Practice Management System Global Market Report 2024

The practice management system market size has grown rapidly in recent years. It will grow from $12.11 billion in 2023 to $13.41 billion in 2024 at a compound annual growth rate (CAGR) of 10.7%. The growth observed in the historical period can be attributed to various factors, including the transition to electronic health records (EHRs), the increasing demands of regulatory compliance, a focus on revenue cycle management, the shift towards value-based care models, and the integration of telehealth services into healthcare practices.

The practice management system market size is expected to see strong growth in the next few years. It will grow to $19.06 billion in 2028 at a compound annual growth rate (CAGR) of 9.2%. The anticipated growth in the forecast period can be attributed to advancements in artificial intelligence (AI) and automation, the emphasis on interoperability and health information exchange (HIE), the adoption of patient-centric care models, the implementation of population health management strategies, and the healthcare industry's response to global health crises. Major trends expected in the forecast period include an increased focus on cybersecurity, the consumerization of healthcare, advancements in health information technologies, the development of patient engagement tools, and the integration of telehealth services into healthcare systems.

The rising adoption of e-prescriptions is anticipated to drive the growth of the practice management system market in the future. E-prescriptions involve the electronic transmission of prescriptions from healthcare providers to pharmacies or dispensing entities, replacing traditional paper prescriptions. Practice management systems play a crucial role in e-prescriptions by facilitating the auto-filling of patient information, ensuring secure prescription of controlled medications, and providing alerts and warnings. As reported in July 2023 by Surescripts National Progress Report, a U.S.-based information technology company, e-prescriptions experienced significant annual growth of 10.4%, reaching 2.34 billion in 2022. This surge in e-prescription adoption is contributing to the expansion of the practice management system market.

The increasing investment in healthcare is expected to be a driving force behind the growth of the practice management system market. Healthcare encompasses the organized system of medical services, facilities, professionals, and resources designed to enhance and maintain the physical and mental well-being of individuals and populations. Practice management systems are instrumental in healthcare expenditure management by improving the efficiency of revenue collection, optimizing resource allocation, and reducing administrative costs. For example, as of May 2023, the Office for National Statistics, a UK-based statistics authority, reported that the total healthcare expenditure in the UK for 2021 amounted to $367.25 billion (£7 billion), with pharmaceutical expenditure reaching $51.84 billion (£39.6 billion) and spending on preventive care increasing to $45.93 billion (£35.1 billion) in 2021, more than doubling from the previous year. This rise in healthcare spending is contributing to the growth of the practice management system market.

The shortage of skilled professionals is expected to impede the growth of the practice management system market. This scarcity of skilled professionals is anticipated to hinder the market's expansion as it limits the ability of healthcare providers to effectively implement and manage these systems, impacting operational efficiency and healthcare service delivery. For example, in April 2023, according to Advantis Global, a U.S.-based information technology staffing solutions company, many corporate companies are facing challenges in finding skilled professionals. The lack of human potential could affect 85 million people worldwide by 2030, resulting in $8.5 trillion in annualized unrealized income. Therefore, the shortage of skilled professionals is restraining the growth of the practice management system market.

Major companies operating in the practice management system market are focusing on adopting new technologies, such as Karbon AI, to enhance their profitability in the market. Karbon AI is a GPT-powered AI tool integrated into the industry-leading accounting practice management software, which enhances the working efficiency of accountants. For instance, in May 2023, Karbon Inc., a U.S.-based leading provider of collaborative practice management platforms for accounting firms, launched Karbon AI, a GPT-based artificial intelligence tool that improves the productivity of accounting firms. Karbon AI includes features such as summarizing lengthy emails, assessing the email inbox, and composing email drafts.

In May 2023, Dye & Durham Limited, a Canada-based provider of cloud-based software, acquired GhostPractice Inc. for an undisclosed amount. With this acquisition, Dye & Durham Limited aims to expand its practice management software capabilities and accelerate the company's growth. GhostPractice Inc. is a Canada-based provider of legal practice management software.

Major companies operating in the practice management system market report are McKesson Corporation, General Electric Company, Henry Schein Inc., EPIC Systems Corporation, Allscripts Healthcare Solutions Inc., Athenahealth Inc., CompuGroup Medical SE & Co. KGaA., eClinicalWorks LLC, NextGen Healthcare Information Systems LLC, Medical Information Technology Inc., Practo Technologies Pvt. Ltd., AdvantEdge Healthcare Solutions Inc., CareCloud Corporation, Greenway Health LLC, Modernizing Medicine Inc., Kareo Inc., Advanced-Data Systems Corporation, PracticeSuite Inc., AdvancedMD Inc., Practice Fusion Inc., Luma Health, WRS Health, OfficeAlly Inc., DrChrono Inc., TherapyNotes LLC, SimplePractice LLC, CollaborateMD Inc., Accumedic Computer Systems Inc., Qminder OU.

North America was the largest region in the practice management system market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the practice management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the practice management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A practice management system is a software solution crafted to streamline and optimize various administrative and operational tasks within a practice or organization. This type of software is designed to improve clinical processes, automate billing procedures, assist in claims management, reduce operational costs, and enhance overall efficiency.

The main product types in practice management systems include standalone and integrated solutions. Standalone refers to specialized software applications tailored to help professionals and organizations efficiently manage various aspects of their daily operations and administration within a specific industry or practice area. These solutions typically encompass software components and services provided through different modes of delivery, such as on-premise or cloud-based solutions. Practice management systems are utilized by various end users, including pharmacies, diagnostic laboratories, hospitals, and other entities within the healthcare and related industries.

The practice management system market research report is one of a series of new reports that provides practice management system market statistics, including the practice management system industry global market size, regional shares, competitors with practice management system market share, detailed practice management system market segments, market trends and opportunities, and any further data you may need to thrive in the practice management system industry. This practice management system market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The practice management system market includes revenues earned by entities by providing practice management software such as capture patient demographics, schedule appointments, and preregister patients. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The practice management system market consists of sales of computers, servers, and routers and switches. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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