Healthcare Revenue Cycle Management Market to cross the triple-billion mark by 2024: New Developments, Opportunities, Trends, Market Players
The medical sector is undergoing a series of interminable changes over the last few years. In consequence, healthcare revenue cycle management market is set to witness a marked ascent pertaining to the rising need for timely bill reimbursements and insurance claims. Increased complexity in the medical coding process has led to the necessity of revenue cycle management solutions that help reduce billing errors. Healthcare spending is projected to grow rapidly over the span of the next few years, which will lead to the government implementing cost-cutting measures such as reduction in bill reimbursements. Both the aforesaid factors will have a positive impact on healthcare revenue cycle management market, which, according to Global Market Insights, Inc., was worth more than USD 39 billion in 2015. The rise in the number of medical care providers adopting revenue cycle management practices will further augment this market, which will grow at a CAGR of 11% over 2016-2024.
Germany Healthcare Revenue Cycle Management Market Size, By Component, 2012-2024 (USD Bn)
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The healthcare sector has been expanding rapidly across the globe, which has led to a surge in the implementation of revenue cycle management services. Germany accounted for more than 20% of Europe healthcare revenue cycle management market in 2015 and is forecast to grow significantly over the coming years. This growth can be primarily attributed to the rising adoption of big data analytics, increased healthcare spending, and convenient government norms in the region.
The U.S. Patient Protection and Affordable Care Act signed in 2010 has enabled several changes in the medical sector, which has ensured compulsory medical insurance and increased Medicaid coverage in the U.S. This statute is expected to significantly propel U.S. healthcare revenue cycle management industry, which will exceed USD 38 billion by 2024. Strict government regulations coupled with the existence of strong market players will also augment the regional growth.
A tremendous increase in business digitization and rising demand for medical insurance will impel China healthcare revenue cycle management industry, which is slated to grow at a rate of more than 15% over 2016-2024. The growing elderly population pool, the subsequent rise in illnesses, and the rising penetration of IT in healthcare will lead to a massive requirement of reliable insurance policies, which will further propel China healthcare revenue cycle management market, which is set to surpass USD 5 billion by 2024.
The surging development in cloud computing industry has increased the necessity of cloud services in practically every industry, the healthcare sector bearing no exception. Cloud-based healthcare revenue cycle management market contributed extensively toward the overall revenue share in 2015, driven by the rising popularity of cloud-based systems. Since these systems are less expensive than their on-premise counterparts and can be installed more conveniently, they are extensively adopted across the medical sector, in response to which cloud-based healthcare revenue cycle management industry share will surpass USD 80 billion by 2024.
Integrated healthcare revenue cycle management market dominated the product landscape in 2015, holding 85% of the overall market share, with a valuation of more than USD 34 billion. This growth trend is anticipated to continue over the next few years, owing to increased product adoption by physicians. The fact that most buyers prefer integrated systems as opposed to standalone systems subject to the former’s benefit offering – medical billing, electronic health records, and patient scheduling, will also spur the industry growth.
Physician billing organizations will remain a major end-user segment, having held 40% of the overall healthcare revenue cycle management market share in 2015. Rising adoption of these services to ease the billing process and claim insurance will lead healthcare revenue cycle management industry from physical billing organizations to grow at a CAGR of 12.3% over 2016-2024.
Healthcare revenue cycle management market services dominated the component landscape in 2015, with a contribution of more 63% in the overall share. Periodic upgradations in healthcare IT software will propel this market to hit a revenue of USD 70 billion by 2024. High demand to integrate medical systems with IoT will further augment healthcare revenue cycle management industry from services.
Key players accumulating a major share in healthcare revenue cycle management market include Athenahealth, CareCloud, Allscripts Healthcare Solutions, Experian, Cerner, Siemens Healthcare, GE Healthcare, Quest Diagnostics, and McKesson.
Author: Shikha Sinha
About the Author: Shikha currently manages the content development at Global Market Insights, Inc. An electrical & electronics engineer by education, she has prior experience in content & technology writing, content marketing, market research, and business development domains. Her other areas of interest include sketching, reading, and singing.
Global Market Insights, Inc.