The global revenue cycle management (RCM) market is expected to reach USD 7.09 billion by 2020, at a CAGR of 11.8% from 2015 to 2020.
Revenue cycle management helps in automation and acceleration of the process of gathering patient’s insurance details. The details are sent to the clearinghouse for verification. This further assists in standardizing the entire process of revenue cycle management.
The global revenue cycle management market is segmented into product type, component, deployment, end user, and geography. On the basis of product type, the market is classified into integrated and standalone revenue cycle management. The integrated revenue cycle management segment dominates the global revenue cycle management market.
The global revenue cycle management market has been further categorized on the basis of deployment into cloud-based, web-based, and on premise, wherein the web-based segment dominates the global RCM market in 2014. According to component, the RCM market is classified into service and software. Moreover, with respect to end user, the RCM market is segmented into physicians, hospitals, labs, and others.
Although, the term revenue cycle is mostly associated with the healthcare industry, several non-healthcare companies are engaged in revenue cycle management; they offer such solutions into two different parts, such as sales cycle and production cycle. From a hospital perspective, the purpose of revenue cycle management is to optimize patient financials during the entire duration of care. RCM solution is a single-source that allows healthcare providers to improve revenue cycle performance, patient satisfaction, and patient care. RCM companies claim that the adoption of revenue cycle management solutions can improve hospitals’ net revenues by 1.0% to 3.0% and increase operating margins by 1.5% to 5.0%.
On the basis of geography, this market is segmented into four regions, namely, North America, Europe, Asia-Pacific, and rest of the world. North America accounted for the highest share in the revenue cycle management market, followed by Europe. Factors such as increasing adoption of electronic data entry systems and increase in investments made in the IT sector have contributed to the growth of the revenue cycle management market.
Major companies operating in this market include McKesson Corporation (U.S.), Cerner Corporation (U.S.), Quest Diagnostics (U.S.), Athenahealth, Inc. (U.S.), Allscripts (U.S.), eClinicalWorks (U.S.), CareCloud Corporation (U.S.), The SSI Groups, Inc. (U.S.), GE Healthcare (U.K.), Epic Systems (U.S.), Siemens Healthcare (Germany), and Kareo, Inc. (U.S.), among others.