The healthcare SaaS market is experiencing rapid growth, with an expected reach of $146.3 billion by 2034. Here’s your complete guide to the companies revolutionizing healthcare delivery through innovative cloud-based solutions.
The Big Shift in Healthcare SaaS: Why It’s Happening Now
Healthcare has always taken its time when it comes to using new tech, but that’s changed in a big way. The global market for healthcare software as a service stood at $26.8 billion in 2024. Experts expect it to hit $146.3 billion by 2034. This shows an impressive yearly growth rate of 18.5%.
This huge leap forward is not just about what’s popular in tech. It’s about tackling the daily problems healthcare workers face:
- Administrative workload: Healthcare workers process nearly 20,000 forms each year. This takes up valuable time and often results in expensive errors.
- Billing and payment hurdles: Insurance companies reimburse 20-30% of billed amounts. Payments take more than 90 days to process.
- Staffing gaps: Jobs for physical therapists are expected to increase by 15% in the next ten years.
Companies offering Healthcare SaaS tools are providing answers that streamline tasks, cut down on errors, and let healthcare practices prioritize patient care.
Key Types of SaaS Tools in Healthcare
1. Tools Designed for Physical Therapy Practice Management
Physical therapy practice management is experiencing significant growth and change. With the industry bringing in $52 billion each year and demand going up, tailored software solutions are now a necessity.
SPRY (Sprypt.com) is an example of a cutting-edge healthcare SaaS platform. Brijraj Bhuptani, the former CTO of Ola, and Riyaz Rehman started SPRY in 2021. The startup has secured over $10 million in funding from Eight Roads Ventures to create a platform powered by AI that caters to physical therapy practices.
What sets SPRY apart:
- AI-Powered Automation: Cuts down time for documentation by 90 percent and helps push claim approval rates past 98 percent.
- Computer Vision Technology: Offers smart imaging tools to analyze patient conditions.
- Smooth Integration: Links intake, documentation, billing, and patient interactions in a single system.
- Mobile-First Design: Designed for easy access on mobile devices, making practice management possible anywhere.
SPRY provides a complete solution that spans the entire patient process—from the first appointment to follow-up—all in one platform, helping it shine in the competitive healthcare SaaS market.
2. EHR and Practice Management
EHR systems are the biggest part of healthcare SaaS, making up 16.5% of the market in 2024. These tools help organize patient data, make documentation faster, and ensure that rules in healthcare are followed.
Top companies include:
- SpryPT
- Epic Systems
- Cerner (Oracle Health)
- Athenahealth
- NextGen Healthcare
3. Telemedicine and Virtual Care
Telemedicine led the market with a 16.42% share in 2024. Its growth came from the pandemic push and more people choosing virtual care.
Major players:
- Teladoc Health
- Amwell
- Zoom for Healthcare
- Doxy.me
4. Revenue Cycle Management and Medical Billing
Managing healthcare billing has grown complicated. SaaS tools now step in to automate claims, cut down denials, and speed up payment processes.
Remarkable players include:
- Change Healthcare
- Optum
- AdvancedMD
- Kareo (Tebra)
5. Patient Engagement and Communication
Patients today want digital tools first. This raises the need for scheduling systems, patient-friendly portals, and communication platforms.
Noteworthy companies include:
- SimplePractice
- TherapyNotes
- TheraBill
- CareCloud
Market Dynamics and Trends in Healthcare Investments
A funding boom in healthcare-focused SaaS
By 2025, healthcare SaaS companies secured $2.36 billion through 69 funding rounds. This marks a staggering 423.8% jump from the same time in 2024. Investors have shown increasing trust in healthcare tech solutions.
Notable funding highlights:
- Ambience Healthcare hit unicorn status in July 2025 with a $243 million Series C
- Aidoc brought in $150 million for its radiology-focused AI
- Innovaccer closed a $275 million Series F round earlier in January 2025
Where the funding is happening
The United States has the highest number of healthcare SaaS companies at 6,640. India follows with 1,200, and the United Kingdom has 835. This pattern shows that big healthcare markets encouraging regulations for innovation and access to venture capital play a key role.
AI is Taking Over
Startups that focus on AI received 69% of all digital health investments during Q2 2025. This shows artificial intelligence now plays a major role in healthcare progress. Companies like SPRY lead this shift by making AI a core part of their platforms instead of using it as just an extra tool.
Main Advantages of Healthcare SaaS
1. Lowering Costs
Traditional healthcare software demanded heavy upfront spending on servers, licenses, and IT systems. To save on these expenses, SaaS solutions use subscription-based payment models that grow alongside a practice’s needs.
Real-world example: A hospital group in California switched to a SaaS-based EHR system. This shift helped cut their operational costs by 15% since they no longer relied on inefficient infrastructure.
2. Better Health Outcomes
By offering instant access to patient data, healthcare SaaS tools boost decision-making and improve teamwork in care. Tools such as automated alerts, patient portals, and telehealth features help patients stay engaged and follow their treatment plans.
