Revenue cycle management (RCM) is a crucial financial process for any healthcare facility to track patient care episodes from registration and appointment scheduling to the final payment of a balance. The process helps to manage the integration of reimbursement and value. Reliable medical billing companies offer diverse RCM solutions for healthcare organizations to optimize and automate business office functions, which includes the medical billing process, claims management, eligibility verification, claim denials management, and predictive payment analysis.
According to a recent report from Zion Market Research, the global revenue cycle management market accounted for USD 23.40 billion in 2016 and is expected to reach around USD 43.80 billion by 2022, growing at a CAGR of around 11.0% between 2017 and 2022.
Major factors that fuel the growth of the RCM market include:
- Continuous process improvements in healthcare organizations
- Increasing number of patients
- Subsequent growth in demand for healthcare insurance
However, the high cost of deployment can restrain the growth of the market. The Zion Market Research report classifies the market based on products, component, deployment and end-users.
- Based on products, the market is divided into integrated and standalone. The integrated RCM segment that is expected to account for the largest share of the market in 2016 is attributed to the rising shift in the healthcare industry from volume-based payment to value-based payment systems.
- The component segment includes services and software. Owing to factors such as the rising dependency of healthcare organizations on consulting, training, maintenance services and regular updating of software, services accounted for the largest market share in 2016.
- The deployment segment is further divided into three types: web-based, on-premises, and cloud-based systems. Revenue wise, web-based segment accounts for the largest share of the market due to increasing demand for mobile support systems for better customer engagement platforms.
- The end users of the market include physicians or consultants, hospitals, medical and diagnostic laboratories and others. Based on revenue, physicians accounted for the largest share of RCM market.
Geographically, North America is expected to account for the largest market share of the global revenue cycle management market in 2022, followed by Europe. This growth is attributed due to the presence of strict regulatory compliance and a presence of a large number of market players in this region.
However, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period. This growth is due to factors such as rising elderly population, increasing prevalence of chronic diseases which increases the demand for healthcare insurance, and increasing demand for better healthcare services in developing economies such as India and China.
Key players operating in this global market include Quest Diagnostics, Cerner Corporation, McKesson Corporation, Athenahealth Inc., Allscripts Healthcare Solutions Inc., eClinicalWorks LLC, CareCloud Corporation, The SSI Groups Inc., GE Healthcare, Epic Systems, and Siemens Healthcare.
An efficient revenue management system is crucial for a practice’s financial health and sustainability. Medical billing outsourcing is a great option for physicians to streamline practice management, improve claim submission and maximize collections.