Revenue Cycle Management Market Size, Growth Forecast

Global Revenue Cycle Management (RCM) Market Size, Forecast, and Trend Highlights Over 2023 - 2035

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.

Global Revenue Cycle Management Market: Growth Drivers and Challenges

Growth Drivers

Expanding Opportunities for Medical Billing Software & Medical Billing Companies - The rising need for healthcare service providers to improve workflow efficiency, along with the adoption of practices that save time and money for healthcare facilities with a lower number of denied claims and make it possible for patients to make payments online, is expected to promote the adoption of these advanced RCM systems. Currently, there are little less than 300 medical billing companies operating in the United States alone.
Rising Trend of Outsourcing Financial Process – With healthcare providers thriving towards improving the patient experience with the delivery of high-quality care and lower costs, most other processes are being outsourced nowadays. Also, as per findings, the average error rate in self-compiled claims is nearly 30% but this number is anticipated to drop to less than 1% with the outsourcing of medical billing to any reputable firm. This, as a result, is expected to boost market growth in the upcoming years.
Growing Coverage of Health Insurance Program – For instance, as per data, approximately 60 million individuals, or 18.2% of the U.S. population were enrolled in Medicare in 2021 while many individuals were covered by private health insurance. The increasing number of insured patients, medical records, and growing usage of codes assist the insurance company in determining coverage and the medical necessity of the services is expected to boost the adoption of systems such as revenue cycle, patient engagement, and care coordination service.
Rapidly Changing Healthcare Sector – The growing digital transformation of the healthcare sector and the use of information technology together with the rapidly increasing incorporation of artificial intelligence (AI) and machine learning in the delivery of high-quality care, enhancing the patient experience is estimated to propel the market growth. As per investigations, the total spending on digital transformation globally reached over USD 1.3 trillion in 2022 and is growing at a rate of over 10% year on year.

Challenges

Reluctancy to switch over to the latest management model – Many healthcare divisions still rely on conventional methods of revenue management and are reluctant to adopt such technologies as they involve a lengthy and time-consuming process, which is attributed to hamper the market growth in the near future. Moreover, the lack of proper IT infrastructure in many underdeveloped and developing countries as well as the lack of proper technical guidance for the smooth switch is further anticipated to restrict the industry growth over the forecast period.
Lack of standardization
Stringent regulatory framework

Global Revenue Cycle Management Market Segmentation

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	On-Premises Cloud-Based
By Service	Claims and Denial Management Medical Coding and Billing Electronic Health Records (EHR) Clinical Documentation Improvement (CDI) Insurance Others
By End-User	Hospitals Specialty Clinics Laboratories Others

Global Revenue Cycle Management Market Regional Synopsis

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.

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Top Featured Companies Dominating the Global Revenue Cycle Management Market

The SSI Group, LLC
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

R1 RCM Inc.
Experian Information Solutions, Inc.
athenahealth, Inc.
AllScripts Healthcare, LLC
Epic Systems Corporation
NXGN Management, LLC
CareCloud Corporation
McKesson Corporation
Quest Diagnostics, Inc.
Cerner Corporation

In The News

The SSI Group, LLC, a leader in financial performance solutions for providers and payers, announced its partnership with RCxRules, a leading provider of automated billing solutions for healthcare organizations’ population health and revenue cycle operations.
R1 RCM Inc., a leader in technology-enabled revenue cycle management (RCM) services to healthcare providers, announced that Rush University System for Health (RUSH), an academic health system entered into a strategic partnership to achieve revenue cycle performance excellence and accelerate innovation in healthcare.

Global Economic Impact

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Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

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.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the revenue cycle management market?

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.

2) What would be the CAGR of revenue cycle management market over the forecast period?

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.

3) What are the challenges affecting the revenue cycle management market growth?

Ans: Lack of technical know-how and poor IT infrastructure is estimated to be the growth-hindering factors for market expansion.

4) Which region will provide more business opportunities for growth of revenue cycle management market in future?

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.

5) Who are the major players dominating the revenue cycle management market?

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.

6) How are the company profiles selected?

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.

7) What are the segments in the revenue cycle management market?

Ans: The market is segmented by deployment model, service, end-user, and by region.

8) Which segment captures the largest market size in the deployment model segment in the revenue cycle management market?

Ans: The cloud-based segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)