U.S. Healthcare Information System Market to Experience Significant Growth Ahead

Posted on 2024-12-29 by researchinsights in Internet & Online // 0 Comments

The U.S. healthcare information system market size was estimated at USD 213.93 billion in 2023 and is expected to register a CAGR of 11.97% from 2024 to 2030. Increasing instances of chronic conditions such as diabetes, cancer, and congestive heart failure in the country are driving the adoption of remote patient monitoring. This growing trend is anticipated to enhance the demand for IT solutions within the healthcare industry in U.S. Various advantages, including cost reduction in operations, decreased medical errors, and improved successful outcomes, are anticipated to propel the healthcare information systems industry’s growth. Furthermore, supportive government initiatives focused on healthcare infrastructure development and IT integration into existing facilities are expected to boost industry expansion during the forecast period.

An increase in the number of government initiatives being undertaken across the globe to develop and deploy healthcare information systems is one of the main factors boosting adoption of healthcare information systems. The rising incidence of chronic diseases in U.S. is a significant factor expected to increase the demand for healthcare IT to enhance Chronic Disease Management (CDM). Increasing applications of smartphones, such as telemedicine, remote disease management, Health Management Information Systems (HMIS), and others, are expanding the scope of IT in healthcare. Some healthcare IT applications utilized for CDM include telehealth for remote patient-provider connections in managing chronic illnesses, electronic health records (EHRs) with integrated chronic care management tools and decision support, and Clinical Decision Support (CDS) systems.

Gather more insights about the market drivers, restrains and growth of the U.S. Healthcare Information System Market

U.S. healthcare information system market exhibits consolidation, marked by a high level of innovation. Chronic diseases contribute significantly to the per capita healthcare expenditure. High treatment costs necessitate adopting effective IT solutions, such as care management, patient engagement, and wearable devices. The rise in global public-private partnerships for eHealth or digital health is a funding and innovation catalyst, driving industry growth during the forecast period. Numerous organizations in U.S. are incorporating healthcare information technology to improve their CDM programs. Moreover, existing market players have resorted to extensive merger and acquisition activities to increase their offerings in the industry. For instance, in May 2022, OncoHealth, a prominent digital health company specializing in oncology, secured strategic investments from Arsenal Capital Partners and McKesson Corporation. These investments aimed to enhance OncoHealth’ solutions-specific digital health solutions, addressing the increasing complexity and cost of cancer care due to the FDA approving over 285 new cancer indications since 2017.

The enactment of legislation such as the HITECH Act for promoting EHR adoption is among the major industry drivers in the U.S. Furthermore, the Meaningful Use (MU) directives have led to the complete adoption of EHRs in healthcare. Thus, government initiatives supporting eHealth programs and incentives promoting EHR implementation are expected to drive the industry over the forecast period. Prominent industry players are targeting gaining a large market share and thereby adopting product and service differentiation strategies, which, in turn, results in high R&D investments for new product development and product modifications. For instance, in June 2020, Athenahealth, Inc. launched its Telehealth Solution called Athena Telehealth, which provides secure scheduling for the billing process for clinicians and patients.

In September 2023, London-based bladder health tech startup Jude secured USD 4.2 million in seed funding for its U.S. expansion. This funding is expected to aid the U.S. healthcare information system industry by supporting innovative solutions for bladder health issues, benefiting the 75 million individuals in the US facing such challenges and exemplifying the geographical expansion by global players in the U.S.

Key U.S. Healthcare Information System Company Insights

The market is consolidated, marked by constant strategic collaborations and mergers & acquisitions. Players strive to gain a competitive advantage by capitalizing on available untapped opportunities. Cerner Corporation, Epic Systems Corporation, Allscripts Healthcare Solutions Inc., IBM, GE Healthcare, and Philips Healthcare are some health tech players operating in the U.S. healthcare information system market.

The desire for companies to expand service offerings, access new markets, achieve economies of scale, and strengthen competitive positions is high. For instance, in November 2021, Athenahealth was bought by private equity firms Hellman & Friedman Bain Capital. The company, associated with more than 140,000 ambulatory care providers in all 50 states and across more than 120 specialties, aimed to build the foundations of a multi-sided digital care network between patients, payers, and providers following the acquisition.

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