The global hospital management solutions market size was valued at USD 5.46 billion in 2023. It is estimated to reach USD 20.11 billion by 2032, growing at a CAGR of 17.7% during the forecast period (2024–2032). The increasing demand for modernizing and enhancing current hospital management software has been driven by the progression of technology and intensifying competition, resulting in market expansion.
A hospital management solution (HMS) oversees all healthcare operations, such as administrative, medical, and financial. A hospital management solution was created to alleviate the difficulties associated with the confidential administration of all the hospital departments' patient-related paperwork. Using hospital management systems, hospitals and other healthcare facilities improve the quality of medical services, optimize the revenue cycle, and reduce operating expenses.
Hospital management solution entered the picture of hospital administration in 1960 and has continuously evolved and synchronized with technology while modernizing healthcare facilities. Hospital management solutions consist of inpatient and outpatient management, laboratory, pharmacy, inventory, online scheduling, accounting, eClaims, physician and patient portals, secured messaging, blood bank, HR/payroll, mortuary, HL7/Integrated PACS, alert software, and biometric integration, among others.
|Market Size||USD 97.73 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Artificial Intelligence (AI) in healthcare helps healthcare professionals and stakeholders manage huge amounts of data and transform them into potentially life-saving information. Artificial Intelligence (AI) can potentially serve as an effective tool for optimizing healthcare management systems (HMS). Artificial Intelligence can improve patient flow in three primary domains, i.e., clinical decision-making, operational efficiency, and monitoring.
Various AI algorithms are accessible to manage and predict patient flow into different hospital departments. In the long-term, AI tools will also open new data collection and analysis avenues to enhance understanding of health conditions, thus enabling improved preventive and personalized care delivery. Despite available evidence on using AI in patient flow management, the application is still in its infancy. Further studies can advance the adoption of AI in patient flow management, thereby boosting market growth.
With advancing technology and growing competitiveness, there has been a growing need to update and upgrade the existing hospital management software. With cutting-edge access controls and client administration features, there is enhanced information security and continuous availability of information by upgrading HMS. Such software is usually upgraded to web and cloud-based systems to unfold helpful features for hospitals.
Upgrades and enhancements help software perform tasks that were not possible previously. Updating and upgrading hospital management solutions include the benefits of obtaining better tools, getting streamlined information, reduced mistakes, improved patient care, easier management, cost savings, and improved reputation. With the surging adoption of HMS, vendors are also competing to offer the best software for healthcare organizations. These factors promote the uptake of hospital management solutions and contribute to the market's growth.
Several factors need to be considered to determine the development cost of hospital management software. A myriad of factors impact the cost of Hospital management solutions, and a few of them are the main features, additional features, third-party API integrations, development partner location, and the size of the development team.
Estimating the costs of the necessary solutions is challenging because various factors, including the practice's size, user count, and system features, affect the final cost. The greatest determiner is choosing a cloud-based solution, software as a service (SaaS), or an on-premise one. The range of prices is significant, i.e., between USD 15,000 and USD 70,000 per provider, depending on the modality of choice. Such factors restrict market growth.
The implementation of big data approaches to improve the quality of healthcare delivery has become unavoidable due to the expanding volume of data in the healthcare industry. Data sources in the healthcare industry have grown rapidly because of the widespread use of mobile and wearable sensor technologies. In the year 2011, the healthcare system in the United States accumulated a total of 150 exabytes of data. Therefore, analyzing healthcare data based on traditional methods, unfit to handle high volumes of diversified medical data, has become challenging.
Healthcare organizations are building their IT infrastructures to be more flexible and scalable to meet the rising demand for data. EHRs, electronic medical records (EMRs), medical practice management software (MPM), personal health records (PHR), and many other healthcare data components collectively have the potential to store data and improve the service efficiency, quality, and costs of healthcare along with the reduction of medical errors. Hospital management systems that include various components play a huge role in storing, accessing, and using healthcare data in hospitals. Therefore, the enormous data generated by the healthcare industry is expected to create opportunities for market growth
Based on region, the global hospital management solutions market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global hospital management solutions market shareholder. Due to the surging demand for streamlined operations, efficient workflow, and improved storage facilities management of patient data, the preference for hospital management solutions grew in the region. Growing chronic conditions among the elderly also surge hospital admissions, thus burdening healthcare organizations to maintain the huge healthcare data. In addition, growing clinical errors, operational failures, high incoming patient data, increasing healthcare workforce, and many others have raised pressure on the government and healthcare organizations to adopt Hospital management solutions. Medical errors are extremely common and are the third leading cause of death in the US and Canada. Medical errors cause over 250,000 fatalities annually in the United States and 28,000 deaths in Canada. These errors include clinical errors, patient information errors, billing errors, and many more. With the growing threat of errors in healthcare organizations, there is an increasing need for automating various medical processes by utilizing HMS, thus driving market growth in the region.
Europe is the second largest market. The hospital management solution market in Europe is expected to grow owing to factors like the growing elderly population, increasing healthcare costs, improved healthcare management, increased medical errors, rise in demand for Hospital management solutions, and adoption of IT solutions in healthcare. Increasing demand for automation solutions for efficient management of healthcare organizations due to the rise in patient data with the increasing burden of chronic diseases is boosting the demand for HMS in the region. In 2018, 2.4 million hospital beds were available across EU-27. The number of hospital beds in the EU-27 fell by 2.5% between 2013 and 2018. Across most EU Member States, the total number of hospital beds also declined rapidly. Controlling hospital capacity has become essential due to the rise in hospital admissions. Hospital management solution has been widely adopted across regions, contributing to market growth because it makes managing hospital beds, billing, staffing, and other essential services easy.