3. Staying Compliant with Rules
Healthcare follows strict rules like HIPAA, which demand strong privacy and security setups. Top SaaS companies design their platforms to meet compliance standards, easing the pressure on healthcare providers to manage difficult security systems.
4. Scalability and Flexibility
Cloud tools let healthcare facilities grow their operations without spending on technology upgrades. SaaS platforms adjust to meet changes like opening new locations, hiring more staff, or offering additional services.
Challenges and Considerations
Data Security and Privacy
Security must come first because healthcare breaches cause serious damage. Organizations need to review vendors’ security policies, certifications, and how they handle incidents.
Integration Complexity
Healthcare organizations rely on a mix of systems, which must work well together. The top SaaS tools provide strong APIs and integration features to link up with current workflows.
Change Management
Moving from outdated systems to cloud-based ones takes solid planning. Teams need training and steady support. Good change management can make this process succeed.
Future Trends in Healthcare SaaS
1. AI and Machine Learning Integration
Experts predict the healthcare AI market could reach $148.4 billion by 2029. It has uses in areas like diagnostic help and predicting outcomes. Companies such as SPRY show how AI simplifies tasks like writing medical notes and managing billing.
2. Internet of Medical Things (IoMT)
Remote Patient Monitoring using IoMT devices is growing in the market. This technology helps track health and allows for swift medical intervention. SaaS platforms are now linking up with data collected from wearables, sensors, and smart medical tools.
3. Value-Based Care Models
The healthcare system is moving away from fee-for-service models and shifting toward value-based care. This change calls for updated metrics and new ways to report outcomes. SaaS platforms are being adjusted to handle population health needs and track results more.
4. Robotic Process Automation (RPA)
RPA tools can take over tasks like scheduling medical appointments. This helps manage staff shortages, letting healthcare workers give more attention to their patients.
How to Choose a Healthcare SaaS Platform
To select the right SaaS solution, keep these key considerations in mind:
Technical Needs
- System connections: Does it work with your current tools?
- Device support: Can the team use it on all their gadgets?
- Room to grow: Can it handle your practice as it expands?
- Speed and dependability: Is the platform quick and stable?
Rules and Safety
- HIPAA rules: Is it approved?
- Secured data: Does it encrypt information while moving or when stored?
- Activity logs: Can it track every action taken on the system?
- Disaster solutions: Are strong recovery plans in place?
Experience for Users
- Easy-to-use design: Does not need much training to understand
- Streamlined workflows: Tailored to match healthcare duties
- Support team: Always available with expert help day and night
- Learning tools: Full programs to train and get started
Money Matters
- Ownership expenses: Covers setup and ongoing fees
- Return on investment tracking: Showcases proven benefits with case studies
- Clear costs: Simple and predictable pricing ideas
- Flexible contracts: Fair terms with convenient exit options
Example Study: How SPRY Helps Physical Therapy Clinics
SPRY shows how focused SaaS tools in healthcare can improve daily operations. This is how it shakes things up.
Before SPRY: Physical therapy clinics faced challenges with writing down information dealing with hard-to-navigate billing systems, and using scattered tools that forced staff to jump between several platforms all day long.
After SPRY: Clinics have shared these results:
- BEST Physical Therapy is getting reimbursed 40% faster
- Therapists save 30% of their time spent writing notes
- Streamlined processes help therapists spend more time on patients instead of office work
Key Success Points:
- A design built for physical therapy workflows
- AI tools that cut down manual data entry tasks
- A combined system that removes the need to switch between tools
- Mobile-friendly features that make work more convenient
Market Growth Potential
North America
North America leads with a 45.39% revenue share in 2024. Advanced healthcare systems and widespread cloud use explain this dominance.
Asia Pacific
Asia Pacific will grow the quickest in the coming years. Broader healthcare access, government tech programs, and a rising middle class are boosting this growth.
Europe
Strict regulations and efforts to improve healthcare systems are pushing steady SaaS use in Europe.
Getting Started with Healthcare SaaS
For healthcare practices considering SaaS adoption:
1. Assess Current State
- Identify pain points in existing workflows
- Document current technology infrastructure
- Gather input from all stakeholders
2. Define Requirements
- Create a detailed requirements document
- Prioritize must-have vs. nice-to-have features
- Establish success metrics
3. Vendor Evaluation
- Request demos from multiple vendors
- Check references and case studies
- Evaluate the total cost of ownership
4. Implementation Planning
- Develop a detailed implementation timeline
- Plan staff training programs
- Create data migration strategies
Conclusion: The Future is Cloud-Based
Healthcare SaaS represents more than just a technology trend – it’s a fundamental shift toward more efficient, patient-centered care delivery. Companies like SPRY are leading this transformation by combining deep industry expertise with cutting-edge technology to solve real problems facing healthcare providers.
As the market continues its rapid growth trajectory toward $146.3 billion by 2034, healthcare organizations that embrace cloud-based solutions will be best positioned to deliver quality care while managing costs and regulatory requirements.
The question isn’t whether to adopt healthcare SaaS – it’s which solutions will best serve your patients and practice. With specialized platforms now available for every healthcare segment, there’s never been a better time to join the digital transformation revolution.
