EHR & practice management

EHR and practice management software is the clinical and operational backbone of ambulatory care - independent physician groups, specialty practices, dental and veterinary offices, behavioural health providers and federally qualified health centres. Distinct from the enterprise hospital EHR market dominated by Epic and Oracle Cerner, this category covers smaller and mid-sized practices that run on cloud-native suites combining EHR, scheduling, billing and patient engagement. The shift from server-based products to cloud SaaS is largely complete on the ambulatory side, and Meaningful Use and the 21st Century Cures Act drove almost universal adoption in the US. PE has rolled up the category aggressively over the past decade.

The sector spans ambulatory EHR for primary care and specialty practices, integrated practice management and billing suites, dental and veterinary practice software, behavioural and mental health practice platforms, FQHC and community health centre software, and the patient engagement and front-office layer wrapped around them.

Revenue comes from per-provider monthly subscriptions, percentage-of-collections billing fees on the RCM side, transaction fees on patient payments and claims, implementation and migration services revenue, and a growing line from add-on modules covering patient acquisition, marketing and online reputation management.

EHR & practice management is part of Digital health.

$44B

Global market size

24

Public companies

Y Combinator
General Catalyst
Antler
Bessemer Venture Partners

Key VC investors

ChiroHD
Canopii Collaborative
BV Investment Partners
Spring Health

Key strategic buyers

Business model

How EHR & practice management companies monetize?

EHR and practice management companies monetize through per-provider SaaS subscriptions, percentage-of-collections RCM and embedded payments take rate.

Per-provider SaaS subscriptions

Monthly fee per clinician using the platform, typically $300-$700 per provider per month for integrated EHR plus PM. Scales with the practice's clinician headcount.

Percentage-of-collections RCM

Fee taken as a percentage of net collections processed through the platform - typically 4-9% for full-service RCM. The economics line that ties vendor revenue to customer billing volume.

Per-claim & transaction fees

Flat fees on claim submissions, eligibility checks and patient payment processing. Used as the variable layer on top of subscription pricing.

Add-on modules

Patient marketing, reputation management, telehealth and analytics modules priced separately. Expansion revenue source - drives the NRR profile of vendors like Tebra.

Implementation services

One-time fees for data migration, training and configuration. Smaller share of revenue in cloud-native vendors than in legacy server-based products.

Marketplace & payments take rate

Embedded payments and integrated patient financing earn a take rate on patient transactions flowing through the platform. The fastest-growing revenue line at Tebra and AdvancedMD.

EHR & practice management valuations in May 2026

Public EHR & practice management comps trade at 2.1x EV/Revenue. Median revenue multiple across EHR & practice management M&A deals was 1.6x in the last 12 months. Median revenue multiple across EHR & practice management VC rounds was 33x in the last 12 months.

2.1x

Median EV/Revenue as of May 2026 for public EHR & practice management companies

5.7x

B-Soft Co.

B-Soft Co. is the highest valued public EHR & practice management company based on EV/Revenue (excluding outliers)

1.6x

Median EV/Revenue across EHR & practice management M&A deals in the last 12 months

33x

Median EV/Revenue across EHR & practice management VC rounds in the last 12 months

Sector breakdown

EHR & practice management market segments

Major EHR and practice management segments include ambulatory EHR and PM suites, dental practice management and behavioural health practice software.

Ambulatory EHR & PM suites

Integrated cloud platforms covering clinical records, scheduling, billing and patient communication for small and mid-sized physician practices. The core category. Key players: athenahealth, eClinicalWorks, NextGen Healthcare and AdvancedMD.

Independent practice & SMB-focused platforms

Modern cloud-native suites built for the long tail of one-to-twenty-provider practices, with strong patient acquisition and marketing integration. Key players: Tebra (Kareo + PatientPop merger), DrChrono (EverHealth), CharmHealth and Practice Fusion (Veradigm).

Dental practice management

EHR, imaging, scheduling and billing for dental and orthodontic practices. Largely separate from medical platforms because of imaging and billing workflow differences. Key players: Henry Schein One, Curve Dental, Open Dental and Weave.

Behavioural & mental health practice software

EHR and billing platforms built around therapy notes, group practice operations and payer billing for behavioural health providers. Fast-growing PE roll-up category. Key players: SimplePractice (EngageSmart/Vista), TheraNest, TherapyNotes and Headway (network model).

FQHC & community health centre software

Specialised EHR and PM platforms supporting Medicaid-heavy and grant-funded clinical workflows for federally qualified health centres and rural clinics. Key players: NextGen, Greenway Health, eClinicalWorks and OCHIN (non-profit).

Veterinary practice software

Practice management, medical records, inventory and client communications for veterinary clinics and hospitals. Active M&A as PE consolidates vet care. Key players: Covetrus (Vetsource), IDEXX, Vetspire and Provet Cloud.

Specialty-specific platforms

EHR built around the workflow of a single specialty - dermatology, optometry, fertility, pediatrics. Higher ARPU than horizontal platforms because of clinical depth. Key players: Modernizing Medicine (PE-owned), Nextech, ophthalmology-focused Compulink and PracticeMojo.

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Sector KPIs

Key EHR & practice management KPIs to track

ARR, providers under contract, ARPU per provider and claims volume are the metrics investors track in EHR and practice management.

