Healthcare Finance Solutions Market Size, Share, and Trends 2024 to 2034

Healthcare Finance Solutions Market Size to Surpass USD 293.12 Bn by 2034

The global healthcare finance solutions market size was USD 128.04 billion in 2023, calculated at USD 138.05 billion in 2024 and is expected to reach around USD 293.12 billion by 2034, expanding at a CAGR of 7.82% from 2024 to 2034. The North America healthcare finance solutions market size reached USD 51.22 billion in 2023. The continuous need to improve processes and performance and the requirement for hi-tech equipment and technology are some of the factors driving the healthcare finance solutions market growth.

Healthcare Finance Solutions Market Key Takeaways

• North America dominated the healthcare finance solutions market with the largest revenue share of 40% in 2023.
• Asia Pacific is estimated to grow at a fastest CAGR of 8.32% throughout the forecast period.
• By equipment type, the decontamination equipment segment dominated the market in 2023.
• By equipment type, the specialist beds segment is expected to grow at the fastest rate in the market over the forecast period.
• By healthcare facility type, the hospital & health systems segment led the global market in 2023.
• By healthcare facility type, the outpatient surgery centers segment is expected to show the fastest growth in the market during the forecast period.
• By service, the equipment and technology finance segment has contributed more than 47% of revenue share in 2023.
• By service, the corporate lending segment is expected to grow at a fastest CAGR of 8.24% during the projected period.

U.S. Healthcare Finance Solutions Market Size and Growth 2024 to 2034

The U.S. healthcare finance solutions market size was exhibited at USD 35.85 billion in 2023 and is projected to be worth around USD 83.69 billion by 2034, poised to grow at a CAGR of 8.01% from 2024 to 2034.

North America dominated the global healthcare finance solutions market in 2023. The region's well-established healthcare infrastructure, which emphasizes technological advancements and effective financial management practices, contributes to its growth. North America's mature healthcare providers, insurance companies, and robust regulatory frameworks drive the adoption of finance solutions to efficiently manage complex financial processes. The United States stands out as a leading country in the production and development of advanced healthcare products, leading to higher healthcare costs for patients. Therefore, this directly increases the financial burden on patients.

Country wise healthcare spending

Asia Pacific is estimated to grow at the fastest rate in the healthcare finance solutions market throughout the forecast period. This growth is propelled by a significant patient base and increasing healthcare expenditure across the region. Additionally, as countries in the region witness rising healthcare demands and improved access to quality medical services, the need for efficient financial management to support this growth is also rising. The growing number of healthcare providers and insurers in the region is expected to drive the demand for healthcare finance solutions.

• In July 2024, Star Health and Allied Insurance Company Limited, India's largest retail health insurance company, announced the availability of its Home Health Care services in over 50 cities across India. This highly personalized, customer-centric offering aims to provide effective healthcare solutions directly at the customer's doorstep, along with seamless and instant claims settlement.

Market Overview

The healthcare finance solutions market encompass tools and strategies employed by healthcare organizations like hospitals and clinics to effectively manage their financial processes. These solutions streamline billing and payment procedures and ensure accurate billing for patients and insurance companies. They also aid in navigating intricate insurance reimbursement models and guaranteeing fair and timely payments.

The healthcare finance solutions market provides financial analysis and reporting by offering insights into the organization's financial performance. Some solutions incorporate advanced technologies, such as artificial intelligence, to facilitate data-driven financial decisions. Hence, these solutions help healthcare providers to maintain financial stability, deliver quality patient care, and comply with regulatory requirements.

Healthcare Finance Solutions Market Growth Factors

• The increasing prevalence of chronic diseases is expected to fuel the healthcare finance solutions market growth in the upcoming years.
• Rising global geriatric population is contributing to the growth of the healthcare finance solutions market.
• Decreasing the cost of treatment facilitated by technological advancements can drive market growth further.
• Some key providers are providing great deals to support the healthcare sector, which can boost the healthcare finance solutions market growth shortly.

Market Scope

Healthcare Finance Solutions Market Dynamics

Driver

Growing need for efficient revenue cycle management

The healthcare finance solutions market is transitioning from a volume-based to a value-based care model, focusing on improving patient outcomes and engagement. Traditional fee-for-service models, which are dependent on volume-based care, do not guarantee successful patient outcomes. Regardless of the necessity or effectiveness of a service, healthcare providers are compensated for each service provided. Moreover, the primary objective of the value-based care delivery model is to enhance healthcare outcomes while controlling costs. In this framework, payers can designate a primary provider responsible for budget allocation to secondary healthcare providers, thus moving away from direct payments to individual providers.

• In October 2023, Omega Healthcare announced the launch of its Omega Digital Platform (ODP), designed to help healthcare organizations reduce administrative burdens while improving revenue cycle performance. With rising costs and ongoing staffing shortages, healthcare organizations need technology-enabled solutions that empower them to focus on delivering care and improving the patient's experience.

Restraint

Stringent regulations and lack of cost-effectiveness

The expansion of healthcare finance solutions will be hindered by high costs and unfavorable government policies. Furthermore, intense competition among market participants will impede the growth of healthcare finance solutions. Also, a lack of awareness among most of the population will serve as a restraint, which can slow the market's growth rate.

