Practice management system is software used in hospitals and physician offices to deal with day to day operations. It is mainly used for financial and administrative function. It is also used to perform appointment scheduling, appointment and report generation. Moreover, it supports various medical facilities and hospitals to reduce their price and upsurge their operational effectiveness and efficiency. The global practice management systems market is growing at a significant rate, due to the mounting occurrence of medication errors, and mounting requirement of an integrated healthcare system.
Different products such as an integrated practice management system and a standalone practice management system contributed to the practice management systems market size. The market has witnessed high demand for an integrated practice management system due to government directives for incorporation of electronic health records.
Insight by Product
On the basis of product, the market is subdivided into an integrated practice management system and a standalone practice management system. Of both products, integrated practice management system segment accounted for larger share and is expected to grow at a faster rate in the market due to government directives for incorporation of electronic health records.
Insight by Delivery Mode
On the basis of delivery mode, the market is subdivided into on-premise, cloud-based, and web-based. Of all the delivery modes, the web-based segment accounted foremost share in the practice management systems market, due to the reduced price, availability of a number of web-based software, and capability to deliver access to huge data information. In addition, the cloud-based segment is expected to grow at the fastest rate in the market due to minimal operational cost, higher security, better data availability and flexibility, and common compatibility with any device.
Insight by Component
On the basis of the component the market is subdivided into software, and services. Among both components, the services segment accounted for the larger share and is expected to grow at a faster rate in the practice management systems market.
Insight by End User
The different end users of the market are physicians, diagnostic labs, pharmacists, and others. Among all end users, the physician's segment accounted the largest share and is expected to grow at the fastest rate in the practice management systems market.
Growing burden to decrease the healthcare cost, the mounting occurrence of medication errors, the mounting requirement of the integrated healthcare system, improving digitalization of healthcare and automation of healthcare facilities, strong government support, and high return on investment are the primary growth drivers for practice management systems market.
Escalating inclination towards patient-centric care approach, the upsurge in better healthcare and patient awareness, escalating number of hospitals and medical centers, and growth of cloud-hosted models are also facilitating the growth for the practice management systems market.
High price & time required for integration, data privacy and security issues, lack of trained IT professionals, and interoperability issues are the major challenges for the growth of the practice management systems market. Practice management system requires skilled professionals for operation and management, thus the lack of IT professionals leads to expensive labor.
Globally, the manufacturing companies trying to enter the practice management systems market are required to maintain stringent regulatory standards. Moreover, the high level of capital requirement also poses a major barrier to the entry of new players. This offers an edge to the established players in the industry competition.
Geographically, North America is the largest practice management systems market as in the region the awareness of patient is high. In addition, the mounting occurrence of medication errors, elevated healthcare expenditure, and a surge in demand for medical services by geriatric population are also up surging growth of the North American practice management systems market.
Asia-Pacific is observed to witness the fastest growth in the market, due to rapid urbanization. In addition, improving healthcare IT infrastructure, favorable government reforms, escalating healthcare expenditure, and mounting occurrence of medication errors are also creating a positive impact on the practice management systems market growth in the region.
Key players in the practice management systems market are catering to the demand of these devices by investing in technologically advanced products in their product portfolio across the globe. In May 2018, Northern Valley Indian Health selected eClinicalWorks cloud-centric electronic health record (EHR) system for its providers, to support care coordination between the patient and physician.
In addition, in September 2017, Rothman Institute selected Allscripts Practice Management to strengthen its financial coordination and operational efficiency. Allscripts Healthcare Solutions, Inc., eClinicalWorks LLC, Medical Information Technology, Inc. (Meditech), Athenahealth Inc., Mckesson Corporation, Cerner Corporation, and General Electric Company are the key players offering practice management systems.