Medical Billing Software Market Overview
The global market for Medical Billing Software was estimated at USD 109.05 Million in 2023 and is projected to reach USD 290.47 Million by 2024, growing at a CAGR of 11.5% over the analysis period.
Customer payments are the fuel that keeps any firm running. Healthcare providers are no exception; yet, getting paid is a lengthy multi-step process with multiple regulations and players involved. While hospitals cannot make this journey any shorter, they may make it more efficient by automating billing operations. Medical billing is an important aspect of the healthcare revenue cycle since it involves getting paid for the services provided by a healthcare provider. This procedure begins before the services are even provided and includes numerous important steps. Medical billing software automates practically every aspect of the healthcare billing cycle, from scheduling a doctor's appointment to processing electronic payments. Medical software can perform a variety of functions, including appointment scheduling and management, remittance management, payment reminders, BI & reporting, patient pre-registration, medical coding support, and electronic medical claim management. The rise in the number of patients, and the growing need for effective management of health records and claims, is the major driving factor for the development of the medical billing software market in the forecasted period.
Market Dynamics And Factors For Medical Billing Software Market
Drivers:
Reduction In Paperwork, And Time-Effectiveness
All billing processes that were previously done, sent, and processed on paper can now be completed electronically. As a result, there are fewer errors and less rework. Furthermore, medical billing software significantly streamlines treatment and medication operations since most solutions allow for the filing and processing of hundreds of claims through a single interface. Switching to electronic transactions has been calculated to save healthcare providers around 1.1 million work hours each week. Purchasing and implementing medical billing software might be expensive, but the investment is worthwhile. A manual transaction costs a medical provider $6 more than an electronic transaction. The automation of billing procedures can decrease operational expenses by more than 55 percent while increasing revenue, propelling the medical billing software market to grow throughout the forecasted timeframe.
Streamline Coding
ICD (International Classification of Diseases) coding is in its tenth revision (ICD-10), and it is slowly becoming the standard, shared coding system for physicians and medical professionals. A uniform set of medical codes facilitates coding and maintains efficiencies in individual practices. On a larger scale, this classification system enables the development of a comprehensive database of codes that represent specific diseases or courses of therapy. While it is still in its initial stages, artificial intelligence (AI) technology is being utilized to streamline and automate coding and charting. AI can scan medical documents and extract key information for coding and billing. Automating the coding process saves time and reduces data entry errors, allowing records to be updated accurately thus, strengthening the development of the medical billing software market over the projected timeframe.
Restraints:
Deployment Can Be Expensive
Computerized patient billing systems may run on standard off-the-shelf hardware, but the software that powers their database-reliant structures is an investment in proprietary technology that comes at a cost. Obtaining the underlying data may involve scanning a printed document or entering in and verifying data. The combination of a server, workstations, document scanners, and networking, as well as the integration of insurance information, payment processing, and collections capabilities, can drive up the cost of a billing system to the point where it is too expensive for small practices. Moreover, the consistent cost of updating cloud-based software is also high which can also harm the adoption of medical billing software. The cloud-based billing software is also prone to cyber-attacks which can result in the loss of critical patient data thereby, hampering the adoption rate of the medical billing software market over the analysis period.
Opportunities:
Medical Billing And EHR Software Becoming Interoperable
The integration of medical billing with electronic health records (EHR) is the latest trend that offers plenty of excellent benefits for healthcare providers of all sizes. One of the main advantages is that data entry requires much less time. Manually entering data into electronic systems is both time-consuming and tedious, but when medical billing and EHR software become interoperable, users can reduce this work by eliminating the need to double enter patient data. Higher reimbursement rates are another advantage, as it allows users to enhance their first pass claim rate. When the data entry burden and the potential for typographic errors are reduced, errors that can lead to costly denials are reduced. Integrating these technologies also provides users with a centralized management solution that will take care of all practice management needs rather than bouncing back and forth between multiple platforms. Integrated and interoperable systems also facilitate communication between internal practice systems. It makes it simple to swipe or find information across all systems, eliminating the risk of human error. All the above-mentioned factors are expected to create lucrative opportunities for market players over the forecasted timeframe as more hospitals & clinics will adopt medical billing software.
Market Segmentation Analysis of Medical Billing Software Market
By System Type, the open segment is expected to lead the growth of the medical billing software market in the projected period. Unlike the closed system, an open medical billing system demonstrates the importance of a synergetic design. The patient's complete health data is transferred to more than one practice via Electronic Health Record (EHRs). This type of billing system allows providers, patients, key stakeholders, insurance payers, medical billing teams, and even third-party vendors and multiple healthcare organizations to easily access information. When viewed by several healthcare providers, EHRs contain more information than an EMR and enable editing. Open medical billing is widely opted, owing to the flexibility provided, for excellent Healthcare consisting of numerous departments.
