Medical software has become the foundation of most healthcare organizations’ operations. Almost all small practices, large hospitals and providers in between rely on these services to provide a top-notch patient experience. This starts during patient registration and continues all the way to the final patient statement. Government incentives and penalties around medical software adoption have primarily driven this shift toward widespread EMR use.
Typically, smaller practices pay for a cloud-based medical software subscription, whereas large health groups may require on-premise systems. In both cases, a variety of solutions exists, and in 2024, advancements in both realms are expected.
According to research from Allied Market Research, these trends will push the size of the global medical software industry to $63.8 billion by 2030. This represents a 7.7 percent compound annual growth rate between 2020 – when the industry was valued at $30.6 billion – and 2030.
The Allied Market Research report highlighted the increase in artificial intelligence (AI) use as a major driver in industry growth. The growing population of geriatric adults, a factor that demands stronger recordkeeping and patient management, will also contribute to the global medical software industry’s growth in 2024.
As cloud-based technology expands, security weaknesses may result, so EMR data security is expected to be a priority in 2024. A patient data breach that the medical billing service Arietis Health announced in 2023 may fuel this concern. This breach resulted in the selling of patient medical information and Social Security numbers. A February 2024 suspected ransomware attack against UnitedHealth Group unit Change Healthcare may further drive cybersecurity concerns. Expect EMR vendors to emphasize data security in 2024 and encourage you to do the same.
Additionally, a recent study found that only 38 percent of U.S. hospital systems achieved three core medical billing quality standards. These standards were the timely sending of itemized patient statements, hospital legal action on overdue patient payments and patient access to qualified billing specialists. Since more than 60 percent of U.S. hospital systems failed to meet at least one of these standards, expect all these standards to be paramount in 2024. This notion may apply equally to hospitals and smaller practices.
Artificial intelligence (AI) is also set to be a major growth driver in the medical software sector. For example, some doctors have already begun using a program known as DocsGPT tool to streamline their writing of several certificates and letters. These include patient referrals, post-surgery instructions and death certificates. As this technology becomes more commonplace, leading medical software providers may integrate it fully into their platforms.
Generative AI-based messaging systems may also prove beneficial in creating direct patient care tools. Researchers at NYU Langone Health recently examined the benefits of utilizing Chat GPT when designing a personalized messaging system for patients with diabetes. The study found that this technology has strong potential to bridge the gap between technical teams and medical experts in designing patient care software.
Doctors and nurses can input prompts which take their nuanced medical knowledge into account. Chat GPT can then output explanations of what’s needed in technical development terms, so engineers can design a messaging system that benefits the patient.
Another type of medical software may become more prominent in 2024: virtual reality (VR). According to a Virti survey of 211 U.S. healthcare workers, 77 percent of healthcare organizations are using VR to train staff. Although the term “medical software” is currently used to describe EMR and PMS systems, VR software may start getting folded into this term in the near future.
We also expect an increased focus on transparency in the patient bills that practices generate through their EMR software. For example, Texas recently passed a law mandating clear invoices before sending patients to collections. Additionally, national publications have reported on a Colorado billing error that could affect tens of thousands of people. Medical billing transparency could well be one of the big stories within medical software in 2024.
Similarly, the Minnesota Attorney General’s office has launched an investigation into how the health systems Allina Health and Mayo Clinic conduct medical billing. Public listening sessions to get consumer feedback are core to this investigation. The increasing government attention on medical billing in 2023 suggests that, in 2024, using your medical software to power a positive patient billing experience is paramount.
In 2024, practices must also heed the federal No Surprises Act, which guards patients against unexpected medical bills. However, this law, which was enacted at the start of 2022, has already been subject to change and controversy. Two federal district court rulings have invalidated certain aspects of the act, and in July 2023, federal agencies requested that one court reverse its ruling.
An amicus brief was also filed by the American Medical Association’s Litigation Center with the 5th U.S. Circuit Court of Appeals in April 2024. The Litigation Center has requested one of the federal rulings invalidating part of the law be upheld. It’s clear that the No Surprises Act will continue to be debated in courts as 2024 progresses.
Additionally, as of late November 2023, approximately 30 public companies have cited the No Surprises Act as a potential risk. According to the Biden administration’s February 2024 progress report, these companies may have been right. For starters, the three federal agencies that manage the Act are spending more time enforcing it than expected. Additionally, insurers were ordered to pay greater amounts to out-of-network providers than they would to contracted providers in over 80 percent of Act-related disputes.
All medical software platforms should be equipped to accommodate the U.S. Centers for Medicare and Medicaid Services (CMS) final rule that took effect in 2023. This rule expands Medicare Part A and B coverage to include dental procedures that could improve patient disease and treatment outcomes. Knowing that practices will likely need to change for what, and in what ways, they bill their patients, we expect to see medical software adapting to ensure they are able to account for these changes.