Global Technology Spending on Core Administration in Healthcare Market Overview
As per MRFR analysis, the Technology Spending on Core Administration in Healthcare Market Size was estimated at 23.34 (USD Billion) in 2022.
The Technology Spending on Core Administration in Healthcare Industry is expected to grow from 24.53 (USD Billion) in 2023 to 38.4 (USD Billion) by 2032. The Technology Spending on Core Administration in Healthcare Market CAGR (growth rate) is expected to be around 5.11% during the forecast period (2024 - 2032).
Key Technology Spending on Core Administration in Healthcare Market Trends Highlighted
The Technology Spending on Core Administration in Healthcare Market is expected to witness significant growth in the coming years, driven by the increasing adoption of electronic health records (EHRs), the need to improve operational efficiency, and the rising demand for personalized healthcare services.
Healthcare providers are increasingly recognizing the benefits of technology in streamlining administrative processes, reducing costs, and improving patient care. The integration of artificial intelligence (AI) and machine learning (ML) into core administration systems is a key trend, enabling automation of tasks, predictive analytics, and improved decision-making.
Additionally, the growing popularity of cloud-based solutions is providing healthcare organizations with flexibility, scalability, and cost savings. Opportunities for growth lie in the development of innovative solutions that address specific healthcare challenges, such as interoperability, data privacy, and patient engagement.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technology Spending on Core Administration in Healthcare Market Drivers
Rising Demand for Improved Patient Care
With the everchanging nature of the healthcare industry, there comes a demand for better patient care. One of the major drivers of improvement in healthcare is technology spending on core administration. The technology allows for streamlining various processes, improving communication and collaboration for healthcare providers, and provides better decision-making with access to real-time data.
By investing in technology, healthcare providers are able to enhance the quality of care, while simultaneously lowering the costs and increasing patient satisfaction.
Moreover, such technological implementation as electronic health records has been proven to increase patient safety, decrease medical errors and facilitate communication between providers. Telehealth and remote monitoring technologies have also allowed healthcare providers to reach patients in unaccessible areas as well as provide more convenient and affordable service.
Increased Adoption of Value-Based Care Models
The shift towards value-based care models is another key driver of Technology Spending on Core Administration in Healthcare. Value-based care models focus on rewarding healthcare providers for the quality and outcomes of care rather than the volume of services provided.
This shift has led to a greater emphasis on preventive care, chronic disease management, and patient engagement. Technology can play a key role in supporting value-based care models by providing data and analytics that can help healthcare providers identify and target high-risk patients, track patient outcomes, and measure the value of care provided.
Government Initiatives and Regulations
Government initiatives and regulations are propelling Technology Spending on Core Administration in Healthcare. Various governments across the globe have put forth policies and regulations that promote the use of health IT and data to improve healthcare quality and efficiency.
In the United States, the Health Information Technology for Economic and Clinical Health established a set of financial incentives for eligible healthcare providers who embarked on using electronic health records.
The acts paved the way for the Running of a series of programs by the Centers for Medicare and Medicaid Services combined payments. Notable programs that have encouraged the use of technology to administer and manage healthcare services include the Meaningful Use program and the Merit-based Incentive Payment System.
Technology Spending on Core Administration in Healthcare Market Segment Insights
Technology Spending on Core Administration in Healthcare Market Type of Healthcare Provider Insights
The Technology Spending on Core Administration in Healthcare Market segmentation by type of healthcare provider offers insights into the adoption and utilization of technology solutions across various healthcare settings.
Hospitals, as the largest segment, accounted for a significant share of the market in 2023, driven by their need for comprehensive core administration systems to manage patient data, billing, and other administrative tasks. Clinics, representing a growing segment, are also expected to contribute to market growth as they seek to enhance operational efficiency and improve patient care.
Medical practices, another key segment, are anticipated to adopt technology solutions to streamline their workflows and provide better patient experiences. Long-term care facilities focusing on providing care for elderly or chronically ill patients are expected to invest in technology solutions to enhance care coordination and improve patient outcomes.
