Hospital Outsourcing Market to Reach US$ 736.47 BN by 2030

Published Date : 02 Jun 2022

As per Precedence Research, the hospital outsourcing market size is estimated to reach US$ 736.47 billion by 2029 and expanding growth at a CAGR of 10.6% over the forecast period 2021 to 2030.

The demand for the outsourcing of various activities such as back office operations, medical billing, IT services, and other internal activities in the hospitals, which is significantly boosting the growth of the global hospital outsourcing market. The hospitals lack in the resources that can efficiently handle the administrative activities. Therefore, the hospitals are increasingly adopting the third-party services that can provide services related to the administrative tasks at low cost and the hospitals can focus on their core activities like diagnostics and patient care. This third-party service helps to reduce the operational costs and improve the operational efficiency, thereby increasing the profitability of the hospitals.

Furthermore, the government across the globe is increasing investing in the digitization and advancements of the hospitals to reduce healthcare costs and enhance the care services. Therefore, the lack of IT professionals in the hospitals forces them to opt for third-party outsourcing services. Therefore, the rising digitization of the hospitals and rising adoption of the latest technologies is expected to spur the demand for the hospital outsourcing services across the globe.

Report Scope


Market Size in 2029

USD 663.47 Billion

Growth Rate from 2021 to 2030

CAGR of 10.6%

North America Market Share in 2020


Private Market Share in 2020



Report Highlights:

  • Depending on the service, the others segment accounted for 40% of the market share in 2020. The others segment includes services such as security, laundry, cafeteria, catering housekeeping, and maintenance to name a few. The wide range of activities in the hospitals needs to be managed and co-ordinate efficiently in order to reduce the costs and enhance the management and administrative tasks. The increased adoption of the outsourcing services in hospitals to manage these miscellaneous tasks and departments has fostered the growth of this segment.
  • On the basis of type, the private segment dominated the hospital outsourcing market accounting for 70% of the market share in 2020. The increased penetration of the private hospitals, higher number of private hospitals, the increased focus on increasing profitability, and higher investments on the customer centric services has resulted in the higher adoption of the third party services to manage different administrative tasks like management of revenue cycle, medical billing, and back office operations in private hospitals.
  • North America generated the highest revenue share of 72% and dominated the global hospital outsourcing market. This growth is attributable to the increased number of private hospitals in the region, higher adoption of the digital technologies in hospitals, higher number of patients, and certain mandatory government norms that forces the public and private hospitals to keep electronic records of the patients. The rising investments in the digitization and the emphasis of customer-centric care service along with the increasing need for reducing the healthcare expenditure has resulted in the growth of the demand for the hospital outsourcing services.
  • Middle East is estimated to be the fastest-growing market. The increasing government investments in the development of smart hospitals and sophisticated healthcare infrastructure along with the increased demand for the efficient care services among the high income consumers is expected to drive the market growth during the forecast period. The adoption of the digital technologies to eliminate human errors in the administration of hospitals in driving the market growth significantly.

Future of Hospital Outsourcing Market

Growing adoption of the hospital outsourcing in the government or public hospitals is expected to present lucrative growth opportunities to the market players in the upcoming future. The governments in the developed and developing nations are investing heavily in the advancements of the hospitals which will drive the hospital outsourcing market in the forthcoming years.

COVID-19 Impact Analysis:

  • The COVID-19 pandemic in 2020, positively impacted the hospital outsourcing market. The pandemic accelerated the adoption of the digital technologies in the hospitals in order to serve the rapidly growing number of COVID-19 patients, which augmented the market growth.
  • The trend of Smart hospitals and digitization has gained momentum in the pandemic and is expected to continue in the long term. Therefore, this trend of digitization is expected to spur the demand for the hospital outsourcing market.

Key Developments in the Marketplace:

  • In June 2020, McKesson Corporation completed the acquisition of a healthcare management US-based company, IntraFusion. This acquisition aimed at strengthening the core business of McKesson.
  • In March 2021, Omega Healthcare, a revenue cycle management service provider, acquired a medical coding company named Himagine Solutions, which helped in the expansion of the portfolio of Omega healthcare.

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