Healthcare Payment Integrity Market Size
| Study Period | 2021 - 2029 |
| Market Size (2024) | USD 13.36 Billion |
| Market Size (2029) | USD 24.76 Billion |
| CAGR (2024 - 2029) | 13.14 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Healthcare Payment Integrity Market Analysis
The Healthcare Payment Integrity Market size is estimated at USD 13.36 billion in 2024, and is expected to reach USD 24.76 billion by 2029, growing at a CAGR of 13.14% during the forecast period (2024-2029).
The healthcare payment integrity market is critical to the broader healthcare ecosystem. It is focused on ensuring that payments within the healthcare sector are accurate, efficient, and compliant with regulations. These solutions help healthcare payers such as insurance companies, government programs, and managed care organizations to detect and prevent improper payments, reduce fraud, and ensure that claims are processed correctly the first time. Key factors that drive the growth and evolution of the market include regulatory changes and compliance, innovations in payment integrity, and fraud prevention.
The rising prevalence of fraud, waste, and abuse (FWA) in the sector, particularly within the expanding realm of telehealth, is a significant driver for market growth. For instance, according to the Healthcare Fraud Prevention Partnership (HFPP) in May 2023, individuals may engage in "telefraud" schemes, where telehealth visits are used as a cover to steal patient identities or to bill for unnecessary or non-existent services. Moreover, aggressive telemarketing and telehealth services are often used to push unnecessary durable medical equipment (DME), genetic testing, and diagnostic services, contributing to the burden on the healthcare system. These factors contribute to the growth of the market.
In addition, payment integrity involves ensuring that claims are paid accurately, efficiently, and in compliance with all regulations, which helps reduce costs and prevents revenue leakage. For instance, an article published by HealthEdge in June 2024 highlighted the need for multiple interfaces and ensures consistent, accurate payments. The HealthEdge Source is designed to streamline and enhance these processes, offering healthcare payers a robust platform that integrates seamlessly with existing systems. This allows organizations to control claims payment workflows, reduce dependency on third-party vendors, and make real-time business decisions based on unified data.
The varying impact of methodological adjustments on the improper payment rates for Medicare Part D highlighted the importance of adapting payment integrity solutions to new methodologies. For instance, in fiscal year 2023, the Centers for Medicare & Medicaid Services (CMS) reported that the improper payment rate of Medicaid saw a significant decrease from 15.62% in 2022 to 8.58% in 2023. The reduction was primarily due to improved documentation practices, though 82% of the improper payments were related to insufficient documentation rather than fraud or abuse. This substantial decrease highlighted progress in addressing documentation issues and indicated the effectiveness of payment integrity measures, thereby driving their adoption and contributing to the market’s growth.
However, the complexity and fragmentation of healthcare systems and high implementation and maintenance costs restrain market growth.
Healthcare Payment Integrity Market Trends
The Fraud Detection Segment is Expected to Witness Significant Growth Over the Forecast Period
A fraud detection solution service is a specialized set of tools, technologies, and methodologies designed to identify, prevent, and mitigate fraudulent activities within various operational contexts, including financial transactions, insurance claims, and healthcare billing.
Artificial intelligence (AI) is revolutionizing fraud detection within the healthcare payment integrity (PI) market, particularly in the context of value-based care (VBC). For instance, in an article published by Okoone Ltd in April 2024, AI algorithms can analyze claims data in real time to identify anomalies and potential fraud before payments are disbursed. By leveraging machine learning, these systems can detect patterns indicative of fraudulent activities, such as unusual billing codes or discrepancies in service documentation. Thus, AI is a transformative force in the healthcare payment integrity market, particularly in the realm of fraud detection.
Lawmakers and federal and state agencies have expressed growing concern over the proliferation of fraudulent claims targeting Medicare’s telemedicine benefits, which have become a focal point for fraud detection efforts in the healthcare payment integrity market. In June 2023, the Department of Justice (DOJ), in collaboration with the Federal Bureau of Investigation (FBI) and other federal and state law enforcement partners, launched a nationwide enforcement action that exposed telemedicine fraud schemes amounting to over USD 2.5 billion in 2023 in the United States. Among the 78 defendants charged, 11 were involved in telemedicine fraud, highlighting severe vulnerabilities.
Therefore, the alarming rise in telemedicine fraud cases highlights the critical importance of advancing fraud detection and prevention solutions within the healthcare payment integrity market.
