Market Size of Global Medical Billing Outsourcing Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 15.41 Billion |
Market Size (2029) | USD 26.40 Billion |
CAGR (2024 - 2029) | 11.36 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Medical Billing Outsourcing Market Analysis
The Global Medical Billing Outsourcing Market size is estimated at USD 15.41 billion in 2024, and is expected to reach USD 26.40 billion by 2029, growing at a CAGR of 11.36% during the forecast period (2024-2029).
The COVID-19 pandemic is expected to have a largely positive impact on market growth. Technology is one of the major differentiators in today's healthcare systems, including localized healthcare systems that existed earlier. The digital development accelerated by the COVID-19 pandemic is expected to significantly positively impact the market studied. This pandemic situation has firmly established the need for active action and the establishment of a robust, collaborative, scalable, and agile digital healthcare infrastructure. As a result, many companies are now building up a new roadmap, such as adopting digitization and outsourcing non-core aspects of their businesses, like billing and accounts, which is expected to augment the market growth. During this period, a sudden shift toward digital billing was observed, which is further expected to drive market growth. Additionally, consumer interest has increased significantly towards online bill payments since the pandemic began, leading to greater demand for medical billing outsourcing as it forms a non-core business operation for most healthcare institutes.
According to a Healthcare Payments Insight Survey Report conducted by Elavon in January 2020, consumers who used different emerging payment methods showed high satisfaction rates in settling their medical bills. 93% of the people who were surveyed said that they had used Interactive Voice Response (IVR) to pay a bill and were somewhat or very likely to use it again. 85% of the people who paid via kiosk networks called the process fast and easy, and 88% were somewhat or very likely to use it again. A profound impact on the market was observed as well. Electronic Health Record systems have been designed for tracking and billing patients versus providing optimal care, which is the need of the hour due to the rising number of COVID-19 patients. The ongoing pandemic is putting healthcare systems under strain worldwide and forcing hospitals and other medical facilities to scramble to ensure that their billing data can be processed and stored effectively. The 'digital front door' is key to how providers should respond to the COVID-19 situation regarding access, triage, and even treatment. With the surge in demand for hospital capacity, one of the challenges faced by hospital IT staffers is figuring out how to quickly deploy billing and revenue management systems to alternative care locations. Thus, many of these functions are being outsourced, which is leading to market growth.
The medical billing outsourcing market is primarily driven by factors, such as the growing emphasis on compliance and risk management by regulators, the increasing need to make the medical billing process efficient, and efforts to decrease in-house processing costs.
Unless a medical practitioner or an office is using the services of an experienced billing provider, there is a high chance that their revenue will not be as high as it was meant to be, creating an increasing need to make the process of billing more efficient. Skilled professionals are required for the process. Efficiency in the billing process can further reduce the company's cost and get maximum benefits for practitioners. Rising patient load in the hospitals and increasing the burden of medical processes, such as records of patient check-in and insurance eligibility, are creating a huge issue in the point of care delivery. There is a need to manage such records. For the sake of improvisation of the medical billing process, medical billing outsourcing is done to help assist the clinicians in managing patient and billings records. Hence, the rising need for efficient medical billing is positively influencing the market.
Medical Billing Outsourcing Industry Segmentation
As per the scope of the report, medical billing outsourcing service entails the hiring of a medical billing service provider outside the practice to do all the billing work, often giving a fair percentage cut of the total revenue generated to them.
The medical billing outsourcing market is segmented by service (front end and back end), end user (hospitals, physicians office, and other end users), and geography (North America, Europe, Asia-Pacific, Middle-East and Africa, and South America). The report offers the value (in USD million) for the above-mentioned segments.
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Global Medical Billing Outsourcing Market Size Summary
The medical billing outsourcing market is poised for significant growth, driven by the increasing need for efficient billing processes and the adoption of digital solutions in healthcare. The COVID-19 pandemic has accelerated the shift towards digital billing, highlighting the importance of robust and scalable digital healthcare infrastructures. This shift has led to a greater demand for outsourcing non-core business operations, such as billing, which is expected to bolster market expansion. The rising interest in online bill payments and the need for compliance and risk management are further propelling the market. Hospitals, as primary healthcare providers, are anticipated to hold a substantial share of the market due to the increasing patient load and the benefits of electronic health record systems in managing patient data and billing processes.
In North America, the growth of healthcare infrastructure and the push towards digital health record maintenance are expected to drive market growth. The United States, in particular, is witnessing a surge in demand for innovative healthcare solutions, supported by government initiatives like the MyHealthEData Initiative. This initiative aims to empower patients by giving them control over their healthcare data, thereby encouraging the digitization of healthcare facilities and increasing the demand for outsourced medical billing. The market is highly competitive, with numerous small to mid-sized companies vying for market share alongside global players. Strategic partnerships and acquisitions, such as Conduent's agreement with Experian Health and R1 RCM's acquisition of Cerner's RevWorks services, are indicative of the dynamic nature of the market, providing opportunities for companies to enhance their presence and capture a significant share.
Global Medical Billing Outsourcing Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Growing Emphasis on Compliance and Risk Management
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1.2.2 Increasing Need to Make Billing Processes Efficient
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1.2.3 Efforts to Contain and Decrease In-house Processing Costs
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1.3 Market Restraints
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1.3.1 Increasing Legislative and Regulatory Pressure
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1.3.2 High Costs of Technology and Privacy Issues
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1.4 Porter's Five Forces Analysis
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1.4.1 Threat of New Entrants
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1.4.2 Bargaining Power of Buyers/Consumers
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1.4.3 Bargaining Power of Suppliers
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Front End
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2.1.2 Back End
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2.2 By End User
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2.2.1 Hospitals
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2.2.2 Physicians Office
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2.2.3 Other End Users
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Italy
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2.3.2.5 Spain
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2.3.2.6 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 South Korea
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2.3.3.6 Rest of Asia-Pacific
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2.3.4 Middle-East and Africa
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2.3.4.1 GCC
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2.3.4.2 South Africa
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2.3.4.3 Rest of Middle-East and Africa
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2.3.5 South America
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2.3.5.1 Brazil
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2.3.5.2 Argentina
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2.3.5.3 Rest of South America
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Global Medical Billing Outsourcing Market Size FAQs
How big is the Global Medical Billing Outsourcing Market?
The Global Medical Billing Outsourcing Market size is expected to reach USD 15.41 billion in 2024 and grow at a CAGR of 11.36% to reach USD 26.40 billion by 2029.
What is the current Global Medical Billing Outsourcing Market size?
In 2024, the Global Medical Billing Outsourcing Market size is expected to reach USD 15.41 billion.