Revenue cycle management market was evaluated at US$112.914 billion for the year 2020, growing at a CAGR of 10.73% to reach the market size of US$230.465 billion by the year 2027.
Revenue cycle management (RCM) refers to the financial process of tracking patient care episodes from registration and appointment scheduling to the final balance payment using the medical billing software utilized by healthcare institutions. Revenue cycle management encompasses activities such as patient registration, medical coding, insurance eligibility and verification, payment and AR management, and claim to process. The four most significant RCM components are patients, billing firms, healthcare providers, and insurance payers. The growing rate of investments in the healthcare field and the need for proper management of healthcare infrastructure are driving the growth of the revenue cycle management market. RCM benefits healthcare providers by giving them insight into claims denials and prompting them to submit essential medical information for claims processing. The market for RCM systems is also being driven by tightening regulations, more detailed coding systems, and emerging value-based reimbursement and payment structures. Increased technological advancements and high adoption of revenue cycle management (RCM) tools by various healthcare providers and others are driving the development and improvement of RCM solutions. The government initiatives supporting revenue cycle management are also giving potential to the market growth of RCM. Aside from that, increased consolidation among organizations that supply end-to-end solutions, as well as cloud-based demand for RCM solutions, are also fuelling plenty of chances that will propel the RCM market forward throughout the forecast period. The efficiency showcased by revenue cycle management in reducing hospital billing errors and financial loss also raises the demand for RCM solutions in the global market. Certain RCM software solutions offered by major companies like Infosys, Athenahealth, Inc, R1 RCM Inc, etc., are also increasing the popularity and acceptance of RCM in the global market.
The recent outbreak of the COVID-19 pandemic has positively influenced the market growth of RCM in the medical field. The increased rate of activities in the healthcare and medical sector during the pandemic boosted the demand for revenue cycle management solutions in the market. According to WHO (World Health Organization) data, more than 420 million COVID-19 cases have been documented in Africa, Asia Pacific, the Americas, Europe, and Oceania as of February 2022. The rising number of COVID cases in hospitals and healthcare centres on a daily basis increased the need for proper and better management of health care infrastructure, which resulted in more demand for RCM solutions in the medical field.
Rising demand for proper healthcare revenue management
As the healthcare fields are showing drastic developments every year, the need for proper healthcare infrastructure management has been surging. The necessity of proper management systems in hospitals and the medical field is boosting the market growth revenue cycle management market. According to a 2020 article published in the American Journal of Medicine, approximately 80% of medical billings performed in the country contained at least one error, increasing the demand for revenue cycle management. The amount of electronic data created in the healthcare industry has reached terabytes, owing to increased patient loads and the digitization of administrative, clinical, and financial data. This necessitates the implementation of proper revenue cycle management software in hospitals and healthcare centres. The ability of AI to optimize clinical and non-clinical procedures, consequently solving many problems for patients, providers, and the healthcare industry as a whole, is driving its use in healthcare. Integrating AI (Artificial Intelligence) with RCM can bring many drastic changes in the overall health care infrastructure management. The application of RCM combined with AI is expected to hike the market of revenue cycle management during the forecast period.
High maintenance and the initial cost of RCM restrain the market growth
The cost of keeping revenue cycle management software up to date is quite significant. Furthermore, IT support and maintenance services, which include customizing and upgrading software to meet changing user needs and maintaining a reliable IT infrastructure, are a recurrent cost. This makes up a significant portion of the total cost of ownership. Additionally, post-sale custom interface building for device integration demands additional testing and validation to ensure solution integrity and completeness. The total cost of ownership for healthcare providers will rise even more as a result of this. Small healthcare facilities, particularly in emerging nations, are hesitant to replace their old systems with RCM solutions due to the significant costs involved.
North America to hold significant market share
Geographically, the North American region holds the lion's share of the revenue cycle management market. The expansion of the revenue cycle management market in North America is attributed to the presence of big established hospitals and healthcare infrastructures, favourable legislation, and an increased need to reduce healthcare costs.
Frequently Asked Questions (FAQs)
Q1. What will be the revenue cycle management market size by 2027?
A1. The revenue cycle management market is projected to reach a market size of US$230.465 billion by 2027.
Q2. What are the growth prospects for the revenue cycle management market?
A2. The global revenue cycle management market is projected to grow at a CAGR of 10.73% during the forecast period.
Q3. What is the size of the global revenue cycle management market?
A3. Revenue Cycle Management Market was valued at US$112.914 billion in 2020.
Q4. What factors are anticipated to drive the revenue cycle management market growth?
A4. The growing rate of investments in the healthcare field and the need for proper management of healthcare infrastructure are driving the revenue cycle management market growth.
Q5. Which region holds the maximum market share in the revenue cycle management market?
A5. Geographically, the North American region holds the lion's share of the revenue cycle management market.
Allscripts Healthcare Solutions
R1 RCM Inc.
Conifer Health Solutions, LLC
Epic Systems Corporation
GeBBs Healthcare Solutions, Inc.
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