By Deployment Type, the cloud-based segment is anticipated to have the highest share of the medical billing software market during the analysis period. Using a billing software system that operates on a cloud-based server eliminates the possibility of a loss of data. Information on cloud-based servers is securely encrypted across numerous servers, with multiple backups. Users do not have to worry about losing files due to a fire or other natural disaster, and they can deliver services offline while the Internet is down and then immediately upload saved billing information when the connection is restored.
By Functions, the claim management segment is expected to have the highest share of the medical billing software market over the analysis period. Electronic claims processing provides less room for error and allows for more efficient and faster claim submission. Resubmitting a claim takes a long time, but a solid medical billing system can accelerate the process. The best systems validate claims and claim codes before submission, alerting users to potential issues before filing the claim. AMA has indicated that by using electronic claim processing, the cost of processing can be cut from 14 % of revenue to 1 %, thereby supporting the segment's growth.
By End Users, the hospital segment is forecasted to dominate in the projected period. During the forecast period, the segment is expected to maintain its dominance. This is primarily due to the growing demand for hospital finance services. Furthermore, hospital consolidation affects the reimbursement and billing process. Hospitals in developing as well as in underdeveloped countries act as primary healthcare sources thus, the registration of patients in hospitals is more thus, supporting the expansion of the segment.
Regional Analysis of Medical Billing Software Market
The North American region is anticipated to lead the development of the medical billing software market over the forecasted timeframe. The dominance of this region is attributed to the presence of prominent key players, such as Kareo, TheraBill - WebPT, TherapyNotes, LLC, Athena Health, and Practice Fusion. Several studies conducted over the last two decades have found that administrative expenses account for approximately 15% to 25% of total the United States health care expenditures, an amount that represents an estimated $600 billion to $1 trillion per year of total national health expenditures of $3.8 trillion in 2019. The key drivers of these expenses are billing and coding fees, physician administrative activities, and insurance administrative costs. Medical billing software can help in reducing these costs and thereby decreasing the cost incurred by patients, and administration thus, boosting the adoption rate of medical billing software in this region.
The European region is expected to have the second highest share of the medical billing software market in the analysis period. The growth in this market can be attributed to the rising geriatric population and the increasing prevalence of chronic diseases. According to Eurostat, more than one in every three EU citizens aged 16 and up reported having a long-standing disease or health problem in 2019. The growing prevalence of chronic diseases is expected to increase the number of visits of individuals to healthcare facilities for a routine health checkups. This in turn will create a large amount of database and increase the number of filings for healthcare claims. Thus, to regulate healthcare claims, there has been a significant rise in the adoption rate of medical billing software in this region.
The medical billing software market in the APAC region is forecasted to develop at the highest CAGR. India, China, Australia, Japan, South Korea, and Australia are the prominent countries responsible for the growth of the market in this region. Governments in this region are investing in the medical sector to digitize the healthcare sector. For instance, the Indian government has increased its spending by 73% on public healthcare for 2021-2022. This funding will be utilized to digitize the healthcare sector as well as for other initiations started by the government. Similar initiatives by other governments are expected to attract key players to start their operations in this region thus, consolidating the expansion of the medical billing software market in the projected period.
Key Players of the Medical Billing Software Market
- AdvancedMD, Inc.
- Kareo
- WebPT
- CareCloud
- PracticeSuit
- Docpulse
- CentralReach
- AllMeds
- GE Centricity
- McKesson
- CureMD
- EverCommerce Inc.
- Other Major Players
Key Industry Development In The Medical Billing Software Market
- In February 2024, lleva, a leading provider of electronic medical records (EMR) software for behavioral health and addiction treatment, announced that it had expanded its integration with CollaborateMD, a cloud-based medical billing and practice management solution. This partnership provided Alleva customers with a seamless billing experience designed to save time and money. With Alleva's newly added Encounter Transmission Table (ETT), users could view, filter, and report on their billable service data. Additionally, demographic, insurance, and diagnosis information could be shared across platforms to facilitate claim submissions in CollaborateMD.
- In January 2024, Harris, a global vertical market software provider, expanded its Revenue Cycle Management (RCM) solutions through the acquisition of Pacific Medical Management Services, Inc. and Whittier Medical Management Associates, Inc. (PacMed). PacMed's offerings provided end-to-end RCM services for the ambulatory market, ensuring timely and optimal compensation for healthcare services. These services were designed to accelerate the posting of payments and reduce the potential denial of claims.