KPIDefinition
ARRAnnual recurring revenue from subscription contracts. The cloud-native share of total revenue tells you the trajectory versus legacy server installs.
Providers under contractClinician count across the customer base. The standard scale metric for ambulatory and specialty practice software.
ARPU per providerTotal revenue divided by active provider count. Tells you how much of the suite (EHR + PM + RCM + add-ons) the customer is buying.
Net revenue retentionExisting-customer revenue 12 months later, including expansion and churn. Cloud-native vendors like Tebra and athenahealth target 110%+; legacy vendors sit at or below 100%.
Claims volume processedAnnual claims submitted through the platform. The headline activity metric for vendors with percentage-of-collections RCM revenue.
Collections rateShare of billed charges actually collected. Strong RCM operators run at 95%+ of net collectible revenue, weak ones materially below.
Gross marginCloud-native ambulatory SaaS sits at 60-75%; full-service RCM businesses sit at 35-55% because of human-labour cost in billing operations.
Practices on platformTotal number of customer practices. Used alongside provider count to read whether growth is coming from new logos or from existing customers adding clinicians.
Key players

Main EHR & practice management players globally

The most active EHR and practice management companies and category leaders globally.

CompanyHQOverview
athenahealth
athenahealth.com
Boston
Cloud-native ambulatory EHR and RCM platform serving over 160,000 clinicians. Taken private by Bain Capital and Hellman & Friedman in 2022 at $17B. The reference asset in the category.
eClinicalWorks
eclinicalworks.com
Westborough
Privately held EHR vendor serving roughly 180,000 providers and 900,000 medical professionals globally. Strong in independent and group practices; founder-owned, no outside capital.
NextGen Healthcare
nextgen.com
Remote (HQ less, formerly Irvine)
Ambulatory EHR and PM vendor taken private by Thoma Bravo in November 2023 for $1.8B. Strong footprint in FQHCs, behavioural health and specialty practices.
AdvancedMD
advancedmd.com
South Jordan
Cloud-based EHR, PM and RCM platform for independent practices. Sold by Global Payments to Francisco Partners in 2024 as part of a broader divestiture of healthcare assets.
DrChrono
drchrono.com
Sunnyvale
Mobile-first ambulatory EHR acquired by EverHealth (formerly EverCommerce Health Services) in 2021. Targets small medical practices and concierge medicine.
Newport Beach
Formed from the 2021 merger of Kareo (PM) and PatientPop (patient acquisition). Serves over 150,000 providers across small and independent practices; reportedly preparing for IPO in 2026.
Veradigm (formerly Allscripts)
veradigm.com
Chicago
Rebranded Allscripts ambulatory business focused on health data, payer analytics and Practice Fusion (free ad-supported EHR). Delisted from Nasdaq in 2024 after accounting restatements.
CharmHealth (MedicalMine)
charmhealth.com
Pleasanton
Bootstrapped cloud EHR and PM platform under the Zoho-affiliated MedicalMine. Popular with naturopathic, functional medicine and small group practices.
Greenway Health
greenwayhealth.com
Tampa
Ambulatory EHR and PM vendor owned by Vista Equity Partners since 2013. Intergy and Prime Suite are the core product lines, serving roughly 65,000 providers.
Modernizing Medicine
modmed.com
Boca Raton
Specialty-specific EHR built for dermatology, ophthalmology, orthopaedics and several other specialties. Acquired by Clearlake Capital in 2024; reportedly approaching $400M ARR.

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Market trends

Key EHR & practice management market trends

PE roll-ups, ambient AI scribes inside the EHR and embedded payments are reshaping EHR and practice management right now.

PE roll-ups of ambulatory EHR

Bain (athenahealth), Thoma Bravo (NextGen), Vista (Greenway), Clearlake (ModMed) and Francisco Partners (AdvancedMD) have built a private institutional category around ambulatory EHR. Multiple LBOs in 2023-24 reset platform ownership.

Ambient AI scribes inside the EHR

Abridge, Suki, Augmedix, Nuance DAX and athenahealth's own ambient tooling are reducing physician documentation burden in ambulatory care. Tebra, NextGen and ModMed all shipped AI scribe integrations through 2024-25 and pricing has settled at $99-$199 per provider per month.

Behavioural health practice software boom

SimplePractice (acquired by EngageSmart, then taken private alongside it by Vista in 2024), TheraNest and Headway have built scaled platforms behind the post-pandemic mental health practice growth. The space is the fastest-growing slice of practice software.

Information blocking and TEFCA

ONC's information blocking rules and the TEFCA framework (now in early-production with multiple QHINs live) are reshaping interoperability requirements. Smaller vendors without a certified API roadmap have been losing larger group-practice deals.

Embedded payments and patient financing

Vendors are layering Stripe-style payments, Affirm-style patient financing and modern patient portals onto the EHR. The take-rate revenue at Tebra, AdvancedMD and Weave is now growing faster than core SaaS subscriptions.

Veterinary and dental consolidation

Henry Schein One (dental) and Covetrus (veterinary) continue to consolidate non-medical practice software. Both categories run higher EBITDA margins than medical EHR because of looser regulatory overhead.

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