Market Summary
Healthcare Revenue Cycle Management (RCM) Market Overview
Healthcare Revenue Cycle Management (RCM) Market was valued at USD 47.2 billion in 2023 and is projected to grow from USD 51.7 billion in 2024 to USD 96.52 billion by 2032, exhibiting a CAGR of 9.50% during the forecast period (2024-2032). The rapidly growing era of digitalization of healthcare, the growing number of multiple data siloes & unorganized workflows in healthcare settings, the rising number of well-established healthcare facilities, and increasing healthcare IT spending are the key market drivers driving the market growth.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
In May 2024, R1 RCM has released an innovative AI-driven revenue cycle management technology that improves claim accuracy and minimizes denials with predictive analytics and real-time decision assistance.
In March 2024, Allscripts has announced an updated version of its revenue cycle management software, which includes improved automation tools and integration capabilities to boost financial performance and operational efficiency.
Healthcare Revenue Cycle Management (RCM) Market Trends
-
Regulatory Mandates for the Adoption of HRCM are driving the market growth
Market CAGR for healthcare revenue cycle management is driven by increasing healthcare spending, and technological advancements in the software fuel the adoption rate and foster market growth during the forecast period. For instance, in July 2021, Access Healthcare launched Echo, a Robotic Process Automation and artificial intelligence platform for presenting automation in the procedure.
Additionally, the growing demand for workflow optimization in healthcare enterprises and innovative synchronized management software systems are expected to propel market growth. Increasing assistance from government bodies and federal agencies in the form of profitable regulatory reforms is driving growth. The market is witnessing regular technological advancements, and the industry is constantly evolving. Various healthcare providers and payers rapidly adopt these innovative and upgraded RCM solutions. For instance, in September 2022, AGS Health launched the AGS AI Platform, a corresponding solution that incorporates artificial intelligence and automation with award-winning human-in-the-loop services and expert assistance to maximize revenue cycle performance in the US.
The healthcare revenue cycle management market players adopt different strategies to increase market share, such as acquisitions, collaborations, partnerships, and expansions. For instance, Objective Capital Partners declared to serve as a financial advisor to RCM Technologies in May 2020. The firm advised them to adopt a shareholders' rights plan intended to protect and control the company's service.
An increasing number of patient admission and growing complications during the management of driving revenues in healthcare settings are enhancing the demand and adoption of healthcare revenue cycle management. However, a preferential shift is observed in numerous healthcare skills from in-house service to outsourcing benefits owing to certain distinct advantages performed by outsourcing this service. The outsourcing model delivers a significant enhancement of the operational workflow corresponding to the in-house model, while medical billing & coding, managing claim denials, and others drive the healthcare revenue cycle management market revenue.
Healthcare Revenue Cycle Management (RCM) Market Segment Insights
Healthcare Revenue Cycle Management (RCM) Product Type Insights
The healthcare revenue cycle management market segmentation, based on product type, includes integrated software and standalone software. The integrated software segment dominated the market, accounting for 35% of market revenue (78.48 Billion). In developing economies, category growth is driven by the growing preference for volume-based payments over value-based payments. However, standalone software is the fastest-growing category as it enhances bill payment and dispute resolution processes. It seeks to reduce total costs and simplifies sales, assisting in effectively navigating the revenue cycle.
Healthcare Revenue Cycle Management (RCM) Component Insights
The healthcare revenue cycle management market segmentation, based on components, includes software and service. The software category generated the most income (70.4%) from the launch of cutting-edge solutions to assist in enhancing HRCM at hospitals, physician's facilities, and others. However, service is the fastest-growing category due to the increasing demand for healthcare revenue cycle management services, including outsourcing, medical coding and billing services, and others.
Healthcare Revenue Cycle Management (RCM) Deployment Mode Insights
The healthcare revenue cycle management market segmentation, based on deployment mode, includes on-premises and cloud/web-based. The on-premises category generated the most income owing to higher flexibility and increased cost-effectiveness to end-users. However, cloud/web-based is the fastest-growing category owing to the growing implementation of web-based solutions. Web-based delivered solutions do not require additional hardware or storage and can be installed off-site.
Healthcare Revenue Cycle Management (RCM) End-User Insights
The healthcare revenue cycle management market segmentation, based on end-user, includes hospitals and ambulatory services. The hospitals category generated the most income owing to the growing demand for streamlining hospitals’ workflows and enhancing productivity and efficiency is driving the adoption of healthcare revenue cycle management solutions in hospitals. However, ambulatory services are the fastest-growing category due to the rising number of protocols and guidelines introduced by regulatory bodies with respect to patient safety.
