Global Revenue Cycle Management Market Size, Share - Segmented by Deployment, Function, End User, and Geography - Growth, Trends, and Forecast (2022 - 2030)
The global revenue cycle management market is expected to register a CAGR of 11.5% during the forecast period, 2018 to 2023. The profit margins for healthcare providers are shrinking as most of them fail in proper submission of claims for payment. There is a decrease in Medicare payments after implementing Affordable Healthcare Act. With projected growth of hospital care accounting on account of increased insured population most care providers are implementing RCM either in-house or outsourcing to service providers in countries like India.
Revenue Loss Due to Billing Errors
Revenue for healthcare providers depend on accurate processing of medical claims. For improving the financial outcome a healthcare organization need to maintain a quality revenue cycle and insurance billing. The revenue cycle management team comprise accounts receivable (A/R) management and denial management. With mounting pressure on hospitals to reduce costs, most care providers are losing revenue due to claims denial and their failure to submit or delay the denied claim.
This has given an opportunity for speciality firms that provide revenue cycle management service. Most hospitals are now dependent on third party providers for denials management service as they lack the expert knowledge, time to manage the reimbursement process.
With their expertise these providers are able to increase the cash flow of their clients which were otherwise neglected by the hospitals to resubmit the denied claims. It is estimated that over 90% of the claim denials can be prevented with support from providers who have systems and knowledge experts in this field. From the above it can be concluded that the revenue loss to hospitals due to billing errors that can be prevented by speciality revenue cycle management service providers is a major driver for RCM market.
The other factors such as government initiatives to boost the adoption of RCM solutions, and increasing adoption of EHR/EMR are driving the Revenue Cycle Management Market.
High Pricing and Maintenance of RCM Solutions
For small and medium size hospitals there is a little investment in developing their infrastructure that support or integrate with RCM systems. The adoption rate for these players for RCM solutions is low because of high price and maintenance costs.
The need for modernized tech-based RCM for healthcare providers have put pressure to invest or partner with firms such as Gebbs Healthcare Solutions, Athenahealth etc.
The other factors such as lack of proper IT infrastructure, and scarcity of skilled IT professionals are restraining the Revenue Cycle Management Market.
US Leads the Revenue Cycle Management Market in North America Region
The US Revenue Cycle Management Market (RCM) holds the largest market share in 2017 in North America region due to the changing healthcare regulations.
Most US healthcare providers are deploying revenue cycle management systems that reduces the time taken for receiving payment after providing a service. The RCM that automates many activities previously done manually are saving time. US healthcare firms are benefited as they get insights on claims denial and prompt to add required medical information for claims processing.
With a push toward value based care by government, and its initiatives to adopt RCM solutions by all healthcare providers, the market for revenue cycle management may see a significant growth.
Revenue Cycle Management Market Key Developments
• May 2018: GeBBS Healthcare Solutions announced a Healthcare Information Management (HIM) and Revenue Cycle Management (RCM) partnership with Prospect Medical Holdings, Inc.
Major players: ALLSCRIPTS HEALTHCARE SOLUTIONS, ATHENAHEALTH, CERNER CORPORATION, CONIFER HEALTH SOLUTIONS, CONSTELLATION SOFTWARE, ECLINICALWORKS, EPIC SYSTEMS, GE HEALTHCARE, GEBBS HEALTHCARE SOLUTIONS, AND MCKESSON CORPORATION among others.
Reasons to Purchase Revenue Cycle Management Market Report
• Current and future Revenue Cycle Management Market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, market shares and strategies employed by the major market players.
• 3-month analyst support along with the Market Estimate sheet (in Excel)
Customization of Revenue Cycle Management Market Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
Revenue Loss Due to Billing Errors
Revenue for healthcare providers depend on accurate processing of medical claims. For improving the financial outcome a healthcare organization need to maintain a quality revenue cycle and insurance billing. The revenue cycle management team comprise accounts receivable (A/R) management and denial management. With mounting pressure on hospitals to reduce costs, most care providers are losing revenue due to claims denial and their failure to submit or delay the denied claim.
This has given an opportunity for speciality firms that provide revenue cycle management service. Most hospitals are now dependent on third party providers for denials management service as they lack the expert knowledge, time to manage the reimbursement process.
With their expertise these providers are able to increase the cash flow of their clients which were otherwise neglected by the hospitals to resubmit the denied claims. It is estimated that over 90% of the claim denials can be prevented with support from providers who have systems and knowledge experts in this field. From the above it can be concluded that the revenue loss to hospitals due to billing errors that can be prevented by speciality revenue cycle management service providers is a major driver for RCM market.
The other factors such as government initiatives to boost the adoption of RCM solutions, and increasing adoption of EHR/EMR are driving the Revenue Cycle Management Market.
High Pricing and Maintenance of RCM Solutions
For small and medium size hospitals there is a little investment in developing their infrastructure that support or integrate with RCM systems. The adoption rate for these players for RCM solutions is low because of high price and maintenance costs.
The need for modernized tech-based RCM for healthcare providers have put pressure to invest or partner with firms such as Gebbs Healthcare Solutions, Athenahealth etc.
The other factors such as lack of proper IT infrastructure, and scarcity of skilled IT professionals are restraining the Revenue Cycle Management Market.
US Leads the Revenue Cycle Management Market in North America Region
The US Revenue Cycle Management Market (RCM) holds the largest market share in 2017 in North America region due to the changing healthcare regulations.
Most US healthcare providers are deploying revenue cycle management systems that reduces the time taken for receiving payment after providing a service. The RCM that automates many activities previously done manually are saving time. US healthcare firms are benefited as they get insights on claims denial and prompt to add required medical information for claims processing.
With a push toward value based care by government, and its initiatives to adopt RCM solutions by all healthcare providers, the market for revenue cycle management may see a significant growth.
Revenue Cycle Management Market Key Developments
• May 2018: GeBBS Healthcare Solutions announced a Healthcare Information Management (HIM) and Revenue Cycle Management (RCM) partnership with Prospect Medical Holdings, Inc.
Major players: ALLSCRIPTS HEALTHCARE SOLUTIONS, ATHENAHEALTH, CERNER CORPORATION, CONIFER HEALTH SOLUTIONS, CONSTELLATION SOFTWARE, ECLINICALWORKS, EPIC SYSTEMS, GE HEALTHCARE, GEBBS HEALTHCARE SOLUTIONS, AND MCKESSON CORPORATION among others.
Reasons to Purchase Revenue Cycle Management Market Report
• Current and future Revenue Cycle Management Market outlook in the developed and emerging markets
• Analyzing various perspectives of the market with the help of Porter’s five forces analysis
• The segment that is expected to dominate the market
• Regions that are expected to witness fastest growth during the forecast period
• Identify the latest developments, market shares and strategies employed by the major market players.
• 3-month analyst support along with the Market Estimate sheet (in Excel)
Customization of Revenue Cycle Management Market Report
• This report can be customized to meet your requirements. Please connect with our representative, who will ensure you to get a report that suits your needs.
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