Revenue Cycle Management Market size is estimated to reach ~USD 214 Billion by the end of 2035 by growing at a CAGR of ~13.60% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size was valued at ~USD 46 Billion. The growth of the market can be attributed to the rising need for structured healthcare services together with the adoption of such systems that integrate administrative data such as a patient's identity, insurance plan, and others for quick value-based reimbursement owing to the growing pool of patients worldwide. For instance, as per recent updates, there were over 2,00,700 patients admitted at the general hospitals of Norway in 2022.
In addition to these, factors that are believed to fuel the market growth of the revenue cycle management market include the rise in healthcare spending worldwide which is responsible for the growing need for unifying the overall healthcare system through the active deployment of various IT solutions such as RCM, that enables healthcare facilities to track patient care episodes from registration and appointment scheduling to the final payment of a balance. According to the statistics by the World Bank, the current health expenditure around the globe as a share of GDP rose from 8.63% in the year 2000 to 9.84% in the year 2019. Hence, the growing patient footfall in hospitals owing to the widespread of various types of chronic diseases globally and elevated spending is predicted to present the potential for market expansion over the projected period.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~13.60% |
Base Year Market Size (2022) |
~ USD 46 Billion |
Forecast Year Market Size (2035) |
~ USD 214 Billion |
Regional Scope |
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Growth Drivers
Challenges
The market is segmented and analyzed for demand and supply by deployment model into on-premise and cloud-based. Out of the two types of deployment models of revenue cycle management, the cloud-based segment is estimated to gain the largest market share of about ~70% in the year 2035. The growth of the segment can be attributed to the growing reliability of the healthcare sector on cloud-based services and cloud computing owing to their flexibility and increased performance and efficiency that helps to lower overall IT costs. According to a survey, more than 82% of healthcare organizations were already using cloud services worldwide and these cloud infrastructure services are surging with each passing year.
The global revenue cycle management market is also segmented and analyzed for demand and supply by end-user into hospitals, specialty clinics, laboratories, and others. Amongst these given segments, the hospital segment is expected to garner a significant share of around ~54% in the year 2035. The growth of the segment can be attributed to the radically expanding global healthcare infrastructure with the burgeoning pool of patients worldwide. Moreover, the increasing focus of hospitals to improve financial viability, transparency, and profitability together with the provision of advanced medical facilities to their patients is expected to boost the market growth within this segment. On the other hand, the specialty clinic segment is projected to witness a massive CAGR during the forecast period, owing to the growing popularity of these clinics with supporting factors like increasing disposable income and rising demand for convenient and better treatment. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years.
Our in-depth analysis of the global revenue cycle management market includes the following segments:
By Deployment Model |
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By Service |
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By End-User |
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The market share of revenue cycle management in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~36% by the end of 2035. The growth of the market can be attributed majorly to the growing digital transformation in the healthcare industry as well as the rising healthcare IT spending besides increasing adoption of the latest IT solutions such as revenue cycle management systems in the healthcare sector to enhance efficiency and improve value-based care reimbursement. As per a survey, in the United States alone 75% of hospitals and health systems deployed revenue cycle management (RCM) technology during the COVID-19 pandemic. Moreover, the presence of well-established healthcare facilities as well as favorable regulations for the key market players in the region is predicted to create lucrative growth opportunities for the market region.
The Asia Pacific revenue cycle management industry is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The growth of the market can be attributed majorly to the growing efforts to improve care delivery quality as well as rising favorable government initiatives of emerging economies to promote digital transformation in the healthcare sector resulting in the increasing adoption of healthcare IT solutions. Moreover, the rising digital literacy as well as advancing healthcare infrastructure along with a growing pool of patients being covered by various types of insurance is further anticipated to propel the market growth in the upcoming years.
Further, the market in the Middle East & Africa, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growing pool of patient base, as well as the surging demand for quality healthcare facilities as well as increasing adoption of healthcare policies and plans such as medical insurance along with continuous digital transition in the healthcare sector, are some factors promoting the adoption of revenue cycle management in the region.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: The rising trend of outsourcing financial processes as well as the increasing adoption of medical billing software besides growing digitalization in the healthcare industry are the major factors driving the market growth.
Ans: The market size of revenue cycle management is anticipated to attain a CAGR of ~13.60% over the forecast period, i.e., 2023 – 2035.
Ans: Lack of technical know-how and poor IT infrastructure is estimated to be the growth-hindering factors for market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are R1 RCM Inc., Experian Information Solutions, Inc., athenahealth, Inc., AllScripts Healthcare, LLC, Epic Systems Corporation, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by deployment model, service, end-user, and by region.
Ans: The cloud-based segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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