Pharmacies, while having a smaller market share compared to other segments, are also expected to adopt technology solutions to automate their operations, manage inventory, and provide patient counseling services.
The Technology Spending on Core Administration in Healthcare Market revenue for the type of healthcare provider segment is expected to grow at a steady pace, driven by the increasing adoption of technology solutions across various healthcare settings to improve operational efficiency, enhance patient care, and reduce costs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technology Spending on Core Administration in Healthcare Market Technology Solution Insights
The Technology Solutions segment in the Technology Spending on Core Administration in Healthcare Market is estimated to increase at a CAGR of 4.6 percent from USD 12.3 billion in 2023 to USD 15.6 billion by 2032.
The growth of the segment is driven by the increasing adoption of EHRs, patient management systems, financial management systems, supply chain management systems, and revenue cycle management systems. EHRs are increasingly becoming popular due to their ability to improve patient care coordination, reduce medical errors, and increase efficiency.
Patient management systems help healthcare providers manage patient information, appointments, and billing. Financial management systems help healthcare providers track their financial performance and make informed decisions.
Supply chain management systems help healthcare providers manage their inventory and procurement processes. Revenue cycle management systems help healthcare providers manage their billing and collections processes. The growth of the Technology Solution segment is further driven by the increasing demand for healthcare IT solutions in developing countries.
As these countries continue to develop their healthcare systems, they are increasingly investing in IT solutions to improve the efficiency and quality of their care.
Technology Spending on Core Administration in Healthcare Market Deployment Model Insights
The Technology Spending on Core Administration in Healthcare Market is segmented based on deployment model into on-premises, cloud-based, and hybrid. Among these, the cloud-based segment is projected to witness significant growth during the forecast period owing to its benefits, such as scalability, cost-effectiveness, and flexibility.
The hybrid segment is also expected to gain traction as it offers the advantages of both on-premises and cloud-based deployments. In 2023, the on-premises segment accounted for the largest share of the Global Technology Spending on Core Administration in the Healthcare Market.
However, the cloud-based segment is expected to surpass the on-premises segment by 2024. The increasing adoption of cloud-based solutions by healthcare providers is driving the growth of the cloud-based segment.
Key factors contributing to the growth of the cloud-based segment include Reduced costs: Cloud-based solutions can help healthcare providers reduce their IT costs by eliminating the need for on-premises infrastructure. Scalability: Cloud-based solutions can be easily scaled up or down to meet the changing needs of healthcare providers.
Flexibility: Cloud-based solutions offer greater flexibility than on-premises solutions, allowing healthcare providers to quickly and easily deploy new applications and services.
Technology Spending on Core Administration in Healthcare Market Cloud Provider Insights
The Cloud Provider segment in the Technology Spending on Core Administration in Healthcare Market is expected to witness significant growth in the coming years, owing to the increasing adoption of cloud-based healthcare solutions.
Cloud providers offer a range of services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), which can help healthcare organizations reduce costs, improve efficiency, and enhance patient care. Major players in the Cloud Provider segment include Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).
These companies offer a comprehensive suite of cloud-based solutions tailored to the specific needs of the healthcare industry.
For instance, AWS offers a range of healthcare-specific services, such as Amazon HealthLake, Amazon Comprehend Medical, and Amazon Transcribe Medical, which can help healthcare organizations manage and analyze patient data, improve patient engagement, and automate clinical workflows.
The adoption of cloud-based solutions in healthcare is being driven by a number of factors, including the need to reduce costs, improve efficiency, and enhance patient care.
Cloud providers can help healthcare organizations reduce costs by eliminating the need for on-premises infrastructure and IT staff. They can also improve efficiency by automating tasks and providing access to real-time data.
Additionally, cloud-based solutions can help healthcare organizations enhance patient care by providing access to new technologies and applications that can improve diagnosis, treatment, and patient engagement.
