16 Types of Healthcare Software in 2025: Complete Guide to Digital Transformation

TLDR

Healthcare software is transforming U.S. hospitals and clinics in 2025. From EHRs to AI-driven tools and wearables, this article explains the 16 most important healthcare software solutions, benefits, challenges, and future trends backed with real data and examples to guide your digital transformation journey.

Introduction: The Rise of Healthcare Software

Over the last decade, healthcare software has shifted from being a “nice-to-have” to an absolute necessity for U.S. hospitals, clinics, and startups. The pandemic accelerated this shift, pushing providers toward telemedicine, digital health apps, and AI-powered systems.

In 2025, the U.S. market is defined by two forces: rising patient expectations for digital-first care and the urgent need for providers to cut costs while meeting compliance regulations. This has made the role of healthcare software development companies vital—especially for organizations that want scalable, future-proof systems.

So, what type of software is used in healthcare, and which solutions dominate the U.S. market today? 

Healthcare software in the U.S. includes EHRs, hospital management systems, billing tools, telehealth platforms, and mobile health apps. Epic leads the EHR market with 42% share, followed by Cerner and Meditech. Smaller practices often use Athenahealth, while telehealth and RPM software are quickly expanding.

With EHRs dominating hospitals and telehealth transforming outpatient care, it’s clear that healthcare software adoption is accelerating rapidly. But how big is this market really, and what trends are driving its growth? Let’s explore the latest statistics and projections shaping the U.S. healthcare software landscape.

The Healthcare Software Landscape

The healthcare software landscape has evolved from basic digitized medical charts to a vast ecosystem of platforms that handle billing, imaging, AI diagnostics, wearables, and blockchain-powered exchanges.

Doctors now rely on EHR platforms, mobile health apps, and telehealth software for daily work. Hospitals use hospital management systems (HMS) that integrate administration, labs, and pharmacies. Patients interact with PHR apps and IoT devices that sync directly with clinics.

This raises an important question: Which software is used by doctors and hospitals most frequently in the U.S.?

• Doctors commonly use Epic, Cerner, and Athenahealth for EHR access, alongside specialized diagnostic tools.

• Hospitals rely on Epic Systems (holding 42.3% market share among U.S. acute care hospitals in 2024) (FierceHealth).

As software diversity expands, understanding the overall market size becomes critical.

Market Trends & Statistics

Healthcare is one of the fastest-growing software markets in the U.S. and globally.

• The global healthcare IT market is projected to reach $880.5 billion in 2025, up from $760 billion in 2024 (Precedence Research).

• What is the digital health market in 2025?: The digital health market alone is forecasted at $387.8 billion in 2025, growing toward $2.19 trillion by 2034 (Global Market Insights).

• What is the most used technology in healthcare?: In the U.S., 96% of hospitals have adopted certified EHRs, making it the most widely used healthcare software technology. 

These numbers highlight why healthcare software development companies are seeing record demand.

Now, let’s dive into the 16 most important types of healthcare software powering this growth.

Sixteen of the Most Popular Types of Healthcare Software

Each type of healthcare software plays a distinct role in U.S. healthcare delivery.

1. Electronic Health Record (EHR) / Electronic Medical Record (EMR) Software

EHR/EMR systems form the digital backbone of hospitals. They store patient medical histories, prescriptions, lab results, and imaging reports in one centralized platform.

• Is the EHR a software? Yes, EHRs are specialized healthcare software platforms designed to replace paper-based records.

• What is EMR system? EMRs are digital charts within a single practice, while EHRs are broader, connecting across multiple providers.

Epic and Cerner dominate this space, with Epic alone covering over 280 million U.S. patients.

While EHRs give providers a unified view of patients, there’s also a need for individuals to manage their own records. This is where Personal Health Record (PHR) software comes in.

2. Personal Health Record (PHR) Software

Unlike EHRs managed by providers, PHR software gives patients direct access to their own health data. Integrated with Apple Health or Fitbit, PHRs let users monitor vitals, immunizations, and lab results.

But data isn’t useful unless it flows securely between organizations. That’s the role of Health Information Exchange (HIE) software.

3. Health Information Exchange (HIE) Software

HIE solutions facilitate secure transfer of patient data between hospitals, labs, and clinics, making interoperability a reality. In 2023, 70% of U.S. hospitals participated in interoperable exchange, though only 43% did so routinely. To strengthen these exchanges, many organizations are pairing HIE platforms with healthcare CRM systems, ensuring that shared data also supports better patient communication and coordinated care.

Once data flows seamlessly, healthcare providers also need tools to handle the business side of care, introducing Practice Management Software (PMS).

4. Practice Management Software (PMS)

PMS software handles scheduling, billing, and reporting for clinics. Tools like Kareo are popular among small practices in the U.S. for affordability.

