Medical Billing Outsourcing Market Covid-19 Pandemic Is Expected To Have A Significant Impact

 Medical Billing Outsourcing Industry Overview

The global medical billing outsourcing market size is expected to reach USD 30.2 billion by 2030, exhibiting a CAGR of 12.03% during the forecast period, according to a new report by Grand View Research, Inc. The market is driven primarily by factors such as the increasing importance of regulatory compliance and risk management, the growing need to streamline the medical billing process, and efforts to reduce internal processing costs.

 

A large amount of clinical code representation for diagnosis and treatment coupled with the presence of multiple payers renders medical billing an intricate part of any clinical practice. Currently, the healthcare system is witnessing a subsequent rise in the outsourcing of clinical billing services by hospitals and physicians due to the obligatory implementation of complex ICD-11 coding systems, increasing healthcare costs, and a federal mandate to implement Electronic Medical Records (EMR) to maintain reimbursement levels.

The COVID-19 pandemic is expected to have a significant impact on the market, although the healthcare industry was trailing in embracing innovative and digital technologies to improve healthcare. The COVID-19 scenario has put an enormous burden on healthcare providers/organizations to become accustomed to the change. The need for proactive action and the construction of a comprehensive, collaborative, scalable, and adaptable digital healthcare infrastructure has been emphasized by the pandemic crisis. As a result, many organizations are developing a new strategy that includes digitization and outsourcing non-core functions such as billing and accounting, which is expected to boost the market growth.


Medical Billing Outsourcing Market Segmentation

Grand View Research has segmented the global medical billing outsourcing market on the basis of component, service, end-use, and region:  

Based on the Component Insights, the market is segmented into In-house, and Outsourced.

  • The outsourced segment dominated the market for medical billing outsourcing and held the largest revenue share of 52.5% in 2021. The segment is expected to register the highest CAGR from 2022 to 2030. In-house and outsourced are the major components of the market. It significantly reduces costs and proves a good fit for small and medium practices.
  • Physician practices (acute care hospitals and clinics/physicians) are facing challenging times as reimbursements have declined and costs are rising, and the newly introduced regulations have made business more complex. It is estimated that approximately 20% of physicians' income will be lost due to health billing errors, and on average, healthcare providers or businesses spend 30 to 40% of their revenue on the billing process. This is boosting the segment’s growth.

 

Based on the Service Insights, the market is segmented into Front-end services, Middle-end services, and Back-end services.

  • The front-end services segment dominated the market for medical billing outsourcing and accounted for a revenue share of 38.9% in 2021. Front-end services consist of processes, such as scheduling, preregistration, registration, eligibility, insurance verification, and pre-authorization. It comprises the main function of medical billing outsourcing.
  • Managing front-end services well is a key to reducing repetitive work and improving the patient experience with faster service. Therefore, the demand for outsourcing these services is strong. However, the segment is expected to face a decline in revenue growth owing to increased competition and saturation in the market.
  • The middle-end services segment is projected to witness lucrative growth over the coming years because of new entrants in the sector as well as the rising awareness of the middle-end service among practitioners.

 

Based on the End-use Insights, the market is segmented into Hospitals, Physician Offices, and Others.

  • The hospital segment dominated the market for medical billing outsourcing and accounted for a revenue share of 47.1% in 2021. The segment is estimated to maintain its dominance during the forecast period. This is mainly due to the high demand for financing services in hospitals. In addition, hospital consolidation adds to the complexity of the reimbursement and billing process. This is driving the demand for medical billing outsourcing services in the hospital sector.
  • The physician office segment is expected to grow at the fastest rate over the forecast period. Rising expenditure on healthcare by small and midsized healthcare providers due to the growing emphasis on risk management and regulatory compliance and complex technology and staffing requirements is expected to drive the segment in the years to come.

