INCREASE IN THE ADOPTION OF RCM SOLUTIONS
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There has been a notable increase in the number of professional seeking online tools for health information in European countries in accordance to OECD (Organization for Economic Co-operation and Development). There is a notable increase in the use of healthcare records in Europe.
A survey conducted in 2016 shows that fifteen European states including Estonia, Finland, Greece and the UK has implemented these system to the healthcare organization for operating their healthcare IT division. The digital transformation aims on improving the patient care and improves the patient experience. By the application of established revenue cycle management (RCM) best practices medical groups have substantially increased their revenues.
The rapid demand of solutions and the technological advancements in the field of healthcare IT has resulted in an increase in the demand for the RCM solutions hence it is driving the growth of the revenue cycle management market.
REVENUE LOSS RELATED TO BILLING ERRORS
The hospital billing processes are crucial for management of hospitals. The complexity of these processes, results in the billing errors which leads to costly financial losses.
For Instance: As per the Group One Health Source Studies indicate that approximately 25-30% of all medical practice income is lost due to improper billing 59% of in-house billers do not review Explanation of benefits and 55% of in-house billers have never appealed a denied claim. In order to minimize these claims RCM tool have been implemented such as:
There is a great amount of revenue loss due to billing errors resulting in various losses faced by healthcare organizations. For the purposes of reducing these losses proper implementation of Revenue Cycle Management is important which acts as a driver to the market.
HIGH MAINTENANCE AND PRICING OF RCM SOLUTIONS
The hospitals, clinics and the large healthcare systems have been known for saving lives and treating patients with utter care. For ensuring that the method is performed properly every healthcare organization needs to successfully implement process and policies to stay focused financially. This implementation can be properly done with the help of revenue cycle management software. In the focus of healthcare, RCM works as the financial process software which facilitates the management of clinical and administrative functions associated with claims processing. Although the RCM provides the ease and convenience in financial processes but the pricing and maintenance of these solutions is a major problem. If the software solutions are not properly maintained it is a common scenario that errors might occur. These maintenance issues can occur due to support issues resulting in a great revenue loss to the organization. The high pricing of the solutions and the proper regular maintenance restricts the growth of the market.
LACK OF SKILLED PROFESSIONALS IN THE FIELD OF RCM
A revenue cycle management professional usually work in middle of management position in the finance part of healthcare system. The main responsibility of the RCM professionals includes the accurate monitoring of patients registration for completing billing procedures by following all collection and credit protocols for managing the revenue cycle. There is an occurrence of rapid globalization and technological advancements in the world. And resulting shortage in skilled technicians is becoming a major concern in the RCM. There are several European countries which are facing the problem of shortage of skilled labor in the market; these countries include Turkey, Greece, Germany, Italy, France, U.K., and Spain.
BIG DATA ANALYTICS IN HEALTHCARE
Data science and its usage is enhancing in various industries where the data scientists face massive amount of heterogeneous data. . In the healthcare sector this amount of data is available in several healthcare organizations (payers, providers and pharmaceuticals). This data can enable the resource for driving the insights and reducing the waste hence improving the care delivery. The rapid and expanding branch of big data analytics has started to play an essential role in the growth of healthcare research and practices. It has provided tools to manage, analyze, accumulate and assimilate large volumes of disparate, unstructured and structured data produced by current healthcare systems. Big data analytics has been recently applied towards aiding the process of care delivery and disease exploration. Europe has some of the leading universities which provides professional degrees which caters the needs for data training and research like Technische Universität Munchen (Germany), Georg-August-Universität Gottingen (Germany), Technische Universität Dortmund (Germany), Frankfurt University (Germany), Goethe University (Germany), University of Manheim (Germany) amongst others. The proper establishment of big data analytics creates an opportunity for the growth in revenue cycle management market as it will help making better policy-making decisions at all levels across Europe. Also the revenue cycle management software and tools will help streamline the enormous amount of data of patients through their web and cloud based algorithms, acting as an opportunity for growth in RCM software and services.
INTEGRATION OF RCM SOLUTIONS WITHIN HEALTHCARE ORGANIZATIONS
The healthcare industry is undergoing expressive transformation due to a transition coding system amid changing regulation as per the value based care and rising pressures on healthcare services providers to improve patient care while simultaneously dropping cost. The revenue cycle management is becoming a fundamental component for all the healthcare organizations. The main focus of healthcare organizations is to provide the patients with an excellent care but these organizations must also pay attention to the financial solvency for the business for ensuring that the organization will be able to provide the care in the upcoming years as well. Preventing and reducing unpaid claims reducing inefficient coding and billing processes will impact the profit margins significantly. The key goal of RCM is to improve financial performance of the organization. The Healthcare organization perceives RCM as a segment which is not clinically focused which often results in lack of proper structure and team for the maintenance and handling of the revenue cycle management. This scenario results in improper integration of RCM in the organizations. This improper integration acts as a challenge as it hampers the growth of the market.
Europe revenue cycle management market is segmented into six segments that are on the basis of product type, deployment, component, stage, function and end user.
On the basis of product type, the market is segmented into integrated RCM and standalone RCM. In 2019, integrated segment is expected to dominate the Europe revenue cycle management market with 58.17% market share and is expected to be growing at the highest CAGR of 12.9% in the forecast period of 2019 to 2026.
On the basis of stage, the market is segmented into front office, mid office and back office. In 2019, front office segment is expected to dominate the Europe revenue cycle management market with 56.50% market share and is expected to be growing at the highest CAGR of 13.1% in the forecast period of 2019 to 2026.
On the basis of component, the market is segmented into software and services. In 2019, software is expected to dominate the Europe revenue cycle management market with 61.45% market share and is expected to be growing at the highest CAGR of 12.8% in the forecast period of 2019 to 2026.
On the basis of deployment, the market is segmented into web based, on premise and cloud based. In 2019, Cloud Based segment is expected to dominate the Europe revenue cycle management market with 57.27% market share and is expected to be growing at the highest CAGR of 12.9 % in the forecast period of 2019 to 2026.
On the basis of function, the market is segmented into Claim and denial management, Medical billing and coding, Electronic health record (EHR), Payment remittance, Patient insurance eligibility check, Clinical documentation improvement (CDI), Others (scheduling & appointment, referral management, and contract management). In 2019, Claim and denial management segment is expected to dominate the Europe revenue cycle management market with 31.57% market share and is expected to be growing at the highest CAGR of 13.2% in the forecast period of 2019 to 2026.
On the basis of end user, the market is segmented into hospitals, general physicians and labs. In 2019, hospitals segment is expected to dominate the Europe revenue cycle management market with 48.54% market share and is expected to be growing at the highest CAGR of 13.7% in the forecast period of 2019 to 2026.
Some of the major players operating in this market are Quest Diagnostics Incorporated, Cerner Corporation, Allscripts, Navigant Consulting, Inc, Cognizant, Athenahealth, Inc, Change Healthcare, eClinicalWorks, Epic Systems Corporation, Experian Information Solutions, Inc, UnitedHealthcare, Siemens.
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