Figure 1 Healthcare Revenue Cycle Management (RCM) Market, by End-User, 2023 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Healthcare Revenue Cycle Management (RCM) Regional Insights
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American healthcare revenue cycle management market will dominate this market, owing to the presence of large renowned hospitals and well-established healthcare facilities, the increasing need to minimize healthcare costs, and favorable regulations that will boost the market growth in this region. Further, the US healthcare revenue cycle management market held the largest market share, and the Canadian healthcare revenue cycle management market was the fastest-growing market in the North American region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2 HEALTHCARE REVENUE CYCLE MANAGEMENT MARKET SHARE BY REGION 2023 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's healthcare revenue cycle management market accounts for the second-largest market share due to the rising demand to improve care delivery quality, increasing digital literacy, and growing adoption of healthcare IT solutions drive the market growth. Further, the German healthcare revenue cycle management market held the largest market share, and the UK healthcare revenue cycle management market was the fastest-growing market in the European region.
The Asia-Pacific healthcare revenue cycle management market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the availability of a cost-effective workforce which increases the ease of business. Moreover, China’s healthcare revenue cycle management market held the largest market share, and the Indian healthcare revenue cycle management market was the fastest-growing market in the Asia-Pacific region.
Healthcare Revenue Cycle Management (RCM) Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the healthcare revenue cycle management market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, higher investments, mergers and acquisitions, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the healthcare revenue cycle management industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the healthcare revenue cycle management industry to benefit clients and increase the market sector. Major players in the healthcare revenue cycle management market, including R1 RCM, Inc., Allscripts Healthcare, LLC, Experian Information Solutions, Inc., AGS Health Inc., Athenahealth, Cerner Corporation, and others, are attempting to increase market demand by investing in research and development operations.
eClinicalWorks LLC is a provider of ambulatory healthcare IT solutions. The company provides solutions for practice management, revenue cycle management, population health, and patient engagement. Its major products include eClinicalWorks HEDIS, a tool for population health planning; eClinicalWorks RCM, a solution for revenue cycle management; and Healow, a patient engagement solution. The company offers its products to accountable care organizations, physician practices, community health centers, hospitals, health departments, and convenient care clinics. In October 2022, eClinicalWorks, an ambulatory cloud EHR, declared that Advocare LLC, an independent physician firm, accomplished USD 1 billion in revenue via the usage of eClinicalWorks RCM.
R1 RCM Holdco Inc, formerly R1 RCM Inc, provides technology-enabled revenue cycle management services to hospital and health systems solutions. It manages the healthcare system's revenue cycle operations, including various procedures such as bill preparation, medical treatment documentation and coding, patient registration, insurance and benefit verification, and collections from patients and payers. R1's modular solution offers practice management, revenue integrity services, business office, patient experience, automation solutions, and physician advisory services. The company offers services to healthcare systems, physician practice groups and other healthcare organizations. In January 2020, R1 RCM Inc. launched R1 Professional, an advanced RCM solution that is being widely used by large hospital-owned medical groups and other groups involved in independent practices.
Key Companies in the Healthcare Revenue Cycle Management (RCM) market include
- R1 RCM, Inc.
- Allscripts Healthcare, LLC
- AGS Health Inc.
- Athenahealth
- Cerner Corporation
- McKesson Corporation
- CareCloud, Inc.
- Conifer Health Solutions, LLC.
- Change Healthcare
- SSI group Formativ Health
- Dell Technologies, Cognizant
- Medical Information Technology, Inc (Meditech)
Healthcare Revenue Cycle Management (RCM) Industry Developments
June 2022 Olive introduced its Autonomous Revenue Cycle management suite of solutions that permits healthcare organizations to handle time-consuming administrative tasks utilizing artificial intelligence in the healthcare revenue cycle management and get paid quicker while decreasing the uncompensated care risk. It integrates practice management systems and existing electronic health records.
