U.S. Practice Management Systems Market Size, Share & Trends Analysis Report By Product (Integrated, Standalone), By Component (Software, Services), By Delivery Mode, By End Use, And Segment)- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The U.S. Practice Management Systems market size was valued at US$ 7.42 billion in 2021 and is expected to hit US$ 11.15 billion by 2030, growing at a compound annual growth rate (CAGR) of 4.9% from 2022 to 2030.

Growth Factors:

The rising need to achieve operational efficiency, enhanced documentation with minimal errors, and financial viability for physicians' practice are the key facilitators for the adoption of practice management systems. Moreover, rapid penetration of IT and a rising number of supportive federal initiatives in the U.S. to amalgamate health records on a single platform are further anticipated to provide lucrative growth opportunities to the market.

Increasing pressure to curb healthcare costs along with changing dynamics of hospital/healthcare settings is fueling the demand for practice management systems in the U.S. Factors such as the rising focus on implementing cost-effective and high-quality care are also likely to contribute toward the market development. Healthcare institutes are witnessing a paradigm shift in the U.S. as a result of the changing dynamics of the business models.

The HITEC act implemented for improved healthcare delivery and for providing quality services to patients is further contributing to the growth of the market for practice management systems in the U.S. Adoption of healthcare IT solutions witnessed a surge during the COVID-19 pandemic is expected to provide this market with lucrative growth opportunities.

The COVID-19 pandemic accelerated transformational changes in how healthcare is delivered to patients and accessed while addressing issues such as providing cost-effective and personalized care. Various companies have upgraded their practice management solutions to provide suitable patient-centric services. For instance, Benchmark Systems Inc. in the U.S. offers fully integrated solutions to automate healthcare workflows. This company is acquired by CloudMD Software & Services Inc. in September 2020.

The partnership agreements, collaborations, and mergers by the key players to provide cloud-based solutions to their customers are expected to drive market growth. According to the M&A database of Mercom, companies operational in practice management solutions had completed around 173 deals in the past decade. Philips and Allscripts are amongst the top acquirers.

The development of new value-added services like integration of practice management systems with other healthcare IT solutions, such as Computerized Physician Order Entry (CPOE) and laboratory information systems, is anticipated to propel the market demand in the U.S. over the next few years.

Increasing cases of obesity and other chronic diseases are also expected to boost the market over the forecast period. According to a report by the Center for Disease Prevention and Control (CDC), around one-third population in the U.S. is obese. The geriatric population prone to diabetes and cardiovascular diseases further increases the rate of hospitalization. Moreover, growing incidences of drug resistance further increase the demand to maintain the medical history of patients, which is expected to propel the growth of the U.S. practice management systems market.

Report Scope of the U.S. Practice Management Systems Market

Report Coverage

Details

Market Size in 2021

USD 7.42 Billion

Revenue Projection By 2030

USD 11.15 Billion

Growth Rate

CAGR of 4.9% from 2022 to 2030

Base Year

2021

Historical data

2017 - 2020

Forecast Period

2022 to 2030

Segments Covered

Product, components, delivery mode, end use 

Companies Mentioned

 Henry Schein MicroMD; Allscripts Healthcare Solutions, Inc.; AdvantEdge Healthcare Solutions, Inc.; Cerner Corporation; GE Healthcare; McKesson Corporation

 

Product Insights

The integrated management systems segment captured the largest revenue share of over 70.2% in 2021 and is expected to maintain its dominance over the forecast period. Integrated systems are gaining popularity due to the trend of centralization in the healthcare industry and the rising complexities related to patient care and payments.

Based on products, the market is segmented into integrated and standalone systems. Integrated solutions include Electronic Health Records (EHR), e-prescription, patient engagement, and billing systems. Standalone systems primarily focus on billing and administrative function, particularly scheduling, of the organization.

Practice management systems can be used cohesively with other software to enhance efficiency and communication across different departments. In the case of large-scale facilities, this is highly popular as it helps curtail administrative and medical errors.

Component Insights

The component segment includes software and services offered by the key companies. The software segment held the largest revenue share of over 58.2% in 2021. The segment is anticipated to account for the largest market share over the forecast period owing to government reforms and rising technological advancements in the field of healthcare IT.

