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Healthcare Revenue Cycle Management Market Growth Accelerates: Strategic Forecast Predicts $144.54 Billion by 2029
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shiftsWhat Will the Healthcare Revenue Cycle Management Industry Market Size Be by 2025?
In recent times, the market size of healthcare revenue cycle management has seen a swift expansion. It is projected to escalate from $69.38 billion in 2024 to $80.53 billion in 2025, with a compound annual growth rate (CAGR) of 16.1%. The surge during the historic period can be linked to the rise in healthcare spending, transition towards value-based care systems, requirements for regulatory compliance, increased adoption of electronic health records (EHR), and the focus on minimizing costs and enhancing productivity.
What's the Long-Term Growth Forecast for the Healthcare Revenue Cycle Management Market Size Through 2029?
Anticipations point towards a substantial expansion of the healthcare revenue cycle management market in the upcoming years, with projections placing the market value at $144.54 billion by 2029, illustrating a compound annual growth rate (CAGR) of 15.7%. Growth drivers during this predicted period include, elective responsibility from patients, scalable revenue cycle management methods for medium-scale hospitals, and the pronounced relevance of RCM influenced by value-based care models. Collaborations between RCM and EHR providers aiming at comprehensive solutions and advancements in RCM system's payment processing also contribute to growth. The forecast period will see some trending segments, such as automation and artificial intelligence (AI), a transition towards value-based care reimbursement models, the intertwining of RCM systems with telehealth platforms, data analytics, outsourcing, and partnerships.
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What Are the Key Growth Drivers Fueling the Healthcare Revenue Cycle Management Market Expansion?
The increasing use of electronic health records (EHR) anticipates driving the expansion of the healthcare revenue cycle management market in the future. EHRs are digitized versions of patients' health information, providing wide-ranging health details accessible to permitted health care providers. The implementation of EHRs is escalating due to various elements including the need for enhanced patient care accessibility, its efficiencies in healthcare provision, and its seamless information transition capability. EHRs simplify healthcare revenue cycle management by providing accurate documentation, efficient claim processing, and prompt reimbursement for medical services provided. For example, the Department of Health and Social Care, a governmental department in the UK, stated in June 2022 that by December 2023, EHRs are projected to be implemented in 90% of NHS trusts, with mandated adoption for all trusts by March 2025. Thus, the rising adoption of EHRs fuels the growth of the healthcare revenue cycle management market.
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What Are the Key Trends Driving Healthcare Revenue Cycle Management Market Growth?
Leading businesses in the healthcare revenue cycle management market are striving to innovate, creating cutting-edge solutions like sophisticated revenue management platforms. These platforms are designed to elevate the financial performance of healthcare providers, lighten their administrative load, and ultimately improve the quality of patient care. The term 'advanced revenue management platforms in healthcare' refers to intricate software solutions whose purpose is to enhance and simplify the fiscal affairs of healthcare institutions, particularly those concerned with managing revenue cycles. A recent example of this is the March 2022 launch of an end-to-end revenue management platform by FinThrive, a healthcare company based in the US. This platform is designed to provide seamless revenue management, offering adaptability, scalability, and a clear view across the revenue cycle. It ensures precise billing, regulatory compliance, and effective financial performance. These platforms are intended to maximize revenue potential, cut administrative expenses, boost efficiency, and overall improve the financial well-being of organizations. This is especially relevant in fields like healthcare where effective management of revenue cycles is vital for ongoing success and viability.
How Is the Healthcare Revenue Cycle Management Market Segmented?
The healthcare revenue cycle management market covered in this report is segmented -
1) By Component: Software, Service
2) By Deployment Mode: On-Premises, Cloud Or Web Based
3) By Function: Claims And Denial Management, Medical Coding And Billing Eligibility Verification, Payment Remittance, Other Functions
4) By End-Use: Hospitals, Laboratories, Physicians, Other End-Users
Subsegments:
1) By Software: Billing And Coding Software, Patient Scheduling Software, Payment Processing Software, Claims Management Software, Revenue Cycle Analytics Software, Healthcare ERP (Enterprise Resource Planning) Software
2) By Service: Consulting Services, Outsourcing Services, Managed Services, Training And Support Services, Revenue Cycle Optimization Services
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Which Companies Are Leading the Charge in Healthcare Revenue Cycle Management Market Innovation?
Major companies operating in the healthcare revenue cycle management market are McKesson Corporation, 3M Health Information Systems, GE Healthcare, Experian Health, Cerner Corporation, Epic Systems Corporation, Change Healthcare, R1 RCM Inc., Nuance Communications, Conifer Health Solutions, Allscripts Healthcare Solutions, Health Catalyst, Craneware, MEDHOST Inc., NextGen Healthcare, Greenway Health, MedeAnalytics, Source Medical, Patientco, Athenahealth Inc., eClinicalWorks, Optum, nThrive, Waystar, IBM Watson Health, Trizetto Provider Solutions, Quadax, Experity
Which Regions Are Leading the Global Healthcare Revenue Cycle Management Market in Revenue?
North America was the largest region in the healthcare revenue cycle management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the healthcare revenue cycle management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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