Medical Billing Software Global Market Report 2024

The medical billing software market size has grown rapidly in recent years. It will grow from $17.02 billion in 2023 to $9.38 billion in 2024 at a compound annual growth rate (CAGR) of 13.9%. The expansion witnessed in the historical timeframe can be credited to escalating healthcare costs, a rising population, the surge in chronic illnesses, the increasing adoption of remote monitoring services and telemedicine consultations, the growing trend of healthcare consumerism, and the heightened focus on population health management.

The medical billing software market size is expected to see rapid growth in the next few years. It will grow to $32.77 billion in 2028 at a compound annual growth rate (CAGR) of 14%. The projected growth in the upcoming period can be attributed to the burgeoning patient population, escalating demand for effective revenue management, the need for streamlined claim management solutions, the ongoing digital transformation in healthcare, the rising demand for professional billing services, and the increasing necessity for institutional billing services. Key trends anticipated in the forecast period encompass patient-centric billing solutions, AI-driven automation, the prevalence of cloud-based solutions, predictive analytics to optimize revenue, blockchain technology for enhanced security and transparency, support for value-based payment models, and the integration of artificial intelligence (AI) and automation technologies.

The medical billing software market is poised for growth due to the rising trend of digitalization in healthcare. Digitalization entails incorporating digital technologies into various facets of healthcare delivery, management, and administration to enhance efficiency, accessibility, and care quality. It facilitates swift and secure sharing of patient information regardless of location, improving care coordination and reducing errors. In the realm of medical billing software, digitalization boosts operational efficiency, accuracy, compliance, and patient engagement, ultimately leading to improved financial outcomes for healthcare organizations. Notably, in 2022, the Office of the National Coordinator for Health Information Technology reported that 96% of non-federal acute care hospitals in the US had adopted certified electronic health record (EHR) systems, marking a significant increase from 86% over the past three years. This surge underscores the driving force of digitalization in healthcare, propelling the medical billing software market forward.

Leading companies in the medical billing software sector are harnessing AI to develop platforms that enhance accuracy, efficiency, and revenue cycle management. AI-driven platforms automate repetitive tasks such as data entry, coding, and claims processing, minimizing the need for manual intervention and expediting the billing process. For instance, in August 2023, FareMD, a US-based health tech startup, introduced an AI-driven platform aimed at streamlining medical billing in the US. This platform employs automation and artificial intelligence to address billing inefficiencies, which cost the nation approximately $300 billion annually. FareMD's initiative represents a transformative approach to healthcare billing by automating visit note conversion and reducing denied claims, thereby enabling hospitals to operate more efficiently.

In November 2021, EverCommerce Inc., a US-based technology platform offering integrated software-as-a-service solutions, acquired DrChrono for $180 million. This acquisition is set to broaden EverCommerce's portfolio of health services solutions with a mobile-centric platform tailored for independent practices. DrChrono Inc., the acquired company, provides a cloud-based electronic health record (EHR) platform and practice management software for healthcare providers.

Major companies operating in the medical billing software market are Accenture plc, Oracle Corporation, Tata Consultancy Services Limited, Cognizant Technology Solutions Corporation, GE HealthCare Technologies, HCL Technologies Limited, Experian Information Solutions, GeBBS Healthcare Solutions, eClinicalWorks, Athenahealth, Flatworld Solutions Pvt. Ltd., EverCommerce Inc., Zoll Medical Corporation, Phreesia Inc., WebPT, AGS Health, CareCloud Inc., TherapyNotes LLC, Kareo Inc., Medusind, CentralReach, Elico Healthcare Services, DrChrono, AdvancedMD, Elation Health, Practice Fusion Inc., ImageTrend, Brightree LLC, Digitech Computer LLC, Azalea Health Innovations Inc., Glorium Technologies.

North America was the largest region in the medical billing software market in 2023. The regions covered in the medical billing software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the medical billing software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Medical billing software serves as a specialized tool aimed at optimizing and automating healthcare billing and coding procedures. This software facilitates streamlined billing operations, error reduction, and improved financial management by automating tasks such as claim generation, insurance claims handling, patient payments, and reporting.

The primary categories of medical billing software encompass claims scrubbing, code and charge entry, compliance tracking, professional billing, and institutional billing. Claims scrubbing involves scrutinizing medical claims to ensure accuracy, completeness, and compliance with billing regulations before submission to payers. It is available in both on-premise and cloud-based models, offering pricing options including one-time, annual, and monthly subscriptions. Its features cover patient pre-registration, claims management, billing and collection, accounting and financial management, among others, catering to a variety of healthcare settings including multi-specialty hospitals, specialized hospitals, clinics, as well as pharmaceutical and medical end users.

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

The medical billing software market consists of revenues earned by entities by providing services such as patient information management, insurance verification, claims generation and submission, coding assistance, claim status tracking, patient billing and invoicing, reporting and analytics, and payment processing. The market value includes the value of related goods sold by the service provider or included within the service offering. The medical billing software market also includes sales of computers, mobile devices, barcode scanners, card readers, printers, document scanners, electronic health record (EHR) systems, and barcode and QR code labels. 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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