PUBLISHER: The Business Research Company | PRODUCT CODE: 1702487
PUBLISHER: The Business Research Company | PRODUCT CODE: 1702487
Medical billing software serves as a specialized tool aimed at optimizing and automating healthcare billing and coding procedures. This software facilitates streamlined billing operations, error reduction, and improved financial management by automating tasks such as claim generation, insurance claims handling, patient payments, and reporting.
The primary categories of medical billing software encompass claims scrubbing, code and charge entry, compliance tracking, professional billing, and institutional billing. Claims scrubbing involves scrutinizing medical claims to ensure accuracy, completeness, and compliance with billing regulations before submission to payers. It is available in both on-premise and cloud-based models, offering pricing options including one-time, annual, and monthly subscriptions. Its features cover patient pre-registration, claims management, billing and collection, accounting and financial management, among others, catering to a variety of healthcare settings including multi-specialty hospitals, specialized hospitals, clinics, as well as pharmaceutical and medical end users.
The medical billing software market research report is one of a series of new reports from The Business Research Company that provides medical billing software market statistics, including medical billing software industry global market size, regional shares, competitors with a medical billing software market share, detailed medical billing software market segments, market trends and opportunities, and any further data you may need to thrive in the medical billing software industry. This medical billing software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The medical billing software market size has grown rapidly in recent years. It will grow from $19.38 billion in 2024 to $22.15 billion in 2025 at a compound annual growth rate (CAGR) of 14.3%. The growth in the historic period can be attributed to rising costs of healthcare services, increasing population, the rise in chronic diseases, rising remote monitoring services and telemedicine consultations, rise in healthcare consumerism, and the growing emphasis on population health management.
The medical billing software market size is expected to see rapid growth in the next few years. It will grow to $37.29 billion in 2029 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to growing number of patients, increasing demand for revenue management, demand for efficient claim management solutions, increasing digitalization in healthcare, increasing demand for professional billing services, and growing need for institutional billing services. Major trends in the forecast period include patient-centric billing solutions, AI-powered automation, cloud-based solutions, predictive analytics for revenue optimization, blockchain technology for security and transparency, value-based payment support, artificial intelligence (AI), and automation technologies.
The medical billing software market is poised for growth due to the rising trend of digitalization in healthcare. Digitalization entails incorporating digital technologies into various facets of healthcare delivery, management, and administration to enhance efficiency, accessibility, and care quality. It facilitates swift and secure sharing of patient information regardless of location, improving care coordination and reducing errors. In the realm of medical billing software, digitalization boosts operational efficiency, accuracy, compliance, and patient engagement, ultimately leading to improved financial outcomes for healthcare organizations. Notably, in 2022, the Office of the National Coordinator for Health Information Technology reported that 96% of non-federal acute care hospitals in the US had adopted certified electronic health record (EHR) systems, marking a significant increase from 86% over the past three years. This surge underscores the driving force of digitalization in healthcare, propelling the medical billing software market forward.
Leading companies in the medical billing software sector are harnessing AI to develop platforms that enhance accuracy, efficiency, and revenue cycle management. AI-driven platforms automate repetitive tasks such as data entry, coding, and claims processing, minimizing the need for manual intervention and expediting the billing process. For instance, in August 2023, FareMD, a US-based health tech startup, introduced an AI-driven platform aimed at streamlining medical billing in the US. This platform employs automation and artificial intelligence to address billing inefficiencies, which cost the nation approximately $300 billion annually. FareMD's initiative represents a transformative approach to healthcare billing by automating visit note conversion and reducing denied claims, thereby enabling hospitals to operate more efficiently.
In February 2023, Elation Health, a U.S.-based technology platform focused on providing clinical-first solutions for independent primary care, acquired Lightning MD for an undisclosed amount. This acquisition strengthens Elation's position as the primary care sector's first all-in-one technology solution by integrating its clinical-first electronic health record (EHR), Best in KLAS virtual care platform, and advanced billing and revenue management software. This combined offering aims to improve both physician and patient care experiences. Lightning MD is a U.S.-based company known for its medical billing software.
Major companies operating in the medical billing software market are Accenture plc, Oracle Corporation, Tata Consultancy Services Limited, Cognizant Technology Solutions Corporation, GE HealthCare Technologies, HCL Technologies Limited, Experian Information Solutions, GeBBS Healthcare Solutions, eClinicalWorks, Athenahealth, Flatworld Solutions Pvt. Ltd., EverCommerce Inc., Zoll Medical Corporation, Phreesia Inc., WebPT, AGS Health, CareCloud Inc., TherapyNotes LLC, Kareo Inc., Medusind, CentralReach, Elico Healthcare Services, DrChrono, AdvancedMD, Elation Health, Practice Fusion Inc., ImageTrend, Brightree LLC, Digitech Computer LLC, Azalea Health Innovations Inc., Glorium Technologies
North America was the largest region in the medical billing software market in 2024. The regions covered in the medical billing software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the medical billing software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The medical billing software market consists of revenues earned by entities by providing services such as patient information management, insurance verification, claims generation and submission, coding assistance, claim status tracking, patient billing and invoicing, reporting and analytics, and payment processing. The market value includes the value of related goods sold by the service provider or included within the service offering. The medical billing software market also includes sales of computers, mobile devices, barcode scanners, card readers, printers, document scanners, electronic health record (EHR) systems, and barcode and QR code labels. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Medical Billing Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on medical billing software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for medical billing software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The medical billing software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.