Global Medical Billing Software Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2024 |
Market Size in 2023: |
USD 109.05 Million. |
Forecast Period 2024-32 CAGR: |
11.5% |
Market Size in 2032: |
USD 290.47 Million |
Segments Covered: |
By Deployment Type |
|
|
By Function |
|
||
By System Type |
|
||
By End User |
|
||
By Region |
|
||
Key Market Drivers: |
|
||
Key Market Restraints: |
|
||
Key Opportunities: |
|
||
Companies Covered in the report: |
|
Chapter 1: Introduction
ā1.1 Research Objectives
ā1.2 Research Methodology
ā1.3 Research Process
ā1.4 Scope and Coverage
āā1.4.1 Market Definition
āā1.4.2 Key Questions Answered
ā1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
ā3.1 By Type
ā3.2 By Application
ā3.3 By Price
Chapter 4: Market Landscape
ā4.1 Porter's Five Forces Analysis
āā4.1.1 Bargaining Power of Supplier
āā4.1.2 Threat of New Entrants
āā4.1.3 Threat of Substitutes
āā4.1.4 Competitive Rivalry
āā4.1.5 Bargaining Power Among Buyers
ā4.2 Industry Value Chain Analysis
ā4.3 Market Dynamics
āā3.5.1 Drivers
āā3.5.2 Restraints
āā3.5.3 Opportunities
āā3.5.4 Challenges
ā4.4 Pestle Analysis
ā4.5 Technological Roadmap
ā4.6 Regulatory Landscape
ā4.7 SWOT Analysis
ā4.8 Price Trend Analysis
ā4.9 Patent Analysis
ā4.10 Analysis of the Impact of Covid-19
āā4.10.1 Impact on the Overall Market
āā4.10.2 Impact on the Supply Chain
āā4.10.3 Impact on the Key Manufacturers
āā4.10.4 Impact on the Pricing
Chapter 4: Medical Billing Software Market by Type
ā4.1 Medical Billing Software Market Overview Snapshot and Growth Engine
ā4.2 Medical Billing Software Market Overview
ā4.3 Compliance Tracking
āā4.3.1 Introduction and Market Overview
āā4.3.2 Historic and Forecasted Market Size (2017-2032F)
āā4.3.3 Key Market Trends, Growth Factors and Opportunities
āā4.3.4 Compliance Tracking: Grographic Segmentation
ā4.4 Claims Scrubbing
āā4.4.1 Introduction and Market Overview
āā4.4.2 Historic and Forecasted Market Size (2017-2032F)
āā4.4.3 Key Market Trends, Growth Factors and Opportunities
āā4.4.4 Claims Scrubbing: Grographic Segmentation
ā4.5 Code & Charge Entry
āā4.5.1 Introduction and Market Overview
āā4.5.2 Historic and Forecasted Market Size (2017-2032F)
āā4.5.3 Key Market Trends, Growth Factors and Opportunities
āā4.5.4 Code & Charge Entry: Grographic Segmentation
Chapter 5: Medical Billing Software Market by Application
ā5.1 Medical Billing Software Market Overview Snapshot and Growth Engine
ā5.2 Medical Billing Software Market Overview
ā5.3 Hospitals
āā5.3.1 Introduction and Market Overview
āā5.3.2 Historic and Forecasted Market Size (2017-2032F)
āā5.3.3 Key Market Trends, Growth Factors and Opportunities
āā5.3.4 Hospitals: Grographic Segmentation
ā5.4 Clinics
āā5.4.1 Introduction and Market Overview
āā5.4.2 Historic and Forecasted Market Size (2017-2032F)
āā5.4.3 Key Market Trends, Growth Factors and Opportunities
āā5.4.4 Clinics: Grographic Segmentation
ā5.5 Others
āā5.5.1 Introduction and Market Overview
āā5.5.2 Historic and Forecasted Market Size (2017-2032F)
āā5.5.3 Key Market Trends, Growth Factors and Opportunities
āā5.5.4 Others: Grographic Segmentation
Chapter 6: Medical Billing Software Market by Price
ā6.1 Medical Billing Software Market Overview Snapshot and Growth Engine
ā6.2 Medical Billing Software Market Overview
ā6.3 Monthly
āā6.3.1 Introduction and Market Overview
