U.S. Healthcare ERP Market– Statistics And Analysis & Forecast To 2025
Posted by Mrudula Anil Karmarkar on March 31st, 2021
The U.S. healthcare ERP market size is expected to reach USD 2.1 billion by 2025, registering a 5.6% CAGR from 2019 to 2025, according to a new report by Grand View Research, Inc. The market is expected to grow over the forecast period owing to the continued adoption of ERP software among healthcare providers based in the U.S. to deal with large volumes of data accumulated through digital resources. The rising burden of processing payment, insurance, and other administrative information of newly-enrolled patients on healthcare administrators is also expected to drive the adoption of healthcare ERP solutions in the U.S.
Artificial Intelligence (AI), Virtual Reality (VR), and Augmented Reality (AR) solutions are anticipated to substantially contribute while responding to the COVID-19 pandemic and address continuously evolving challenges. The existing situation owing to the outbreak of the epidemic will inspire pharmaceutical vendors and healthcare establishments to improve their R&D investments in AI, acting as a core technology for enabling various initiatives. The insurance industry is expected to confront the pressure associated with cost-efficiency. Usage of AI can help in reducing operating costs, and at the same time, can increase customer satisfaction during the renewal process, claims, and other services. VR/AR can assist in e-learning, for which the demand will surge owing to the closure of many schools and universities. Further, VR/AR can also prove to be a valuable solution in providing remote assistance as it can support in avoiding unnecessary travel. The report will account for Covid19 as a key market contributor.
Cloud computing technology has triggered a paradigm shift from an on-premise deployment to a cloud-based deployment of ERP solutions in the U.S. Moreover, a hybrid deployment can support the features of both on-premise deployment and cloud-based deployment of these solutions, thereby ensuring cost-effectiveness, data security, and agility in administrative processes. A hybrid deployment also helps in overcoming the cost concerns associated with on-premise deployment and the security concerns associated with cloud-based deployment. Cloud-based deployment of ERP solutions in the U.S. is expected to grow at a rapid pace over the forecast period owing to the benefits associated with the hybrid deployment.
Vendors in the market for healthcare ERP in the U.S. are trying aggressively to increase their customer base and gain a competitive edge over their rivals. They are focusing on licensing and strategic partnerships as part of the efforts toward this end. Companies, such as SAP SE, Microsoft Corporation, and Nuvolo, among others, are also focusing on strategic technology collaborations either to develop new healthcare ERP applications for the U.S. market or to add new capabilities to their existing applications. On the other hand, healthcare providers are also focusing on replacing obsolete technologies with the latest technologies to adapt to the changing requirements.
Further key findings from the report suggest:
Switching from legacy ERP systems to cloud-based ERP systems is benefitting the U.S. healthcare sector in the form of several functionalities and personalization features. Cloud-based ERP systems can provide healthcare organizations with universal access to data at any given time and from any location, thereby enhancing the efficiency of critical business functions. Given that all the information is centralized, the approach also brings healthcare providers, patients, and insurance providers in the U.S. under a single platform. Thus, with the rise of cloud deployment services in the healthcare sector are expected to drive the growth of the market over the forecast period.
The healthcare sector generates large volumes of financial data and other information. Most of the information is related to the revenue generated from patients, insurance claims, and other expenses, among others. To eliminate this silo of data, healthcare administrators have started adopting ERP systems that provide disparate software for processing and storing data. Such systems can be typically beneficial because of their ability to increase the efficiency, provide real-time data and analytical solutions, and data security due to encryption of database. These benefits are encouraging healthcare organizations in the U.S. to opt for ERP systems.
The integration of artificial intelligence (AI) in ERP solutions is benefitting the healthcare sector significantly. Healthcare providers in the U.S. have started integrating AI in the electronic healthcare record (EHR) management system to gain actionable insights and to help in providing personalized patient care at lower costs. The growing preference for healthcare ERP solutions featuring AI capabilities is opening new opportunities for vendors offering various financial applications, business intelligence packages, and ERP systems. Integrating natural language processing (NLP) programs and machine learning (ML) along with AI in healthcare ERP systems can also help in identifying patients proactively.
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Healthcare ERP solutions integrated with AI are assisting care managers in determining the conditions of patients and providing them with the necessary care. AI chatbots can particularly enhance the experience by responding to the patients’ questions. According to the National Institute on Drug Abuse, more than 130 people die of overdosing on opioids in the U.S. every day. Hence, healthcare professionals in the U.S. are trying to derive actionable insights from AI and analytical solutions and utilize those to tackle the looming opioid epidemic.
Some of the leading ERP solution providers in the U.S. include Epicore Software Corporation; Infor; Oracle Corporation; Microsoft Corporation; Sage Software Solution Pvt. Ltd.; and QAD Inc.; among others. To remain competitive in the market, manufacturers are trying to anticipate the needs of their customers and innovating accordingly. To meet the changing customer requirements and identifying cost-saving opportunities, ERP systems providers are focusing on adopting new technologies and pursuing new objectives. For instance, in March 2019, Oracle Corporation added new capabilities to Oracle Enterprise Performance Management (EPM) Cloud and Oracle Enterprise Resource Planning (ERP) Cloud. The new additions include intelligent assistants and AI capabilities for financial controls, improved accuracy, reduction in manual processes, and compliance. Market players are also focusing on mergers & acquisitions and strategic partnerships to strengthen their foothold in the market. For instance, in March 2018, Broad Point, Inc. acquired the Technology Solutions division of Jitasa, Inc. to increase its customer base.
Grand View Research has segmented the U.S. healthcare ERP market on the basis of function and deployment:
U.S. Healthcare ERP Function Outlook (Revenue, USD Million, 2014 - 2025)
U.S. Healthcare ERP Deployment Outlook (Revenue, USD Million, 2014 - 2025)
About Grand View Research
Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
For More Information:www.grandviewresearch.com
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About the AuthorMrudula Anil Karmarkar
Joined: July 2nd, 2020
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