In healthcare, practice management systems deal with the daily operation of medical practices. Medical practice management software helps streamline operations, produce accurate claims, and receive faster reimbursements. Practice management solutions enable coordination in organizational tasks and processes through improved workflows. The introduction of practice management systems during the COVID-19 pandemic has streamlined operations, as entering data into computerized systems is more convenient than paper-based methods. The rising demand for operational efficiency and accurate documentation with minimal errors, growing preference for improved patient care standards, and rising pressure on healthcare institutions to provide high-quality services at low costs boost the growth of the practice management systems market size. However, issues with privacy and data security hinder the practice management systems market growth.
Rising Pressure on Healthcare Institutions to Provide High-Quality Services at Low Costs Drives Practice Management Systems Market Growth
Healthcare providers face significant challenges due to administrative tasks impacting their overall performance. Finding and implementing solutions to lower the functional and operational costs to deal with the growing government pressure regarding the elevating prices of drugs and medical devices is a core objective of healthcare businesses, which allows them to provide value-based health care to patients. As a result, healthcare providers focus on providing enhanced, evidence-based patient care and health plans, improving their regulations management strategies, and consolidating healthcare systems simultaneously.
Healthcare IT systems improve real-time patient health monitoring, thus allowing healthcare providers to reduce the costs associated with chronic diseases. As per the American Diabetes Association, the estimated cost burden associated with diagnosed diabetes cases rose to US$ 412.9 billion. Despite the steady prevalence of diabetes, direct medical costs associated with diabetes grew by 7% from 2017 to 2022. The price can be proficiently managed by a clinical decision support system that also helps manage diseases and keep track of individual dosage patterns, which can help patients get assistance with disease and medication management, along with helping them overcome the disease.
Practice Management Systems Market: Segmental Overview
The practice management systems market is segmented on the basis of product, component, delivery mode, application, and end user. Based on components, the practice management systems market is bifurcated into software and services. The software segment held a significant share of the market in 2022.
Software is simple to install, use, and retrieve records due to its intuitive user interfaces and continuous product upgrades. Practice management software is used for performing clinical operations such as appointment scheduling, patient management, coding and billing, and medical record management. The software is used by hospitals, and health systems to improve the quality of care and enhance patient satisfaction.
Currently, the healthcare sector is focused on offering value-based care and enhanced services to patients. As a result, healthcare providers allocate their resources for effective practice management to avoid dissatisfaction among patients, errors in medical billing, and additional labor charges, which drives the adoption of medical practice management software in the US. The use of intelligent algorithms also allows physicians to make informed decisions. Some of the practice management software available in the market provide real-time analysis of patient data, waiting time, patient visits, and payers. Additionally, emphasis on the reduction of manual tasks and optimization of human resources bolsters the growth of the practice management systems market for the software segment.
The services segment is projected to register a significant CAGR during 2022–2030. Services are a crucial component of the effective functioning of the practice management systems. They help leverage and optimize practice management systems per the healthcare practice’s requirements and maximize patient health outcomes. Many third-party software developing companies offer practice management services to healthcare institutions. The services can assist in administrative duties and cost control. Services provided by companies comprise medical billing, patient appointment management, patient scheduling, and generating patient databases. Accomplishing these tasks with the help of service providers allows hospitals to free valuable resources from redundant tasks, in turn providing high-quality care to patients. Patient management services enable physicians to include patient data in electronic health records (EHR), which can be used for clinical decision-making to reduce medication errors and provide better patient care. Additionally, utilization of services considerably reduces software installation and maintenance costs of hospitals.
Practice Management Systems Market: Competitive Landscape and Key Developments
WRS Health, PracticeEHR, Henry Schein Medical Systems Inc., Epic Systems Corporation, AdvantEdge Healthcare Solutions, DrChrono Inc., AdvancedMD Inc., Athenahealth, McKesson Corporation, PracticeSuite Inc., and Meditab Software Inc. are a few of the key companies operating in the practice management systems market. These companies focus on product innovation strategies to meet evolving customer demands, along with maintaining their brand name.
A few of the recent developments in the global practice management systems market are mentioned below:
- In August 2023, Meditab Software Inc. partnered with Mental Health Technologies to provide medical professionals with advanced tools by simplifying patient assessments with a smart EHR, practice management, billing, and comprehensive office management software in one integrated and seamless system.
- In May 2022, Covetrus introduced Ascend—a powerful, cloud-based practice management software built to facilitate veterinary practices across the UK, Europe Middle East and Africa (EMEA), and Asia Pacific. The company claimed that the software enhances efficiency, streamlines internal communication and collaboration, and provides a better experience for staff and clients.
- In May 2021, WRS Health introduced a new EHR and practice management solution for physical therapists. The company stated that the PhysicalTherapy-Cloud is an EHR that optimizes physical therapists’ workflows efficiently and profitably.