Global Practice Management Systems Market by Component (Software (Integrated & Standalone) and Services), Delivery Mode (On-premises and Cloud-based), and End User (Pharmacies, Physician Office, Diagnostic Laboratories, Hospitals and Others), and by Region - Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022-2030

Industry Perspective

Practice Management Systems Market size was worth around USD 9.55 billion in 2021 and is predicted to grow around USD 21.16 billion by 2030 with a compound annual growth rate of roughly 10.4% between 2022 and 2030. The report analyzes the market's drivers, restraints/challenges, and the effect they have on the demands during the projection period.

Market Overview

Practice management system is a software that enables a medical organization (or clinic) to record patient information, schedule appointments with practitioners, and keep track of insurance payment companies (and contact them as needed), perform billing-related tasks, and generate final reports. As an all-inclusive data management system, the system are currently integrated with Electronic Medical Records (EMR) that deal exclusively with patient medical data (medical and treatment history).

The system is designed based on the amount of data that must be maintained, the organization's size, and its financial resources. Desktop variants for limited computers, client-server (physical servers) for large institutions with strong finances and the need for easy access to patient's confidential data, and internet server (virtual/cloud servers) for institutions seeking cost-effective alternatives.

Depending on the aforementioned parameters, software companies offer services ranging in price from a few hundreds to thousands of dollars. Integrated systems are more expensive than standalone services such as Electronic Medical Records (EMR) and Practice Management System (PMS). Acrendo Softwares, Practo Ray, WRS Health, Allegiance MD, and Athena Health, to name a few, are the companies that provide these services.

COVID-19 Impact:

The COVID-19 outbreak has had a positive impact on the practice management system market, as the number of COVID-19 infected patients had increased dramatically. The majority of market players have launched new products to manage and streamlined workflow of physician office systems during the pandemic.

• For instance, Innovaccer introduced the COVID-19 Management System, which offers providers free telehealth services and analytics to evaluate risk levels and categorize the inflow of individuals at medical offices and primary care institutions during the pandemic.

Thus, it is projected that COVID-19 will have a major impact on the analyzed market due to the aforementioned considerations.

Key Insights

• As per the analysis shared by our analyst team, the global practice management systems market is estimated to grow annually at a CAGR of around 10.4% over the forecast period (2022-2030).
• In terms of revenue, the global practice management systems market size was valued at around USD 9.55 billion in 2021 and is projected to reach USD 21.16 billion, by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on component segmentation, the software was predicted to show maximum market share in the year 2021.
• Based on delivery mode segmentation, the cloud-based segment was the leading revenue-generating component in 2021.
• Based on end user segmentation, the pharmacies were projected to show largest share in the year 2021.
• On the basis of region, North America was the leading revenue generator in 2021.

Increasing Usage of Management Solutions Augmenting the Market Growth

Increase in adoption of these management solutions can be attributed to the requirement to minimize healthcare costs and the potential to generate adequate income for healthcare professionals. In addition, favorable government initiatives and the expanding use of IT in the healthcare industry are anticipated to fuel market expansion.

Technological Developments Coupled with Homecare Settings is Expected Pose an Opportunity for the Market Growth

Numerous opportunities for market expansion have been created by the increasing number of technological advancements and the changing dynamics of healthcare/hospital settings. In addition, the increasing emphasis on high-quality care and cost-effective treatment is expected to propel the practice management systems market growth.

In addition, an increase in R&D expenditures and demand for practice management systems is anticipated to drive market growth during the forecast period. There is intense competition among key players, which has prioritized collaborations and partnerships between other businesses in order to expand the market for practice management systems.

Segmentation Analysis

Based on component, the global market is segmented into software & services. The software is further bifurcated into Integrated & standalone. The integrated segment is dominating the market share owing to the increased adoption of software for patient engagement solutions, electronic health records, and electronic prescriptions.

In addition, customization of these software is a global trend that facilitates the simplification of complex data and streamlines the healthcare industry, resulting in its high demand. Integrated systems offer clinical and administrative efficiency through a single interface, which reduces complexity and allows caregivers to spend more time with patients.

On the basis of delivery mode, the cloud-based segment is dominating the market share. Cloud-based software systems aid in storing data on external servers, making it accessible via the web, as all that is required to access the data is a computer with an internet connection.

In medical practice management, cloud-based delivery enables the automation of routine medical tasks. Cloud-based systems have lower installation costs than on-premises systems, and this software eliminates the need for in-house maintenance, which is anticipated to be the primary factor driving their rising demand.

Based on end user, the global market segments are pharmacies, diagnostic laboratories, physician office, hospitals and others. The physician office segment is dominating the market share owing to growing digitization of documents and databases. In addition, the increasing technological advances in these settings have increased work productivity. These factors are driving the expansion of the physician back-office market.

Recent Development

September 2020- CloudMD Software & Services Inc. acquired the majority of the shares of fully integrated cloud-based healthcare solution provider Benchmark Systems.

March 2019- Allscripts and Opargo have engaged into a strategic partnership for the development of integrated practice management technologies to optimize scheduling and practice workflows.

Regional Landscape

North America is Dominating the Market Share Due to the Increasing Spending on Healthcare

North America is dominating the practice management systems market share owing to presence of key market participants involved in health information exchange, the digitization of documents and databases, and the accelerating expansion of IT in the region. The adoption and utilization of electronic medical records (EMR) by primary care physicians in Canada continues to increase.

In addition, rising healthcare expenditures and a surge in end-user adoption of big data analytics in the healthcare industry are anticipated to stimulate market growth in the region. According to the National Health Expenditure Data 2020 from the United States Centers for Medicare & Medicaid Services, healthcare expenditures increased by up to 9.7% to USD 4.1 trillion in 2020 and accounted for approximately 19.7% of the gross domestic product.

Competitive Landscape

The players contributing in the practice management systems industry Henry Schein, Inc., Allscripts Healthcare, LLC, AdvantEdge Healthcare Solutions, Athenahealth, Cerner Corporation (Oracle), Epic Systems Corporation, GE, McKesson Corporation, Accumedic Computer Systems, Inc., NXGN Management, LLC, eClinicalWorks, CoreCloud, Kareo, Inc., Practice Fusion, Inc., AdvancedMD, Inc., DrChrono, Inc., CollaborateMD Inc., Greenway Health, LLC, OfficeAlly Inc., PracticeSuite Inc., amongst others.

The global practice management systems market is segmented as follows:

By Component

• Software
  • Integrated
  • Standalone
• Services

By Delivery Mode

• On-premises
• Cloud-based

By End User

• Pharmacies
• Diagnostic Laboratories
• Physician Office
• Hospitals
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Southeast Asia
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America