U.S. Healthcare IT Market

U.S. Healthcare IT Market Size (2023 to 2028)

The Healthcare IT Market size in the United States is predicted to grow at a CAGR of 12.7% from 2023 to 2028.

The Covid19 Pandemic is the one primary driving factors for the US Healthcare IT Market, According to the Centers for Disease Control and Prevention (CDC), there were over 38.4 million COVID-19 cases reported out of which there were over 830,000 deaths in the United States in 2021 at the height of COVID19 pandemic. These numbers far exceeded the capacity of healthcare systems even in a developed country like the USA, this led to an increase in the adoption of healthcare IT systems in the region to meet the demands and efficiently track Patients' data, and progress and also communicate this information with other doctors. Due to fear of the virus and lockdowns, along with people suffering from a medical disability that restricts their movement the requirement for a better healthcare IT system increased in the USA.

Technological Innovations: The US Healthcare IT Market is driven by advancements in technology, the Healthcare system was working on outdated traditional systems and urgently needed to update to meet the growing demand, The use of IOT  and cloud computing are all helping shape the US healthcare IT market providing increased efficiency and Patient care, the Patients can access healthcare services even from the comfort of their homes with Healthcare IT services like Telehealth and virtual diagnosis. Healthcare IT system also helps keep track of the progress of every patient while also improving communication between doctors and patients. For instance, Medne is a healthcare technology company that develops eClinical solutions for clinical trials. In 2020, they launched their iMednet ePRO module, which is an electronic patient-reported outcome (ePRO) tool that allows patients to complete surveys and questionnaires remotely. The module was designed to improve patient engagement and make it easier for patients to participate in clinical trials resulting in better treatment and also making it convenient for the doctors involved while also saving time and cost.

Cost Factor, According to a study conducted by McKinsey Global Institute, healthcare IT has the potential to save the United States healthcare system $300 billion per year by 2025. Healthcare IT systems can help with streamlining workflow, automating some tasks, and helping the management make informed decisions while also keeping track of the patients and inventories.

To summarize the Covid19 pandemic helped increase the US Healthcare IT Market Value, which further got expanded by the need for technology in the Healthcare system while also saving the Cost of operations.

The high initial cost of implementation: Healthcare IT services are capable of saving a lot of cost and capital in the long run, but the initial high cost of installation of these services may be too expensive to afford for some healthcare units that are budget sensitive. Along with the high initial cost, the healthcare IT systems also need timely maintenance and updates which can only be done by a skilled professional.

Privacy factor, The healthcare IT systems deal with a patient's sensitive medical data by collecting, analyzing, and storing it. As the healthcare IT system is connected to the internet or the local network it makes the healthcare IT systems vulnerable to data theft, hacking, and breaches which can be a major concern to a lot of patients.

This report on the U.S. healthcare IT market has been segmented and sub-segmented like below.

US Healthcare IT Market Segmentation:

By Product Type:

Healthcare Provider Solutions

Healthcare Payer Solutions

and HCIT Outsourcing Services

Healthcare Provider Solutions dominate the US Healthcare IT Market with the largest shares, healthcare provider solutions offer quality, and increased efficiency while also saving costs by helping the management make informed decisions. It updates the hospitals on patient health using EHR (Electronic health records) and other teleservices based on the Healthcare IT systems.

By Component:

Services

Software

Hardware

The software sector dominates the US healthcare IT market, this is because the software is the main component of the Healthcare provider solutions systems, it measures and tracks a patient's health on a digital platform.

By Delivery Mode:

On Cloud

On-premise

The on-cloud sector registered the highest growth and shares in the Healthcare IT segment by delivery mode, as the on-cloud delivery mode is more cost-efficient and can be afforded by even smaller healthcare units and can help save space in comparison to the On-premise delivery mode.

By Country:

USA:

The Healthcare IT market has experienced significant changes over the years, the US has a high adoption rate of these Healthcare IT systems due to well-developed healthcare units and the presence of the majority of market leaders in the Healthcare IT systems in the country. The demand for patient care and efficiency has driven the market, According to the Healthcare Information and Management Systems Society (HIMSS), there are over 6,129 hospitals in the United States that have implemented some form of healthcare IT systems. This number is expected to rise during the forecast period as more and more healthcare units are upgrading in technology in the USA.

KEY MARKET PLAYERS:

Some of the companies playing a significant role in the United States Healthcare IT Market are McKesson Corporation (U.S.), Epic Systems Corporation (U.S.), Cerner Corporation (U.S.), GE Healthcare (U.S.), Philips Healthcare (Netherlands), Athena Health, Inc. (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), Oracle Corporation (U.S.), Cognizant Technology Solutions Corporation (U.S.), Dell Technologies (U.S.), Optum, Inc. (U.S.), and Infor, Inc. (U.S.).

Recent Developments:

In January 2023,

Allscripts healthcare solutions acquired Kareo, a cloud-based healthcare IT company with a specialty in electronic health records (EHRs), that targets small and medium-sized physician healthcare units. The Allsciprts aims to reach and expand its business to the small and medium-sized physicians market.

In March 2023,

Oracle Corporation acquires Aidoc, which specialized in AI that provides software for detecting and diagnosing medical conditions in radiology images, Oracle plans to integrate the technology after further research into the Healthcare IT systems.