- The global market for healthcare revenue cycle management software will grow at a compound annual growth (CAGR) rate of 6.9 percent from 2017 to 2022, researchers from Future Market Insights recently predicted.
At that growth rate, they estimate that the healthcare revenue cycle management software market will reach $43.3 billion by the end of 2022.
Hospitals will be driving the software market growth, the report states. Researchers identified hospitals as the largest end-users of healthcare revenue cycle management software.
However, the use of healthcare revenue cycle management software should rise among clinics and laboratories between now and 2022. In 2017, laboratories accounted for nearly one-fifth share of global revenues.
Healthcare revenue cycle management software end-use in clinics is also projected to take in almost $6.5 billion in revenues.
Healthcare organizations of all shapes and sizes are feeling the pressure to optimize operational efficiency and improve their bottom lines. As claims reimbursement rates shrink and value-based reimbursement models start to dominate the market, provider organizations are turning to services that support healthcare revenue cycle management, researchers explain.
Supporting services for healthcare revenue cycle management software will be in higher demand from 2017 to 2022. In 2017 alone, researchers project supporting services to account for one-half of the revenues procured in the global healthcare revenue cycle management software market.
Meanwhile, software sales should drop in the near future despite sales representing almost one-half of the global revenues in 2017.
Services that facilitate healthcare revenue cycle management are likely to pull ahead of software sales during the forecast period as “lack of trained staff and increasing practice of down coding an RCM [revenue cycle management] service are expected to boost the sales of healthcare revenue cycle management as a service.”
Billing and payment management applications will particularly gain traction from 2017 to 2022, the report shows. Researchers project billing and payment management applications of the healthcare revenue cycle management software market to grow at a CAGR of 8.2 percent.
Providers organizations will also demand more accounts receivable follow-up management applications. Revenues from this market segment should account for over one-fourth share of the global revenues for healthcare revenue cycle management software.
While not as in demand, claims management application adoption will grow modestly during the forecast period, researchers add. The market segment will reach just over $5.84 billion by the end of 2022.
Additionally, the report revealed that provider organizations are seeking cloud-based healthcare revenue cycle management solutions.
“Viewed as a progressive method for transforming IT operations within an organization, cloud deployment continues to enhance resource acquisition, remove scalability constraints, boost infrastructure reliability, and consolidate the organization’s operational framework,” the report states. “Unlike on-premise deployment models, cloud-based deployment models increase flexibility of revenue cycle management software, and also enable transferability between two or more end-users.”
Researchers estimate that cloud-based healthcare revenue cycle management software will bring in almost $27 billion in 2017.
Some top vendors in the global healthcare revenue cycle management software space include Cerner Corporation, McKesson Corporation, Quest Diagnostics, Inc., athenahealth, Inc., Epic Systems Corporation, EMC Corporation, CareCloud Corporation, Greenway Health, LLC, Allscripts Healthcare Solutions, Inc., and Qsi Management LLC.
“Majority of these companies are expected to focus on removing conventional flaws and increasing security measures to protect valuable data managed by their offerings,” the report explains. “Moreover, new market entrants are likely to face barriers in penetrating this highly-competitive market.”