US Healthcare IT Market Research Report By Application (Electronic Health Records, Telemedicine, Healthcare Analytics, Patient Engagement Solutions, Healthcare Information Exchange), By End User (Hospitals, Ambulatory Surgical Centers, Clinics, Pharmaceutical Companies, Research Organizations), By Deployment Mode (On-Premise, Cloud-Based, Hybrid) and By Functionality (Administrative Solutions, Clinical Solutions, Financial Solutions) - Forecast to 2035

US Healthcare IT Market Overview

As per MRFR analysis, the US Healthcare IT Market Size was estimated at 74.26 (USD Billion) in 2023. The US Healthcare IT Market Industry is expected to grow from 79.5 (USD Billion) in 2024 to 165 (USD Billion) by 2035. The US Healthcare IT Market CAGR (growth rate) is expected to be around 6.863% during the forecast period (2025 - 2035).

Key US Healthcare IT Market Trends Highlighted

The US Healthcare IT market is experiencing significant trends driven by the increasing need for improved patient care and operational efficiency. A primary market driver is the shift towards value-based care, which encourages healthcare providers to utilize technology to enhance patient outcomes while reducing costs. This transition pushes healthcare systems to adopt electronic health records (EHRs) and interoperable solutions that enable seamless information exchange among various providers. Furthermore, the demand for telehealth services has surged, largely propelled by the COVID-19 pandemic, which highlighted the need for remote patient monitoring and virtual visits to ensure continuity of care. The growing emphasis on data security is also paramount, as healthcare organizations face increasing cybersecurity threats.

Regulatory frameworks, such as the Health Insurance Portability and Accountability Act (HIPAA), are continually updated to address these challenges, motivating providers to invest in more secure IT systems. Opportunities remain in areas like artificial intelligence (AI) and machine learning, which can offer predictive analytics to improve diagnosis and treatment plans. Moreover, enhancements in mobile health applications are enabling patients to take a more active role in managing their health, contributing to the trend of personalized medicine. Recently, the push for interoperability standards has highlighted the importance of effective communication between diverse healthcare IT systems, ensuring that patients receive comprehensive and coordinated care. These trends indicate a dynamic and evolving landscape in the US Healthcare IT market, fostering innovation that can lead to more efficient and effective healthcare delivery. 

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Healthcare IT Market Drivers

Increase in Chronic Diseases

The rise in chronic diseases among the US population is a significant driver for the US Healthcare IT Market Industry. According to the Centers for Disease Control and Prevention (CDC), approximately 6 in 10 adults in the United States have a chronic disease, such as heart disease or diabetes, which necessitates continuous monitoring and management. This growing prevalence leads to an increased demand for healthcare IT solutions that facilitate remote patient monitoring, electronic health records, and care coordination.

For instance, organizations like Cerner Corporation and Epic Systems are actively developing and implementing healthcare IT solutions aimed at managing chronic conditions effectively, thereby driving market growth. As these chronic diseases require extensive management and have increased healthcare costs, it is projected that demand for advanced IT technology in healthcare settings will continue to grow significantly.

Government Initiatives and Funding

The US government has recognized the critical role of technology in improving healthcare services and outcomes. Several initiatives, such as the Health Information Technology for Economic and Clinical Health (HITECH) Act, have promoted the adoption of electronic health records and incentivized healthcare providers to improve technology infrastructure. Funding programs and grants aimed at enhancing healthcare IT systems are regularly introduced, which support the integration of technology in public health initiatives.

Organizations like the Office of the National Coordinator for Health Information Technology (ONC) are pivotal in promoting the use of health IT to improve the safety and quality of healthcare across the nation. Such government support is substantial in fostering the growth and evolution of the US Healthcare IT Market Industry.

Rising Demand for Telemedicine

The COVID-19 pandemic has accelerated the adoption of telemedicine, fundamentally transforming how healthcare is delivered in the US. According to the American Medical Association (AMA), during the pandemic, telehealth visits increased by 154% in March 2020 compared to the previous year. With the ongoing shift towards virtual healthcare options, the demand for Healthcare IT solutions that support telemedicine is expected to remain strong. Companies such as Teladoc Health and Amwell are leading providers in this space, facilitating virtual consultations and remote patient management.

This trend is likely to continue as patients have come to appreciate the convenience and accessibility of telehealth services, driving further growth in the US Healthcare IT Market Industry.

Growing Need for Data Interoperability

As the healthcare landscape evolves, there is an increasing emphasis on data interoperability to enhance care delivery and patient outcomes. The ability of different healthcare systems to communicate seamlessly is essential for improving efficiency and reducing duplicates in testing and treatment. The Healthcare Information and Management Systems Society (HIMSS) highlights that effective interoperability can lead to a significant reduction in healthcare costs, potentially saving the US healthcare system billions annually.

Major players, including IBM Watson Health and Allscripts, are investing in technologies that promote interoperability among healthcare IT systems. The growing focus on this area will be a key driver for the US Healthcare IT Market Industry, as stakeholders push for integrated solutions that support coordinated care.

