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July 2025
The physician practice management market was estimated at US$ 118.9 billion in 2023 and is projected to grow to US$ 291.7 billion by 2034, rising at a compound annual growth rate (CAGR) of 8.5% from 2024 to 2034.
Physician practice management is a non-medical service provided by an organization to simplify the tasks of a clinic or physician. The services offered by physician practice management include bookkeeping and accounting, human resources management, billing, claims submissions, financial management, marketing & public relations, technological & information support systems, and provision of administrative personnel. This facilitates the fulfillment of a physician’s daily tasks, enabling a physician to focus more on patient care and treatment. It also eliminates the need to appoint multiple employees for each particular task. Competent practice management is crucial to the development and expansion of the medical industry.
The increasing demand for revenue growth of a medical practice firm boosts the market growth. Technological advancements and favorable government policies result in high adoption of physician practice management. The demand for physician practice management also rises due to increasing investments in the healthcare sector. In addition, the increasing number of hospitalizations due to several chronic disorders and the COVID-19 pandemic demands physician practice management.
The advent of advanced technologies like artificial intelligence (AI), machine learning (ML), and cloud-based services promote market growth. These technologies have immense potential in the healthcare sector. Several mobile applications and software are available to simplify non-medical operations in clinics or hospitals. The software can be used for customization of appointments, timings, and locations. It can be used to create invoices and payment receipts as well as set schedules and reminders for healthcare professionals. Cloud-based services help store patient data, which can be easily accessed anywhere and at any time. AI can reduce the burden of documentation, improve efficiency, and alleviate the burden of administrative tasks. AI can also assist in optimizing revenue cycle management by improving claims processing accuracy and reducing claim denials. Thus, AI can automate the entire practice management system, streamline workflow, and improve decision-making.
The major challenge faced by the physician practice management market is the high operation costs. Common operations such as office supplies, software, IT support, and medical supplies require huge costs. The average cost of a physician practice management software ranges from $350 to $1,000, excluding other services.
The major growth factor for the market is the increasing number of hospital admissions. This is due to the rising prevalence of chronic disorders, surgeries, and road accidents. The growing geriatric population and sedentary lifestyles are major causes of chronic disorders, leading to hospital admissions. According to the American Hospital Association (AHA), over 34 million people were admitted to hospitals in 2023. (Source: AHA) All these aspects necessitate healthcare professionals to adopt physician practice management in healthcare organizations to deal with multiple patients simultaneously. The management tools also offer professionals to manage their administrative tasks and generate revenue while providing state-of-the-art care.
North America dominated the physician practice management market in 2023. The advanced healthcare infrastructure, technological advancements, favorable government policies, and increasing investments drive the market. American Medical Association is at the forefront of providing physician management services in the region. In 2022, the healthcare venture capital fundraising hit nearly $22 billion in the US. Healthcare spending in the US accounted for $4.5 trillion and $331 billion in Canada in 2022. The Department of Health and Human Services promotes the use of AI in the healthcare sector to enhance the health and well-being of Americans.
Asia-Pacific is anticipated to grow fastest in the physician practice management market during the forecast period. The rapid advancements in healthcare infrastructure, increasing investments, and technological advancements drive the market. The rising geriatric population in the region leads to increasing incidences of chronic disorders, thereby increasing the number of hospitalizations and requiring advanced physician practice management services. The Indian Council of Medical Research (ICMR), the Chinese Medical Council, and the Japan Medical Association govern the healthcare practices in India, China, and Japan, respectively. Implementing AI in the healthcare sector in these countries also potentiates market growth.
Europe is expected to grow at a notable CAGR in the market in the foreseeable future. The increasing healthcare expenditure and the rising adoption of advanced technologies are the major growth factors of the market in Europe. The growing demand for personalized treatment and advanced care facilitates the use of physician practice management. The increasing integration of EHRs and telehealth tools potentiates market growth. Government organizations impose regulations to support the development and deployment of digital health solutions in healthcare organizations.
There are approximately 2 million practicing physicians across the EU. According to a recent survey, 2.9 million hospitalizations were recorded in France related to acute heart failure from 2013 to 2024. In the UK, the number of private hospital/clinic admissions reached 939,000 in 2024, an increase of 3% from 2023. (Source: Healthcare Property).
Moreover, it is estimated that over 70% of all hospitals in Germany have adopted EHR systems. European countries like Catalonia, Denmark, and Italy, allow the healthcare industry to use digital tools and solutions apart from the ones established by the government.
By type, the billing of physician services segment accounted for the highest share of the market. This is due to the increasing number of out-patient and in-patient services in a hospital that increases the burden on hospital staff for the billing process. Physician practice management helps in handling billing. Advanced technologies and software simplify the billing service.
The hospital contracts are estimated to witness lucrative growth in the market over the forecast period. Hospital contract management is the systematic process of creating, negotiating, executing, monitoring, and optimizing contracts to ensure compliance, mitigate risks, and achieve healthcare organizations’ strategic objectives.
By application, the organization service segment held the largest share of the market. This segment dominated because physician practice management streamlines the workflow of the whole organization. It ensures that the business runs smoothly and is profitable, allowing physicians to work with patients more effectively and efficiently. Financial management, human resources management, regulatory compliance, and strategic planning and marketing are some of the tedious tasks of a healthcare organization, which can be easily governed by physician practice management.
The personal service market will gain a significant share of the market over the studied period. On a personal level, physician practice management schedules patient appointments, handles billing for patient services, and follows up with patients for billing. The latest technological innovations and rising physician burnout rates promote the segment growth.
In June 2025, Monarch launched a platform for women’s health physicians to establish independent, membership-based practices while retaining full ownership and clinical autonomy. Dr. Suzanne Gillberg, Chief Clinical Officer at Monarch, commented that the company allows for the practice of medicine rooted in deep relationships, centered on the full spectrum of health, and driven by clinical excellence. (Source: Femtech Insider)
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July 2025
August 2025
June 2025
June 2025