GLOBAL MEDICAL TERMINOLOGY SOFTWARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

Global Medical Terminology Software Market- Drivers

• Need to Reduce Medical Errors and Improve Patient Safety: The need to reduce medical errors and improve patient safety is a major driver fostering growth of the global medical terminology software market. Medical errors arising from inaccuracies in clinical documentation can have severe implications on patient health. According to WHO, medication errors alone contribute to over 1 million patient harms each year globally. Medical terminology software enhances clinical documentation quality by integrating standard terminologies into EHRs and other healthcare IT systems. This pre-coordination of medical phrases and terms eliminates ambiguity and enhances clarity in clinical notes. Smooth data mapping and seamless integration of medical vocabulary enhances patient safety by reducing misinterpretation of clinical information. Medical terminology software is being increasingly adopted to minimize medical errors and advance patient safety. For instance, on April 7, 2023, Cognizant a information technology company collaborated with Microsoft a technology company to help providers and payers that use the TriZetto platform to enhance revenue growth and streamline claims management.
• Adoption of Electronic Health Record (EHR) Solutions: The growing adoption of electronic health records (EHR) and other healthcare IT solutions boosts demand for medical terminology software. EHR systems contain large volumes of patient health data recorded by multiple caregivers. Medical terminology software becomes indispensable in such systems to allow standardized capture, retrieval and interpretation of medical data. It enables aggregation of patient data from disparate systems into EHRs by seamlessly mapping different medical vocabularies. Medical terminology solutions enhance EHR functionalities such as clinical decision support, quality reporting and care coordination by integrating medical dictionaries into workflows. The integration eliminates ambiguity and enhances clinical documentation quality. For instance, on April 17, 2023, Microsoft a technology company collaborated with Epic a software company to develop and integrate generative AI into healthcare by combining the scale and power of Azure OpenAI Service1 with Epic’s industry-leading electronic health record (EHR) software.
• Need to Curtail Healthcare Costs: The pressing need to curtail healthcare costs and enable better reimbursement outcomes is boosting demand for medical terminology software. Medical vocabulary management software allows the seamless capture of clinical data in a standardized form. This enhances the efficiency and accuracy of medical coding and billing processes. Accurate documentation and coding is imperative for securing optimal reimbursement outcomes. According to a survey, up to 90% of denied claims result from improper clinical documentation and coding. By integrating medical terminology into workflows, the software solution enhances coding precision. It also reduces billing errors and minimizes revenue leakage, and thus, driving better financial outcomes. The cost-curbing benefits offered by medical terminology software makes it an indispensable tool for healthcare organizations.
• Regulatory Requirements Mandating Use of Standard Terminologies: Regulatory requirements making the use of standardized medical vocabularies mandatory boosts adoption of medical terminology software. Regional regulations such as the US' Meaningful Use Stage 2 uses terminologies such as SNOMED CT mandatory for EHR certification. International standards such as ICD-10 CM necessitate standardized capture of clinical data for smooth cross-border healthcare data exchange. Medical terminology software solutions enable seamless mapping and integration of such standardized vocabularies into healthcare IT systems and workflows. This allows care providers to comply with regulatory terminology requirements efficiently. The software tools are therefore becoming indispensable assets for healthcare organizations looking to comply with norms and access incentives linked to terminology adoption.

Global Medical Terminology Software Market- Opportunities

• Integration of Medical Terminology Software with Big Data Analytics: The integration of medical terminology software with big data analytics presents significant growth opportunities. As healthcare becomes increasingly data-driven, analytics integration can derive meaningful insights from the massive volumes of standardized clinical data. Medical terminology software harmonizes patient data captured in disparate formats into a standardized structure. This data can be aggregated into data lakes and integrated with analytics tools. Big data analytics when combined with semantically-interoperable data can uncover game-changing insights to transform population health management.
• Adoption in Emerging Markets: Emerging markets across Asia Pacific, Latin America and Middle East offer lucrative growth opportunities for medical terminology software vendors. These markets are witnessing steady growth in EHR adoption due to population health pressures and digital health investments. According to WHO in 2021, the Asia Pacific EHR market is projected to exhibit a CAGR of around 13% through 2030. Medical terminology tools allow the standardization for optimal utilization of EHR systems being rapidly adopted across emerging economies. Localization support also enables localized implementations tuned to regional care settings and terminology needs. Companies that can cater to diverse regional requirements can obtain a strong competitive footing.
• Incorporation of AI Capabilities: Incorporating AI-driven natural language processing and clinical decision support capabilities into medical terminology software solutions offers significant opportunities for growth and product differentiation. NLP integration can allow automated extraction of medical phrases and concepts from unstructured clinical notes using terminology knowledge. CDSS integration can link medical terms to clinical protocols enabling evidence-based guidance. Companies developing AI-enabled terminology management solutions to automate clinical documentation and supercharge decision support can gain popularity. In February 2021, HealthTerm a terminology platform partnered with Saykara a health-tech company to integrate AI-driven voice documentation capabilities into its app.
• Cloud-based SaaS Delivery Models: Cloud-based delivery models present lucrative prospects for medical terminology software vendors. Amid the remote health paradigm, clinicians are demanding better accessibility to medical vocabulary resources. Companies are transitioning from legacy client-server models to SaaS delivery that allows anywhere anytime access via web apps and mobile apps. Cloud-based tools also enable frequent updates to dynamically maintain standards compliance. According to a poll by Black Book in 2020, over 90% of hospitals intend to switch to cloud-based EHR solutions by 2027. Medical terminology software providers embracing next-gen SaaS platforms and cloud technology can future-proof their solutions while meeting changing care delivery needs.