A new MicroMarket Monitor report projects the North American revenue cycle management system market will grow from a value of $20.5 billion in 2015 to $40.44 billion by 2021, at a developing compound annual growth rate of 12 percent from 2016 to 2021.
Here are five key takeaways from the report.
1. Components of the RCM system market in North America include hardware, software and services.
2. ICD-10 will be a driver of the growth in the RCM market. ICD-10 will increase the number of codes from 18,000 to 64,000, making the coding process more complex and difficult. If hospitals don't implement this system, they face loss of productivity and denied claims. Therefore, this results in more adoption of RCM solutions by hospitals to gain a high rate of return on investment, according to the report.
3. To reduce the errors in RCM, shorter the cycle and better efficiency will compel providers to invest in RCM.
4. North American RCM system market growth is partly attributed to the consolidation of healthcare providers, as well as decreasing reimbursements.
5. Still, limited investment in health IT and high cost of RCM systems affected the North American market for RCM in the last few years. The adoption rate for RCM solutions is low among medical organizations, because of their high costs and the significant investments involved in hardware, software and staff training, the report notes.