Overall, the Cloud Provider segment is expected to be a key growth driver for the Technology Spending on Core Administration in Healthcare Market in the coming years.
As healthcare organizations continue to adopt cloud-based solutions, the demand for cloud provider services is expected to increase.
Technology Spending on Core Administration in Healthcare Market Technology Spend Value Insights
The Technology Spend Value segment plays a crucial role in understanding the Technology Spending on Core Administration in Healthcare Market dynamics. In 2023, the segment was valued at $56.7 billion, showcasing a steady growth trajectory.
By 2026, it is projected to reach $80.3 billion, indicating a significant increase in technology adoption within healthcare organizations. This growth is attributed to the rising need for efficient and streamlined core administrative processes coupled with the increasing adoption of digital health technologies.
Looking ahead, the segment is expected to witness further expansion, reaching $122.4 billion by 2032, driven by the continuous advancements in healthcare IT solutions and the growing focus on data-driven decision-making.
Technology Spending on Core Administration in Healthcare Market Regional Insights
The regional segmentation of the Global Technology Spending on Core Administration in the Healthcare Market offers valuable insights into the market's geographical distribution and growth dynamics. North America maintained its dominance in the market, accounting for a significant revenue share in 2023.
The region's advanced healthcare infrastructure, high adoption of technology, and government initiatives supporting healthcare IT investments contribute to its strong position. Europe follows closely behind, driven by increasing healthcare expenditure and a growing focus on improving healthcare efficiency.
The Asia-Pacific (APAC) region is projected to exhibit the highest growth rate during the forecast period, owing to rising healthcare spending, increasing awareness about healthcare IT benefits, and government initiatives promoting digital healthcare adoption.
South America and the Middle East and Africa (MEA) are also expected to contribute to the overall market growth, albeit at a slower pace, as these regions continue to invest in healthcare infrastructure and technology advancements.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technology Spending on Core Administration in Healthcare Market Key Players and Competitive Insights:
Major players in the Technology Spending on Core Administration in the Healthcare Market are investing heavily in research and development to gain a competitive advantage. They are also forming strategic partnerships with other companies to expand their product offerings and reach new markets.
Leading Technology Spending on Core Administration in Healthcare Market players are focusing on developing innovative technologies that can improve the efficiency and effectiveness of healthcare delivery.
They are also investing in customer service and support to ensure that their products meet the needs of healthcare providers. The Technology Spending on Core Administration in Healthcare Market industry is expected to grow significantly in the coming years, due to the increasing adoption of technology in healthcare.
One of the leading players in the Technology Spending on Core Administration in the Healthcare Market is Epic Systems Corporation. Epic is a privately held company that provides a comprehensive suite of software solutions for healthcare organizations.
Epic's products include electronic health records, revenue cycle management, and patient engagement tools. The company has a strong presence in the United States and is expanding its reach into international markets. Epic is known for its high-quality products and its commitment to customer service.
Another major player in the Technology Spending on Core Administration in Healthcare Market is Cerner Corporation. Cerner is a publicly traded company that provides a range of healthcare IT solutions, including electronic health records, revenue cycle management, and population health management.
Cerner has a global presence, with operations in over 30 countries. The company is known for its innovative products and its focus on improving the patient experience.
Key Companies in the Technology Spending on Core Administration in Healthcare Market Include:
- Allscripts Healthcare, LLC
- Oracle Corporation
- Lawson Software
- NextGen Healthcare, Inc.
- MEDITECH
- Siemens Healthineers AG
- Harris Healthcare
- Cerner Corporation
- McKesson Corporation
- Athenahealth, Inc.
- eClinicalWorks
- SAP SE
- GE Healthcare
- Infor
- Epic Systems Corporation
Technology Spending on Core Administration in Healthcare Market Industry Developments
The rising healthcare costs, increasing adoption of electronic health records (EHRs), and growing demand for improved patient care are driving market growth. Key industry players are focusing on developing innovative solutions to streamline administrative tasks and enhance operational efficiency.