US Healthcare IT Market Segment Insights

Healthcare IT Market Application Insights

The Application segment of the US Healthcare IT Market is pivotal in enhancing the overall efficiency and quality of healthcare delivery. This segment encompasses various critical areas such as Electronic Health Records, Telemedicine, Healthcare Analytics, Patient Engagement Solutions, and Healthcare Information Exchange, each contributing significantly to the evolution of healthcare services in the United States. The proliferation of Electronic Health Records has greatly improved medical documentation, enabling healthcare providers to access patient information swiftly, thereby reducing medical errors and improving patient outcomes.

Telemedicine has emerged as a transformative tool, facilitating remote consultations and follow-up care, which has proven especially vital during public health emergencies, as it helps maintain continuity of care while reducing the risk of exposure to communicable diseases. Healthcare Analytics plays a critical role in transforming raw data into actionable insights, assisting healthcare providers in making informed decisions, optimizing operations, and fostering data-driven practices to improve patient care outcomes. Patient Engagement Solutions are increasingly being recognized for their ability to actively involve patients in their own healthcare journey; these tools promote better health management and adherence to treatment plans, which can lead to enhanced recovery rates and patient satisfaction.

Furthermore, Healthcare Information Exchange is vital for ensuring seamless communication and interoperability between different healthcare systems, promoting coordinated care and accurate data sharing among providers, which is essential for achieving comprehensive patient care. As the US healthcare landscape continues to evolve, the demand for these technologies is expected to increase substantially, driven by the need for better patient care, improved operational efficiencies, and the ongoing shift toward value-based care models. Collectively, these applications play a significant role in shaping the future of healthcare in the US, addressing challenges like rising healthcare costs and the need for enhanced patient engagement while opening up opportunities for further innovation and streamlined healthcare delivery processes.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Healthcare IT Market End User Insights

The End User segment of the US Healthcare IT Market encompasses a variety of critical healthcare providers and organizations, including hospitals, ambulatory surgical centers, clinics, pharmaceutical companies, and research organizations. Hospitals represent a major component, leveraging healthcare IT for improving patient care, enhancing operational efficiency, and ensuring regulatory compliance. Ambulatory surgical centers play a significant role in delivering specialized services and rely heavily on health informatics for streamlining surgical operations.

Clinics, serving as primary care touchpoints, utilize healthcare IT systems to facilitate patient management and electronic health records. Pharmaceutical companies increasingly adopt healthcare IT solutions for drug development and to gain insights through data analytics, particularly in the context of Research and Development activities, which are vital for innovation. Research organizations utilize sophisticated IT systems to manage clinical trials and research data, allowing for efficient information sharing and collaboration. The interconnectivity of these end users within the healthcare ecosystem drives the demand for innovative IT solutions, essential for improving patient outcomes and enhancing the overall efficiency of healthcare delivery in the US.

Healthcare IT Market Deployment Mode Insights

The Deployment Mode segment of the US Healthcare IT Market plays a critical role in shaping the industry's landscape, focusing on key approaches such as On-Premise, Cloud-Based, and Hybrid solutions. The On-Premise model, often favored by healthcare organizations seeking control over their infrastructure, provides enhanced data security and compliance but can entail high upfront costs and maintenance challenges. In contrast, Cloud-Based solutions are gaining traction due to their scalability, cost-effectiveness, and accessibility, enabling healthcare providers to store and process vast amounts of data efficiently.

The Hybrid approach combines the best of both worlds, offering flexibility and allowing organizations to tailor IT solutions based on specific needs, particularly pertinent in handling varying workloads and data sensitivity. The growing trend towards digital transformation in the US healthcare sector fuels demand for these deployment modes, highlighting the need for organizations to adopt solutions that enhance interoperability, improve patient care delivery, and optimize operational efficiency. Additionally, regulatory pressures and the increasing focus on data security are propelling investments in deployment strategies that align with healthcare IT requirements, ensuring robust infrastructure while adapting to evolving challenges and opportunities in the US healthcare landscape.

Healthcare IT Market Functionality Insights

The Functionality segment of the US Healthcare IT Market encompasses various solutions essential for improving operational efficiency and patient care delivery. Administrative Solutions streamline scheduling, patient records management, and workflows, which are crucial for enhancing service delivery in healthcare organizations across the United States. Clinical Solutions facilitate the implementation of Electronic Health Records (EHR), decision support systems, and telehealth services that play a significant role in patient management, particularly in light of the growing trend towards remote healthcare services.

Financial Solutions focus on optimizing billing practices, payment processing, and revenue cycle management, addressing the industry's need for robust financial health amid increasing costs. The increasing demand for integrated solutions that enhance interoperability and data sharing among providers and payers drives growth in these areas. This segment is dominant in the market, as healthcare providers seek effective tools to maximize their operational capabilities while ensuring compliance with regulations and improving patient outcomes significantly. Overall, the Functionality segment reflects an evolving landscape in the US healthcare sector, shaped by technological advancements and the need for efficient health information systems.