Scaling from small practices to entire hospitals requires more robust solutions, and that’s where Hospital Management Systems (HMS) take over.

5. Hospital Management System (HMS)

HMS platforms integrate everything from admissions to discharge, unifying hospital operations under one digital roof. These systems handle patient registration, pharmacy workflows, lab coordination, and even staff scheduling. They are essential for keeping large hospitals efficient, compliant, and patient-centered.

When it comes to adoption, many readers wonder: what software system do most hospitals use? In the U.S., the dominant choices are Epic, Cerner, and Meditech, with Epic leading the market and powering some of the country’s largest hospital networks. These platforms ensure interoperability across departments, helping providers deliver seamless care.

Increasingly, hospitals are also integrating healthcare CRM tools alongside EHRs to improve patient engagement, follow-up, and retention. By combining robust hospital management systems with healthcare CRM capabilities, providers can achieve not only operational efficiency but also a more personalized, patient-centric care model.

Beyond managing hospital workflows, another critical piece is ensuring that medical bills and insurance claims are handled efficiently, which makes Medical Billing Software indispensable.

6. Medical Billing Software

Billing software automates claims processing and ensures ICD-10 coding compliance. The global medical billing software market was worth $15.3 billion in 2024 and is expected to reach $37.6 billion by 2033

Once billing is automated, the next step is improving patient convenience through Appointment Scheduling Software.

7. Appointment Scheduling Software

From small practices to large hospitals, appointment tools like Zocdoc improve patient convenience and reduce no-shows.

Convenience is only half the story. Modern patients also expect remote consultations, which highlights the importance of Telemedicine Software.

8. Telemedicine / Telehealth Software

Telehealth surged during the pandemic, and usage continues to rise. The U.S. telehealth market alone is projected to grow at CAGR 24% (2024–2030) (Grand View Research).

Virtual visits often rely on imaging and diagnostic tools, making Medical Imaging Software the next essential piece.

9. Medical Imaging Software

AI-driven imaging solutions improve the accuracy of CT scans, MRIs, and X-rays. GE Healthcare and Philips lead this segment.

But imaging alone isn’t enough; clinicians need AI support for broader diagnosis, which is where Medical Diagnosis Software steps in.

10. Medical Diagnosis Software

AI-based diagnosis tools help detect diseases earlier. In 2025, Google’s MedLM and Microsoft’s DAX Copilot are widely discussed innovations.

After diagnosis comes treatment planning and prescriptions, made seamless by E-Prescribing Software.

11. E-Prescribing Software

E-prescribing reduces errors by sending prescriptions digitally to pharmacies. In 2024, over 80% of U.S. prescriptions were processed electronically (Surescripts).

To enhance decision-making even further, many providers integrate Clinical Decision Support Systems (CDSS).

12. Clinical Decision Support Systems (CDSS)

CDSS tools guide providers with treatment recommendations, drug interaction alerts, and evidence-based support.

While CDSS helps in hospitals, managing patients at home requires Remote Patient Monitoring Software.

13. Remote Patient Monitoring (RPM) Software

RPM has become essential for managing chronic conditions. Devices like glucose monitors and heart rate trackers connect directly to provider dashboards.

These systems often connect with mobile apps, expanding into mHealth solutions.

14. Health Tracking Apps / Mobile Health (mHealth) Apps

Fitness apps, meditation apps, and chronic illness trackers make up the largest category of patient-facing healthcare software.

Behind the scenes, labs also need advanced systems, which is why LIMS is crucial.

15. Laboratory Information Management Systems (LIMS)

LIMS software ensures accuracy and traceability in labs. This is critical for compliance with U.S. FDA regulations.

Finally, every prescription cycle ends at the pharmacy, making Pharmacy Management Software the last but vital piece of the puzzle.

16. Pharmacy Management Software

Pharmacy software automates inventory, prescriptions, and controlled drug compliance. Widely used platforms include QS/1 and McKesson Pharmacy Systems.

Together, these 16 categories form the core of modern healthcare delivery. 

But what are the real benefits providers and patients gain from adopting them?

Benefits of Healthcare Software

The adoption of healthcare software brings tangible benefits:

• Better Patient Outcomes: EHRs and decision-support tools reduce medical errors. Studies show up to a 55% drop in mistakes when hospitals adopt robust record systems. Remote monitoring tools also lower readmissions for chronic conditions by nearly 25%, improving long-term health outcomes.

• Operational Efficiency: Automation through billing, scheduling, and practice management systems cuts costs and saves staff time. For example, automated billing reduces claim denials by 30%, while scheduling platforms decrease no-shows by nearly 20%, boosting hospital revenues.

• Compliance & Security: With healthcare breaches costing an average of $10.93 million per incident in 2023 (IBM), secure software ensures HIPAA compliance through encryption, access controls, and audit trails.

• Patient Engagement: From telehealth to personal health record apps, software empowers patients to access their records and connect with providers. In 2024, 77% of U.S. patients logged into online portals, reflecting the shift toward patient-driven care.

While the benefits are transformative, adoption doesn’t come without challenges. High costs, data privacy risks, and system interoperability issues remain major barriers—topics we’ll unpack in the next section.

Challenges & Barriers

While healthcare software adoption is accelerating, providers in the U.S. face several barriers that slow digital transformation.

• High Implementation Costs: Enterprise-grade EHR rollouts often exceed $10 million, putting smaller hospitals and clinics at a disadvantage. For many organizations, the upfront investment in licenses, customization, and staff training remains a major hurdle.

• Data Security Risks: Cybersecurity is a growing threat. In 2023, healthcare data breaches cost an average of $10.93 million per incident (IBM Report), the highest across all industries. With sensitive patient records at stake, ensuring compliance with HIPAA and other regulations is critical.

• Interoperability Issues: Despite widespread EHR adoption, many systems still cannot exchange data seamlessly. According to federal data, only 43% of U.S. hospitals routinely share records across networks. This lack of interoperability is often cited as the biggest technology challenge in healthcare today. Without seamless information exchange across platforms, patients face repeated tests, providers miss critical insights, and the true promise of digital healthcare, efficiency and better outcomes, remains only partially fulfilled.

Modern solutions such as healthcare CRM platforms are increasingly being explored to bridge these gaps by connecting patient data across systems and improving care coordination.

Overcoming these barriers requires more than just investing in technology. It demands careful selection of the right solution. Not every healthcare software system fits every organization, which is why choosing wisely based on cost, usability, and integration capabilities becomes the next critical step.

Choosing the Right Health Information System

Selecting the right healthcare software is not a one-size-fits-all decision. Every hospital, clinic, or private practice has unique needs depending on size, patient volume, and budget. Making the right choice ensures long-term efficiency, compliance, and scalability.

Key factors to consider include:

• Cost and scalability: Enterprise EHRs like Epic may suit large hospital systems but can be costly for smaller organizations.

• User experience (UI/UX): A clean, intuitive interface reduces training time and improves adoption among staff.

• System hosting: Cloud-based solutions like Athenahealth offer flexibility, while on-premise hosting may be preferred for stricter control over data.

• Integration capabilities: The ability to connect with labs, pharmacies, and billing systems is essential for seamless workflows.

• Vendor reputation and training support: Strong customer service and onboarding make a significant difference in adoption success.

This raises a common question: which medical software is best? In the U.S., Epic is the go-to for large hospitals, offering deep customization and enterprise-grade scalability. For smaller practices, solutions like Athenahealth or Kareo are more affordable and easier to deploy, making them popular among independent providers.

As providers weigh these options, one thing becomes clear: the software chosen today must also be ready for tomorrow’s innovations. That’s why it’s important to look ahead at the future trends shaping healthcare software in 2025 and beyond.

Future Trends in Healthcare Software (2025 and Beyond)

The next wave of healthcare software will be defined by AI, automation, and hyper-personalization. Providers in the U.S. are already experimenting with tools that cut administrative work, improve diagnostic accuracy, and make care more patient-centered. Strategic investment in healthcare software development is critical to ensure these innovations are deployed effectively and securely.

One area drawing attention is AI in healthcare software. Hospitals are adopting platforms like IBM Watson Health, Google’s MedLM, and Microsoft’s DAX Copilot to support diagnostics, automate clinical documentation, and even assist in predicting patient outcomes. These tools don’t replace physicians but augment their work, making care delivery faster and safer.

A newer trend is the rise of Generative AI (GenAI) in healthcare. In 2025, GenAI is being applied to automated note-taking, drug discovery, and personalized treatment recommendations. For physicians, this means less time spent on paperwork and more time focused on patient care. For patients, it promises tailored treatments based on individual medical history and lifestyle data.

So, how will digital and AI reshape healthcare in 2025? Expect a shift toward precision medicine, where predictive analytics identify risks earlier, enabling interventions before conditions worsen. Administrative tasks—from billing to record updates—will also become largely automated, easing the burden on healthcare staff.

Looking at the top three trends in 2025, experts highlight:

1. AI-driven diagnostics that boost accuracy and speed.

2. Remote patient monitoring through IoT devices and wearables.

3. Blockchain-powered data sharing, ensuring security and interoperability across providers.

Together, these trends point toward a healthcare ecosystem that is smarter, safer, and more connected. But while technology evolves, providers still face a fundamental question: how do they choose the right partners to turn this vision into reality?