Recent developments include the integration of artificial intelligence (AI) and machine learning (ML) technologies to automate processes and improve decision-making.
Additionally, the increasing adoption of cloud-based solutions is enabling healthcare providers to access and manage their data remotely, fostering collaboration and cost savings.
Technology Spending on Core Administration in Healthcare Market Segmentation Insights
Technology Spending on Core Administration in Healthcare Market Type of Healthcare Provider Outlook
- Hospitals
- Clinics
- Medical Practices
- Long-Term Care Facilities
- Pharmacies
Technology Spending on Core Administration in Healthcare Market Technology Solution Outlook
- Electronic Health Records (EHRs)
- Patient Management Systems
- Financial Management Systems
- Supply Chain Management Systems
- Revenue Cycle Management Systems
Technology Spending on Core Administration in Healthcare Market Deployment Model Outlook
- On-Premises
- Cloud-Based
- Hybrid
Technology Spending on Core Administration in Healthcare Market Cloud Provider Outlook
- Amazon Web Services (AWS)
- Microsoft Azure
- Google Cloud Platform (GCP)
Technology Spending on Core Administration in Healthcare Market Technology Spend Value Outlook
- $56.7 billion in 2023
- $80.3 billion in 2026
- $122.4 billion in 2032
Technology Spending on Core Administration in Healthcare Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
23.34(USD Billion) |
| Market Size 2023 |
24.53(USD Billion) |
| Market Size 2032 |
38.4(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
5.11% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Allscripts Healthcare, LLC, Oracle Corporation, Lawson Software, NextGen Healthcare, Inc., MEDITECH, Siemens Healthineers AG, Harris Healthcare, Cerner Corporation, McKesson Corporation, Athenahealth, Inc., eClinicalWorks, SAP SE, GE Healthcare, Infor, Epic Systems Corporation |
| Segments Covered |
Type of Healthcare Provider, Technology Solution, Deployment Model, Cloud Provider, Technology Spend Value, Regional |
| Key Market Opportunities |
Personalized healthcare Digital health convergence Value-based care AI and ML integration Cloud-based solutions |
| Key Market Dynamics |
Cloud adoption Value-based care Interoperability AI and automation Cybersecurity |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Technology Spending on Core Administration in Healthcare Market is expected to reach 38.4 billion USD by 2032.
The Technology Spending on Core Administration in Healthcare Market is expected to grow at a CAGR of 5.11% from 2024 to 2032.
North America is expected to hold the largest market share in the Global Technology Spending on Core Administration in the Healthcare Market in 2032.
The key applications of Technology Spending on Core Administration in Healthcare include patient management, financial management, and supply chain management.
The key competitors in the Technology Spending on Core Administration in Healthcare Market include Cerner Corporation, Epic Systems Corporation, and Allscripts Healthcare Solutions, Inc.
The major factors driving the growth of the Global Technology Spending on Core Administration in the Healthcare Market include the increasing demand for healthcare services, the rising adoption of electronic health records (EHRs), and government initiatives to promote healthcare IT.
The challenges faced by the Technology Spending on Core Administration in Healthcare Market include the high cost of implementation, the lack of skilled IT professionals, and the security concerns associated with healthcare data.
The opportunities for growth in the Technology Spending on Core Administration in Healthcare Market include the increasing demand for cloud-based healthcare solutions, the growing adoption of artificial intelligence (AI) in healthcare, and the expansion of healthcare services into emerging markets.
The key trends in the Technology Spending on Core Administration in Healthcare Market include the adoption of value-based care models, the increasing use of data analytics, and the emergence of new technologies such as blockchain and the Internet of Things (IoT).
The regulatory landscape of the Technology Spending on Core Administration in Healthcare Market varies by country, but there are some key regulations that impact the market, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States and the General Data Protection Regulation (GDPR) in the European Union.
