The global EHR market was valued at $18.93 billion in 2014 and is expected to grow at a CAGR of 5.4 percent from 2015 to 2023, to reach an estimated value of more than $30 billion by 2023, according to a new market report published by Transparency Market Research “Electronic Health Records Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 – 2023.”
Seems the electronic health record market is not quite settled to a stop. According to this report, we’ve got a ways to go before things settle down.
According to the authors of the report, to this point the use of EHR systems has been limited primarily to medium-sized and large hospitals. Transparency Market Research said that use of EHRs is expected to increase significantly in the period from 2015 to 2023, fueling the global electronic health records market.
“The benefits of using an EHR system, such as its accuracy, efficiency and reduced medical errors are hugely responsible for the rapidly growing global electronic health records market,” the report’s authors state. “More and more healthcare providers are opting for the technically advanced electronic health records systems so as to save time and resources, thus impacting the global electronic health records market positively.”
Accordingly, the rapidly increasing geriatric population and the consequently growing need for remote monitoring of this demographic, coupled with an increased pressure for containment of healthcare costs, and the demand for improved patient care have led to an increase in the electronic health records market in the U.K. and Germany.
The global electronic health records market is segmented by installation type into web-based, client server-based, and software as a service. By end use, the market is categorized into hospitals, ambulatory services, and physicians’ offices. Lastly, the geographical segmentation includes Europe, North America, Latin America, and Asia Pacific.
Factors, such as the high cost for installation of EHR systems and lack of skilled IT professionals working in healthcare facilities, are restraining the global electronic health records market, the report points out. Apart from these restraints, which can be readily overcome with the growing usage of these systems in the coming years, the future of the global electronic health records market seems to be very bright.
This report seems to pair well with a study from 2015 that suggests the EHR market is expected to grow at 8 percent each year throughout the next five years. While the growth rate is lower than previous years, there are opportunities for vendors in consulting and training, system upgrades and poaching contracts from other vendors.
Fear of penalties for physicians who still use paper records also keeps practices implementing new solution. And, practices are removing their current systems and moving into new units.
Those physicians who do not adopt EHRs by 2015 will face a reduction of 1 percent in their Medicare fee schedule, increasing to a 2 percent reduction in 2016 and a 3 percent reduction in 2017 and beyond.