It s all about markets MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET -GLOBAL FORECASTS TO 2019 MARKETSANDMARKETS

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1 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET BY SOLUTION (DOCUMENT SCANNING SOFTWARE, DOCUMENT MANAGEMENT SOFTWARE), BY APPLICATION (MEDICAL RECORDS MANAGEMENT), BY MODE OF DELIVERY (WEB-BASED, CLOUD-BASED), BY END-USER (HOSPITALS) -GLOBAL FORECASTS TO 2019 It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com

2 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. MarketsandMarkets covers fourteen industry verticals, including aerospace and defence, advanced materials, automotives and transportation, biotechnology, chemicals, consumer goods, energy and power, food and beverages, industrial automation, medical devices, pharmaceuticals, semiconductor and electronics, and telecommunications and IT. Copyright 2015 MarketsandMarkets All Rights Reserved. This document contains highly confidential information and is the sole property of MarketsandMarkets. No part of it may be circulated, copied, quoted, or otherwise reproduced without the approval of MarketsandMarkets. 1

3 1 EXECUTIVE SUMMARY The growing demand for electronic management of medical documents to improve the quality of care across the globe is expected to increase the adoption of medical document management (MDM) systems in healthcare organizations. These solutions facilitate improved patient care and enhanced communication and information exchange between varied entities such as physicians, staff, residents, families of residents, and pharmacies. The global medical document management systems market is valued at $ million in 2014 and is poised to reach $ million by 2019, at a CAGR of from 2014 to Medical document management systems have gained remarkable importance in the healthcare industry over the years, owing to the advantages they offer over traditional manual documents handling methods. As healthcare is a paper-intensive sector and is seeking for ways to efficiently manage the information while ensuring the security and privacy of patient information, the medical document management systems market witnesses significant opportunities. The emphasis on transformation of healthcare into ehealth since 2000 have contributed to the growth of medical document management systems over the last five years. Factors such as need to minimize compliance risks and curtail healthcare costs that propel the demand for MDM systems, increasing need to minimize use of paper-based documentation among healthcare organizations across the globe, and rise in healthcare reforms and government initiatives that support the adoption of healthcare EHR and HIE systems across healthcare organizations are driving the market growth. In addition, increasing consolidation and demand for interoperability in the healthcare industry are leading to generation of large amount of electronic data in healthcare organizations, which offers significant growth opportunities for medical document management systems market. However, reluctance among physicians, nurses, and other medical staff to adopt advanced healthcare IT systems and high software maintenance costs can hinder the growth of this market. Moreover, integration of medical document management systems with pre-existing systems in healthcare organizations poses challenges for players in this market. In this report, the medical document management systems market is segmented into products, applications, modes of delivery, end users, and regions. On the basis of products, the medical document management systems market is segmented into medical document management solutions and medical document management services. The solutions segment includes standalone medical document management software and integrated medical document management software. The standalone medical document management software is further segmented into document scanning software, document management software, and document access & workflow management software. Medical document management services are segmented into implementation & integration services; maintenance, support, & optimization services, and education & training services. On the basis of applications, the market is categorized into patient medical records management, patient billing document management, admission & registration document management, and patient image management. Market by mode of delivery includes on-premises, web-based, and cloud-based solutions. The major end users of medical document management systems are hospitals & clinics, nursing homes, assisted living facilities, long-term care centers, insurance providers, and other healthcare institutions. The market, by region, is divided into four major geographies, namely, North America, Europe, Asia-Pacific, and Rest of the World (RoW). The Porter s five forces analytical framework suggests that the threat of substitutes in the market is low. Also, there are low entry barriers for new entrants in the market which is marked by high competitive rivalry. The bargaining power of buyers in the market is high while that of suppliers is low. 2

4 FIGURE 1 INTEGRATED DOCUMENT MANAGEMENT SOFTWARE SEGMENT WILL CONTINUE TO DOMINATE THE MARKET DURING THE FORECAST PERIOD Market Size ($Million) CAGR (%) Integrated Document Management Software % Standalone Document Management Software National Association of Healthcare Quality, Medical Records Institute, Centre for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis On the basis of solutions, the integrated document management software segment continues to lead the market, accounting for approximately of the global medical document management solutions market in This segment shows significant growth opportunities during the forecast period and is poised to grow at a CAGR of from 2014 to