Opportunity

Artificial intelligence (AI) integration

AI integration is transforming the healthcare finance solutions market, giving substantial growth opportunities. By utilizing AI technologies, healthcare providers can streamline financial processes, boost efficiency, and enhance patient care. AI-driven algorithms analyze large volumes of patient data, accurately forecasting payment behaviors and optimizing billing processes. This leads to fewer claim denials, faster reimbursements, and improved cash flow for healthcare institutions. Additionally, advanced algorithms monitor transactions in real time, identifying suspicious activities and potentially fraudulent claims that can drive market growth further.

• In April 2024, Mphasis Collaborates with AWS to Launch Gen AI Foundry for Financial Services. The Gen AI Foundry will serve as a platform for modeling industry use cases and developing proof of concepts (POCs) initially within the financial services Industry, with plans to expand across other sectors.

Equipment Type Insights

The decontamination equipment segment dominated the healthcare finance solutions market in 2023 by equipment type. Surgical devices are only deemed safe for reuse after undergoing decontamination. Surgical devices are only deemed safe for reuse after undergoing decontamination. Decontamination equipment is essential for patient care. With more patients exposed to infections and the growing urgency to eliminate these infections, the decontamination equipment segment is expected to expand. Furthermore, the rising demand for optimal care and desired outcomes will likely increase the need for advanced equipment to support market growth.

• In June 2023, Japanese analytical instrumentation company Shimadzu Corporation has teamed up with US-based artificial intelligence and robotics expert Shyld to spearhead an AI-enhanced ultraviolet irradiation C (UV-C) disinfection technology. This Shyld AI disinfection technology in patient rooms can automatically detect risks in real time and use UV-C light to kill pathogens on multiple surfaces.

The specialist beds segment is expected to grow at the fastest rate in the healthcare finance solutions market over the forecast period. The growth in this sector is attributed to the rising demand for advanced beds in healthcare facilities. Moreover, supportive government initiatives aimed at improving healthcare infrastructure are expected to drive industry expansion. Specialist beds, including standing beds, legacy beds, and turning beds, are designed to effectively address various medical conditions. These beds are specifically made to treat severe injuries, such as back and spinal injuries.

Healthcare Facility-type Insights

The hospital & health systems segment led the global healthcare finance solutions market in 2023. Given the constantly changing regulations, the expansion of healthcare access, and increasing patient demands, hospitals need financial support. Healthcare facilities are expected to provide patients with both optimal care and desired outcomes. As a result, significant growth is anticipated for hospital and health system facilities over the forecast period.

The outpatient surgery centers segment is expected to show the fastest growth in the healthcare finance solutions market during the forecast period. As more patients choose outpatient procedures, the need for efficient financial management to handle billing, reimbursements, and revenue cycles in these centers is expected to rise rapidly during the forecast period. The growing popularity of outpatient procedures, fueled by cost-effectiveness and advancements in medical technology, has significantly boosted the demand for financial solutions in these centers. It can drive the segment's accelerated expansion.

Services Insights

The equipment & technology finance segment accounted for the largest healthcare finance solutions market share of the market in 2023. The need for substantial capital investment for setup and expensive healthcare equipment requires financial support. Digital technology has the potential to transform the patient's experience by providing real-time access to medical services and related assistance. Furthermore, upgrading to this level would involve installing equipment capable of seamlessly handling and managing these tasks. As technology progresses and the demand for advanced healthcare grows, the cost of these devices will become a crucial factor for healthcare providers. The expense of such devices will significantly influence the industry's growth.

The corporate lending segment is anticipated to grow at the fastest rate in the healthcare finance solutions market during the projected period. The accelerated growth is driven by the increasing presence of private financial institutions that offer adaptable corporate lending solutions. These institutions are gaining popularity in both developed and developing economies due to their capability to deliver flexible financial solutions tailored to the specific needs of corporate clients.

• In April 2024, Loan origination platform Decipher Credit teamed up with small business financial data provider Validis. The partnership will allow commercial lenders to extract financial and accounts receivable data in real-time, letting small- to medium-sized businesses (SMBs) go from ‘application to automated spreading’ in seconds.

Healthcare Finance Solutions Market Companies

• Koninklijke Philips N.V.
• General Electric Company
• Commerce Bancshares, Inc.
• Siemens Financial Services, Inc.
• Thermo Fisher Scientific, Inc.
• Stryker
• Gemino Healthcare Finance
• Oxford Finance LLC
• TCF Capital Solutions
• CIT Group, Inc.

Recent Developments

• In June 2022, Francisco Partners acquired healthcare data and analytics assets from IBM's Watson Health unit, forming a new independent entity named Merative. This standalone firm integrates cutting-edge technologies to provide value throughout the global healthcare ecosystem, catering to clients in various sectors such as life sciences, employer services, imaging, healthcare plans, government health, and human services industries.
• In February 2022, Oxford announced the successful finalization of a USD 50 million secured debt term loan with OncoResponse. The funds from the loan will be utilized to progress immunotherapies derived from the immune responses of highly effective cancer patients.

Segments Covered in the Report

By Equipment Type

• Diagnostic/Imaging Equipment
• Specialist Beds
• Surgical Instruments
• Decontamination Equipment
• IT Equipment

By Healthcare Facility Type

• Hospitals & Health Systems
• Outpatient Imaging Centers
• Outpatient Surgery Centres
• Physician Practices & Outpatient Clinics
• Diagnostic Laboratories
• Urgent Care Clinics
• Skilled Nursing Facilities
• Pharmacies
• Other Healthcare Providers

By Service

• Equipment And Technology Finance
• Working Capital Finance
• Project Finance Solutions
• Corporate Lending

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa