September 2024
The physician practice management market was estimated at US$ 118.9 billion in 2023 and is projected to grow to US$ 291.7 billion by 2034, rising at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2034. The increasing number of hospitalizations, technological advancements, rapidly expanding healthcare infrastructure, and favorable government policies drive the market.
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Physician practice management is a non-medical service provided by an organization to simplify the tasks of a clinic or physician. The services offered by physician practice management include bookkeeping and accounting, human resources management, billing, claims submissions, financial management, marketing & public relations, technological & information support systems, and provision of administrative personnel. This facilitates the fulfillment of a physician’s daily tasks, enabling a physician to focus more on patient care and treatment. It also eliminates the need to appoint multiple employees for each particular task. Competent practice management is crucial to the development and expansion of the medical industry.
The increasing demand for revenue growth of a medical practice firm boosts the market growth. Technological advancements and favorable government policies result in high adoption of physician practice management. The demand for physician practice management also rises due to increasing investments in the healthcare sector. In addition, the increasing number of hospitalizations due to several chronic disorders and the COVID-19 pandemic demands physician practice management.
The American Medical Association, a leader in physician well-being, is reducing physician burnout by removing administrative burdens and providing real-world solutions. In 2023, only 48.2% of physicians reported experiencing burnout, down from 53% in 2022 and 62.8% in 2021.
Veradigm, a global leader in physician practice management, released its revenue for the third quarter of 2022. Veradigm’s revenue for the third quarter of 2022 was $145 million compared with $137 million in the third quarter of 2021. Also, the consolidated revenue with Allscripts Healthcare Solutions, Inc., 2022 third-quarter revenue was $152 million.
The advent of advanced technologies like artificial intelligence (AI), machine learning (ML), and cloud-based services promote market growth. These technologies have immense potential in the healthcare sector. Several mobile applications and software are available to simplify non-medical operations in clinics or hospitals. The software can be used for customization of appointments, timings, and locations. It can be used to create invoices and payment receipts as well as set schedules and reminders for healthcare professionals. Cloud-based services help store patient data, which can be easily accessed anywhere and at any time. AI can reduce the burden of documentation, improve efficiency, and alleviate the burden of administrative tasks. AI can also assist in optimizing revenue cycle management by improving claims processing accuracy and reducing claim denials. Thus, AI can automate the entire practice management system, streamline workflow, and improve decision-making.
The major challenge faced by the physician practice management market is the high operation costs. Common operations such as office supplies, software, IT support, and medical supplies require huge costs. The average cost of a physician practice management software ranges from $350 to $1,000, excluding other services.
North America dominated the physician practice management market in 2023. The advanced healthcare infrastructure, technological advancements, favorable government policies, and increasing investments drive the market. American Medical Association is at the forefront of providing physician management services in the region. In 2022, the healthcare venture capital fundraising hit nearly $22 billion in the US. Healthcare spending in the US accounted for $4.5 trillion and $331 billion in Canada in 2022. The Department of Health and Human Services promotes the use of AI in the healthcare sector to enhance the health and well-being of Americans.
Asia-Pacific is anticipated to grow fastest in the physician practice management market during the forecast period. The rapid advancements in healthcare infrastructure, increasing investments, and technological advancements drive the market. The rising geriatric population in the region leads to increasing incidences of chronic disorders, thereby increasing the number of hospitalizations and requiring advanced physician practice management services. The Indian Council of Medical Research (ICMR), the Chinese Medical Council, and the Japan Medical Association govern the healthcare practices in India, China, and Japan, respectively. Implementing AI in the healthcare sector in these countries also potentiates market growth.
By type, the billing of physician services segment accounted for a considerable share of the physician practice management market in 2023. The increasing number of out-patient and in-patient services in a hospital increases the burden on hospital staff for the billing process. Physician practice management helps in handling billing. Advanced technologies and software simplify the billing service.
The hospital contracts are estimated to witness lucrative growth in the market over the forecast period. Hospital contract management is the systematic process of creating, negotiating, executing, monitoring, and optimizing contracts to ensure compliance, mitigate risks, and achieve healthcare organizations’ strategic objectives.
By application, the organization service segment held the largest share of the physician practice management market in 2023. Physician practice management streamlines the workflow of the whole organization. It ensures that the business runs smoothly and is profitable, allowing physicians to work with patients more effectively and efficiently. Financial management, human resources management, regulatory compliance, and strategic planning and marketing are some of the tedious tasks of a healthcare organization, which can be easily governed by physician practice management.
The personal service market will gain a significant share of the market over the studied period. On a personal level, physician practice management schedules patient appointments, handles billing for patient services, and follows up with patients for billing. The latest technological innovations and rising physician burnout rates promote the segment growth
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September 2024
September 2024
September 2024
March 2024
Deepa has certified the degree of Master’s in Pharmacy in the Pharmaceutical Quality Assurance department from Dr D.Y. Patil College of Pharmacy. Her research is focused on the healthcare industry. She is the author or co-author of four Review Articles, which include Solid dispersion a strategic method for poorly soluble drugs and solubility improvement techniques for poorly soluble drugs, Herbal Drugs Used In Treatment Of Cataracts, Nano sponges And Their Application in Cancer Prevention and Ayurvedic Remedies of Peptic ulcer. She has also published a Research Article on the Formulation and Evaluation of Mucoadhesive Tablets of Miconazole cocrystal which was published in GIS Science Journal Volume 9 Issue 8. Her passion for secondary research and desire to take on the challenge of solving unresolved issues is making her flourish is the in the research sector.