Global Healthcare Revenue Cycle Management Market is set to exceed USD 100 billion by 2024; according to a new research report by Global Market Insights. Increasing healthcare expenditures in developed as well as developing countries will escalate the industry growth during forecast period. Healthcare expenditures includes expenditures for physician’s services, retail prescription drugs, private healthcare insurance and other services. People residing in developed economies such as U.S. and Germany are well aware regarding the reimbursement available for treatment of various diseases. This scenario proves beneficial for the industry growth as it increases revenue generation in healthcare policies. Enhancement in HRCM solutions has enabled efficient data management of large revenue generated from healthcare services that will augment the industry growth., read more on gap cover here
Technological advancements in healthcare revenue cycle management solutions will foster the demand thereby, escalating the HRCM industry growth. Increasing geriatric population in developing countries such as India are susceptible to chronic diseases that will surge the number of hospital admissions. Hospitals and ASC’s largely rely on technologically upgraded healthcare revenue cycle management solutions that will trigger the industry growth in foreseeable future. However, lack of trained professionals may restrain HRCM market growth during forecast timeframe.
Claims & denial management segment held largest revenue of USD 13.9 billion in 2017 and is estimated to witness robust growth in the foreseeable future. Denial management is a critical element to an effective revenue cycle management and a healthy cash flow. Increasing demand for claims and denial management services including AR (Aging Report) follow ups, resolution of denied claims, claims status checks and preparing an appeal letters will further accelerate the segment growth.
Medical coding and billing segment accounted for significant revenue share in 2017 and is estimated to show 11.3% CAGR over the forecast timeframe. Segment growth is attributable to growing cases of insurance issues pertaining to misinterpretation of medical documents. High adoption of coding and billing procedures in hospitals will further surge demand for these services thereby stimulating business growth.
Integrated healthcare revenue cycle management segment dominated the overall market with more than 85% revenue share in 2017. The growth is attributed to increasing shift in the healthcare business from volume-based payment to value-based systems that has surged the adoption of these systems in recent years. Moreover, majority of physicians prefer integrated software in order to cope with declining productivity and reducing reimbursements, thereby propelling industry growth. In addition, growing interest of buyers in integrated revenue cycle management solutions comprising of electronic health records, medical billing, and patient scheduling applications will further accelerate business growth.
Standalone healthcare revenue cycle management segment accounted for considerable revenue in 2017 and is estimated to witness lucrative 8.2% CAGR during the forecast timeline. Use of numerous standalone software databases and applications through a multifaceted network of home-grown interfaces, legacy and manual processes will favor industry growth. However, lack standard data models in standalone systems, for sharing health information between providers, users and patients may hamper the segment growth in the foreseeable future.
North America healthcare revenue cycle management market dominated the global market with 40% revenue share in 2017 and is estimated to show similar trend in the coming years. High growth is attributed to significant changes in regulations that have largely affected the finances, organization, and delivery of healthcare services. Moreover, increasing number of hospitalizations in the region will fuel the need for healthcare revenue cycle management systems thereby augmenting the regional growth.
Asia Pacific healthcare revenue cycle management market accounted for considerable revenue in 2017 and is expected to witness highest CAGR of 14.5% over the forecast period. Increasing developments in healthcare facilities, rising pressure on healthcare infrastructure, awareness in healthcare industry regarding information technology, growing expenditure and initiatives undertaken by governments for implementing revenue cycle management solutions will favor regional growth in the coming years.
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Photo courtesy of: exSoft
Originally Published On: exSoft
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