Healthcare Revenue Cycle Management (RCM) Market Segmentation
Healthcare Revenue Cycle Management (RCM) Product Type Outlook
- Integrated Software
- Standalone Software
Healthcare Revenue Cycle Management (RCM) Component Outlook
- Software
- Service
Healthcare Revenue Cycle Management (RCM) Deployment Mode Outlook
- On-Premises
- Cloud/Web Based
Healthcare Revenue Cycle Management (RCM) End-User Outlook
- Hospitals
Healthcare Revenue Cycle Management (RCM) Regional Outlook
North America
- US
- Canada
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
Rest of the World
-
Middle East
-
Africa
-
Latin America
Market Size & Forecast
| Attribute/Metric | Details |
| Market Size 2023 | USD 47.2 Billion |
| Market Size 2024 | USD 51.6 Billion |
| Market Size 2032 | USD 96.52 Billion |
| Compound Annual Growth Rate (CAGR) | 9.5% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Growth Factors, Market Competitive Landscape, and Trends |
| Segments Covered | Product Type, Component, Deployment Mode, End-User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | R1 RCM, Inc., Experian Information Solutions, Inc., Allscripts Healthcare, LLC, AGS Health Inc., Athenahealth, Cerner Corporation, McKesson Corporation, CareCloud, Inc., Conifer Health Solutions, LLC., Change Healthcare, SSI group Formativ Health, Dell Technologies, Cognizant, and Medical Information Technology, Inc (Meditech) |
| Key Market Opportunities | Obesity in children, healthier and more balanced diets |
| Key Market Dynamics | Increase in health difficulties and worries, leading to costly operations |
Major Players
Healthcare Revenue Cycle Management Market Segmentation
Healthcare Revenue Cycle Management Product Type Outlook (USD Billion, 2018-2032)
Integrated Software
Standalone Software
Healthcare Revenue Cycle Management Component Outlook (USD Billion, 2018-2032)
Software
Service
Healthcare Revenue Cycle Management Deployment Mode Outlook (USD Billion, 2018-2032)
On-Premises
Cloud/Web Based
Healthcare Revenue Cycle Management End-User Outlook (USD Billion, 2018-2032)
Hospitals
Ambulatory Services
Healthcare Revenue Cycle Management Regional Outlook (USD Billion, 2018-2032)
North America Outlook (USD Billion, 2018-2032)
North America Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
North America Healthcare Revenue Cycle Management by Component
Software
Service
North America Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
North America Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
US Outlook (USD Billion, 2018-2032)
US Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
US Healthcare Revenue Cycle Management by Component
Software
Service
US Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
US Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
CANADA Outlook (USD Billion, 2018-2032)
CANADA Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
CANADA Healthcare Revenue Cycle Management by Component
Software
Service
CANADA Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
CANADA Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Europe Outlook (USD Billion, 2018-2032)
Europe Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Europe Healthcare Revenue Cycle Management by Component
Software
Service
Europe Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Europe Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Germany Outlook (USD Billion, 2018-2032)
Germany Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Germany Healthcare Revenue Cycle Management by Component
Software
Service
Germany Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Germany Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
France Outlook (USD Billion, 2018-2032)
France Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
France Healthcare Revenue Cycle Management by Component
Software
Service
France Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
France Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
UK Outlook (USD Billion, 2018-2032)
UK Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
UK Healthcare Revenue Cycle Management by Component
Software
Service
UK Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
UK Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
ITALY Outlook (USD Billion, 2018-2032)
ITALY Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
ITALY Healthcare Revenue Cycle Management by Component
Software
Service
ITALY Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
ITALY Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
SPAIN Outlook (USD Billion, 2018-2032)
Spain Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Spain Healthcare Revenue Cycle Management by Component
Software
Service
Spain Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Spain Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Rest Of Europe Outlook (USD Billion, 2018-2032)
Rest Of Europe Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Rest Of Europe Healthcare Revenue Cycle Management by Component
Software
Service
Rest Of Europe Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
REST OF EUROPE Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Asia-Pacific Outlook (USD Billion, 2018-2032)
Asia-Pacific Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Asia-Pacific Healthcare Revenue Cycle Management by Component
Software
Service
Asia-Pacific Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Asia-Pacific Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
China Outlook (USD Billion, 2018-2032)
China Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
China Healthcare Revenue Cycle Management by Component
Software
Service
China Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
China Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Japan Outlook (USD Billion, 2018-2032)
Japan Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Japan Healthcare Revenue Cycle Management by Component
Software
Service
Japan Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Japan Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
India Outlook (USD Billion, 2018-2032)
India Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
India Healthcare Revenue Cycle Management by Component
Software
Service
India Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
India Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Australia Outlook (USD Billion, 2018-2032)
Australia Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Australia Healthcare Revenue Cycle Management by Component
Software
Service
Australia Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Australia Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Rest of Asia-Pacific Outlook (USD Billion, 2018-2032)
Rest of Asia-Pacific Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Rest of Asia-Pacific Healthcare Revenue Cycle Management by Component
Software
Service
Rest of Asia-Pacific Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Rest of Asia-Pacific Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Rest of the World Outlook (USD Billion, 2018-2032)
Rest of the World Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Rest of the World Healthcare Revenue Cycle Management by Component
Software
Service
Rest of the World Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Rest of the World Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Middle East Outlook (USD Billion, 2018-2032)
Middle East Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Middle East Healthcare Revenue Cycle Management by Component
Software
Service
Middle East Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Middle East Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Africa Outlook (USD Billion, 2018-2032)
Africa Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Africa Healthcare Revenue Cycle Management by Component
Software
Service
Africa Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Africa Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Latin America Outlook (USD Billion, 2018-2032)
Latin America Healthcare Revenue Cycle Management by Product Type
Integrated Software
Standalone Software
Latin America Healthcare Revenue Cycle Management by Component
Software
Service
Latin America Healthcare Revenue Cycle Management by Deployment Mode
On-Premises
Cloud/Web Based
Latin America Healthcare Revenue Cycle Management by End-User
Hospitals
Ambulatory Services
Leave a Comment