U.S. Healthcare ERP Market Analysis Report By Function, By Deployment And Segment Forecasts From 2019 To 2025

Industry Insights

The U.S. healthcare ERP market size was worth USD 1,425.9 million in 2018. The market is anticipated to expand at 5.6% CAGR from 2019 to 2025. Various industries including healthcare are adopting ERP solutions to make their operations more which in turn is driving the market growth. Growing automation and emphasizing streamlining the information across different departments are bolstering the growth of ERP solutions in the healthcare industry. The use of ERP in healthcare has led to several advantages such as effective utilization of various resources and rising caregiving efficiency. 

The recent shift from legacy ERP to cloud ERP is proving to be beneficial for U.S healthcare as it offers personalization and several other features. Cloud-enabled ERP offers universal access to data from any part of the world, thus, increasing the effectiveness of various critical businesses. Owing to the centralized information system offered by ERP, it brings patients, insurance providers, and healthcare professionals on a single platform. The growing deployment of the cloud in healthcare is further estimated to drive the market over the next few years.

Healthcare in the U.S. is developed and it generates a large volume of data including financial and other information. The majority of these pieces of information are about revenue generation from insurance claims, patients, and some other expenditures. Adoption of ERP ensures storing and processing of these data. ERP solution provides an encryption-based database and it helps in analytical solutions along with providing real-time insights. Owing to these benefits, the ERO deployment is gaining traction in the healthcare domain.

Healthcare providers are focusing on the integration of the electronic healthcare record (EHR) with artificial intelligence to gain insights along with offering personalized healthcare solutions at a comparatively lower cost. The growing integration of AI in healthcare offers new growth avenues for technology provides offering several financial applications. Integration of machine learning, AI and natural language processing (NLP) with healthcare ERP helps in proactively identifying patients.

AI integration with healthcare ERP helps care managers while determining the condition of patients and offering them the necessary care. AI-enabled chatbots help patients by responding to their queries. Over 130 people die of a drug overdose in the U.S. as reported by the National Institute on Drug Abuse. Thus, healthcare professionals focus on deriving actionable insights with the help of analytics solutions and AI to address such problems.

Function Insights

On the basis of function, the U.S. healthcare ERP market is segregated into the supply chain and logistics management, inventory & material management, finance & billing, patient relationship management, and others. In 2018, the inventory & material management category held the largest share in the market and the segment is projected to continue its domination over the forecast period. By modernizing healthcare IT and synchronizing the database for patients, ERP can improve patient relationship management (PRM). Thus, the PRM segment is likely to register the highest growth rate over the forecast period.

Various healthcare administrators across the U.S. are emphasizing improving operational efficiency and optimizing their back-end processes to decrease cost. Apart from offering quality patient care, the ERP system also helps in providing personalized care to patients. PRM software works as a tool for doctors, hospitals, and clinics to improve healthcare offerings and optimize their marketing efforts. Further, it ensures transparency between doctors and patients, thereby, gaining traction in the market.

Deployment Insights

ERP systems can be deployed on the cloud and on-premise. In 2018, the on-premise category accounted for the highest share in the market of over 80%. On the other hand, the cloud segment is likely to register the highest CAGR over the forecast duration. Cloud allows storing data on a remote server and easy accessibility from any geographical location. Further, technological advancements have led to scalability, flexibility, agility, and reliability, therefore, cloud adoption is on the rise in healthcare ERP across the U.S.

ERP ensures improvement in operations and other advantages in terms of growth, productivity, and profitability. With growing automation in healthcare across the U.S., ERP systems are gaining increased traction. Cloud computing helps vendors to address the clients’ needs through different delivery models such as platform as a service (PaaS), infrastructure as a service (IaaS), and software as a service (SaaS). These models allow users to pay as per their usage, thereby, proving to be cost-effective. These benefits are fueling the growth of the cloud-based ERP solution in healthcare.

Impact of COVID-19

The U.S. healthcare ERP market is projected to expand owing to the recent outbreak of COVID-19. The U.S. is one of the most affected countries by the coronavirus and this has put pressure on the country's healthcare system. ERP helps in automating various processes such as making an appointment, knowing the availability of beds in hospitals and others. Coronavirus is more dangerous to people with a history of diseases. ERP allows doctors to easily access the medical record of the patient and provide quality care to them. Also by streamlining various processes, ERP enables doctors to transfer the patient records across different departments thus, ensuring efficient patient care and easy insurance claim. Therefore, owing to these benefits, the market is estimated to gain significant traction due to the coronavirus pandemic outbreak.

U.S. Healthcare ERP Market Share Insights

Key players operating in the market are Microsoft Corporation, Oracle Corporation, Epicore Software, QAD Inc., Sage Software Solution Pvt. Ltd and Infor among others. These players are anticipating the consumers’ needs and build their solutions around them. Innovation is the key as manufactures are focusing on cost-saving and meeting changing consumer requirements. For example, Oracle added new features to its Oracle Enterprise Resource Planning (ERP) Cloud and Oracle Enterprise Performance Management (EPM) in March 2019. It includes AI capabilities and intelligent assistants for improved accuracy, better compliance, and automation. Further, mergers and acquisitions have been key strategic innovations among key players as they aim to gain competitive advantages. For example, Broad Point, in March 2018, acquired Jitasa, Inc.’s technology division with an aim to strengthen its customer base.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the U.S. Healthcare ERP market report based on function and deployment:

• Function Outlook (Revenue, USD Million, 2014 - 2025)
    • Inventory and material management
    • Supply chain and logistics management
    • Patient relationship management
    • Finance and billing
    • Others

• Deployment Outlook (Revenue, USD Million, 2014 - 2025)
    • On-premise
    • Cloud