Practice Management System Market to Surge USD 44.40 Bn by 2035

Revenue, 2025

17.06 Billion

Forecast, 2035

44.40 Billion

CAGR, 2026 – 2035

10.04%

Report Coverage

Global

Practice Management System Market Size, Key Players with Growth and Shares

The global practice management system market size was estimated at USD 17.06 billion in 2025 and is predicted to increase from USD 18.77 billion in 2026 to approximately USD 44.40 billion by 2035, expanding at a CAGR of 10.04% from 2026 to 2035.

Practice Management System Market Trends and Growth (2026)

The market is growing as healthcare providers focus on streamlining scheduling, billing, and administrative workflows. Rising patient loads, digital transformation, and the shift toward cloud-based and interoperable solutions are key drivers. Automation, regulatory compliance needs, and the demand for integrated practice and electronic health record tools continue to accelerate adoption across hospitals and clinics.

Key Takeaways

practice management system sector pushed the market to USD 18.77 billion by 2026.
Long-term projections show USD 44.40 billion valuation by 2035.
Growth is expected at a steady CAGR of 10.04% in between 2026 to 2035.
North America dominated the practice management system market with a revenue share of approximately 35% in 2025.
Asia Pacific is expected to grow at the fastest CAGR in the market during the forecast period.
By product type, the practice management software suites segment held the largest market share of approximately 40% in 2025.
By product type, the integrated EHR-PMS solutions segment is expected to grow at the fastest CAGR in the market during the forecast period.
By deployment type, the cloud-based segment dominated the market with a revenue share of 55% and is expected to grow at the fastest CAGR in the market during the forecast period.
By application, the practice administration & scheduling segment led the market with the largest revenue share of approximately 40% in 2025.
By application, the patient engagement & communication segment is expected to grow at the fastest CAGR in the practice management system market during the forecast period.
By end-user, the hospitals & health systems segment dominated the market in 2025.
By end-user, the physician groups & clinics segment is expected to grow at the fastest CAGR in the market during the forecast period.

Executive Summary Table

Key Elements	Scope
Market Size in 2026	USD 18.77 Billion
Projected Market Size in 2035	USD 44.40 Billion
CAGR (2026 - 2035)	10.04%
Leading Region	North America 35%
Market Segmentation	By Product Type, By Deployment Type, By Application, By End-User, By Region
Top Key Players	Veradigam (Allscripts), OmniMD, Henry Schein, Inc., AdvantEdge Healthcare Solutions, athrnahealth, Oracle Health (Cerner), Epic Systems Corporation, GE HealthCare, McKesson Corporation

A practice management system (PMS) is a software solution used by healthcare providers to manage daily administrative and operational tasks. It streamlines scheduling, patient registration, billing, claims processing, and workflow coordination, helping clinics and hospitals improve efficiency, reduce errors, and maintain smooth practice operations.
The practice management system market is growing due to increasing demand for efficient healthcare administration, rising patient volumes, and the shift toward digital and cloud-based solutions. Providers need tools that streamline billing, scheduling, and claims management while reducing errors. Regulatory pressures, interoperability requirements, and the adoption of telehealth and electronic health records further accelerate the need for integrated practice management platforms.
In October 2024, the federal government introduced the Federal IT Strategic Plan 2024–2030 to strengthen access and exchange of electronic health data. As healthcare shifts from paper to digital workflows, practice management systems help streamline appointments, billing, records, insurance claims, and compliance tasks through a unified digital platform.

AI is transforming the market by automating routine administrative tasks such as scheduling, claims processing, and billing. It enhances accuracy, reduces manual errors, and speeds up decision-making. AI-driven analytics help providers predict patient demand, optimize workflows, and improve revenue cycles. Additionally, AI-powered chatbots and virtual assistants support better patient communication, making PMS platforms more efficient and proactive.

Trend and Future Outlook of the Practice Management System Market 

AI-Driven Automation: AI automates scheduling, billing, and claims, improving accuracy, reducing workload, and enabling faster, more efficient practice operations.
Cloud-Based Adoption: Cloud PMS offers easy access, lower costs, better data exchange, and seamless integration with EHRs, boosting flexibility and efficiency. 
Integrated Digital Ecosystems: PMS platforms unify billing, patient engagement, analytics, and compliance, creating streamlined workflows and enhancing overall practice performance.

