Ambulatory EHR Market Size, Share, Growth & Industry Analysis, By Application (Practice Management, Patient Management, E-prescribing, Referral Management, Population Health Management, and Others), By Practice Size (Large Practices, Medium-sized Practices, and Small Practices), By Delivery Mode (On-Premise and- Cloud-based), By End-User, and Regional Analysis, 2024-2031

Ambulatory EHR Market Size

The global Ambulatory EHR Market size was valued at USD 18.45 billion in 2023 and is projected to grow from USD 19.54 billion in 2024 to USD 30.97 billion by 2031, exhibiting a CAGR of 6.80% during the forecast period. In the scope of work, the report includes solutions offered by companies such as Allscripts, Healthcare solutions Inc., EMD systems software private limited., Athenahealth Inc., Oracle Corporation, eClinicalWorks, Epic Systems Corporation, Greenway Health, LLC, Medical Information Technology Inc., NXGN Management, LLC., CureMD Healthcare and others.

The ambulatory EHR market is experiencing robust growth, driven by regulatory incentives, continual technological advancements, and the need for improved patient care and operational efficiency. The expansion of the market is augmented by the rising adoption of EHR solutions by developed markets to enhance healthcare information management and meet regulatory requirements.

Technological advancements, including telehealth integration and AI/ML capabilities, are revolutionizing patient care and operational efficiency within ambulatory settings. Government initiatives, such as the Promoting Interoperability program, further stimulate EHR adoption by providing incentives for healthcare providers.

• For instance, on April 2023 Microsoft Corp. and Epic expanded their strategic collaboration to integrate generative AI into healthcare, combining Azure OpenAI Service's capabilities with Epic’s leading electronic health record (EHR) software. This partnership aimed to enhance operational efficiencies and patient care in ambulatory settings, leveraging their established relationship that supported running Epic environments on Microsoft Azure's cloud platform.

This partnership focuses on integrating next-generation EHR systems to ensure seamless patient records across ambulatory and emergency care settings, emphasizing clinical continuity and enhanced care coordination. These initiatives underscore the growing importance and adoption of advanced EHR solutions in modern ambulatory healthcare environments.

Ambulatory EHR (Electronic Health Record) refers to digital systems designed to store and manage patient health information in outpatient care settings, such as clinics, physician offices, and other non-hospital healthcare facilities. These systems facilitate the capture, storage, and retrieval of patient data, including medical history, diagnoses, medications, treatment plans, and test results.

Ambulatory EHRs aim to improve clinical workflows, enhance patient care coordination, and support regulatory compliance by providing healthcare providers with comprehensive and accessible patient information at the point of care.

Analyst’s Review

The growth of the ambulatory EHR market is mainly propelled by key strategies implemented by market players, including product launches, regulatory approvals, partnerships, and collaborations.

• For instance, on June 2022, MEDITECH’s mobile ambulatory EHR and practice management solution was made available to independent and physician-owned practices. It offered a personalized, flexible user experience that was intuitive for clinicians, convenient for patients, and profitable for healthcare practices.

This particular solution, with its web and touch-based design, offers a personalized user experience and efficient office workflows without necessitating an extensive EHR infrastructure in hospital settings. Furthermore, the increasing emphasis on regulatory compliance and incentives is a major factor propelling market growth. Government initiatives such as the Meaningful Use program provide financial incentives for adopting EHR systems, compelling healthcare providers to transition from paper-based to electronic records.

Ambulatory EHR Market Growth Factors

The enhancement of patient care and operational efficiency through EHR systems is stimulating market growth. EHRs provide comprehensive patient data at the point of care, thereby improving diagnostic accuracy and treatment outcomes. The market centralizes patient information, allowing for a holistic view of health, that supports well-informed clinical decisions.

Features such as clinical decision support, e-prescribing, and automated reminders minimize errors and streamline workflows, thus enhancing precision and efficiency. As healthcare providers recognize these benefits, demand for EHR systems is expected to rise due to improvements in clinical and administrative performance, which lead to higher patient satisfaction and better healthcare outcomes.