Constant product launches along with improvements in the existing versions are also supporting the segment development. For instance, in September 2018, Henry Schein One launched Dentrix G7, an upgraded version of the practice management system for dental care. It uses the industry’s leading digital imaging solutions to boost financial and clinical workflows and improves the efficiency of diagnosis as well as billing. In May 2018, Kareo launched Kareo Analytics for billing professionals to reduce complexity by delivering transparency and valuable insights.

Delivery Mode Insights

Based on the delivery mode the market is segmented into cloud-based, web-based, and on-premise. Web-based practice management systems accounted for the largest share of around 50.1% in 2021 owing to their benefits, such as affordability, quick Return on Investment (RoI), and ease of deployment.

However, the cloud-based segment is expected to witness the fastest CAGR over the forecast period owing to the higher reliability and faster processing of this delivery model. Moreover, it also offers readily available information that can be accessed in remote locations. This technology is being highly adopted across the country owing to the rapidly evolving healthcare IT scenario.

Although the growth of the cloud-based segment is sluggish in rural regions, it is expected to improve over the forecast period. One of the predominantly used practice management solutions, Practice Studio, offers both web- and cloud-based versions to promote higher usability in urban as well as rural regions across the country.

End-use Insights

The physician’s office segment held the largest share of more than 40.4% in 2021 and is projected to witness remunerative growth during the forecast period. Based on end use, the market is segmented into physician’s offices, pharmacies, diagnostic laboratories, and other settings. Other settings may be further defined as emergency care centers, community health centers, nursing stations, and hospital and clinic workstations.

The other settings segment is expected to witness the fastest growth over the forecast period owing to factors such as rising investments by hospitals, healthcare centers, and clinical workstations for workflow digitalization and centralization. Practice management systems integrated with revenue cycle management, patient portals, and clinical intelligence systems, support this centralization. Furthermore, a rise in the number of these facilities is anticipated to lead to higher revenue generation.

Key Companies & Market Share Insights

The players are adopting strategies such as product launches, collaborations, partnerships, and mergers and acquisitions to strengthen their industry position. For instance, in April 2018, Henry Schein and Internet Brands established a joint venture to create an integrated dental technology that would empower them with enhanced practice management, marketing, and patient communication tools.

In July 2019, Henry Schein acquired Elite Computer Italia, which is a dental practice management software company, to improve its regional presence. Moreover, McKesson Corporation collaborated with Navigating Cancer in March 2019 to improve the Patient Relationship Management (PRM) platform for community-based oncologists. Some prominent players in the U.S. practice management systems market include:

  • Henry Schein MicroMD
  • Allscripts Healthcare Solutions, Inc.
  • AdvantEdge Healthcare Solutions, Inc.
  • Cerner Corporation
  • GE Healthcare
  • McKesson Corporation
  • Athenahealth, Inc.
  • EPIC Systems Corporation
  • Accumedic Computer Systems, Inc.
  • NextGen Healthcare Information System LLC
  • eClinicalWorks LLC
  • CareCloud
  • Kareo
  • AdvancedMD
  • DrChrono, Inc
  • CollaborateMD
  • Office Ally

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at U.S. for the period of 2017 to 2030

  • By Product
    • Integrated
    • Standalone
  • By Component
    • Software
    • Services
  • By Delivery Mode
    • On-premise
    • Web-based
    • Cloud-based
  • By End-use
    • Physician Back Office (Solo practitioners)
    • Hospitals (Group practitioners)
    • Pharmacies
    • Diagnostic Laboratories
    • Other Settings

Key Points Covered in U.S. Practice Management Systems Market Study:

  • Growth of U.S. Practice Management Systems in 2022
  • Market Estimates and Forecasts (2017-2030)
  • Brand Share and Market Share Analysis
  • Key Drivers and Restraints Shaping Market Growth
  • Segment-wise
  • Competition Mapping and Benchmarking
  • Recommendation on Key Winning Strategies
  • COVID-19 Impact on Demand for U.S. Practice Management Systems and How to Navigate
  • Key Product Innovations and Regulatory Climate
  • U.S. Practice Management Systems Consumption Analysis
  • U.S. Practice Management Systems Production Analysis
  • U.S. Practice Management Systems and Management