Year	Adoption/ Digital-Health Metric	Percentage
2023	Availability of online digital health services	79%
2024	Availability of online digital health services	82%
2023	Hospitals using predictive AI integrated with EHR	66%
2024	Hospitals using predictive AI integrated with EHR	71%

Video Conferencing with Patients

Major Investments in the Practice Management System Market

In October 2024, StrataPT raised USD 25 million to upgrade its practice management platform, aiming to strengthen digital tools and workflow support for outpatient physical therapy clinics.
In June 2024, PracticeTek introduced Ora, a cloud-based dental practice management platform that centralizes EHR, scheduling, billing, imaging, lab coordination, and automated reminders. The solution is designed to streamline operations, improve patient care, and support growth for dental practices and DSOs.

Segmental Insights

Why Did the Practice Management Software Suites Segment Dominate in the Market in 2025?

Practice Management Software

The practice management software suites segment leads the practice management system market with revenue shares of 40% due to its comprehensive functionality, integrating scheduling, billing, EHR, patient engagement, and reporting in a single platform. Healthcare providers prefer all-in-one solutions for streamlined operations, reduced administrative errors, improved efficiency, and enhanced patient experience, making software suites the most widely adopted product type in the practice management market.

Integrated EHR-PMS Solutions

The integrated EHR-PMS solutions segment is expected to grow fastest due to rising demand for seamless healthcare workflows. By combining electronic health records with practice management functions, these solutions enhance data interoperability, reduce manual tasks, improve patient care, and support regulatory compliance. Increasing adoption of digital health and cloud-based platforms further drives the segment’s rapid growth.

What Made the Cloud-based Segment Dominant in the Market in 2025?

Cloud-based

The cloud-based segment dominated the practice management system market with revenue shares of 55% and is projected to grow at the fastest rate due to its scalability, cost-effectiveness, and remote accessibility. Cloud solutions enable seamless data storage, easy software updates, and integration with EHR and telehealth systems. Healthcare providers prefer cloud-based PMS for improved workflow efficiency, secure data management, and the ability to access patient information anytime, supporting better clinical decision-making and operational performance.

How will the Practice Administration & Scheduling Segment dominate the Market in 2025?

Practice Administration & Scheduling

The practice administration & scheduling segment led the practice management system market with revenue shares of 40% due to its critical role in managing appointments, patient flow, and staff allocation. Efficient scheduling reduces wait times, optimizes resource utilization, and enhances patient satisfaction. Healthcare providers prioritize these tools to streamline daily operations, improve clinics' efficiency, and support overall practice management, making this segment the most widely adopted.

Patient Engagement & Communication

The patient engagement & communication segment is expected to grow at the fastest CAGR due to increasing focus on improving patient experience, adherence, and satisfaction. Tools like automated reminders, portals, and mobile apps enhance communication between providers and patients, streamline care coordination, and support telehealth services. Rising demand for personalized, connected healthcare is driving rapid adoption of these solutions.

Why Did the Hospitals & Health Systems Segment Dominate the Market in 2025?

Hospitals & Health Systems

The hospitals & health systems segment dominated the practice management system market with revenue shares of 40% due to high patient volumes, complex workflows, and the need for efficient administrative and clinical operations. Hospitals require comprehensive PMS solutions to manage scheduling, billing, EHR integration, and regulatory compliance. Their large-scale operations and focus on improving patient care drive widespread adoption of practice management systems in this segment.

Physician Groups & Clinics

The physician groups & clinics segment is expected to grow fastest due to increasing adoption of digital solutions for small to mid-sized practices. These providers seek efficient tools for scheduling, billing, EHR integration, and patient engagement. Rising demand for streamlined workflows, cost-effective cloud-based PMS, and improved patient care is driving rapid growth in this segment.

Regional Distribution

North America held a 35% share of the practice management system market in 2025. 
The U.S. led the market by capturing the largest revenue share of the market in 2025.
Asia Pacific is expected to grow at the fastest CAGR in the market during the forecast period.
India is anticipated to grow at a rapid CAGR during the forecast period. 
Europe is expected to grow at a notable CAGR in the practice management system market during the forecast period.
The UK is anticipated to grow at a rapid CAGR during the forecast period.