5 FIGURE 2 NORTH AMERICA DOMINATED THE GLOBAL DOCUMENT MANAGEMENT SYSTEMS MARKET IN 2013 Market Share: CAGR: 5 Market Share: CAGR: Market Share: CAGR: North America Europe Market Share: CAGR: Asia-Pacific Rest of World *Flags represent top 5 fastest-growing countries National Association of Healthcare Quality, Medical Records Institute, Centre for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis In 2013, North America accounted for the largest share of the global medical document management systems market, followed by, Europe, Asia-Pacific, and the RoW. The market in Asia-Pacific is expected to grow at the highest CAGR of during the forecast period, largely driven by the increasing number of government initiatives for ehealth and rising medical tourism in countries such as India, Thailand, and Singapore. Presence of various small and medium-sized players in this market intensifies the competition, thus challenging bigger players and new entrants in the market. In order to increase their market shares, medium-sized and small players are continuously upgrading their existing products and launching new products through strategic partnerships whereas the bigger players are acquiring small players to expand and strengthen their product portfolios. McKesson Corporation, Hyland Software Inc. Cerner Corporation, and Siemens Healthcare, the major players in the market, are currently driving the market by providing comprehensive medical document management systems. The medical document management systems market is a diversified and competitive market with a large number of players. Some of the prominent players in this market include McKesson Corporation (U.S.), Siemens Healthcare (Germany), 3M Company (U.S.), Cerner Corporation (U.S.), GE Healthcare (U.K.) Hyland Software, Inc. (U.S.), Toshiba Corporation (U.S.), Kofax Ltd. (U.S.), Quest Diagnostics, Inc. (U.S.), and Allscripts Healthcare Solutions, Inc. (U.S). 4

6 2 PREMIUM INSIGHTS 2.1 GROWTH POTENTIAL OF THE MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET FIGURE 3 ATTRACTIVE GROWTH OPPORTUNITIES IN THE MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET $Million $Million ATTRACTIVE MARKET OPPORTUNITIES The global medical document management systems market is expected to reach $ million by 2019, at a CAGR of from 2014 to 2019 Market growth can mainly be attributed to increasing government initiatives for ehealth, which focuses on improving the quality of healthcare and patient care across the globe, and the need to reduce healthcare delivery costs Emerging economies such as India, China, Brazil, and South Korea offer several untapped opportunities Increasing consolidation in healthcare organizations, rising demand for interoperability among healthcare organizations, and development of multi-disciplinary medical document management systems offer lucrative opportunities for market players in the next 5 years Partnerships and agreements are a key strategy of market players to offer complete solutions for document management and EHRs National Association of Healthcare Quality, Medical Records Institute, Centers for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis 5

7 3 MARKET OVERVIEW 3.1 INTRODUCTION Medical document management systems are emerging as powerful tools to create and maintain electronic health records (EHRs) for maintaining the workflows in the entire healthcare organization. These systems significantly minimize the use of paper and increase the operational efficiency of the organization while adhering to the healthcare laws. They help deliver quality healthcare and lead to improved clinical outcomes by making the clinical study and administration of drugs to the patient faster and quicker. Majority of the demand for medical document management systems is driven by the growing need to reduce healthcare costs while adhering to the regulatory requirements set by various government organizations in order to ensure safety, security, and confidentiality of patient information. The growing adoption of health information exchange (HIE) and EHR systems and rising need to improve the quality of care are some other factors driving growth of the medical document management systems market. In addition to the demand for document management systems from healthcare providers, the growing need of healthcare insurance providers to efficiently manage an in-depth record of claims and reimbursements is also expected to contribute to the growth of the medical document management systems market in the coming years. On the other hand, lack of in-house IT domain knowledge, on-site IT support, and reluctance of healthcare providers to adopt new methods of document management are some factors restraining the market growth. Despite these restraints, market players are increasingly focusing on maximizing their market shares through technological upgrades of existing solutions and by expanding their geographic presence in the high-growth emerging markets. 3.2 MARKET SEGMENTATION BY PRODUCT Based on products, the market is categorized into medical document management solutions and medical document management services. Medical document management solutions are further segmented as standalone and integrated medical document management software. The standalone medical document management software considered are of three types namely, document scanning software, document management software, and document access & workflow management software. Similarly, medical document management services are further segmented as implementation & integration services; maintenance, support, & optimization services, and education & training services. 6

