U.S. Practice Management Systems Market Size, Share & Analysis Report, 2023-2032
The U.S. practice management systems market size was exhibited at USD 5.6 billion in 2022 and is projected to hit around USD 13.47 billion by 2032, growing at a CAGR of 9.17% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Practice Management Systems Market Report Scope
| Report Attribute | Details |
| Market Size in 2023 | USD 13.47 Billion |
| Market Size by 2032 | USD 13.47 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 9.17% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Product, Component,delivery mode, End-use |
| 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 | Henry Schein, Inc.; Veradigm LLC (Allscripts Healthcare, LLC); AdvantEdge Healthcare Solutions; Athenahealth, Inc.; Cerner Corp. (Oracle); GE Healthcare; McKesson Corp.; EPIC Systems Corp.; NextGen Healthcare, Inc.; eClinicalWorks; CareCloud, Inc.; Kareo, Inc.; AdvancedMD, Inc.; DrChrono, Inc.; CollaborateMD Inc.; OfficeAlly Inc.; Accumedic Computer Systems, Inc. |
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 to the market development. Healthcare institutes are witnessing a paradigm shift in the U.S. as a result of the changing dynamics of business models. The HITEC Act implemented for improved healthcare delivery and for providing quality services to patients is further contributing to the market growth in the U.S.
The adoption of healthcare IT solutions surged during the COVID-19 pandemic, which 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 among the top acquirers.The development of new value-added services, such as the 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.
Product Insights
Based on products, the overall industry has been further categorized into integrated and standalone systems. The integrated management systems segment dominated the industry and accounted for the largest share of 74.6% of the overall revenue in 2022 and is projected to grow at the fastest CAGR over the forecast period. Integrated solutions include Electronic Health Records (EHR), e-prescription, patient engagement, and billing systems.
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.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 66.9% in 2022 owing to government reforms and rising technological advancements in the field of healthcare IT. The services segment is expected to witness the fastest CAGR over the forecast period.Constant product launches along with improvements in the existing versions are also supporting 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 modes, the market is segmented into cloud-based, web-based, and on-premise. Web-based practice management systems accounted for the largest share of 48.1% in 2022 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 slow 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 dominated the market and accounted for the largest share of more than 41% of the overall revenue in 2022 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 are further defined as emergency care centers, community health centers, nursing stations, and hospital & clinic workstations.
The other settings segment is expected to witness the fastest growth rate 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 & 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 Corp. collaborated with Navigating Cancer in March 2019 to improve the Patient Relationship Management (PRM) platform for community-based oncologists. Some of the prominent players in the U.S. practice management systems 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. Practice Management Systems market.
By Product
By Delivery Mode
By Component
By End Use
Chapter 1 Methodology and Scope
1.1 Market Segmentation
1.2 Research Methodology
1.3 Information Procurement
1.3.1 Purchased database
1.3.2 Nova one advisor Internal Database
1.3.3 Secondary sources
1.3.4 Primary research
1.4 Information or Data Analysis
1.4.1 Data Analysis Models
1.5 Market Formulation & Validation
1.6 Model Details
1.6.1 Volume price analysis
1.7 List of Secondary Sources
1.8 List of Abbreviations
1.9 Objectives
1.9.1 Objective 1
1.9.2 Objective 2
1.9.3 Objective 3
Chapter 2 Executive Summary
2.1 Market Outlook
2.1.1 Competitive Landscape
2.2 Market Snapshot
2.3 Market Segmentation
2.4 Competitive Landscape
Chapter 3 Market Variables, Trends & Scope
3.1 Market Lineage Outlook
3.1.1 Parent Market Outlook
3.1.2 Related/Ancillary Market Outlook
3.2 Market Dynamics
3.2.1 Market driver analysis
3.2.1.1 Technological advancements
3.2.1.2 Development and sale of value-added services
3.2.1.3 Pressure to curb healthcare cost
3.2.1.4 Improving infrastructure and digitalization of healthcare cost
3.2.2 Market restraint analysis
3.2.2.1 Risk of data theft
3.2.2.2 Less adoption of practice management software among small practices
