Market Scope
Market Research Future (MRFR) expects the medical billing outsourcing market to chart a relentless growth trajectory in the years ahead. It is projected that after touching USD 6982 million in the year 2017, the market size shall continue to soar rapidly at a rate of CAGR of 12.5% over the analysis period (which is between 2020 and 2027).
Major Growth Boosters and Challenges
Medical billing software and solutions help healthcare billers as well as coders offer efficient administrative services to customers and file claims that provide a host of benefits including reduced errors, accurate bills, lower insurance settlement rates, faster payment, digitalization, and invoice monitoring. Surge in technical innovations along with rise in M&A activities present lucrative opportunities to the medical billing software market.
The medical billing outsourcing industry is growing backed by the growing needs of health insurance firms, in terms of medical office management. The heightened preference for cloud-based medical billing software in clinics and hospitals is the latest trend witnessed in the global market. The market is inundated with numerous players that are involved in fierce competition. Global firms are working on expanding their presence in emerging countries, which will be a huge challenge for local companies, as the competition will rise in terms of features like quality, pricing, and product differentiation. The global market witnesses established vendors indulging in competitive strategies such as collaboration, acquisition, expansion, product launch and partnership, to improve their standing.
Furthermore, surging requirement for risk and compliance management combined with the mounting prevalence of digitalization in the healthcare sector should accelerate the market growth in the next few years. Rapidly expanding patient population owing to various disorders and infections also foster the growth of the medical billing outsourcing market.
Market Segmentation
The global market for medical billing outsourcing has been divided with respect to component, service, and end user.
The components considered in the MRFR study of the medical billing outsourcing market include in house as well as outsourced.
The services anlayzed in the MRFR report are middle, back end and front end.
Top end users mentioned in the market study are physician’s office, hospitals, and others.
Regional Study
The Americas and APAC or Asia Pacific as well as MEA or Middle East and Africa and Europe are the key regions where the medical billing outsourcing market will witness growth in the years ahead.
The American market has secured the lead and is expected to maintain its winning streak throughout the projected timeline, thanks to the incredible expansion of the information technology sector. Surging use of medical billing outsourcing software and solutions by a rising number of hospitals also adds to the market value. High industrialization rate and a well-established healthcare industry present in the region add to the market value. Canada and the US are the highest gainers in the region, considering the mounting need to bring down the skyrocketing medical bills as well as the significant per capita health care expenditure. Surge in R&D spending and the resultant increase in the introduction of new technologies also enhance the market share in the region.
Europe remains the second highest gainer in the global medical billing outsourcing industry, since the region expends considerably on exhaustive research and development activities. The healthcare sector in the region emphasizes majorly on transparent billing methods and is largely supported by the government to carry out research and development processes, which could translate into substantial market growth in subsequent years.
Asia Pacific seems to be progressing at the fastest pace, backed by the surging burden of communicable diseases and the expanding patient pol. India and China are some of the fastest growing markets in the region, in view of the strong support of the government that encourage the set-up of new and modern medical facilities to cater to the growing needs of the burgeoning population. Rising cases of chronic diseases and escalation in internet use among healthcare workers and patients can also benefit the APAC market in the following years.
Reputed Vendors
R1 RCM Inc., Allscripts, Cerner Corporation, EClinical Works, Experian Information Solutions Inc., GENERAL ELECTRIC COMPANY, Genpact, HCL Technologies Limited, Kareo, Inc., McKesson Corporation, Quest Diagnostics Incorporated and The SSI Groups Inc are some of the leading market contenders profiled in the MRFR report.
Latest News
May 2021
R1 RCM, a renowned revenue cycle management firm is planning to acquire VisitPay, a patient financial engagement vendor, for USD 300 million. VisitPay is known for its wide range of patient billing tools and with the acquisition, its cloud-based platform will help R1 RCM simplify the financial experience in healthcare. With these capabilities, R1 should be able to elevate its position in medical billing market based on personalized and flexible payment options, price transparency, big data analytics as well as tailored communications.