US Healthcare IT Market Key Players and Competitive Insights

The US Healthcare IT Market is characterized by a dynamic landscape that is continuously shaped by technological advancements, regulatory changes, and evolving consumer needs. As healthcare providers increasingly turn to digital solutions to improve patient care, streamline operations, and ensure compliance with federal mandates, competition within this space intensifies. Organizations operating in this sector face the challenge of differentiating their offerings while navigating the complexities of healthcare regulations, data security, and interoperability among various systems. A variety of companies, from startups to established giants, compete to capture market share by leveraging innovative technologies and forming strategic partnerships. The competitive insights gleaned from this market indicate a rapid acceleration toward integrated solutions that encompass electronic health records, telehealth, patient engagement tools, and data analytics to enhance healthcare delivery and outcomes.

Allscripts Healthcare Solutions is a notable player in the US Healthcare IT Market, recognized for its comprehensive range of solutions that include electronic health record systems, population health management, and revenue cycle management. The company boasts a strong market presence owing to its commitment to innovation and user-centered design, helping healthcare providers improve clinical outcomes and streamline workflows. Allscripts has built a reputation for its robust interoperability capabilities, allowing healthcare providers to share critical patient information across different platforms efficiently. The firm also fosters partnerships and collaborations with technology companies and healthcare organizations to enhance its service offerings and expand its reach within the healthcare ecosystem. Moreover, Allscripts continues to prioritize customer satisfaction and improvement in patient care, which solidifies its standing in a competitive market.

NextGen Healthcare also plays a significant role in the US Healthcare IT Market, known for its distinctive approach to delivering healthcare solutions that support behavioral health, ambulatory care, and specialty practices. The company offers a suite of key products and services, including electronic health records, practice management solutions, and value-based care tools designed to enhance operational efficiency and care delivery. NextGen Healthcare focuses on the integration of social determinants of health into patient care processes, positioning itself as a leader in the evolving landscape of healthcare IT. Additionally, the company has been proactive in expanding its market presence through strategic mergers and acquisitions, enhancing its capabilities and expanding its offerings within the industry. NextGen Healthcare's commitment to fostering a connected healthcare ecosystem and its focus on specialized solutions contribute to its competitive advantage in the US market, reinforcing its position as a trusted partner for healthcare providers aiming to improve patient outcomes and operational efficiencies.

Key Companies in the US Healthcare IT Market Include

• Allscripts Healthcare Solutions


• NextGen Healthcare


• Optum


• Verily Life Sciences


• Meditech


• IBM Watson Health


• eClinicalWorks


• McKesson Corporation


• Intersystems


• GE Healthcare


• NantHealth


• Athenahealth


• Epic Systems


• Philips Healthcare


• Cerner Corporation

US Healthcare IT Market Industry Developments

Recent developments in the US Healthcare IT Market have seen significant advancements, particularly in the area of digital health solutions. Allscripts Healthcare Solutions announced enhancements to their EHR platforms in September 2023 aimed at improving interoperability. Verily Life Sciences has been garnering attention for its role in various health data initiatives, particularly in collaborating with pharmaceutical companies to leverage data for better healthcare outcomes. In terms of mergers and acquisitions, McKesson Corporation completed the acquisition of a leading HealthTech firm in August 2023, enhancing their capabilities in pharmacy automation. Furthermore, Optum has expanded its technological services through partnerships aimed at streamlining patient management processes. The valuation growth of companies like Cerner Corporation and Epic Systems continues to reflect the increasing reliance on digital solutions in healthcare, with overall market growth driven by innovation and demand for EHR systems.

Major occurrences over the last few years, such as the widespread implementation of telehealth technologies during the pandemic, have significantly influenced the market landscape, establishing a long-term trend toward digital transformation across all healthcare sectors in the United States.

US Healthcare IT Market Segmentation Insights

Healthcare IT Market Application Outlook

• Electronic Health Records


• Telemedicine


• Healthcare Analytics


• Patient Engagement Solutions


• Healthcare Information Exchange

Healthcare IT Market End User Outlook

• Hospitals


• Ambulatory Surgical Centers


• Clinics


• Pharmaceutical Companies


• Research Organizations

Healthcare IT Market Deployment Mode Outlook

• On-Premise


• Cloud-Based


• Hybrid

Healthcare IT Market Functionality Outlook

• Administrative Solutions


• Clinical Solutions


• Financial Solutions

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	74.26(USD Billion)
MARKET SIZE 2024	79.5(USD Billion)
MARKET SIZE 2035	165.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.863% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Allscripts Healthcare Solutions, NextGen Healthcare, Optum, Verily Life Sciences, Meditech, IBM Watson Health, eClinicalWorks, McKesson Corporation, Intersystems, GE Healthcare, NantHealth, Athenahealth, Epic Systems, Philips Healthcare, Cerner Corporation
SEGMENTS COVERED	Application, End User, Deployment Mode, Functionality
KEY MARKET OPPORTUNITIES	Telehealth expansion, Interoperability solutions, AI-driven diagnostics, Cybersecurity enhancements, Remote patient monitoring
KEY MARKET DYNAMICS	Regulatory compliance, Interoperability challenges, Data security concerns, Telehealth adoption, Patient engagement tools
COUNTRIES COVERED	US