Interoperability remains a significant hurdle hampering the growth of the ambulatory EHR market, which is crucial for seamless integration across diverse healthcare systems and settings to enhance data exchange and patient care coordination. Key players are tackling this challenge  by implementing initiatives such as HL7 FHIR, thus promoting standardization and facilitating interoperability between systems.

Investments in advanced integration platforms and APIs further bolster connectivity, ensuring smooth interoperability across varied healthcare environments. These efforts aim to overcome compatibility issues and improve overall healthcare efficiency by enabling comprehensive data access and streamlined workflows for healthcare providers.

Ambulatory EHR Market Trends

Governments and healthcare authorities globally are contributing significantly to the widespread adoption of electronic health records (EHR) through regulations and incentives. In the United States, the Meaningful Use program, which is a part of the Promoting Interoperability initiative under the Centers for Medicare & Medicaid Services (CMS), demonstrates such efforts.

This program offers financial incentives to healthcare providers for effective EHR implementation and usage. Compliance with these regulations ensures that providers avoid penalties and secures monetary benefits, thereby boosting EHR adoption in ambulatory care settings. These regulatory frameworks are pivotal in fostering the transition to digital health records, thus enhancing overall healthcare delivery and efficiency.

The incorporation of artificial intelligence (AI) and machine learning (ML) technologies into EHR systems is revolutionizing the ambulatory care industry. AI-powered EHRs are able to analyze vast amounts of data to provide predictive analytics, identify patient risk factors, and suggest personalized treatment plans. 

Furthermore, machine learning algorithms enhance clinical decision support by continuously learning from historical data, thereby improving accuracy and efficacy over time. These advancements facilitate more personalized patient care, promoting innovation and the widespread adoption of advanced EHR systems in ambulatory settings. The integration of AI and ML technologies is expected to fuel the ambulatory EHR market expansion in the coming years.

• For instance, in June 2022, St. Peter's Health partnered with Innovaccer to integrate the company's healthcare cloud platform into care sites to improve care management. St. Peter's Health included over 100 providers, a 99-bed acute care hospital, and other ambulatory service lines.

Segmentation Analysis

The global market is segmented based on application, practice size, delivery mode, end-user, and geography.

By Application

Based on application, the ambulatory EHR market is categorized into practice management, patient management, e-prescribing, referral management, population health management, and others. The practice management segment garnered the highest revenue of USD 6.01 billion in 2023. Practice management EHR focuses on optimizing administrative workflows and enhancing operational efficiency within outpatient healthcare settings.

Key functionalities include patient scheduling, billing, and revenue cycle management, supported by features such as automated appointment reminders and insurance verification. These systems integrate seamlessly with clinical EHRs to ensure comprehensive patient care coordination.

Technological advancements such as AI-driven analytics and telehealth integration are shaping the landscape of practice management EHRs by enhancing their capabilities to meet evolving healthcare demands and improve overall practice efficiency and patient satisfaction.

• Additionally, in March 2023, U.S.-based Northwell Health signed an agreement with healthcare software provider Epic to adopt the next-generation electronic health record (EHR) as part of its continuous digital transformation to provide a flawless patient and team member experience. With Epic, Northwell focused on delivering a single patient record across ambulatory and emergency settings to promote clinical continuity and care coordination.

By Delivery Mode

Based on delivery mode, the market is divided into on premise, and cloud-based. The cloud-based segment captured the largest ambulatory EHR market share of 63.22% in 2023. The cloud-based segment in healthcare IT encompasses a range of services and solutions delivered via cloud computing technology. This includes electronic health records (EHR), telemedicine platforms, revenue cycle management systems, and healthcare analytics tools. 