āā6.3.2 Historic and Forecasted Market Size (2017-2032F)
āā6.3.3 Key Market Trends, Growth Factors and Opportunities
āā6.3.4 Monthly: Grographic Segmentation
ā6.4 One Time
āā6.4.1 Introduction and Market Overview
āā6.4.2 Historic and Forecasted Market Size (2017-2032F)
āā6.4.3 Key Market Trends, Growth Factors and Opportunities
āā6.4.4 One Time: Grographic Segmentation
ā6.5 Annual
āā6.5.1 Introduction and Market Overview
āā6.5.2 Historic and Forecasted Market Size (2017-2032F)
āā6.5.3 Key Market Trends, Growth Factors and Opportunities
āā6.5.4 Annual: Grographic Segmentation
Chapter 7: Company Profiles and Competitive Analysis
ā7.1 Competitive Landscape
āā7.1.1 Competitive Positioning
āā7.1.2 Medical Billing Software Sales and Market Share By Players
āā7.1.3 Industry BCG Matrix
āā7.1.4 Ansoff Matrix
āā7.1.5 Medical Billing Software Industry Concentration Ratio (CR5 and HHI)
āā7.1.6 Top 5 Medical Billing Software Players Market Share
āā7.1.7 Mergers and Acquisitions
āā7.1.8 Business Strategies By Top Players
ā7.2 KAREO
āā7.2.1 Company Overview
āā7.2.2 Key Executives
āā7.2.3 Company Snapshot
āā7.2.4 Operating Business Segments
āā7.2.5 Product Portfolio
āā7.2.6 Business Performance
āā7.2.7 Key Strategic Moves and Recent Developments
āā7.2.8 SWOT Analysis
ā7.3 BRIGHTREE
ā7.4 ATHENACOLLECTOR
ā7.5 WEBPT
ā7.6 PRACTICE FUSION
ā7.7 THERAPYNOTES
ā7.8 THERABILL
ā7.9 NEXTGEN
ā7.10 CHIROTOUCH
ā7.11 GE
ā7.12 POINTCLICKCARE
ā7.13 AZALEA HEALTH
ā7.14 CENTRALREACH
ā7.15 FACETS
ā7.16 DRCHRONO
ā7.17 NUEMD
ā7.18 EZ CLAIM
ā7.19 CHARM HEALTH
ā7.20 PHREESIA
ā7.21 ADVANCEDMD
Chapter 8: Global Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā8.1 Market Overview
ā8.2 Historic and Forecasted Market Size By Type
āā8.2.1 Compliance Tracking
āā8.2.2 Claims Scrubbing
āā8.2.3 Code & Charge Entry
ā8.3 Historic and Forecasted Market Size By Application
āā8.3.1 Hospitals
āā8.3.2 Clinics
āā8.3.3 Others
ā8.4 Historic and Forecasted Market Size By Price
āā8.4.1 Monthly
āā8.4.2 One Time
āā8.4.3 Annual
Chapter 9: North America Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā9.1 Key Market Trends, Growth Factors and Opportunities
ā9.2 Impact of Covid-19
ā9.3 Key Players
ā9.4 Key Market Trends, Growth Factors and Opportunities
ā9.4 Historic and Forecasted Market Size By Type
āā9.4.1 Compliance Tracking
āā9.4.2 Claims Scrubbing
āā9.4.3 Code & Charge Entry
ā9.5 Historic and Forecasted Market Size By Application
āā9.5.1 Hospitals
āā9.5.2 Clinics
āā9.5.3 Others
ā9.6 Historic and Forecasted Market Size By Price
āā9.6.1 Monthly
āā9.6.2 One Time
āā9.6.3 Annual
ā9.7 Historic and Forecast Market Size by Country
āā9.7.1 U.S.
āā9.7.2 Canada
āā9.7.3 Mexico
Chapter 10: Europe Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā10.1 Key Market Trends, Growth Factors and Opportunities
ā10.2 Impact of Covid-19
ā10.3 Key Players
ā10.4 Key Market Trends, Growth Factors and Opportunities
ā10.4 Historic and Forecasted Market Size By Type
āā10.4.1 Compliance Tracking
āā10.4.2 Claims Scrubbing
āā10.4.3 Code & Charge Entry
ā10.5 Historic and Forecasted Market Size By Application
āā10.5.1 Hospitals
āā10.5.2 Clinics
āā10.5.3 Others
ā10.6 Historic and Forecasted Market Size By Price
āā10.6.1 Monthly
āā10.6.2 One Time
āā10.6.3 Annual
ā10.7 Historic and Forecast Market Size by Country
āā10.7.1 Germany
āā10.7.2 U.K.
āā10.7.3 France
āā10.7.4 Italy
āā10.7.5 Russia
āā10.7.6 Spain
Chapter 11: Asia-Pacific Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā11.1 Key Market Trends, Growth Factors and Opportunities
ā11.2 Impact of Covid-19
ā11.3 Key Players
ā11.4 Key Market Trends, Growth Factors and Opportunities
ā11.4 Historic and Forecasted Market Size By Type
āā11.4.1 Compliance Tracking
āā11.4.2 Claims Scrubbing
āā11.4.3 Code & Charge Entry
ā11.5 Historic and Forecasted Market Size By Application
āā11.5.1 Hospitals
āā11.5.2 Clinics
āā11.5.3 Others
ā11.6 Historic and Forecasted Market Size By Price
āā11.6.1 Monthly
āā11.6.2 One Time
āā11.6.3 Annual
ā11.7 Historic and Forecast Market Size by Country
āā11.7.1 China
āā11.7.2 India
āā11.7.3 Japan
āā11.7.4 Southeast Asia
Chapter 12: South America Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā12.1 Key Market Trends, Growth Factors and Opportunities
ā12.2 Impact of Covid-19
ā12.3 Key Players
ā12.4 Key Market Trends, Growth Factors and Opportunities
ā12.4 Historic and Forecasted Market Size By Type
āā12.4.1 Compliance Tracking
āā12.4.2 Claims Scrubbing
āā12.4.3 Code & Charge Entry
ā12.5 Historic and Forecasted Market Size By Application
āā12.5.1 Hospitals
āā12.5.2 Clinics
āā12.5.3 Others
ā12.6 Historic and Forecasted Market Size By Price
āā12.6.1 Monthly
āā12.6.2 One Time
āā12.6.3 Annual
ā12.7 Historic and Forecast Market Size by Country
āā12.7.1 Brazil
āā12.7.2 Argentina
Chapter 13: Middle East & Africa Medical Billing Software Market Analysis, Insights and Forecast, 2017-2032
ā13.1 Key Market Trends, Growth Factors and Opportunities
ā13.2 Impact of Covid-19
ā13.3 Key Players
ā13.4 Key Market Trends, Growth Factors and Opportunities
ā13.4 Historic and Forecasted Market Size By Type
āā13.4.1 Compliance Tracking
āā13.4.2 Claims Scrubbing
āā13.4.3 Code & Charge Entry
ā13.5 Historic and Forecasted Market Size By Application
āā13.5.1 Hospitals
āā13.5.2 Clinics
āā13.5.3 Others
ā13.6 Historic and Forecasted Market Size By Price
āā13.6.1 Monthly
āā13.6.2 One Time
āā13.6.3 Annual
ā13.7 Historic and Forecast Market Size by Country
āā13.7.1 Saudi Arabia
āā13.7.2 South Africa
Chapter 14 Investment Analysis
Chapter 15 Analyst Viewpoint and Conclusion
Global Medical Billing Software Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2017 to 2024 |
Market Size in 2023: |
USD 109.05 Million. |
Forecast Period 2024-32 CAGR: |
11.5% |
Market Size in 2032: |
USD 290.47 Million |
Segments Covered: |
By Deployment Type |
|
|
By Function |
|
||
By System Type |
|
||
By End User |
|
||
By Region |
|
||
Key Market Drivers: |
|
||
Key Market Restraints: |
|
||
Key Opportunities: |
|
||
Companies Covered in the report: |
|
Frequently Asked Questions :
The forecast period in the Medical Billing Software Market research report is 2024-2032.
AdvancedMD Inc., Kareo, WebPT, CareCloud, PracticeSuit, Docpulse, CentralReach, AllMeds, GE Centricity, McKesson, CureMD, EverCommerce Inc. , Other Major Players.
The Medical Billing Software Market is segmented into Deployment Type, System Type, Function, End-Users, and region. By Deployment Type, the market is categorized into Cloud and On-Premise. By System Type, the market is categorized into Closed, Open, and Isolated. By Function, the market is categorized into Patient Pre-Registration, Claims Management, Billing and Collection, Accounting and Financial Management, and Others. By End Users, the market is categorized into Hospitals, Clinics, and Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
Medical billing software automates practically every aspect of the healthcare billing cycle, from scheduling a doctor's appointment to processing electronic payments. Medical software can perform a variety of functions, including appointment scheduling and management, remittance management, payment reminders, BI & reporting, patient pre-registration, medical coding support, and electronic medical claim management.
The global market for Medical Billing Software was estimated at USD 109.05 Million in 2023 and is projected to reach USD 290.47 Million by 2024, growing at a CAGR of 11.5% over the analysis period.