Conclusion

Healthcare software is the core enabler of modern medicine. From EHRs and telehealth to AI diagnostics, software adoption is reshaping care delivery across the U.S.

For providers, startups, and founders, this transformation creates both challenges and opportunities. Partnering with a trusted healthcare software development company ensures compliance, scalability, and innovation.

That’s where Better Software comes in. Whether you’re a VC-backed startup, a scaling SME in healthcare, or a non-technical founder with capital, we design scalable, AI-powered healthcare software tailored to your vision. Discover how Better Software can accelerate your digital health journey.

Summary

Healthcare in 2025 is undergoing a profound digital shift, with healthcare software at the center of innovation. Covering 16 core categories—from EHRs and telehealth to AI-powered diagnostics and wearable-integrated apps—software is now essential for every touchpoint of the U.S. healthcare system.

The market is growing rapidly, projected to hit $880.5 billion in 2025 for healthcare IT and $387.8 billion for digital health. Adoption rates are near-universal, with 96% of U.S. hospitals using EHRs. Leading vendors like Epic, Cerner, and Athenahealth dominate, but demand for niche platforms like telehealth, billing, and RPM continues to rise.

The benefits are clear: improved patient outcomes, cost savings, compliance, and efficiency. Yet challenges persist, especially around interoperability, data privacy, and implementation costs. The average healthcare data breach now costs $10.93M, making cybersecurity and vendor reliability critical.

Future trends point toward AI-driven personalization, wearable integration, blockchain security, and remote-first healthcare. Generative AI tools like MedLM and DAX Copilot are already transforming documentation and diagnostics, signaling a new era of digital healthcare.

For decision-makers, the question isn’t whether to adopt healthcare software, but which system best aligns with patient needs, compliance, and business goals. This is where a trusted healthcare software development company becomes indispensable.

Better Software specializes in building scalable, secure, and AI-powered healthcare solutions for U.S. startups, SMEs, and non-technical founders. Whether you need a custom EHR integration, a telehealth platform, or an AI diagnostic app, we align technology with your business vision—ensuring speed to market and long-term success.

FAQs

1. Which medical software is best?

Epic dominates U.S. hospitals, while Athenahealth and Kareo are strong for smaller clinics. The best healthcare software depends on practice size, integration needs, and cost. Providers should choose a solution aligned with both patient needs and compliance requirements.

2. What is Epic in healthcare?

Epic is one of the largest healthcare software systems in the U.S., covering over 280 million patients. It integrates EHR, billing, scheduling, and clinical decision tools, making it the most widely adopted platform among large hospitals and health systems nationwide.

3. What is Athena software?

Athenahealth is a cloud-based healthcare software provider known for its EHR, telehealth, and revenue cycle management. It’s widely adopted by U.S. small to mid-sized practices due to affordability, strong support, and seamless integration across healthcare workflows.

4. What is NHS Epic?

NHS Epic is the U.K. implementation of Epic’s EHR healthcare software, tailored to the National Health Service. It enables patient record digitization, interoperability, and streamlined hospital workflows, much like the U.S. version but adapted for U.K. healthcare compliance.

5. What is the difference between Epic and Cerner?

Epic is known for customizability and user interface, while Cerner emphasizes interoperability and large hospital networks. Both dominate the healthcare software market, but Epic currently holds greater U.S. market share and deeper penetration in academic medical centers.

6. What is artificial intelligence in healthcare?

AI in healthcare refers to algorithms that analyze patient data for diagnosis, drug discovery, and treatment recommendations. Examples include medical imaging analysis and predictive models that improve decision-making within healthcare software systems used by hospitals and clinics.

7. What are GenAI tools in healthcare?

Generative AI (GenAI) tools include MedLM, DAX Copilot, and AI scribes. These healthcare software solutions automate documentation, support clinical research, and provide personalized care recommendations, helping reduce physician workload while improving efficiency in hospitals and private practices.

8. What is wearable technology in healthcare?

Wearable devices like Fitbit, Apple Watch, and medical IoT devices sync with healthcare software apps to monitor vitals, track chronic conditions, and alert providers. They are widely used for remote patient monitoring, making healthcare more proactive and personalized.

9. What is the future of healthcare in 2025?

By 2025, healthcare will be more AI-driven, patient-centric, and remote-first. Hospitals and startups will rely heavily on healthcare software platforms for interoperability, personalized medicine, and predictive analytics that reshape patient care delivery across the U.S.

10. What are the future technologies for healthcare?

Future healthcare technologies include AI, blockchain for data sharing, VR/AR in medical training, IoT-connected devices, and predictive analytics. Each integrates with healthcare software development to build smarter, faster, and more reliable systems for the future of care delivery.