8 FIGURE 4 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY PRODUCT Medical Document Management Systems Market, by Product Medical Document Management Solutions Market Medical Document Management Services Market Standalone Medical Document Management Software Document Scanning Software Document Management Software Document Access and Workflow Management Software Integrated Medical Document Management Software Medical Document Management Services Market Medical Document Management Services Market Medical Document Management Services Market Source: Annual Reports, SEC Filings, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis BY APPLICATION Based on applications, medical document management systems market is subdivided into four types, namely, patient medical records management, medical image management, patient admission & registration document management, and patient billing document management. FIGURE 5 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY APPLICATION Medical Document Management Systems Market, by Application Patient Medical Records Management Patient Image Management Patient Admission and Registration Document Management Patient Billing Document Management Source: Annual Reports, SEC Filings, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis 7

9 4 INDUSTRY INSIGHTS 4.1 STRATEGIC BENCHMARKING TECHNOLOGY INTEGRATI ON & PRODUCT UPGRADE S WERE THE MOST ADOPTED STRATEGIES FIGURE 6 STRATEGIC BENCHMARKING: HYLAND SOFTWARE, INC. LARGELY ADOPTED INORGANIC GROWTH STRATEGIES FOR TECHNOLOGY INTEGRATION AND PRODUCT UPGRADES Partnered with Docusign (U.S.) Partnered with Communication Intelligence Corporation (U.S.) Hyland Software, Inc. (U.S.) Partnered with Nuance Communications, Inc. (U.S.) Upgraded its OnBase ECM Solution to OnBase14 Partnerships, Agreements, and Product Upgrades Cerner Corporation (U.S.) Partnered with Xerox Corporation (U.S.) Partnered with Intermountain Healthcare (U.S.) Partnered with Nuance Communications, Inc. (U.S.) GE Healthcare (U.K.) Upgraded its Centricity Practice Solution Upgraded its Centricity Business Source: Annual Reports, SEC Filings, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis 8

10 5 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY PRODUCT 5.1 INTRODUCTION Medical document management (MDM) systems provide comprehensive paperless solutions that are designed to streamline workflow, reduce expenses, and facilitate compliance with mandatory regulatory guidelines. These systems offer several benefits such as rapid return on investment (ROI), high security, increased practice profitability, accessibility and reduce staff time for handling paper documents. The global medical document management (MDM) systems market is broadly segmented into solutions and services. The MDM solutions market primarily focuses on software solutions for improving medical record management in the healthcare sector. This market is further segmented into standalone software and integrated software. The standalone software segment covers document scanning software, document management software, and document access and workflow management software. The integrated software segment combines all the above functions into a single integrated document management system. The global medical document management solutions market is poised to reach $ million by 2019 from $ million in 2014, growing at a CAGR of in the forecast period. The medical document management services market is segmented into implementation and integration services, support, maintenance services & optimization services, and education & training services for healthcare organizations. The services market is poised to reach $ million by 2019 from $ million in 2014, growing at a CAGR of in the forecast period. Some of the major players in this market are 3M Company (U.S.), Mckesson Corporation, (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), GE Healthcare (U.K.), Kofax Ltd. (U.S.), Toshiba Corporation (Japan), Quest Diagnostics, Inc. (U.S.), Hyland Software, Inc. (U.S.), Siemens Healthcare (Germany), and Cerner Corporation (U.S.). FIGURE 7 MEDICAL DOCUMENT MANAGEMENT SERVICES MARKET WILL CONTINUE TO DOMINATE THE MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET Market Size ($Million) CAGR (%) Solutions Services National Association of Healthcare Quality, Medical Records Institute, Centre for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis 9