Hence, the increasing demand for high-performance payment integrity measures, continuous improvement, and rising development solutions are expected to drive the fraud detection segment.
North America is Expected to Dominate the Market
The North American healthcare payment integrity market is crucial in managing healthcare costs and ensuring accurate payment processes across the healthcare sector. Key driving factors include the need for regulatory compliance, the rise in healthcare fraud and abuse, and the push for cost containment by payers and providers. These factors fuel innovation and adoption of cutting-edge technologies that enhance accuracy and efficiency in payment processing.
The need to safeguard the integrity of telehealth services is pushing the market toward more sophisticated fraud detection solutions, which are critical for maintaining the trust and efficiency of remote healthcare in the region. For instance, in October 2023, the Healthcare Fraud Prevention Partnership (HFPP) released a white paper highlighting the growing concerns around telehealth-related Fraud, Waste, and Abuse (FWA) in the country. Telehealth services have become a crucial method of healthcare delivery, offering simplified and prompt access to care through electronic and telecommunication technologies.
However, the rapid expansion of telehealth has also opened new avenues for fraudulent activities, including using telehealth platforms to submit false claims or bill for unnecessary services. Thus, this will increase the demand for payment integrity in the healthcare sector, driving the market’s growth.
Furthermore, safeguarding information security is critical in the healthcare sector, particularly within payment integrity solutions. For instance, in May 2024, Penstock Group, a healthcare payment integrity, announced that its ClearBridge SaaS payment integrity solution had earned the prestigious HITRUST Risk-Based, 2-year (r2) Certification for information security. This reflected ClearBridge’s commitment to maintaining the highest standards of data protection and regulatory compliance. Thus, such organizations must meet stringent regulatory standards and effectively manage risk to protect sensitive healthcare data; this factor will boost market growth during the forecast period.
The combination of new leadership and increased capital will enable companies to accelerate their efforts in fraud detection and payment integrity solutions. For instance, in October 2023, Alivia Analytics, a Massachusetts-based payment-integrity vendor, secured investment from two prominent private equity firms, enabling it to accelerate its expansion plans and enhance its fraud detection capabilities. This offers robust solutions to healthcare insurers and providers nationwide.
A study conducted in Mexico and published in the Journal of Global Health in October 2023 reported the level of financial risk protection by examining household health insurance status and further highlighted the varying degrees of financial risk protection across several categories in the country. Such findings underscore the importance of comprehensive health insurance coverage and show the demand for stability and integrity of the healthcare payment system in Mexico, thereby driving the market's growth.
Therefore, the focus on regulatory compliance, fraud prevention, and innovative solutions is poised to drive the market in North America.
Healthcare Payment Integrity Industry Overview
The healthcare payment integrity market is fragmented due to the presence of numerous companies, ranging from large global firms to smaller regional players, each offering a variety of solutions. Market participants adopt key strategies such as launches, acquisitions, and collaboration with other organizations to expand their footprint. The major players in the market include Alivia Analytics LLC, Apixio, Codoxo, Conduent Inc., Cotiviti Inc., ExlService Holdings Inc., Gainwell Technologies LLC, NTT DATA Inc., Integrity Advantage, and SAS Institute Inc.
Healthcare Payment Integrity Market Leaders
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Alivia Analytics, LLC.
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ExlService Holdings, Inc.
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NTT DATA Inc.
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SAS Institute Inc.
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Cotiviti, Inc.
*Disclaimer: Major Players sorted in no particular order
Healthcare Payment Integrity Market News
- February 2024: Alivia Analytics acquired SourcEdge, a national provider of claims system modernization services. This strategic acquisition united SourcEdge's expertise in optimizing claims system technology with Alivia's advanced platform for detecting fraud, waste, and abuse (FWA). The combined capabilities will empower commercial and governmental healthcare payers with a comprehensive, end-to-end claims solution. This development marked a significant expansion of Alivia's offerings, positioning the company as a more robust partner for over 25 health plans nationwide.
- January 2024: Healthcare Fraud Shield (HCFS), a provider of fraud, waste, abuse, and error (FWAE) protection solutions for healthcare insurance, launched its groundbreaking new product, FWA360Leads. This innovative solution is designed to revolutionize how healthcare insurance companies detect and manage fraudulent activities, waste, abuse, and errors.
