Technology spending on revenue cycle management is expected to see significant growth in the coming years as more players enter the global market, according to a research report released by Transparency Market Research.
Here are five takeaways from the report.
1. The global market for technology spending on RCM is projected to reach $51.56 billion by 2024, at a compound annual growth rate of 6.9 percent. The market was calculated at $28.50 billion at the end of 2015.
2. In a news release, a TMR analyst discussed the factors driving these spending trends.
"Of the many plus points that go with a standard revenue cycle management solution, the leading factor that a lot of healthcare organizations are looking for is better revenue generation. Claims get processed much faster under revenue cycle management solutions, along with a speedy denial management, thereby helping an organization generate a higher resolution rate. Thus, time saved becomes money earned and that is what is driving the global market for technology spending on revenue cycle management currently," said the analyst.
3. The global market for technology spending on RCM is also driven by "greater efficiency achieved in carrying out medical practice," the release states. Implementing an RCM solution allows a hospital to focus more on patients rather than billing and paperwork, and may also allow a healthcare organization safely adhere to existing regulations, according to the release.
4. Still, one of the core restraints on the global market for technology spending on RCM is the complexity of these solutions, according to the release. "A lot of claims submission processes involve tedious iterations of rework. Combined with the long and erroneous processes of data collection and other manual processes, the incorporation of a revenue cycle management solution into this will add to the errors that accumulate," the release states.
5. Key players in the global market for technology spending on RCM in 2015 include:
- McKesson
- Allscripts
- Cerner
- Optum Health
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