The expansion of the segment is mainly attributable to the increasing demand for scalable and cost-effective IT solutions, enhanced data accessibility, and improved operational efficiency in healthcare organizations. This growth is further supported by the growing adoption of digital health technologies and significant investments in cloud infrastructure by healthcare providers worldwide.

By End-User

Based on end-user, the market is classified into hospital-owned ambulatory centers and independent ambulatory centers. The hospital-owned ambulatory centers segment is projected to generate the highest revenue of USD 16.62 billion by 2031, as it offers convenient access to outpatient services within hospital networks. These centers enable hospitals to expand their service capabilities beyond traditional inpatient care, catering to the growing demand for outpatient procedures and consultations.

They enhance patient convenience and satisfaction while optimizing resource utilization and operational efficiency for healthcare providers. These centers further support integrated care delivery models, thereby promoting continuity of care and improved patient outcomes. Additionally, hospital-owned ambulatory centers contribute to revenue diversification and cost containment strategies, thus solidifying their position in healthcare services.

Ambulatory EHR Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America ambulatory EHR market share stood around 34.56% in 2023 in the global market, with a valuation of USD 6.38 billion. The region's robust healthcare infrastructure, coupled with high adoption rates of digital health technologies, leads to increased demand for advanced EHR systems in outpatient settings. Regulatory incentives and mandates, such as Meaningful Use and MACRA in the United States, prompt healthcare providers to adopt EHRs to improve patient care quality and operational efficiencies.

Moreover, increasing investments in healthcare IT and emphasis on interoperability stimulate domestic market growth, facilitating seamless data exchange and care coordination across diverse healthcare facilities. These factors collectively position North America as a key region in aiding the expansion of the ambulatory EHR market.

Asia-Pacific is anticipated to grow at a robust CAGR of 8.22% over the forecast period. Rapid digital transformation across healthcare systems in countries such as China, India, and Japan is fostering increased adoption of electronic health records (EHR) in outpatient settings. Government initiatives aimed at modernizing healthcare infrastructure and improving healthcare access are further contributing to regional market expansion.

Additionally, rising healthcare expenditure, the growing prevalence of chronic diseases, and increasing patient demand for better healthcare services are fueling the adoption of advanced EHR solutions in the region. Moreover, the integration of telemedicine and mobile health technologies is further propelling the adoption of ambulatory EHR systems, thereby enhancing healthcare delivery and patient outcomes. These factors collectively highlight Asia Pacific as a dynamic and rapidly growing market for ambulatory EHR solutions.

Competitive Landscape

The global ambulatory EHR market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Companies are implementing impactful strategic initiatives, such as expanding services, investing in research and development (R&D), establishing new service delivery centers, and optimizing their service delivery processes, which are likely to create new opportunities for market growth.

List of Key Companies in Ambulatory EHR Market

• Allscripts Healthcare Solutions Inc.
• EMD Systems Software Private Limited.
• Athenahealth Inc.
• Oracle Corporation
• eClinicalWorks
• Epic Systems Corporation
• Greenway Health, LLC
• Medical Information Technology Inc.
• NXGN Management, LLC.
• CureMD Healthcare

Key Industry Development

• September 2023 (Advancement): The Georgian Bay Information Network (GBIN), a partnership of six Ontario healthcare organizations, advanced its use of Oracle Health’s electronic health records (EHR) by adding new capabilities for advanced clinical services, optimized medication administration, and oncology specialty support under its recently launched multi-year project called eNautilus. These additions helped caregivers improve patient safety, enhanced collaboration between caregivers across facilities, and reduced the administrative burden on clinicians across GBIN’s combined 15 hospitals.

The global ambulatory EHR market is segmented as:

By Application

• Practice Management
• Patient Management
• E-prescribing
• Referral Management
• Population Health Management
• Others

By Practice Size

• Large Practices
• Medium-sized Practices
• Small Practice

By Delivery Mode

• On-Premise
• Cloud-based

By End-User

• Hospital-owned Ambulatory Centers
• Independent Ambulatory Centers

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America