May 22, 2024
Pharmacy Management System Market

Pharmacy Management System Market Is Expected To Be Flourished By Increased Adoption Of E-Prescribing

A pharmacy management system is a comprehensive information technology system that helps pharmacies manage their business, in addition to tracking patient medication and optimizing inventory. A pharmacy management system helps optimize workflow for better customer service and increase profitability by reducing dispensing errors, improving productivity, and lowering operational costs. E-prescribing functionality of pharmacy management systems allows physicians to electronically send prescriptions directly to pharmacies, thereby increasing efficiency and reducing risk of medication errors.

The global pharmacy management system market is estimated to be valued at US$ 58.2 Bn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Increased adoption of e-prescribing: Widespread adoption of e-prescribing technology is a major driver of the pharmacy management system market. E-prescribing eliminates handwritten prescriptions and allows physicians to transmit prescriptions electronically to pharmacies. This results in enhanced patient safety, lower costs, and improved workflow efficiency. According to Surescripts, an e-prescribing network facilitator, e-prescribing rates have increased from around 18% of prescriptions in 2008 to around 80% in 2020 in the U.S. The rising digitization of healthcare and government initiatives to promote adoption of e-prescribing are expected to further fuel the pharmacy management system market growth over the forecast period.

Need to curb rising healthcare costs: Rising healthcare costs are prompting healthcare providers and payers to invest in pharmacy management systems, which help optimize dispensing workflow, reduce dispensing errors, and improve inventory management. This helps reduce wastage and curtail unnecessary healthcare expenditures. A pharmacy management system with features like formulary management, real-time benefit checks, and automated substitution improves formulary adherence and lowers overall drug costs. The need to rein in escalating healthcare spending will continue driving greater adoption of cost-effective pharmacy management systems.

Segment Analysis

The pharmacy management system market can be segmented into inpatient pharmacy and outpatient pharmacy. Outpatient pharmacy is the dominating sub-segment currently as majority of medication dispensing and prescribing takes place in outpatient settings like hospitals, pharmacies and clinics. It manages inventory, billing and reporting of drugs prescribed and dispensed to patients who do not require an overnight stay in hospitals.

PEST Analysis

Political: Regulations and policies around drug pricing, insurance coverage and e-prescribing impact adoption of pharmacy management systems.

Economic: Growth in generic drug market, increase in chronic diseases, aging population driving demand for pharmacy automation.

Social: Emphasis on reducing medication errors and improving patient outcomes is a key driver.

Technological Integration of AI, blockchain and mobile technologies is optimizing workflows in pharmacies.

Key Takeaways

The global Pharmacy Management System Market Share is expected to witness high growth between 2023 to 2030, driven by rising healthcare spending and focus on reducing costs. The global pharmacy management system market is estimated to be valued at US$ 58.2 Bn in 2023 and is expected to exhibit a CAGR of 3.3% over the forecast period 2023 to 2030.

North America as the fastest growing region owing to factors such as increasing healthcare expenditure, mandatory implementation of e-prescriptions and presence of advanced infrastructure. The outpatient pharmacy segment holds the major market share currently as majority of medications are prescribed and dispensed in outpatient settings like hospitals, retail pharmacies and clinics.

Key players operating in the pharmacy management system market are McKesson Corporation, Cerner Corporation and ScriptPro LLC. McKesson Corporation dominates the market with its solutions like Pharmacy Health & Business Intelligence that provide inventory optimization, revenue cycle management and predictive analytics capabilities. Cerner Corporation offers solutions like Millennium Pharmacy Management, the most widely-used pharmacy system globally.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it