Healthcare Revenue Cycle Management Market Analysis

Healthcare Revenue Cycle Management Market Analysis

The healthcare revenue cycle management market is categorized in terms of product into standalone and integrated. The integrated segment was valued at USD 114.5 billion in 2022 and is projected to showcase substantial CAGR through the analysis timeline. The growing demand for integrated systems as they provide effective data management and support the administration of sizable databases is bolstering product adoption. Moreover, surging consumer inclination toward integrated RCM systems with patient scheduling, electronic health records, and medical billing software is slated to provide lucrative opportunities for segment expansion.
 

With respect to function, the medical coding & billing segment held a market share of more than 23% in 2022. The segment is poised to expand at a 11.5% CAGR over 2023-2032, fueled by the increasing availability of upgraded software that reduces errors in data management. Medical coding requires accurate collection of data pertaining to diseases, diagnosis, and symptoms for effectively reimbursing the medical procedure. Many industry players are increasingly developing more sophisticated software and solutions for efficient medical coding and billing. In fact, in October 2022, Nym, a management system manufacturer, launched a radiology coding solution for RCM.
 

On the basis of deployment, the healthcare revenue cycle management market is classified into on-premise and cloud-based. The healthcare revenue cycle management industry valuation from the cloud-based segment is set to reach more than USD 378.5 billion by 2032. Cloud-based solution utilized in HRCM also ensures security and data privacy. Furthermore, the upsurge in the launch of novel cloud-based solutions is primed to spur their adoption in the upcoming period. In March 2022, CareCloud Inc., a healthcare technology firm, introduced CareCloud Remote, a digital health solution for home case management.
 

In terms of end-use, the healthcare revenue cycle management market is segregated into diagnostic labs & ambulatory surgical centers, physician office, hospitals, and others. The global market share from the physician office segment is speculated to progress at over 14% CAGR between 2023 and 2032. This growth is credited to outsourcing and partnerships among healthcare firms and RCM providers. To cite an instance, in October 2022, eClinicalWorks, an ambulatory cloud EHR, announced that Advocare LLC, an independent physician organization, accomplished USD 1 billion in revenue through the use of eClinicalWorks RCM.
 

Regionally, the global healthcare revenue cycle management market is segmented into Asia Pacific, Europe, North America, the Middle East & Africa, and Latin America. European HRCM market valuation is poised to surpass USD 130.5 billion by 2032, owing to an increasing demand for smoother financial management across healthcare facilities. HRCM solutions are increasingly being adopted across countries such as Germany due to the immense growth in their healthcare sector. Moreover, an expanding geriatric population and ongoing pandemic-proofing efforts have also created ideal growth opportunities for the market expansion in the region.