Revenue Cycle Management Market Size Is Expected To Witness Significant Growth Of USD $160.3 Billion By 2027 | Grand View Research, Inc.

Revenue Cycle Management Market Size Is Expected To Witness Significant Growth Of USD $160.3 Billion By 2027 | Grand View Research, Inc.

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According to a new report by Grand View Research, Inc., The global revenue cycle management market size was valued at USD 64.3 billion in 2019 and is anticipated to expand at a CAGR of 12.1% over the forecast period. Key factors driving the market growth are rising regulatory mandates for the adoption of Healthcare Information Technology (HIT) systems in healthcare settings and failure of the traditional billing systems to provide insights about on-going billing operations.

The global revenue cycle management market size is anticipated to reach USD 160.3 billion by 2027, registering a CAGR of 12.1% over the forecast period, according to a new report by Grand View Research, Inc. Increasing government reforms favoring the adoption of revenue cycle management (RCM) solutions in healthcare settings, growing inclination toward cloud-based solutions, and increasing outsourcing of RCM services are the key factors driving the global market.

With Covid-19 infections rising globally, the apprehension regarding a shortage of essential life-saving devices and other essential medical supplies in order to prevent the spread of this pandemic and provide optimum care to the infected also widens. In addition, till a pharmacological treatment is developed, ventilators act as a vital treatment preference for the COVID-19 patients, who may require critical care. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process for a wide range of test-kits (antibody tests, self-administered, and others). The report will account for Covid19 as a key market contributor.

Based on product type, the market is segmented into software and services. The software segment dominated the market in 2019 with a market size of around USD 39.0 billion. Increasing adoption of RCM solutions in healthcare settings for effectively managing the patient data and growing patient pool are the major factors driving the market growth. On the other hand, services is anticipated to be the fastest-growing segment over the forecast period. Growing outsourcing of revenue cycle management services owing to the shortage of resources and inexpensive labor costs are the major factors driving the growth of this segment.

Integrated RCM solutions dominated the market in 2019, with a revenue share of 69.0%. Integrated solutions offer a streamlined and coordinated format on a wide variety of financial activities via single platform. Moreover, integrated solutions are quite cost-effective as compared to standalone solutions. Unlike standalone solutions, they are composed of various modules that cost-effectively manage parallel activities taking place in a healthcare setting.

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North America dominated the RCM market in 2019 with the highest revenue share. Availability of favorable reimbursements and government initiatives for the implementation of RCM systems are the major factors driving the market growth. On the other hand, Asia Pacific is anticipated to be the fastest growing region over the forecast period, owing to the availability of low cost labor and entry of major players in the region.

Further key findings from the report suggest:

  • The market is anticipated to be expand significantly owing to increased adoption of RCM systems in healthcare settings
  • The software segment accounted for a major share in 2019 with a market size of around USD 39.0 billion due to increasing demand for HIT systems
  • Integrated RCM solutions held the largest market share of 69.0% in 2019, as they are cost-effective as compared to standalone solutions
  • North America dominated the revenue cycle management market in 2019 owing to the availability of favorable reimbursement policies, presence of well-developed healthcare infrastructure, and growing adoption of RCM solutions and their long-term benefits
  • Some of the key market participants are Allscripts Inc.; Cerner Corporation; Change Healthcare; Epic Systems Corporation; CareCloud Corporation; and McKesson Corporation.
  • These companies are focusing on strategic collaborations and introduction of new products to survive the market competition

The global revenue cycle management market size was valued at USD 64.3 billion in 2019 and is anticipated to expand at a CAGR of 12.1% over the forecast period. Key factors driving the market growth are rising regulatory mandates for the adoption of Healthcare Information Technology (HIT) systems in healthcare settings and failure of the traditional billing systems to provide insights about on-going billing operations. Besides, there has been a steep rise in the adoption of cloud-based revenue cycle management solutions, as they are quite flexible, secure, and cost-effective. These factors are expected to drive the market growth over the forecast period.

The key players in the market are launching new solutions in cloud-based space, which has further encouraged the growth of the market. For instance, in February 2019, eClinicalWorks launched its cloud-based acute care EHR and revenue cycle management solution in the market. The company also entered into a partnership with the Hamilton Healthcare System to provide cloud-based solutions to their customers. This solution is intended to provide easy data sharing between ambulatory and acute care settings.

The government reforms also play an active role in boosting the adoption of the revenue cycle management system. For instance, the Affordable Care Act (ACA) or the popular ‘Obamacare’ introduced in the U.S., focuses on expanding health insurance coverage to individuals with low income in the country. The act aims to improve the quality of healthcare services and reduce the cost of care in the country. This extended insurance coverage is expected to increase the number of reimbursements and denials, which can be managed effectively only through revenue cycle management solutions.

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Moreover, the increasing adoption and popularity of cloud-based solutions among patients and healthcare settings are further aiding the market growth. Cloud-based solutions store a large amount of data and allow medical administrator access patient information from any location. This leads to faster processing of payments, reimbursements, and claims for both patients and doctors, thus, making the revenue cycle management process more cost-effective for healthcare settings.

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The revenue cycle management solution is new in the market, owing to which the healthcare settings are facing a shortage of skilled professionals to manage these systems. This factor is negatively impacting the market growth. However, to minimize the impact, large hospitals and other healthcare facilities in developed economies are outsourcing either a part of the revenue cycle management process or the complete process from developing economies. This is further aiding the market growth and helping to introduce the revenue cycle management (RCM) concept in these economies.

Based on product type, the RCM market is segmented into software and services. In 2019, the software segment accounted for the largest market share and was valued at around USD 39.0 billion. Revenue cycle management software is quite popular as they are centralized and help resolve the complexities associated with patient care and payment in healthcare settings. Moreover, launch of improved versions of existing software in the market as per consumer needs is further anticipated to drive the market growth over the forecast period.

On the other hand, the service segment is anticipated to be the fastest-growing segment over the forecast period. Growing trend of outsourcing revenue cycle management services is the key factor influencing the growth of this segment. Healthcare facilities are facing a lack of resources and skillsets required for the deployment of revenue cycle management. Hence, they are completely or partially outsourcing these services, where the outsourced partner takes care of RCM activities. This helps the medical professionals focus completely on patient care and leave revenue cycle management monitoring on the outsourced partner.

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Grand View Research has segmented the global revenue cycle management market based on product, type, delivery mode, end use:

Revenue Cycle Management Product Type Outlook (Revenue, USD Million, 2016 – 2027)

  • Software
  • Services

Revenue Cycle Management Type Outlook (Revenue, USD Million, 2016 – 2027)

  • Integrated
  • Standalone

Revenue Cycle Management Delivery Mode Outlook (Revenue, USD Million, 2016 – 2027)

  • On-premise
  • Web-based
  • Cloud based

Revenue Cycle Management End-use Outlook (Revenue, USD Million, 2016 – 2027)

  • Physician Offices
  • Hospitals
  • Diagnostic Laboratories
  • Others

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.

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