Towards Healthcare
Physician Practice Management Market Soars USD 140 Billion in 2025

Physician Practice Management Market Boosted by Veradigm Growth & Monarch’s 2025 Launch

According to market projections, the global physician practice management market, valued at USD 129 billion in 2024, is anticipated to reach USD 291.7 billion by 2034, growing at a CAGR of 8.5% over the next decade. The increasing number of hospitalizations, technological advancements, rapidly expanding healthcare infrastructure, and favorable government policies drive the market.

Category: Healthcare Services Insight Code: 5270 Format: PDF / PPT / Excel

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 Market Revenue 2023 - 2034

Key Takeaways

  • North America held a major revenue share of the market in 2024.
  • Asia-Pacific is expected to host the fastest-growing market in the coming years.
  • By type, the billing of physician services segment held a dominant presence in the market in 2024.
  • By type, the hospital contracts segment is expected to witness significant growth in the market over the forecast period.
  • By application, the organization service segment led the global market in 2024.
  • By application, the personal service segment is expected to show lucrative growth in the upcoming years.

Physician Practice Management Market: Empowering Healthcare

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.

  • In April 2025, the American Medical Group Association (AMGA) announced a collaboration with Wilmington Health to start the AMGA Value Care Network. The collaboration was made to help medical groups and health systems implement proven strategies, improve patient outcomes, and enhance financial performance. (Source: Medical Economics)
  • In November 2024, Francisco Partners announced the acquisition of AdvancedMD, a medical software company, from Global Payments for $1.125 billion. Francisco will position AdvancedMD as a standalone business to accelerate investment and expansion. AdvancedMD provides a cloud native medical office software for practice management, EHR, and payment software solutions. (Source: Fierce Healthcare)
  • The American Medical Association, a leader in physician well-being, is reducing physician burnout by removing administrative burdens and providing real-world solutions. In 2023, only 48.2% of physicians reported experiencing burnout, down from 53% in 2022 and 62.8% in 2021.
  • Veradigm, a global leader in physician practice management, released its revenue for the third quarter of 2022. Veradigm’s revenue for the third quarter of 2022 was $145 million compared with $137 million in the third quarter of 2021. Also, the consolidated revenue with Allscripts Healthcare Solutions, Inc., 2022 third-quarter revenue was $152 million.

Market Dynamics

Technological Advancements: Opportunity for the Market

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.

Increasing Operation Costs Hinder the Market

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.

Increasing Number of Hospitalizations as a Driver of the Physician Practice Management Market

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.

Regional Insights

Advanced Healthcare Infrastructure Dominated North America

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.

Number of Hospitals in the US and Canada, 2022

Increasing Number of Hospitalizations Drives Asia-Pacific

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.

What are the Factors of the Physician Practice Management Market in Europe?

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.

Segmental Insights

Which Type Segment Dominated the Physician Practice Management Market?

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.

Why Did the Organization Service Segment Dominate the Physician Practice Management Market?

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.

Latest Announcement by Industry Leaders

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)

Recent Developments in the Physician Practice Management Market

  • In April 2024, eClinicalWorks announced that the federally designated rural health clinic (RHC) Brownfield Regional Medical Center had successfully implemented Sunoh.ai. The implementation allowed providers to complete medical charting in a record time, speeding the documentation up to 40% faster.
  • In February 2024, Yellowcross Healthcare Commerce, a telemedicine practice management organization, launched a new consultancy service to help medical groups and healthcare facilities expand their remote care capabilities.

Top Companies in the Physician Practice Management Market

  • Arnall Golden Gregory LLP
  • Blue & Co. LLC
  • Change Healthcare
  • Definitive Healthcare
  • eClinicalWorks
  • Genamet
  • Greenway Health
  • Helms and Company
  • LBMC
  • MedPartners
  • PLEXIS Healthcare Systems
  • Veradigm
  • Yeo and Yeo

Segments Covered in the Report

By Type

  • Billing of Physician Services
  • Hospital Contracts
  • Physician Compensation
  • Others

By Application

  • Organization Service
  • Personal Service

By Region

  • North America
    • US
    • Canada
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA)
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
  • Last Updated: 23 July 2025
  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Kesiya Chacko is an accomplished market research professional with over 4+ years of experience in the healthcare industry, known for delivering actionable insights and strategic analysis that empower healthcare organizations.

Learn more about Kesiya Chacko

Aditi Shivarkar, with over 14 years of experience in consumer goods, leads research at Towards Consumer Goods, ensuring precise, actionable insights on trends, consumer preferences, and sustainable packaging for businesses.

Learn more about Aditi Shivarkar

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FAQ's

Practice management refers to various tasks and coordination required to run a service-oriented business, including a wide range of services such as scheduling, billing, client management, reporting, etc.

The primary role of a practice manager is to select, train, and supervise non-clinical staff. It also works to develop and supervise appointment systems that work well for patients and clinicians.

American Medical Association, American Hospital Association, Health Canada, National Institute of Health