The Asia-Pacific Hospital management solution market is likely to witness the fastest growth. According to a regional survey, most hospitals in Asia-Pacific plan to increase their spending on digitalization to reduce medical errors and raise patient satisfaction over the next three years. Asia-Pacific's investment in healthcare digitalization can increase efficiency, reduce expenses, and automate/eliminate redundant processes. As a result, the adoption of IT is spurring a new wave of development across both public and private hospitals in Asia-Pacific. Private hospitals in Asia are the most advanced, and the healthcare sector has a large hospital base. Private hospitals invest highly in providing high-quality care enabled by technology to attract patients. With digital health technologies, the adoption of hospital management systems will increase across various healthcare settings.
Latin America is expected to exhibit slow growth because of the lack of awareness of healthcare IT services. Although the region experiences a sluggish adoption of HMS, it will likely grow during the forecast period owing to advancing healthcare infrastructure and technological developments in the medical sector. In addition, Latin America has an average of two physicians per 1,000 population, and most nations stand below the OECD average of 3.5 per 1,000, with only Argentina, Cuba, and Uruguay having higher. The region's average number of hospital beds is below half the OECD average of 4.7, accounting for 2.1 per 1,000 population. The increase in hospital admissions may lead to a corresponding increase in demand for medical beds and physicians, perhaps resulting in a scarcity of these resources. The utilization of Hospital Management Systems (HMS) can greatly facilitate the efficient management of various healthcare operations.
The Middle East and Africa accounted for the lowest share of the global Hospital management solution market due to fewer players offering HMS and relatively lower adoption of these services than the other regions. Less access to healthcare facilities, inadequate medical personnel, lack of universal coverage, and fewer hospital management companies account for the region's minimal market share in the global Hospital management solution market. However, this region has highly populated countries with many elderly. Increasing hospital admissions will fuel the need for managing various hospital assets, which increases the need for hospital management.
The global hospital management solutions market is bifurcated into type, delivery mode, modality, and end-user.
Based on type, the global hospital management solutions market is bifurcated into clinical practice management, laboratory management, pharmacy management, inventory management, revenue cycle management, patient management, and others.
The clinical practice management segment is the highest contributor to the market.Clinical practice management (CPM) is a digital health solution that allows scheduling appointments, capturing patient demographics, maintaining insurance payor lists, performing billing tasks, and generating reports. CPM helps healthcare organizations to improve their administrative, operational, financial, billing, and other functions. This software can be available as a desktop, client-server, and internet-based software.
One of the biggest strengths of CPM systems is creating robust and highly integrated workflows and procedures to increase the productivity and efficiency of medical institutions. The major advantages of CPM include improved patient care, increased profitability, automated processes, and others. Automating the workflows and processes using CPM maximizes efficiency and productivity in healthcare settings and reduces the burden on doctors, paramedics, and other administrative staff.
Based on delivery mode, the global hospital management solutions market is segmented into web and cloud-based and on-premises.
The web and cloud-based segment is the largest revenue contributor to the market. Web and cloud-based hospital management software helps access diverse healthcare solutions to manage daily activities efficiently. Cloud-based hospital management software is internet-based and works on an on-demand network accessing the system. Other components that could be public, private, or hybrid clouds within the suite are perfectly engineered, depending on management requirements.
The public cloud is an easily accessible management software organizations use while using the same hardware and network devices. Third-party hospital management solution providers widely own the private cloud for their dedicated servers. Hybrid cloud solutions provide functionalities of private and public clouds. Greater accessibility, low upfront costs, and low to no IT requirements are the major factors contributing to the preference for web-based systems.
Based on modality, the global hospital management solutions market is bifurcated into integrated and standalone.
The integrated segment dominates the global market. An integrated hospital management system (IMHS) includes heterogeneous management systems such as appointment scheduling, patient registration and administration, outpatient management, inpatient admission, discharge and transfer, diagnostic software, EHR software, billing, and others. Like any other hospital management system, IHMS stores information and connects multiple departments in a single interface. It also supports various hospital departments such as clinics, laboratories, and pharmacies.
An integrated hospital management solution enables health administrators to exert greater monitoring control over the operation of hospitals and primary care facilities. It facilitates the surveillance of predefined health indicators by producing periodic reports for hospital management. Its processes can help create a system that includes online registration, simplifying the diagnostics process, setting up standard administrative formats, online inventory management, and proper management of human resources.
Based on end-users, the global hospital management solutions market is bifurcated into hospitals, clinics, and others.
The hospitals segment owns the highest market share. HMS has become essential across many modern hospitals that can help meet the demand for quality service. Hospital staff must manage complex daily operations, such as patient appointments, registrations, medication, and tests. The presence of technology is helping to speed up such processes and enhance the accuracy and efficiency of hospital operations. In addition, a hospital management solution is being adopted because it enables ease of access, reduces errors, protects against data breaches, increases patient satisfaction, is cost-effective, eco-friendly, and improves efficiency, monitoring and tracking various medical information. Hospital management solution monitors and manages every healthcare-related report carefully and efficiently for accurate results. Owing to such a broad range of advantages, hospitals are adopting Hospital management solutions in their day-to-day practices, which will contribute to the growth of the HMS market.