Digital EMR/Practice Management Market Research Report Segmented by PRODUCT TYPE (Integrated, Standalone); By COMPONENT (Software, Services); BY DELIVERY MODE (Web-based, ,Cloud-based, On-premise), BY END-USER (Physician Back Office, Pharmacies, Diagnostic Laboratories, Other Settings); and Region- Size, Share, Growth Analysis | Forecast (2024 2030)

Digital EMR/Practice Management Market Size (2024 – 2030)

In 2023, the digital EMR/Practice management market reached a valuation of USD 12.9 billion, and projections indicate a compound annual growth rate (CAGR) of 8.5% during the forecast period spanning from 2024 to 2030. The increased utilization of these management solutions stems from a growing inclination to reduce healthcare costs while ensuring adequate compensation for healthcare professionals. Additionally, supportive government initiatives, coupled with the integration of IT in the healthcare sector, are expected to drive market expansion.

INDUSTRY OVERVIEW

Digital EMR/Practice management software serves as a tool for overseeing day-to-day operations in healthcare facilities, encompassing desktop, client-server, or web-based applications. This software facilitates tracking patients' health metrics, scheduling appointments, managing charge capture, performing accounting operations, and generating reports for staff members. The three primary components of digital EMR/Practice management software include claims processing, patient scheduling, and reporting capabilities. A key advantage of these systems lies in reducing reimbursement time by eliminating the need for traditional invoicing and documentation. The practice management system market is propelled by the growing prevalence of electronic data within the healthcare industry.

The increasing popularity of medical practice management systems is driven by their ability to meet essential regulatory standards, ensuring practitioners submit crucial regulatory data promptly while saving time and resources. These systems offer enhanced billing and insurance data, along with early beneficiary notice alerts, effectively preventing claim rejections. The widespread adoption of practice management software tools by healthcare facilities is contributing to long-term time and resource savings, fostering market growth.

COVID-19 IMPACT ON THE DIGITAL EMR/PRACTICE MANAGEMENT MARKET

The COVID-19 pandemic is expected to significantly impact the Digital EMR/Practice Management System market due to the surge in COVID-19 cases. These solutions play a crucial role in facilitating a smooth workflow during the treatment process. Major firms, recognizing the importance of addressing the pandemic, have focused on developing solutions to aid medical systems in handling the outbreak. For instance, Innovaccer introduced the COVID-19 Management System in March 2020, enabling clinicians to analyze risk profiles, triage inflow, and utilize free telemedicine services and analytics during the pandemic. The influence of COVID-19 on the digital/EMR practice management market is substantial due to these contributing factors.

MARKET DRIVERS:

An escalating number of government investment initiatives is propelling market expansion.

Government-backed investment projects are a prominent trend in the digital EMR/Practice management market, contributing significantly to industry growth. According to a Congressional Research Service study, government research and development expenditure in the United States have shown substantial growth. This surge in investment initiatives results in the availability of simpler and cost-effective solutions, leading to increased utilization of medical services.

The acceleration of digitalization across various sectors, including healthcare, due to the advent of COVID-19.

The COVID-19 pandemic has expedited the digitalization process in various sectors, with healthcare being a notable beneficiary. Organizations associated with practice management software have played a role in combating the pandemic by mainstreaming telemedicine, enhancing data availability through EHRs, and employing practice management software for efficient patient visit scheduling. The application of practice management systems during the pandemic has led to more efficient data entry into computerized systems compared to manual methods.

The rise in the geriatric population is driving the widespread adoption of digital EMR/Practice management solutions, fueling market growth.

The market is significantly influenced by the expanding elderly population, characterized by a higher prevalence of chronic disorders. Healthcare centers and practitioners are adopting these solutions to streamline activities and enhance operational efficiency, particularly in managing chronic illnesses prevalent among the aging population. Consequently, the aging demographic is expanding the patient pool for various chronic conditions.

MARKET RESTRAINTS:

The high cost of setting up and maintaining IT infrastructure hampers widespread adoption.

The substantial cost associated with setting up and maintaining the IT infrastructure required for a digital EMR/Practice management system acts as a barrier to market development. Specialized servers, high-speed web connections, and skilled IT professionals are essential, adding to the overall expenses. Regular maintenance further increases operational costs, presenting challenges for organizations looking to adopt these systems.

Concerns related to privacy and security hinder the growth of the Digital EMR/Practice management market.

