U.S. Practice Management Systems Market Size, Share, Report 2023-2032
The U.S. practice management systems market size was estimated at around USD 5.13 billion in 2022 and it is projected to hit around USD 12.36 billion by 2032, growing at a CAGR of 9.19% from 2023 to 2032.
Key Pointers
Report Scope of the U.S. Practice Management Systems Market
| Report Coverage | Details |
| Market Size in 2022 | USD 5.13 billion |
| Revenue Forecast by 2032 | USD 12.36 billion |
| Growth rate from 2023 to 2032 | CAGR of 9.19% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Companies Covered | Henry Schein, Inc.; Veradigm LLC (Allscripts Healthcare, LLC); AdvantEdge Healthcare Solutions; Athenahealth, Inc.; Cerner Corp. (Oracle); GE Healthcare; McKesson Corp.; EPIC Systems Corp.; NextGen Healthcare, Inc.; eClinicalWorks; CareCloud, Inc.; Kareo, Inc.; AdvancedMD, Inc.; DrChrono, Inc.; CollaborateMD Inc.; OfficeAlly Inc.; Accumedic Computer Systems, Inc. |
Demand for practice management systems is growing due to increasing pressure to curb healthcare costs and changing dynamics of hospital/healthcare settings. Increasing focus on implementing cost-effective, quality care will further boost the market growth.With the help of practice management systems, healthcare providers can offer the right treatment at an effective price, thus reducing treatment costs.
Over the forecast period, the COVID-19 influence is projected to drive the growth of the market. Key Players, such as Allscripts Healthcare, have offered a package of COVID-19 solutions for hospitals that address disease-specific needs, such as SunriseTM EHR, Parago EHR, and Allscripts Care Director, with the target of reducing screening and monitoring time. These screening steps can help with patient identification and tracking of patients confirmed or suspected to have coronavirus infection. Initiatives like these positively impacted the market growth during the pandemic.
A rise in the adoption of IoT in healthcare and technological breakthroughs, increased use of mobiles & the internet, and growing demand for practice management solutions are key factors driving the market growth. Political instability, economic stress, and lack of proactive initiatives are exerting adverse effects on healthcare funding. Despite significant healthcare-related funding and insurance programs, there has been a constant rise in healthcare costs in the U.S., thus affecting healthcare providers.
Product Insights
Based on products, the overall industry has been further categorized into integrated and standalone systems. The integrated management systems segment dominated the industry and accounted for the largest share of 74.46% of the overall revenue in 2022 and is projected to grow at the fastest CAGR over the forecast period. Integrated solutions include Electronic Health Records (EHR), e-prescription, patient engagement, and billing systems.
Integrated systems are gaining popularity due to the trend of centralization in the healthcare industry and the rising complexities related to patient care and payments.Standalone systems primarily focus on billing and administrative function, particularly scheduling, of the organization. Practice management systems can be used cohesively with other software to enhance efficiency and communication across different departments. In the case of large-scale facilities, this is highly popular as it helps curtail administrative and medical errors.
Component Insights
The component segment includes software and services offered by the key companies. The software segment held the largest revenue share of 66.57% in 2022 owing to government reforms and rising technological advancements in the field of healthcare IT. The services segment is expected to witness the fastest CAGR over the forecast period.Constant product launches along with improvements in the existing versions are also supporting segment development.
For instance, in September 2018, Henry Schein One launched Dentrix G7, an upgraded version of the practice management system for dental care. It uses the industry’s leading digital imaging solutions to boost financial and clinical workflows and improves the efficiency of diagnosis as well as billing. In May 2018, Kareo launched Kareo Analytics for billing professionals to reduce complexity by delivering transparency and valuable insights.
Delivery Mode Insights
Based on the delivery modes, the market is segmented into cloud-based, web-based, and on-premise. Web-based practice management systems accounted for the largest share of 47.85% in 2022 owing to their benefits, such as affordability, quick Return on Investment (RoI), and ease of deployment.
However, the cloud-based segment is expected to witness the fastest CAGR over the forecast period owing to the higher reliability and faster processing of this delivery model. Moreover, it also offers readily available information that can be accessed in remote locations.
This technology is being highly adopted across the country owing to the rapidly evolving healthcare IT scenario. Although the growth of the cloud-based segment is slow in rural regions, it is expected to improve over the forecast period. One of the predominantly used practice management solutions, Practice Studio, offers both web- and cloud-based versions to promote higher usability in urban as well as rural regions across the country.
End-Use Insights
The physician’s office segment dominated the market and accounted for the largest share of more than 40.08% of the overall revenue in 2022 and is projected to witness remunerative growth during the forecast period. Based on end-use, the market is segmented into physician’s offices, pharmacies, diagnostic laboratories, and other settings. Other settings are further defined as emergency care centers, community health centers, nursing stations, and hospital & clinic workstations.
The other settings segment is expected to witness the fastest growth rate over the forecast period owing to factors, such as rising investments by hospitals, healthcare centers, and clinical workstations for workflow digitalization and centralization. Practice management systems integrated with revenue cycle management, patient portals, and clinical intelligence systems, support this centralization. Furthermore, a rise in the number of these facilities is anticipated to lead to higher revenue generation.
U.S. Practice Management Systems Market Segmentations:
By Product
By Delivery Mode
By Component
By End Use
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on U.S. Practice Management Systems Market
5.1. COVID-19 Landscape: U.S. Practice Management Systems Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. U.S. Practice Management Systems Market, By Product
8.1. U.S. Practice Management Systems Market, by Product, 2023-2032
8.1.1. Integrated
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. Standalone
8.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 9. U.S. Practice Management Systems Market, By Delivery Mode
9.1. U.S. Practice Management Systems Market, by Delivery Mode, 2023-2032
9.1.1. On-premise
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Web-based
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Cloud-based
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. U.S. Practice Management Systems Market, By Component
10.1. U.S. Practice Management Systems Market, by Component, 2023-2032
10.1.1. Software
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Services
10.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 11. U.S. Practice Management Systems Market, By End Use
11.1. U.S. Practice Management Systems Market, by End Use, 2023-2032
11.1.1. Physician Back Office
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Pharmacies
11.1.2.1. Market Revenue and Forecast (2020-2032)
11.1.3. Diagnostic Laboratories
11.1.3.1. Market Revenue and Forecast (2020-2032)
11.1.4. Other Settings
11.1.4.1. Market Revenue and Forecast (2020-2032)
Chapter 12. U.S. Practice Management Systems Market, Regional Estimates and Trend Forecast
12.1. U.S.
12.1.1. Market Revenue and Forecast, by Product (2020-2032)
12.1.2. Market Revenue and Forecast, by Delivery Mode (2020-2032)
12.1.3. Market Revenue and Forecast, by Component (2020-2032)
12.1.4. Market Revenue and Forecast, by End Use (2020-2032)
Chapter 13. Company Profiles
13.1. Henry Schein, Inc.
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. Veradigm LLC (Allscripts Healthcare, LLC)
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. AdvantEdge Healthcare Solutions
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. Athenahealth, Inc.
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. Cerner Corp. (Oracle)
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. GE Healthcare
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. McKesson Corp.
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. EPIC Systems Corp.
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. NextGen Healthcare, Inc.
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. eClinicalWorks
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers