RCM: Key market research findings
- The cloud-based RCM segment is the dominant shareholder in the market
- The market is currently witnessing an increased adoption of data analytics in the healthcare sector
- Key vendors—Allscripts Healthcare Solutions, Cerner, GE Healthcare, McKesson, and SSI Group
The market research analysts at Technavio predict the healthcare RCM market in the US to grow at a CAGR of almost 13% between 2016 and 2020. The market is driven primarily by the rise in recovery audits due to change in healthcare regulations. Healthcare service providers are experiencing an increase in the cost of operations and reduced revenues as a result of changing government regulations in the healthcare space. The providers’ revenue is being squeezed further due to constant audits. To dampen the deleterious effect of recovery audits, healthcare providers are increasingly outsourcing their revenue cycle management (RCM) process to third-party vendors. Currently, the cloud-based RCM segment dominates the healthcare RCM market in the US by accounting for more than 78% of the market space. The increase in implementation of software as a service solution by service providers in an attempt to meet their application infrastructure requirements will boost growth in this segment by 2020.
The new market research report from Technavio presents a breakdown and analysis of the healthcare RCM segments by end-user.
“The latest trend in the healthcare RCM market in the US is the integration of data analytics in the healthcare sector. Service providers are incorporating predictive analytics and business intelligence software technologies to enable better, more efficient client service as analytical solutions can help discover and define patterns within operations. Companies are increasingly adopting these solutions as they can develop more effective models for healthcare services and better understand the concepts of RCM, treatment outcomes, readmissions, and patient satisfaction,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
During 2015, the physicians segment accounted for around 41% of the overall market share to dominate the healthcare RCM market in the US. The growth of this segment can be attributed to the increasing adoption of RCM facilities by physicians at their facilities to their overall processes and transfer paper documentation to electronic health records. The ability of RCM to shorten revenue cycle with systems that electronically capture codes and pass data to physicians’ billing systems is expected to trigger an increase in the adoption of RCM, thereby contributing to the growth of this segment in the coming years.
The key vendors in the healthcare RCM market in the US include Allscripts Healthcare Solutions, Cerner, GE Healthcare, McKesson, and SSI Group. Due to the presence of several vendors, this market appears highly fragmented with competitors entering into different market segments. Large vendors service the enterprise market while vendors targeting niche segments provide RCM services to the small- and medium-sized business. There is constant vendor competition in the end-user segment, which is expected to intensify significantly during the forecast period.
A more detailed analysis is available in the Technavio report, Healthcare RCM Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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