11 6 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY APPLICATION FIGURE 8 PATIENT BILLING DOCUMENT MANAGEMENT SEGMENT WILL CONTINUE TO DOMINATE MARKET Market Size ($Million) CAGR (%) Patient Billing Patient Medical Records Document Management Management Medical Image Management Patient Admission & Registration Document Management National Association of Healthcare Quality, Medical Records Institute, Centers for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, MarketsandMarkets Analysis TABLE 1 GLOBAL MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET SIZE, BY APPLICATION, ($MILLION) Application CAGR ( ) Patient Billing Document Management Patient Medical Records Management Patient Image Management Patient Admission & Registration Document Management Total National Association of Healthcare Quality, Medical Records Institute, Centers for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, MarketsandMarkets Analysis The patient billing document management segment accounted for the largest share of of the global medical document management systems market, by application in This market is poised to reach $ million by 2019 from $ million in 2014, growing at a CAGR of during the forecast period of 2014 to

12 7 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY MODE OF DELIVERY 7.1 INTRODUCTION Over the years, the clinical, administrative, and financial workflows in healthcare organizations have undergone a transition from paper-based systems to software based systems. Software-based systems are deployed in an organization through different modes of delivery according to the organization s needs. Typically, medical document management solutions are provided to end users through three modes of delivery web-based, on-premise, and cloud-based. The phenomenal pace of technological advancements is modifying the way healthcare organizations run IT systems and solutions. A large number of healthcare organizations are shifting from on-premise to cloud-based or web-based models for core applications. Web-based solutions accounted for the majority share of of the global medical document management systems market in 2013, whereas cloud-based solutions are poised to grow at the highest CAGR in the next five years. The web-based and cloud-based models offer improved performance and reliability by reducing long deployment cycles. They also minimize upfront capital investment, thereby eliminating the incurrence of high infrastructure costs. Currently, many providers of medical document management systems are shifting from on-premise to cloud-based or web-based models for core applications. TABLE 2 GLOBAL MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET SIZE, BY DELIVERY MODE, ($MILLION) Mode of Delivery CAGR ( ) Web-Based Solutions On-Premise Solutions Cloud-Based Solutions Total National Association of Healthcare Quality, Medical Records Institute, Centers for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis The Web-based solutions segment accounted for the largest share of of the medical document management systems market in This segment is poised to reach $ million by 2019 from $ million in 2014, at a CAGR of from 2014 to WEB-BASED SOLUTIONS Web-based medical document management systems allow healthcare organizations to view and retrieve electronic medical documents securely from web-enabled locations anywhere in the world. In web-based systems, the server is located at a remote site, and all patient records and information can be accessed over the internet. Greater flexibility to access data, streamlined workflows, and reduced infrastructure investment are responsible for the larger adoption of web-based medical document management systems among healthcare organizations. Moreover, these solutions are the most accessible and affordable option for traditional healthcare providers who are often reluctant to adopt new technologies. Furthermore, in the web-based model, vendors are responsible for the maintenance and operation of servers and software, which eliminates the buyer s (healthcare provider) responsibility of server support maintenance, thereby minimizing their cost of maintaining in-house IT staff. 11

13 8 MEDICAL DOCUMENT MANAGEMENT MARKET, BY END USER 8.1 INTRODUCTION FIGURE 9 GLOBAL MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET SIZE, BY END USER, 2014 VS Hospitals & Clinics Nursing Homes, Assisted Living Facilities, & Long-term Care Centers Insurance Providers CAGR (%) Other Healthcare Institutions Market size ($Million) Note*: Other healthcare institutions include academic medical centres, rehabilitation centers National Association of Healthcare Quality, Medical Records Institute, Centre for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, and MarketsandMarkets Analysis 8.2 HOSPITALS & CLINICS Hospitals and clinics are one of the major end-users of medical document management solutions and services. Different medical document management tools help hospitals to keep all the medical documents in an organized and secured manner, and minimize the use of paper-based documentation. These systems automate patient management; medical records management; patient billing; and patient admissions, registration, and discharge. Thus, these systems help hospitals to improve various administrative tasks. Moreover, managed records streamline the administrative workflow in a hospital, while curtailing the administrative costs associated with paper storage and paper handling. The increasing demand for high-quality care and the rising need for reducing healthcare costs are the major factors driving the growth of the global medical document management systems market. Moreover, rising privacy-related concerns and increasing stringency of regulatory requirements are also supporting the greater adoption of medical document management systems. Factors such as the rising need to eliminate paper-based processes in care delivery and administrative tasks (to improve operational efficiency of hospitals), make medical records secure, and improve access to information (to improve clinical efficiency) are further driving the growth of this market. 12

