The medical billing outsourcing market size is expected to advance at a CAGR of 12.3% during 2024–2030, to reach USD 31.4 billion by 2030. This can be ascribed to the growing focus on compliance and risk management via regulators, the surging demand for better patient experience, the rising government initiatives to support the adoption of digital tools in the healthcare sector, and the advent of new technological solutions for managing uncollectible data.
Moreover, the rising need for making the billing process smooth and efficient, diminishing the in-house processing cost of hospitals, and reducing expenses of buying equipment & software and employee cost are other factors driving the demand for medical billing outsourcing services.
The use of outsourced billing services in various healthcare practices has great potential to support healthcare service providers in many aspects of patient care and administration procedures. A large number of patients admission can result in stress and human errors, resulting in the rising adoption of such billing services. With the help of outsourced medical billing facilities, healthcare professionals and other workers who are not qualified for managing billing can perform their duties well.
Furthermore, the preference is given to such facilities by healthcare providers, due to the emergence of advanced technologies, cost saving, fewer errors, reduced time, and low procurement costs for maintaining and updating software. This raises the revenue share by a considerable amount. Also, a very transparent procedure is imparted by well-established medical billing outsourcing firms along with a secure protocol to protect them against hackers and HIPAA concerns.
Moreover, the surging number of mergers and acquisitions among industry players is boosting the market growth. The partnerships among service providers will provide lucrative opportunities for their expansion. For instance, R1 RCM Inc. acquired Cerner RevWorks services business in June 2020. This partnership extends the capabilities of R1’s comprehensive revenue cycle, propels sustainable improvement of financials for providers, and enhances the patient’s overall experience. The R1’s electronic health records seamlessly complement the infrastructure of healthcare organizations, quickly fostering transformative improvements to net patient revenue and cash flows, even reducing operating costs, enabling superior results for healthcare providers and the communities it assists.
Geographically, the Asia-Pacific market is expected to grow at a CAGR of 12.7% during the forecast period. This growth can be attributed to the reduced costs of medical treatments, the rising demand for medical billing outsourcing to overcome the increased burden of hospitals and enhance the overall patient experience, the surging awareness of clinical billing software, and the growing usage of advanced technologies in the regional healthcare systems.
Similarly, the Latin American market is projected to witness significant growth in the forecast timeline, due to the standardization of outsourcing customs, the surging government investments in the healthcare sector, the growing prevalence of various chronic and infectious disorders, and the rising number of private hospitals in the region. Moreover, there is a momentous rise in the need for proper healthcare services. Thus, these services are widely adopted by healthcare providers to eradicate the pressure of administration and billing and focus on giving quality healthcare to patients.
Some of the major players operating in the medical billing outsourcing market are R1 RCM Inc., Veradigm LLC, Quest Diagnostics Incorporated, McKesson Corporation, Tebra Technologies Inc., Oracle Corporation, Experian Information Solutions Inc., Genpact, athenahealth Inc., and 5 Star Billing Services Inc.