The U.S. behavioral health care software and services market was surpassed at USD 1.2 billion in 2021 and is expected to hit around USD 3.3 billion by 2030, growing at a CAGR of 11.9% from 2022 to 2030.
An increase in the adoption of technological solutions for the management of clinical, administrative, and financial functions associated with mental healthcare practices is responsible for market growth.
According to the CDC data, around 20.3% of the adult American population was suffering from mental health issues in 2020. Out of which, around16.5% received treatment from the physicians and 10.1% took counseling. The adoption of behavioral healthcare software by the care providers is likely to improve the treatment prospects and management of mental health issues. Behavioral health practices can adopt integrated EHRs for cost savings and effective practice management. The adoption of mental well-being apps can aid to break the societal stigma on mental health. The stigma could easily lead to discrimination, which discourages people from seeking treatment or therapy. However, the surge in mental wellbeing software has led to more patients seeking treatment discreetly.
The COVID-19 pandemic has increased the demand for software by providers of behavioral health. For instance, according to the ECHAlliance Data 2020, around 600 prescription mental wellness apps are available in the market. In addition, the demand for such prescription apps surged drastically from April 2020 to September 2020. The adoption of telehealth and telemedicine also helped to foster the growth of the market during the pandemic. The utilization of mobile and virtual care platforms was supported by positive changes in reimbursement policies for telehealth. For instance, the CMS issued temporary changes in receiving care through telehealth services for patients enrolled in Children's Health Insurance Program (CHIP), Medicaid, and Medicare.
Scope of The Report
|Market Size in 2021||USD 1.2 billion|
|Revenue Forecast by 2030||USD 3.3 billion|
|Growth rate from 2022 to 2030||CAGR of 11.9%|
|Forecast Period||2022 to 2030|
|Segmentation||Component, function, delivery model, end use
|Companies Covered||Cerner Corporation; Core Solutions, Inc.; Epic; Meditab; Holmusk; Netsmart Technologies; Qualifacts Systems, Inc.; Welligent, Inc.: SimplePractice, LLC; TherapyNotes, LLC; TheraNest|
The software segment dominated the U.S. market and accounted for a revenue share of over 80.0% in 2021. Behavioral health care software provides care providers to design and choose the optimal treatment plan for a person suffering from mental illnesses such as depression, stress, anxiety, substance abuse, and addiction. The mental wellness software designs the treatment plans based on clinical evidence and related patient records. The software segment is further segmented into integrated and standalone. Integrated software has all the functionalities combined in one single package. It includes governance, billing, appointment scheduling, e-prescription, telehealth, business intelligence, patient management, and other features in a single platform. Based on the component, the market is bifurcated into software and support.
The companies operating in the market are launching new platforms to aid the growth of the market. For instance, in March 2022, NextGen Healthcare, Inc. updated its NextGen Behavioral Health Platform. The suite is the sector's first platform to integrate complete physical, mental health, human services, and dental care in one software solution, and it builds on the company's award-winning NextGen Enterprise e-health record and practice management system. Providing behavioral care during the COVID pandemic demanded certain changes in the software. For instance, COPE Community Services updated its EHR software AXiOM, provided by Health Information Management Systems (HiMS) to include COVID-19 diagnostic tests HCPCS codes and CPT codes for testing purposes.
Delivery Model Insights
The subscription segment dominated the market with a share of over 60.0% in 2021. The segment is anticipated to register the highest CAGR over the forecast period. Behavioral healthcare software solutions can be either subscribed to or purchased, depending on factors such as the availability of capital for investment. Due to limited capital available for investment, small-scale healthcare professionals opt for subscription. Based on delivery model, the market is segmented into ownership and subscription. The ownership segment is expected to witness lucrative growth during the forecast period. This can be attributed to the development of incentive policies for the mental health EHR in the U.S.
For instance, the U.S. government introduced the Improving Access to Behavioral Health Information Technology Act in 2018. Under the act, mental healthcare providers such as psychologists, psychiatric hospitals, and community healthcare centers are eligible for financial incentives for the implementation of the behavioral health EHR system. Large mental health facilities however prefer purchasing and installing software solutions for smooth workflow management. Factors such as the type of Electronic Medical Records (EMRs), requirements of clinicians, and financial requirements are the factors to be considered while installing in-house mental wellness software.
The clinical segment held the largest revenue share of over 50.0% in 2021. Large-scale psychiatry hospitals require the integration of clinical functions with their systems as they have high patient inflow. This is propelling the market growth. Clinical functions are likely to retain their top position during the forecast period, followed by administrative functions. Mental wellness apps provide clinical services such as scheduling appointments, claim filings, documentation, coding, and billing. Market players offer all-inclusive solutions as well as standalone solutions. Based on the function, the market is categorized into clinical, administrative, and financial.
The administrative segment is anticipated to witness lucrative growth over the forecast period. The segment includes patient scheduling, documentation management, case monitoring, employee management, and business intelligence. The documentation management sub-segment is estimated to witness significant growth from 2022 to 2030. Specific customizable templates, organized data, and result metrics are required in electronic papers. In hospitals, clinics, long-term care units, and rehabilitation facilities, document management helps reduce the danger of data overload.
The providers segment dominated the market with a revenue share of over 50.0% in 2021. The payers segment is expected to witness lucrative growth during the forecast period. This can be attributed to the improving reimbursement policies for psychiatric treatment. For instance, according to the Congressional Office Budget Data of the Healthcare cost institute, approximately 43% more is paid by private players to the mental healthcare providers, and 53% greater for psychotherapy. The healthcare cost institute data includes 39 million claims from Humana, UnitedHealthcare, and Atena members. Based on the end-use, the market is classified into providers, payers, and patients.
The payers segment is expected to acquire a significant share in the market during the forecast period. This can be attributed to the improvements in the reimbursement rates for behavioral health care software. The lower reimbursement rates could prevent clinical practitioners from entering the business, thus hindering patients’ access to mental healthcare.
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