North America dominates the practice management system market with revenue shares of 35% due to advanced healthcare infrastructure, high adoption of digital health technologies, and favorable government initiatives supporting EHR and telehealth integration. The region’s focus on improving operational efficiency, patient care, and regulatory compliance drives widespread adoption of PMS solutions across hospitals, clinics, and physician practices.

The U.S. led the market due to advanced healthcare infrastructure, high digital health adoption, and supportive government policies promoting EHR and telehealth integration. Widespread use of cloud-based and AI-enabled PMS solutions, combined with rising demand for operational efficiency and improved patient care, has driven the country’s dominant market position.

In February 2025, U.S.-based Banyan Software acquired Medtech Global, a leading health IT company in Auckland, helping strengthen Medtech’s innovation efforts and supporting its continued growth across regional markets.

Asia Pacific is expected to grow at the fastest CAGR due to increasing healthcare digitization, rising demand for efficient practice management, and growing adoption of cloud-based and integrated PMS solutions. Expanding healthcare infrastructure, government initiatives promoting digital health, and rising awareness among providers and patients are accelerating market growth across the region.

India is anticipated to grow rapidly in the practice management system market due to increasing healthcare digitization, expansion of private hospitals and clinics, and rising adoption of cloud-based and integrated PMS solutions. Government initiatives supporting digital health, growing patient awareness, and the need for efficient workflow and billing management further drive market growth in the country.

Europe is expected to grow at a notable CAGR in the practice management system market due to increasing adoption of digital health technologies, supportive government regulations, and the shift toward integrated EHR-PMS solutions. Rising demand for efficient clinical workflows, patient engagement, and telehealth services across hospitals and clinics is driving the region’s market growth.

The UK is anticipated to grow at a rapid CAGR due to strong government support for digital health, widespread EHR adoption, and increasing demand for integrated PMS solutions. Growing emphasis on efficiency within the NHS and private practices, along with the rising use of cloud-based and patient-engagement tools, is accelerating practice management system adoption across the country.

In January 2025, Cority acquired Meddbase, a cloud-based provider of occupational health and enterprise practice management software, strengthening its digital health portfolio and expanding its capabilities in cloud-driven workflow management.

Practice Ownership	Any Telehealth	Video conferencing with Patients	Audio-only Patient Visits	Remote Patient Monitoring
Private Practice	68.4%	58.3%	51.7%	16.9%
Hospital-owned	79.7%	73.5%	60.7%	24.3%
Direct hospital employee/contractor	58.1%	51.4%	39.9%	23.9%
Other	71.4%	62.7%	50.6%	17.6%
All Physicians	71.4%	63.2%	53.3%	20.3%

Top Vendors in the Practice Management System Market and Their Offerings

Practice Management System Market Key Players

Company	Headquaters	Offerings
Veradigam (Allscripts)	Chicago, IL, USA	Veradigm (Allscripts) practice-management suite scheduling, billing/RCM, claims, reporting, and integrations with EHR/EHR-adjacent products.
OmniMD	Hawthorne,NY	Cloud-based EHR + Practice Management + RCM; appointment scheduling, claims management, patient intake, and analytics.
Henry Schein, Inc.	Melville,NY	Dental & medical PMS: Dentrix (dental practice management), MicroMD PM (medical practice management) scheduling, billing, imaging integration, patient communications.
AdvantEdge Healthcare Solutions	Warren, NJ, USA	Practice management & RCM services, medical billing, coding/audits, managed services for physician practices (outsourced billing + software integrations).
athrnahealth	Watertown/Boston Area, USA	athenaOne (integrated EHR + practice management + athenaCollector RCM, patient engagement) cloud SaaS for ambulatory practices.
Oracle Health (Cerner)	North Kansas City	Cerner Millennium / Oracle Health EHR with integrated practice-management and revenue/care workflows (scheduling, billing interfaces, clinical/administrative integration).
Epic Systems Corporation	Verona,WI,USA	Enterprise EHR with practice-management capabilities for large hospitals and ambulatory networks scheduling, registration, billing integrations, and patient portal.
GE HealthCare	Chicago, IL, USA	Offers practice management/reporting tools within its digital software portfolio (enCORE/Practice Management Tool), clinical workflow & integration solutions for outpatient and specialty practices.
McKesson Corporation	Irving, TX, USA	Healthcare IT & practice solutions (RCM, practice management modules, inventory & pharmacy integrations) delivered as part of its business/technology services for providers.

