Market Size of Global Revenue Cycle Management Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 78.37 Billion |
Market Size (2029) | USD 128.01 Billion |
CAGR (2024 - 2029) | 10.31 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Revenue Cycle Management Market Analysis
The Global Revenue Cycle Management Market size is estimated at USD 78.37 billion in 2024, and is expected to reach USD 128.01 billion by 2029, growing at a CAGR of 10.31% during the forecast period (2024-2029).
The growth of the revenue cycle management (RCM) market is attributed to the increasing government initiatives to boost the adoption of RCM solutions, increasing revenue loss due to billing errors, and process improvements in healthcare organizations.
Revenue for healthcare providers depends on the accurate processing of medical claims. A healthcare organization must maintain a quality revenue cycle and insurance billing to improve financial outcomes. For instance, in October 2023, an article published in the Journal of Healthcare mentioned that RCM can be employed in countries with increasing private sector participation, such as Saudi Arabia, to facilitate payments and justify expenses and budget allocation. Additionally, the same source reported that RCM effectively codes and documents clinical tasks, thus maximizing revenue generation in governmental hospitals. This factor may boost the market’s growth over the forecast period.
The most common billing errors include failure to verify insurance, filing an incomplete claim, coding errors, and lack of specificity. Many care providers now address these challenges by working with third-party medical billing professionals and experts in overall revenue cycle management. Thus, healthcare providers prefer RCM solutions to address the challenges and eliminate the errors associated with medical billing, which is anticipated to contribute to the market’s growth.
Strategic initiatives taken by the market players, such as acquisitions, to improve their capabilities are expected to contribute to the market’s growth. For instance, in August 2023, Waystar completed the acquisition of HealthPay24, which is an engagement solution and a patient payment platform, to ease the healthcare payments for providers and patients and improve the patient financial experience according to the healthcare services, thus focusing on maximizing revenue and bringing financial predictability to the providers.
Similarly, in July 2023, Ventra Health expanded its services by acquiring ArcMed, an India-based provider of billing and automation services. This acquisition boosts the company's strength in providing high-quality services with data-driven and transparent solutions to solve the complicated revenue and reimbursement concerns for clinicians and improve operational efficiency.
RCM systems are becoming increasingly popular as the healthcare industry progresses to digitization. Government initiatives like encouraging physicians to adopt electronic health records and significant investments are expected to boost the RCM market's growth. For instance, in June 2023, the European Union invested USD 22 billion (EUR 20 billion) as a seven-year budget, in which USD 11.3 billion (EUR 10.3 billion) was allotted to fostering digital health research and innovation in the Horizon Europe program and USD 5.8 billion (EUR 5.3 billion) was allotted to the EU4 Health program. Thus, such initiatives and programs are expected to propel the adoption of electronic health data among clinicians and boost the growth of the RCM market over the forecast period.
Thus, the providers of specialty revenue cycle management services can prevent revenue loss to hospitals due to billing errors. However, high pricing and maintenance of RCM solutions and lack of proper IT infrastructure are expected to hinder the market's growth over the forecast period.
Revenue Cycle Management Industry Segmentation
As per the scope of the report, the term revenue cycle management refers to solutions that support various hospitals and medical facilities in increasing their revenue by addressing the mistakes in billing and helping with efficient billing, documentation, and claim management.
The revenue cycle management market is segmented by deployment, function, end user, and geography. By deployment, the market is segmented into cloud-based and on-premise. The market is segmented by function into claims and denial management, medical coding and billing, electronic health record (EHR), clinical documentation improvement (CDI), insurance, and other functions. By end user, the market is segmented into hospitals, laboratories, and other end users. The market is segmented by geography into North America, Europe, Asia-Pacific, Middle East and Africa, and South America. For each segment, the market size is provided in terms of value (USD million).
By Deployment | |
Cloud-based | |
On-premise |
By Function | |
Claims and Denial Management | |
Medical Coding and Billing | |
Electronic Health Record (EHR) | |
Clinical Documentation Improvement (CDI) | |
Insurance | |
Other Functions |
By End User | |
Hospitals | |
Laboratories | |
Other End Users |
By Geography | ||||||||
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Global Revenue Cycle Management Market Size Summary
The revenue cycle management (RCM) market is poised for significant growth, driven by increasing government initiatives and the need to address revenue loss due to billing errors. As healthcare organizations strive to improve financial outcomes, the adoption of RCM solutions has become essential. These solutions help in the accurate processing of medical claims, thereby enhancing the financial stability of healthcare providers. The market is witnessing a surge in strategic initiatives, such as acquisitions and partnerships, aimed at bolstering capabilities and expanding service offerings. Notable developments include the acquisition of HealthPay24 by Waystar and the expansion of Ventra Health's services through the acquisition of ArcMed, both of which are expected to enhance the patient financial experience and operational efficiency.
The North American region is anticipated to experience substantial growth in the RCM market, fueled by regulatory changes and government initiatives aimed at improving healthcare service delivery and financial management. The deployment of RCM systems is becoming increasingly common among healthcare providers, as these systems automate medical billing processes and reduce the time taken to receive payments. The prevalence of medical billing errors further propels the demand for RCM solutions, as healthcare facilities seek to mitigate these issues. Key players in the market are actively engaging in strategic activities, such as launching new AI-driven products and forming partnerships, to enhance revenue cycle performance and address the challenges associated with high volumes of insurance claim denials.
Global Revenue Cycle Management Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Government Initiatives to Boost the Adoption of RCM Solutions
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1.2.2 Increasing Revenue Loss Due to Billing Errors
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1.2.3 Process Improvements in Healthcare Organizations
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1.3 Market Restraints
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1.3.1 High Pricing and Maintenance of RCM Solutions
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1.3.2 Lack of Proper IT Infrastructure
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1.4 Industry Attractiveness - Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION (Market Size by Value - USD)
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2.1 By Deployment
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2.1.1 Cloud-based
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2.1.2 On-premise
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2.2 By Function
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2.2.1 Claims and Denial Management
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2.2.2 Medical Coding and Billing
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2.2.3 Electronic Health Record (EHR)
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2.2.4 Clinical Documentation Improvement (CDI)
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2.2.5 Insurance
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2.2.6 Other Functions
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2.3 By End User
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2.3.1 Hospitals
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2.3.2 Laboratories
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2.3.3 Other End Users
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2.4 By Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Mexico
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Italy
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2.4.2.5 Spain
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2.4.2.6 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 China
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2.4.3.2 Japan
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2.4.3.3 India
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2.4.3.4 Australia
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2.4.3.5 South Korea
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2.4.3.6 Rest of Asia-Pacific
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2.4.4 Middle East and Africa
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2.4.4.1 GCC
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2.4.4.2 South Africa
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2.4.4.3 Rest of Middle East and Africa
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2.4.5 South America
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2.4.5.1 Brazil
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2.4.5.2 Argentina
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2.4.5.3 Rest of South America
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Global Revenue Cycle Management Market Size FAQs
How big is the Global Revenue Cycle Management Market?
The Global Revenue Cycle Management Market size is expected to reach USD 78.37 billion in 2024 and grow at a CAGR of 10.31% to reach USD 128.01 billion by 2029.
What is the current Global Revenue Cycle Management Market size?
In 2024, the Global Revenue Cycle Management Market size is expected to reach USD 78.37 billion.