by The global practice management systems market is predicted to reach a value of $16.0 billion by 2023, increasing from $9.3 billion in 2017, progressing at a 9.7% CAGR during the forecast period (2018–2023), as per a study conducted by P&S Intelligence. The market is growing due to the rising pressure for curbing healthcare cost, enhancing infrastructure and digitalization of healthcare system, changing dynamics in hospital/healthcare settings, and development and sale of value added services.
On the basis of product, the practice management systems market is bifurcated into standalone and integrated, between which, the integrated bifurcation accounted for the major share of the market in 2017. Integrated practice management systems provide administrative and clinical efficiency via single interface, thereby reducing the complexity and providing caregivers with more time to spend on patients. The division is further expected to register the faster growth during the forecast period as well, owing to the advantages of integrated practice management systems.
When delivery mode is taken into consideration, the practice management systems market is divided into on premise-based, web-based, and cloud-based, out of which, the web-based division accounted for the largest share of the market in 2017. This delivery mode is a low cost solution and has the ability to offer access to large data information, therefore making it a preferred choice in medical settings. The cloud-based division is expected to progress at the fastest pace during the forecast period.
North America contributed the largest revenue share to the practice management systems market in the past, owing to the presence of key players related to healthcare information exchange, expansion of the IT industry, and digitization of documents and databases in the region. In addition to this, the electronic medical record adoption among primary care physicians in Canada is registering rapid growth, which is further leading to the growth of the regional market. Other than this, the demand for practice management systems is also expected to rise in Asia-Pacific during the forecast period.
Another factor resulting in the growth of the market is the changing dynamics of healthcare institutes and their business models. As per the data published in 2018 by the American Hospital Association, there were over 5,500 hospitals in the U.S. About 2,500 hospitals among these were non-profit organizations. This rising establishment of medium and small hospitals in the U.S. is projected to lead to the increasing demand for practice management systems in the coming years.
In conclusion, the market is being driven by the increasing requirement for reducing the cost of healthcare services and the changing dynamics of the healthcare industry.
