic.

Function Insights

Based on function, the U.S. healthcare ERP market has been further segmented into inventory and material management, supply chain and logistics management, patient relationship management, finance and billing, and others. The inventory and material management segment accounted for the largest market share in 2018 and expected to remain the dominant segment over the forecast period. An ERP system can enhance patient relationship management (PRM) by synchronizing the patient database and modernizing the healthcare IT system. Hence, the patient relationship management segment is estimated to register the highest CAGR from 2023 to 2032 in the market for healthcare ERP in the U.S.

Healthcare administrators in the U.S. are focusing on improving the efficiency of the operations and simultaneously optimizing the backend operations to reduce costs. Toward this end, an ERP system can help in enhancing the quality of patient care and delivering personalized care, thereby strengthening the relationship with patients. PRM software provides practicing doctors, clinics, and hospitals with tools to improve healthcare outcomes, optimize marketing efforts, and ensure transparency and trust between patients and doctors. An ERP system can also help in reducing overheads by integrating the functions related to finance, inventory, and human resources, among others.

Deployment Insights

Based on deployment, the market has been further segmented into on-premise and cloud. The on-premise segment accounted for a market share of more than 92% in 2022. However, the cloud segment is expected to register double-digit growth over the forecast period. Cloud computing is allowing enterprises to store their data on a remote server and access it using the internet. Advances in cloud computing are facilitating agility, scalability, reliability, and flexibility, thereby encouraging the adoption of cloud computing in the healthcare ERP market in the U.S.

ERP solutions enable operational improvements in the overall business process and benefit in terms of profitability, productivity, and growth. The dynamics of the healthcare system in the U.S. are changing rapidly as automation continues to proliferate in the healthcare sector. At this juncture, cloud computing is allowing vendors to cater to the needs to their clients through various delivery models, including software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS). These models can allow customers to pay according to the usage and reduce their IT infrastructure costs. These advantages are driving the adoption of cloud-based healthcare ERP solutions in the U.S.

U.S. Healthcare ERP Market Share Insights

Some of the leading ERP solution providers in the U.S. include Epicore Software Corporation; Infor; Oracle Corporation; Microsoft Corporation; Sage Software Solution Pvt. Ltd.; and QAD Inc.; among others. To remain competitive in the market, manufacturers are trying to anticipate the needs of their customers and innovating accordingly. To meet the changing customer requirements and identifying cost-saving opportunities, ERP systems providers are focusing on adopting new technologies and pursuing new objectives. For instance, in March 2019, Oracle Corporation added new capabilities to Oracle Enterprise Performance Management (EPM) Cloud and Oracle Enterprise Resource Planning (ERP) Cloud. The new additions include intelligent assistants and AI capabilities for financial controls, improved accuracy, reduction in manual processes, and compliance. Market players are also focusing on mergers & acquisitions and strategic partnerships to strengthen their foothold in the market. For instance, in March 2018, Broad Point, Inc. acquired the Technology Solutions division of Jitasa, Inc. to increase its customer base.

Some of the prominent players in the U.S. Healthcare ERP Market include:

• Aptean
• Infor
• McKesson Corporation
• Microsoft Corporation
• Odoo
• Oracle Corporation
• QAD Inc.
• Sage Group plc
• SAP SE

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. Healthcare ERP market.

By Function 

• Inventory and material management
• Supply chain and logistics management
• Patient relationship management
• Finance and billing
• Others

By Deployment 

• On-premise
• Cloud