Healthcare Payment Integrity Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Regulatory Changes and Compliance
- 4.2.2 Innovations in Payment Integrity
- 4.2.3 Rising Focus on Fraud Prevention
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4.3 Market Restraints
- 4.3.1 Complexity and Fragmentation of Healthcare Systems
- 4.3.2 High Implementation and Maintenance Costs
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4.4 Porter's Five Force Analysis
- 4.4.1 Threat of New Entrants
- 4.4.2 Bargaining Power of Buyers/Consumers
- 4.4.3 Bargaining Power of Suppliers
- 4.4.4 Threat of Substitute Products
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD)
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5.1 By Solution Type
- 5.1.1 Fraud Detection
- 5.1.2 Claims Analytics
- 5.1.3 Payment Accuracy
- 5.1.4 Others
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5.2 By Deployment Model
- 5.2.1 On-Premises
- 5.2.2 Cloud-Based
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5.3 By End User
- 5.3.1 Healthcare Payers
- 5.3.2 Healthcare Providers
- 5.3.3 Government Agencies
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Mexico
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 United Kingdom
- 5.4.2.3 France
- 5.4.2.4 Italy
- 5.4.2.5 Spain
- 5.4.2.6 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 China
- 5.4.3.2 Japan
- 5.4.3.3 India
- 5.4.3.4 Australia
- 5.4.3.5 South Korea
- 5.4.3.6 Rest of Asia-Pacific
- 5.4.4 Middle East and Africa
- 5.4.4.1 GCC
- 5.4.4.2 South Africa
- 5.4.4.3 Rest of Middle East and Africa
- 5.4.5 South America
- 5.4.5.1 Brazil
- 5.4.5.2 Argentina
- 5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Alivia Analytics LLC
- 6.1.2 Apixio.
- 6.1.3 Codoxo
- 6.1.4 Conduent, Inc.
- 6.1.5 Cotiviti, Inc.
- 6.1.6 ExlService Holdings Inc.
- 6.1.7 Gainwell Technologies LLC
- 6.1.8 NTT DATA Inc.
- 6.1.9 Integrity Advantage
- 6.1.10 SAS Institute Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityHealthcare Payment Integrity Industry Segmentation
Healthcare payment integrity refers to processes, practices, and technologies used to ensure that payments for healthcare services are accurate, compliant with regulations, and free from fraud or abuse.
The healthcare payment integrity market is segmented by solution type, deployment model, end user, and geography. By solution type, the market is segmented into fraud detection, claims analytics, payment accuracy, and others (audit management, coding validation, and optimization). By deployment model, the market is segmented into on-premises and cloud-based. By end user, the market is segmented into healthcare payers, healthcare providers, and government agencies. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The report also offers the market size and forecasts for 17 countries. For each segment, the market sizing and forecasts were made on the basis of value (USD).
| By Solution Type | Fraud Detection | |
| Claims Analytics | ||
| Payment Accuracy | ||
| Others | ||
| By Deployment Model | On-Premises | |
| Cloud-Based | ||
| By End User | Healthcare Payers | |
| Healthcare Providers | ||
| Government Agencies | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| Japan | ||
| India | ||
| Australia | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | Middle East and Africa | GCC |
| South Africa | ||
| Rest of Middle East and Africa | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America |
Healthcare Payment Integrity Market Research FAQs
How big is the Healthcare Payment Integrity Market?
The Healthcare Payment Integrity Market size is expected to reach USD 13.36 billion in 2024 and grow at a CAGR of 13.14% to reach USD 24.76 billion by 2029.
What is the current Healthcare Payment Integrity Market size?
In 2024, the Healthcare Payment Integrity Market size is expected to reach USD 13.36 billion.
Who are the key players in Healthcare Payment Integrity Market?
Alivia Analytics, LLC., ExlService Holdings, Inc., NTT DATA Inc., SAS Institute Inc. and Cotiviti, Inc. are the major companies operating in the Healthcare Payment Integrity Market.
Which is the fastest growing region in Healthcare Payment Integrity Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare Payment Integrity Market?
In 2024, the North America accounts for the largest market share in Healthcare Payment Integrity Market.
What years does this Healthcare Payment Integrity Market cover, and what was the market size in 2023?
In 2023, the Healthcare Payment Integrity Market size was estimated at USD 11.60 billion. The report covers the Healthcare Payment Integrity Market historical market size for years: 2021, 2022 and 2023. The report also forecasts the Healthcare Payment Integrity Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Healthcare Payment Integrity Industry Report
Statistics for the 2024 Healthcare Payment Integrity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Healthcare Payment Integrity analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