SWOT

Strengths

Streamlines administrative workflows, billing, and scheduling, improving operational efficiency.
Strong adoption due to rising digitalization in healthcare.
Integration with EHRs and telehealth enhances overall care delivery.
Reduces errors and improves revenue cycle management for healthcare providers.

Weaknesses

High implementation and maintenance costs for small clinics.
Data security and privacy concerns related to patient information.
Need for continuous staff training and system updates.
Limited interoperability among different healthcare IT platforms.

Opportunities

Growing demand for cloud-based and mobile health solutions.
Expansion of telehealth is increasing the need for integrated PMS.
Adoption in emerging markets due to healthcare infrastructure development.
AI-powered automation is enhancing billing, scheduling, and analytics.

Threats

Cybersecurity risks and rising ransomware attacks on healthcare systems.
Strict regulatory requirements are increasing the compliance burden.
Competition from low-cost or open-source alternatives.
Resistance from providers accustomed to traditional workflows.

What are the Recent Developments in the Practice Management System Market? 

In January 2025, Berlin-based Nelly raised USD 51 million to accelerate the digitalization of medical practices in Europe, helping over 1,200 clinics streamline onboarding, scheduling, and billing through seamless integration with existing systems.
In January 2025, Simplify Healthcare introduced SimplifyDocs.AI, an AI-driven tool that streamlines the creation of both required and optional healthcare documents. It removes manual effort, provides accurate language translations, and supports all digital and print formats to boost efficiency and documentation quality.

Segments Covered in the Report

By Product Type 

Practice Management Software Suites
- Scheduling & Appointment Management
- Billing & Claims Management
Integrated EHR–PMS Solutions
- Clinical workflow modules
- Interoperability tools
Standalone PMS Modules
- Patient registration
- Insurance verification
Reporting & Analytics Platforms
- Financial analytics 
- Operational dashboards
Ancillary Tools & Add-ons
- Communication tools
- Document management tools

By Deployment Type

Cloud-Based
On-Premise
Hybrid (Cloud + On-Premise)

By Application

Practice Administration & Scheduling
Billing & Revenue Cycle Management
Patient Engagement & Communication
Clinical Documentation Support
Other Applications

By End-User

Hospitals & Health Systems
Physician Groups & Clinics
Diagnostic & Imaging Centers
Ambulatory Surgical Centers
Other End-Users

 By Region

North America
- U.S.
- Canada
Europe
- UK
- Germany
- France
- Italy
- Spain
- Denmark
- Sweden
- Norway
Asia Pacific
- Japan
- China
- India
- South Korea
- Australia
- Thailand
Latin America
- Brazil
- Mexico
- Argentina
Middle East & Africa
- South Africa
- Saudi Arabia
- UAE
- Kuwait

FAQ's

The global practice management system market size was estimated at USD XX billion in 2025 and is predicted to increase from USD XX billion in 2026 to approximately USD XX billion by 2035, expanding at a CAGR of XX% from 2026 to 2035.

North America is currently leading the practice management system market due to advanced healthcare infrastructure, high adoption of digital health technologies, and favorable government initiatives supporting EHR and telehealth integration.

The practice management system market comprises five segments product type, deployment type, end user, application, and region.

Key trends include the growth of healthcare providers focus on streamlining scheduling, billing, and administrative workflows.

PMS solutions are typically offered as cloud-based, on-premise, or hybrid models, with cloud gaining the highest traction due to flexibility and scalability.

Ministry of Health and Family Welfare, Government of India, National Institutes of Health, FDA, WHO, PIB, CDC.  

Any Questions

Practice Management System Market to Surge USD 44.40 Bn by 2035

Practice Management System Market Powering Smart Clinics