The potential for unauthorized access and misuse of sensitive data by hackers poses a significant risk to the Digital EMR/Practice management market. Privacy concerns discourage some individuals from sharing personal information on these platforms, leading to a lack of trust. Increased reliance on digital platforms raises apprehensions about security and privacy, with instances of data breaches and cyber-attacks negatively impacting market growth. Continuous adjustments to rules are made to address evolving security demands.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY PRODUCT TYPE

• Integrated

• EHR/EMR
• e-Rx
• Patient engagement
• Others

• Standalone

The segmentation of the Digital EMR/Practice Management market by product type includes Integrated and Standalone categories. Integrated systems, capturing 71.5% of the market share in 2021, demonstrated dominance due to their associated benefits. These systems offer solutions such as E-Prescription, Electronic Health Records (EHR), billing systems, and patient engagement, contributing to simplified communication between practitioners and patients. The growth of this segment is driven by the increasing complexities in patient care, payments, and the healthcare industry's trend toward centralization.

The Standalone segment is also poised for substantial market growth, expected to have the fastest growth rate in the forecast period. The standalone systems empower doctors to manage various aspects of their operations, including prescriptions, practice governance, invoicing, and patient communication portals. Notably, standalone systems focus on management and billing operations, with a significant emphasis on scheduling.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET – BY COMPONENT

• Software
• Services

The Digital EMR/Practice Management market, when categorized by component, is divided into Software and Services. In 2021, the software category claimed the highest revenue share, exceeding 58.00 percent. The user-friendly interfaces and ongoing product improvements make software easy to install, operate, and extract data. Physicians, hospitals, and health systems utilize software to enhance patient experience and treatment quality. Regulatory authorities in developed countries are promoting the widespread use of practice management systems, contributing to the growth of the software segment. However, the services category is projected to grow at the fastest CAGR due to increased demand for training and support, aligning with the evolving IT technology.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY DELIVERY MODE

• Web-based
• Cloud-based
• On-premise

The segmentation based on delivery mode includes Web-based, Cloud-based, and On-premise categories. In 2021, the web-based distribution method sector led with more than half of the revenue share. Web-based management systems, known for instant updates with minimal disruption, contribute to their increasing adoption. On-premise systems, driven by the growing demand for data security and sharing, are likely to expand over the forecast period. Cloud-based solutions are expected to grow at the quickest CAGR, offering benefits such as improved reliability and faster performance. While cloud-based adoption in rural regions is currently low, it is anticipated to rise in the projected period.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY END-USER

• Physician Back Office
• Pharmacies
• Diagnostic Laboratories
• Other Settings

Segmentation by End-User includes Physician Back Office, Pharmacies, Diagnostic Laboratories, among others. In 2021, the physician back-office category commanded a 43 percent revenue share globally, attributed to the digitalization of records and increased job productivity. The pharmacies and diagnostic laboratories segments are expected to contribute significantly to market expansion due to the rising product demand, enhancing facility management in these settings.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Regional segmentation includes North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America held the largest market share (52%) in 2021, driven by strong digital literacy rates, increased investments in healthcare, and high patient awareness. Well-developed healthcare IT infrastructure and government initiatives, such as Medicaid and Medicare EHR incentive programs, further support market expansion. The Asia Pacific is expected to grow at the fastest rate, driven by factors like an aging population, the prevalence of chronic diseases, increased demand for high-quality healthcare at reduced prices, expanding healthcare infrastructure, and improved economic conditions.

DIGITAL EMR/PRACTICE MANAGEMENT MARKET - BY COMPANIES

The competitive Digital EMR/Practice Management market is characterized by the presence of key organizations, employing strategies like product launches, clinical trials, innovative research, and seeking government approvals. Prominent players include:

1. Henry Schein, Inc.
2. Allscripts Healthcare, LLC
3. AdvantEdge Healthcare Solutions
4. Athenahealth
5. Cerner Corporation (Oracle)
6. Epic Systems Corporation
7. GE Healthcare
8. McKesson Corporation
9. Accumedic Computer Systems, Inc.
10. NXGN Management, LLC
11. eClinicalWorks
12. CoreCloud
13. Kareo, Inc.
14. Practice Fusion, Inc.

NOTABLE HAPPENINGS IN THE DIGITAL EMR/PRACTICE MANAGEMENT MARKET

• PRODUCT LAUNCH: In November 2020, NextGen Healthcare introduced a specialized optometric workflow as part of the NextGen Ophthalmic Suite, enhancing clinical eye care and financial outcomes for practitioners.
• ACQUISITION: In July 2019, Henry Schein acquired Elite Computer Italia, a dental practice management software business, expanding its regional footprint.
• PRODUCT LAUNCH: In June 2020, Athena Health introduced a new EHR-integrated telehealth solution for virtual consultations without additional downloads or third-party apps.