Practice Management System Market Trends

Growth Drivers

• Shift to electronic health records (EHR): The need for PMS has increased credited to the transition in EHR from paper-based records. This software handles data about patients, medical billing, administrative duties, and appointments effectively. Nearly 96% of non-federal acute care hospitals and 4 out of 5 office-based physicians had implemented certified EHRs by 2021. Additionally, 28% of hospitals and 34% of physicians have adopted an EHR, this has been a substantial 10-year progress by 2021, based on the data provided by the Office of the National Coordinator for Health IT 2021. During the digital revolution in healthcare, it is estimated to be crucial for contemporary practices to optimize operations and enhance patient care.

• Demand for seamless integration of telehealth: Mobile phones, tablets, smartphones, and related devices are expected to be used frequently in healthcare applications. Medical practitioners provide patient care remotely attributed to the seamless integration of telehealth with practice management software. Robust remote access capabilities enable effective management of administrative tasks, guaranteeing continuous patient care while upholding safety procedures and preserving operational effectiveness.
  
  The National Library of Medicine in 2022 stated that healthcare is highly integrated with advanced technologies such as Babylon and Microsoft. For instance, Microsoft acquired Nuance in April 2021 for about USD 19.7 billion. This made Microsoft offer industry-specific services such as cloud-based ambient clinical intelligence and conversational AI for healthcare providers. In addition, Microsoft also announced Microsoft Cloud for Healthcare to address the substantial needs of a growing and transforming healthcare industry. The virtual care & healthcare delivery share has increased, augmented by the rising adoption and usage of practice management systems in the healthcare sector.

Challenges

• Data vulnerability along with privacy concerns: Data protection has become difficult driven by the preference of digital medicine over traditional one. It is expected that many institutes hesitate to implement EMRs and PMSs due to privacy concerns. Software for medical practices that raises security issues can cause an issue as it makes healthcare providers hesitant about patient data being vulnerable. It is necessary to have strong cybersecurity measures in place as cyber threats become more frequent and complicated.

• High initial implementation and recurring maintenance costs: Practice management software's recurring maintenance costs and high initial implementation discourage healthcare providers from making investments, which restricts market expansion. Furthermore, as budgets become stretched over time, people may become reluctant to upgrade or implement new systems, which will negatively impact their ability to innovate and compete in the market demand.