14 9 MEDICAL DOCUMENT MANAGEMENT SYSTEMS MARKET, BY REGION FIGURE 10 REGIONAL SNAPSHOT (2013) RAPID GROWTH MARKETS EMERGING AS NEW HOT SPOTS Canada U.K. Germany Japan U.S. France Spain Italy China India Latin America Middle East and Africa < CAGR CAGR CAGR > CAGR Note: The figures next to country/region name indicate market share of the given country/region National Association of Healthcare Quality, Medical Records Institute, Centre for Disease Control and Prevention, Association of Organization (WHO), Eurostat, Expert Interviews, MarketsandMarkets Analysis 9.1 NORTH AMERICA North America, comprising the U.S. and Canada, accounted for the largest share of the global medical document management systems market in The large share of this region can be attributed to the high healthcare IT spending, high adoption of healthcare IT technologies, regulatory requirements regarding patient data privacy, and presence of large number of IT companies, such as Siemens Medical Solutions USA (U.S.), Cerner Corporation (U.S.), 3M Company (U.S.), McKesson Corporation (U.S.), Hyland Software, Inc. (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), Epic Systems (U.S.), and GE Healthcare (U.S.). Factors such as growing need to contain soaring healthcare costs, enhance the quality of healthcare, and improve overall efficiency of healthcare organizations are driving the growth of the medical document management systems market in North America. The U.S. health spending, accounting for around $ trillion in 2010, is expected to increase from % of GDP in 2009 to % of GDP by Medical document management systems are increasingly being used by healthcare organizations in the North American region to streamline various administrative functions such as forms processing, claims processing, and reduce paper handling costs of the organization, thereby minimizing the overall healthcare costs incurred in care delivery. Furthermore, medical document management solutions are also increasingly being used in the North American market to ensure compliance with various regulatory guidelines and standards, and to improve the quality of care by reducing cases of medical errors and adverse events in the healthcare systems. 13

15 10 COMPETITIVE LANDSCAPE 10.1 OVERVIEW TABLE 3 GROWTH STRATEGY MATRIX, Company New Product Launches Agreements, Partnerships, and Alliances Mergers and Acquisitions Product Upgrades and Enhancements Expansions McKesson Corporation Cerner Corporation Siemens Healthcare Hyland Software GE Healthcare 3M Company Allscripts Healthcare Solutions, Inc. Kofax Limited Toshiba America Business Solutions, Inc. Quest Diagnostics, Inc. *Note: Others include product acquisitions, new application launches, product updates, and exhibitions. Source: Press Releases 10.2 MARKET SHARE ANALYSIS The global medical document management systems market is fragmented in nature, with the top three players, namely, McKesson Corporation (U.S.), Hyland Software, Inc. (U.S.), and Cerner corporation (U.S.) accounting for ~ of the market share in Other leading players in this market include Siemens Healthcare (Germany), Kofax Ltd. (U.S.) who collectively accounted for a share of ~ of the global medical document management systems market in In the medical document management systems market, there are numerous smaller players as well, operating at both global and regional levels. The leading market players are based across developed countries such as Germany, Japan, and the U.S.; however, in the past few years, a number of smaller players have emerged in other emerging markets, competing with global players on the basis of price and technological innovation. Other prominent players such as GE Healthcare (U.K.), 3M Company (U.S.), Toshiba America Business solutions, Inc. (U.S.), Quest Diagnostics, Inc. (U.S.), Allscripts Healthcare Solutions, Inc. (U.S.), CGI Technologies and Solutions, Inc. (U.S.), EMC Corporation (U.S.), Computer Program and Systems Inc. (U.S.) accounted for the remaining market share of ~ in

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