 

Medical Billing Outsourcing Regional Outlook

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Key Companies Profile & Market Share Insights

The market is highly competitive, with many large, as well as medium and small-sized companies competing with each other. Partnerships, mergers and acquisitions, and technological advancements are some of the key business strategies undertaken by key companies to expand their market position. For instance, in February 2022, National Medical Billing Services, a well-known healthcare RCM company, completed the acquisition of National Billing Partners, a provider of RCM services to surgical practices and ASCs. Additionally, in March 2022, Omega Healthcare, a prominent healthcare management solution company leading the vast healthcare ecosystem acquired Reventics, a revenue cycle management solution developer that provides provider engagement solutions to improve physician reimbursement and compliance. Some of the prominent players in the global medical billing outsourcing market include:

  • R1RCM Inc.
  • Allscripts Healthcare, LLC
  • Cerner Corporation
  • eClinicalWorks
  • Kareo, Inc.
  • McKesson Corporation
  • Quest Diagnostics Incorporated
  • Promantra Inc.
  • AdvancedMD, Inc.

 

Order a free sample PDF of the Medical Billing Outsourcing Market Intelligence Study, published by Grand View Research.

 

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

 

Contact:

Sherry James

Corporate Sales Specialist, USA

Grand View Research, Inc.

Phone: 1-415-349-0058

Toll Free: 1-888-202-9519

Email: sales@grandviewresearch.com

Web: https://www.grandviewresearch.com

Follow Us: LinkedIn | Twitter

Comments

Post a Comment

Popular posts from this blog

Breast Pump and Breastfeeding Accessories Market Updates and Projections

  Breast Pump And Breastfeeding Accessories Industry Data Book | Forecast 2030 Breast Pump And Breastfeeding Accessories Industry Data Book - Breast Pump, Wearable Breast Pump & Breastfeeding Accessories Market Grand View Research’s breast pump & breastfeeding accessories industry data book is a collection of market sizing information & forecasts, regulatory data, reimbursement structure, competitive benchmarking analyses, macro-environmental analyses, and regulatory & technological framework studies. Within the purview of the database, all such information is systematically analyzed and provided in the form of presentations and detailed outlook reports on individual areas of research.   Access the Global Breast Pump And Breastfeeding Accessories Industry Data Book, 2023 to 2030 , compiled with details like market sizing information & forecasts, trade data, pricing intelligence, competitive benchmarking, macro-environmental analyses, and regulatory ...
Read more

Spectrometry Sector: Emerging Technologies 2023-2030

  Spectrometry Industry | Forecast 2030 Spectrometry industry data book is a combination of the market data from five reports namely, spectrometry, mass spectrometry, NMR spectroscopy, near-infrared spectroscopy, and in-line UV-vis spectroscopy market. The market was valued at USD 17.4 billion in 2021 with a CAGR of 7.34% during 2022-2030. NMR spectroscopy market and Near-infrared Spectroscopy market are also growing at the CAGR of 5.1% and 6.08% respectively. The development of advanced spectrometry instruments and consumables is anticipated to create growth opportunities in this market and drive the market in the coming years.   Access the Global Spectrometry Industry Data Book, 2024 to 2030 , compiled with details like market sizing information & forecasts, trade data, pricing intelligence, competitive benchmarking, macro-environmental analyses, and regulatory & technological framework studies   Spectrometry holds significant potential in the near future o...
Read more

Endoscopy Devices Market Predicted to Witness Strong Growth from 2023 to 2030

  Endoscopy Devices Industry | Forecast 2030 The global endoscopy devices market was valued at USD 50.8 Billion in 2022 and is anticipated to grow at a CAGR of 7.5% over the forecast period. The market growth is attributed to the presence of cost-effective pre and post-procedures and increasing awareness regarding the minimal invasive properties of the devices. COVID-19 has impacted the market negatively as the number of endoscopic procedures reduced owing to the postponed and canceled elective and semi-urgent procedures. However, the increasing geriatric population, coupled with the rising burden of chronic diseases, is anticipated to drive the market. Furthermore, increasing the preference for disposable endoscopic equipment reduce the possibility of cross-contamination is anticipated to drive the market over the forecast period.   Access the Global Endoscopy Devices Industry Data Book, 2023 to 2030 , compiled with details like market sizing information & forecasts, ...
Read more