3.3 Industry Analysis Tools
3.3.1 Porter’s Five Forces Analysis
3.3.2 PESTLE Analysis
Chapter 4 U.S. Practice Management Systems Market: Product Analysis
4.1 Market Definitions
4.2 U.S. Practice Management Systems Market Product Movement Analysis, 2022 & 2032
4.3 Segment Dashboard
4.4 U.S. Practice Management Systems Market Estimates & Forecasts, By Product
4.4.1 Integraed
4.4.1.1 Integrated market, 2020 - 2032
4.4.1.2 EHR/EMR
4.4.1.2.1 EHR/EMR market, 2020 - 2032
4.4.1.3 e-Prescription
4.4.1.3.1 e-Prescription market, 2020 - 2032
4.4.1.4 Patient engagement
4.4.1.4.1 Patient engagement market, 2020 - 2032
4.4.1.5 Others
4.4.1.5.1 Others market, 2020 - 2032
4.4.2 Standalone
4.4.2.1 Standalone market, 2020 - 2032
Chapter 5 U.S. Practice Management Systems Market: Component Analysis
5.1 Market Definitions
5.2 U.S. Practice Management Systems Market Component Movement Analysis, 2022 & 2032
5.3 Segment Dashboard
5.4 U.S. Practice Management Systems Market Estimates & Forecasts, By Component
5.4.1 Software
5.4.1.1 Software market, 2020 - 2032
5.4.2 Services
5.4.2.1 Services market, 2020 - 2032
Chapter 6 U.S. Practice Management Systems Market: Delivery Mode Analysis
6.1 Market Definitions
6.2 U.S. Practice Management Systems Market Delivery Mode Movement Analysis, 2022 & 2032
6.3 Segment Dashboard
6.4 U.S. Practice Management Systems Market Estimates & Forecasts, By Delivery Mode
6.4.1 On-premise
6.4.1.1 On-premise market, 2020 - 2032
6.4.2 Web-based
6.4.2.1 Web-based market, 2020 - 2032
6.4.3 Cloud-based
6.4.3.1 Cloud-based market, 2020 - 2032
Chapter 7 U.S. Practice Management Systems Market: End-Use Analysis
7.1 Market Definitions
7.2 U.S. Practice Management Systems Market End-Use Movement Analysis, 2022 & 2032
7.3 Segment Dashboard
7.4 U.S. Practice Management Systems Market Estimates & Forecasts, By End-Use
7.4.1 Physician Back Office
7.4.1.1 Physician back office market, 2020 - 2032
7.4.2 Pharmacies
7.4.2.1 Pharmacies market, 2020 - 2032
7.4.3 Diagnostic Laboratories
7.4.3.1 Diagnostic laboratories market, 2020 - 2032
7.4.4 Other Settings
7.4.4.1 Other settings market, 2020 - 2032
Chapter 8 Competitive Analysis
8.1 Participant’s Overview
8.2 Financial Performance
8.3 Participant Categorization
8.3.1 Company Position Analysis
8.3.2 Strategy mapping
8.3.2.1 New product launches
8.3.2.2 Collaboration
8.3.2.3 Partnerships
8.3.2.4 Merger and acquisition
8.3.2.5 Others
8.4 Companies
8.4.1 Henry Schein, Inc.
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 Veradigm LLC (Allscripts Healthcare, Inc.)
8.4.2.1 Company Overview
8.4.2.2 Financial Performance
8.4.2.3 Product Benchmarking
8.4.2.4 Strategic Initiatives
8.4.3 AdvantEdge Healthcare Solutions
8.4.3.1 Company Overview
8.4.3.2 Financial Performance
8.4.3.3 Product Benchmarking
8.4.3.4 Strategic Initiatives
8.4.4 athenaHealth, Inc.
8.4.4.1 Company Overview
8.4.4.2 Financial Performance
8.4.4.3 Product Benchmarking
8.4.4.4 Strategic Initiatives
8.4.5 Cerner Corporation (Oracle)
8.4.5.1 Company Overview
8.4.5.2 Financial Performance
8.4.5.3 Product Benchmarking
8.4.5.4 Strategic Initiatives
8.4.6 EPIC Systems Corporation
8.4.6.1 Company Overview
8.4.6.2 Financial Performance
8.4.6.3 Product Benchmarking
8.4.5.4 Strategic Initiatives
8.4.7 GE Healthcare
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 McKesson Corporation
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 NextGen Healthcare, Inc
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 eClinicalWorks
8.4.8.1 Company Overview
8.4.8.2 Financial Performance
8.4.8.3 Product Benchmarking
8.4.8.4 Strategic Initiatives
8.4.11 CareCloud, Inc.
8.4.11.1 Company Overview
8.4.11.2 Financial Performance
8.4.11.3 Product Benchmarking
8.4.11.4 Strategic Initiatives
8.4.12 Kareo, Inc.
8.4.12.1 Company Overview
8.4.12.2 Financial Performance
8.4.12.3 Product Benchmarking
8.4.12.4 Strategic Initiatives
8.4.13 AdvancedMD, Inc.
8.4.13.1 Company Overview
8.4.13.2 Financial Performance
8.4.13.3 Product Benchmarking
8.4.12.4 Strategic Initiatives
8.4.14 DrChrono, Inc.
8.4.14.1 Company Overview
8.4.14.2 Financial Performance
8.4.14.3 Product Benchmarking
8.4.14.4 Strategic Initiatives
8.4.15 CollaborateMD Inc.
8.4.15.1 Company Overview
8.4.15.2 Financial Performance
8.4.15.3 Product Benchmarking
8.4.15.4 Strategic Initiatives
8.4.16 OfficeAlly Inc.
8.4.16.1 Company Overview
8.4.16.2 Financial Performance
8.4.16.3 Product Benchmarking
8.4.16.4 Strategic Initiatives
8.4.17 Accumedic Computer Systems, Inc.
8.4.17.1 Company Overview
8.4.17.2 Financial Performance
8.4.17.3 Product Benchmarking
8.4.17.4 Strategic Initiatives
Cross-segment Market Size and Analysis for
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Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
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Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers