Technology Spending on Core Administration in Healthcare Market Report 2025

The technology spending on core administration in the healthcare market size has grown strongly in recent years. It will grow from $40.85 billion in 2024 to $44.26 billion in 2025 at a compound annual growth rate (CAGR) of 8.3%. The growth during the historic period can be attributed to the rising demand for automation in billing and claims processing, the growing volume of healthcare data requiring efficient records management systems, increasing regulatory complexity driving investments in compliance-related technologies, the heightened focus on patient experience and engagement platforms, and the rise in operational costs prompting greater administrative optimization.

The technology spending on core administration in the healthcare market size is expected to see strong growth in the next few years. It will grow to $60.13 billion in 2029 at a compound annual growth rate (CAGR) of 8%. The growth in the forecast period can be attributed to the increasing adoption of cloud-based administrative platforms, the rising emphasis on value-based care models, greater federal and state-level incentives for health information technology adoption, the growing focus on cybersecurity and data protection in administrative systems, and the rising popularity of self-service portals for patients and staff. Key trends expected during this period include technology advancements enabling real-time scheduling and appointment management, progress in automation tools for claims and billing processing, improvements in cloud-based infrastructure to support scalable administrative operations, integration of telehealth platforms with backend administrative workflows, and the development of advanced cybersecurity solutions to safeguard administrative data.

The rising adoption of telemedicine is expected to drive the growth of technology spending on core administration in the healthcare market in the coming years. Telemedicine refers to the delivery of healthcare services remotely using digital technologies such as video conferencing, messaging, and mobile apps for patient diagnosis, treatment, and monitoring. Its growing use enables patients to access care without traveling, improving convenience and accessibility, particularly for those in rural or underserved areas. Core administrative technology investments support telemedicine by automating processes such as patient registration, scheduling, billing, and claims management, which streamline operations, reduce delays, and allow providers to focus on delivering timely virtual care. For example, in April 2023, FAIR Health Inc., a US-based nonprofit organization, reported that national telehealth utilization increased by 7.3%, rising from 5.5% of medical claim lines in December 2022 to 5.9% in January 2023. Therefore, the expanding use of telemedicine is fueling technology spending on healthcare administration.

Leading companies in this market are introducing innovative solutions such as prebuilt artificial intelligence (AI) tools to automate administrative tasks and enhance efficiency. Prebuilt AI tools are ready-to-deploy solutions that provide advanced automation, data analysis, and predictive capabilities without requiring extensive custom development, enabling healthcare organizations to streamline workflows more quickly. For instance, in February 2025, Salesforce Inc., a US-based cloud software company, launched Agentforce for Health, a suite of prebuilt AI tools designed to automate healthcare administration and clinical tasks. The platform includes features such as appointment scheduling, insurance eligibility verification, and care coordination support, while also assisting with disease surveillance and clinical trial matching by leveraging registry data. These capabilities aim to reduce administrative burden, ease workforce strain, and improve efficiency across healthcare systems.

In May 2025, Infinx Healthcare, a US-based provider of end-to-end revenue cycle management (RCM) services, acquired the Healthcare RCM business of i3 Verticals Inc. for an undisclosed sum. This acquisition expands Infinx’s reach into academic medical centers and large provider groups while strengthening its AI-driven RCM portfolio. By combining scalable technology with expert services, the company aims to maximize revenue, reduce administrative overhead, and enhance patient management nationwide. i3 Verticals Inc. is a US-based provider of RCM software.

Major players in the technology spending on core administration in healthcare market are Microsoft Corporation, Siemens AG, International Business Machines Corporation, Oracle Corporation, Tata Consultancy Services (TCS) Limited, Cognizant Technology Solutions Corporation, GE Healthcare Technologies Inc., Infosys Limited, Prime Healthcare Services Inc., Conduent Incorporated, Evolent Health Inc., Veradigm Inc., Tempus AI Inc., Tebra Inc., 314e Corporation, Qventus Inc., Meditab Software Inc., CodaMetrix Inc., Raintree Systems Inc., ReLi Med Solutions Inc.

North America was the largest region in the technology spending on core administration in healthcare market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in technology spending on core administration in the healthcare market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the technology spending on core administration in the healthcare market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sudden escalation of U.S. tariffs and the consequent trade frictions in spring 2025 are severely impacting the healthcare sector, particularly in the supply of critical medical devices, diagnostic equipment, and pharmaceuticals. Hospitals and healthcare providers are facing higher costs for imported surgical instruments, imaging equipment, and consumables such as syringes and catheters, many of which have limited domestic alternatives. These increased costs are straining healthcare budgets, leading some providers to delay equipment upgrades or pass on expenses to patients. Additionally, tariffs on raw materials and components are disrupting the production of essential drugs and devices, causing supply chain bottlenecks. In response, the industry is diversifying sourcing strategies, boosting local manufacturing where possible, and advocating for tariff exemptions on life-saving medical products.

Technology spending on core administration in healthcare refers to investments in digital systems and tools that support essential non-clinical operations such as claims processing, member enrollment, and revenue management. These investments focus on software platforms and automation solutions that reduce manual workloads, improve data accuracy, and streamline administrative processes across healthcare organizations.

The main categories of technology spending on core administration in healthcare include software, hardware, and services. Software consists of programs, instructions, and data designed to operate computers and perform specialized tasks. Core administrative technologies include electronic health records (EHRs), patient management systems, financial management systems, supply chain management systems, and revenue cycle management systems, deployed through on-premise, cloud-based, or hybrid models. These solutions are applied across various functions, such as patient management, staff management, and inventory management, and are utilized by a wide range of end users, including hospitals, clinics, insurance providers, and others.

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The technology spending on core administration in the healthcare market consists of revenues earned by entities providing services such as patient eligibility verification, medical coding and billing support, compliance tracking and regulatory reporting, and document management and digital recordkeeping. The market value includes the value of related goods sold by the service provider or included within the service offering. The technology spending on core administration in the healthcare market also includes sales of enterprise healthcare software, cloud-based administrative platforms, artificial intelligence (AI)-driven analytics tools, electronic data interchange (EDI) systems, and patient management applications. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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