According to Precedence Research, the medical billing outsourcing market was estimated at US$ 9.5 billion in 2019 and is expected to hit around USD 23.7 billion by 2027; poised to grow at a compound annual growth rate (CAGR) 12.1% during the forecast period 2020 to 2027.
The advent of new technological solutions, bad debt and uncollectible accounts, and increasing & changing government requirements have sparked a new trend accounting for an increased influence of medical billing outsourcing by numerous healthcare service providers. Medical billing outsourcing increases the cash flow as well as helps in saving the cost of software and equipment, and also reduces employee expenses and staff size.
The global medical billing outsourcing market has augmented rapidly in recent past owing to the increasing application of IT resources in the healthcare industry along with the consistent government support for the same. Surge in the healthcare expenditure specifically in the developed regions has led to steady progress of the sector that enables escalating adoption of advanced technological devices and equipment such as medical billing outsourcing. With the increasing availability of IT resources for example medical billing outsourcing, many medical centers have chosen to focus on healthcare dispensation, whereas third-party service providers have gain significance in numerous aspects of administration and data storage of healthcare entities.
Medical billing outsourcing market is segregated primarily into in-house and outsourced segments. Among them, outsourced segment held the largest market value share in the year 2020; in addition to this, the segment exhibits lucrative growth over the forecast period. Outsourcing of medical billing service prominently reduces costs in combination to this it proves as a good fit for medium and small healthcare institutes.
In the recent past, physician practices that includes clinics/ physician and acute care hospitals were facing numerous challenges as cost were increasing and reimbursements have declined; additionally, new regulations introduced by the government had transformed business more complex. The above mentioned factors expected to trigger the demand for medical billing outsourcing services prominently in the coming years.
Front end service comprises of the main function of medical billing outsourcing along with this accounted for the largest market value share in the year 2019. On the contrary, the front end services are likely to face market devaluation owing to increased competition and saturation in the market. Front-end services include processes such as preregistration, insurance verification, scheduling, eligibility, registration, and pre-authorization.
On the other side, middle end services are likely project lucrative growth over the coming years because of new market entrants in the sector as well as rising awareness for the middle end service among practitioners.
Hospital segment dominated the global medical billing outsourcing market with nearly half of the value share in 2019 and analyzed to maintain its dominance during the forecast period. This is mainly attributed to prime uses of such services in hospitals due to high claim of volume. Furthermore, the consolidation of hospitals increases complexity in reimbursement and billing procedures. Hence, the aforementioned factors trigger the demand for medical billing outsourcing services in the hospital sector.
Moreover, physician offices and private clinics are also adopting outsourcing services in various fields, thus experience the fastest growth in the global medical billing outsourcing market over the forecast period. Further, rise in the total services offered by the physician along with changes in the government regulations are contributing significantly for the increase in the adoption of Revenue Cycle Management (RCM) services by physicians at their medical facilities.
North America led the global market for medical billing outsourcing in the year 2019. Numerous healthcare service providers in the United States have shifted their focus towards end-to-end outsourcing firms for effectively managing their billing processes. In addition, increasing awareness related to the benefits provided by the outsourcing firms, healthcare service providers rely more on the third-party companies to manage high-volume transactions and enhance their operating margins.
On the other hand, developing regions such as Latin America and the Asia Pacific projected to record lucrative growth rate during the forecast year owing to standardization of outsourcing practices across the globe. In addition, improper medical facility has triggered the governments to prominently invest in the development of healthcare and hospital infrastructure that again propel the market growth in the regions.
Key Companies & Market Share Insights
The global medical billing outsourcing market seeks high competition among the market players. Mergers & acquisitions, partnerships, and technological advancement are some of the prime business strategies adopted by these industry participants to expand their regional presence along with the services offered. For example, in July 2019, Cerner Corporation signed a partnership agreement with Amazon Web Services (AWS) to access its global infrastructure and cloud space for driving healthcare IT innovations. The partnership anticipated to enhance the lower operational budgets and clinical efficiency for healthcare organizations. Similarly, in February 2019, Veritas Capital announced to acquire athenahealth, Inc. in collaboration with the Evergreen Coast Capital, as a minority investor.
Few of the prominent players in the medical billing outsourcing market are as follows:
Report Scope of the Medical Billing Outsourcing Market
|Market Size||USD 23.7 Billion by 2027|
|Growth Rate||CAGR of 12.1%% from 2021 to 2027|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2021 to 2027|
|Segments Covered||Component, Service, End User, Region|
|Companies Mentioned||Allscripts Healthcare Solutions, Inc., R1 RCM, Inc., Cerner Corporation, Experian Information Solutions, Inc., eClinicalWorks LLC, GE Healthcare, Kareo, Inc., Genpact, McKesson Corporation, and Quest Diagnostics|
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of component, service, end-use, and region:
By Regional Outlook
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