Did you know that the global medical billing outsourcing companies’ market size was valued at USD 10.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.3% from 2021 to 2028? As all we know, medical billing involves the crucial and complex RCM process of the healthcare business. However, the current medical billing systems in the healthcare practice for managing the revenue are gradually becoming antiquated due to a lack of expertise in handling new payment models and revenue management tools.
This article brings you a complete understanding of the market size, trends, and analysis report from 2021-2028.
Report Overview on Medical billing outsourcing companies:
- The increasing usage of medical billing and coding procedures in revenue cycle management is estimated to strengthen the market growth enormously.
- Frequent revisions in the classification of medical coding also drive the market for medical billing outsourcing companies.
- The spread of coronavirus has unfavorably affected the medical billing sector, and new codes emerged for Covid-19.
- For example, the created International Classification of Diseases ICD-11 codes come into practice from January 2022.
- The emergence of new technological solutions, increasing and changing government requirements, and bad debt and non-collectible accounts have triggered a new trend that leads to choosing or preferring medical billing outsourcing companies for healthcare professionals.
- The pandemic, without a doubt, has had exceptional consequences on daily lives in addition to the global economy.
- It remains a substantial burden on the healthcare systems around the world.
- The Novel Coronavirus has adversely affected the medical billing outsourcing sector and is expected to affect even more by reducing patient or service volumes, including payment ability.
- Healthcare professionals will need to prevail over these obstacles by reconsidering their financial capabilities and plans to decrease the impact of the COVID-19 pandemic on revenues.
- Apparently, telehealth solutions can also boost patient volumes, increase patient satisfaction, and eventually increase revenue profits.
- Medical billing outsourcing companies increase revenue flow, save equipment and software costs, and reduce staff size and team member expenses.
- By expanding the geographical reach of the companies through mergers and acquisitions, it’s expected to boost the market for medical billing outsourcing companies in the forward years.
- In the report, North America is expected to be the largest regional market for medical billing outsourcing.
- It has been attributed to the highest levels of outsourcing healthcare IT services and the strong presence of prominent market players in the region.
- Becker’s Hospital Review has listed around 210 revenue cycle management solutions in the global market space.
- The outsourced strategy has dominated the market by holding the largest revenue share of 51.5% in 2020. This particular strategy is expected to register the highest CAGR in the future.
- Outsourcing medical billing significantly reduces the cost and guarantees a good solution, especially for small and medium practices.
- For the past five years, healthcare practices, including acute care, clinicians, and physicians, are facing the hardest times as the reimbursements decrease and the costs rise.
- The new regulations have restricted the business and made it more complex compared to the others.
- So, the demand for medical billing outsourcing companies is definitely expected to rise in the forward years.
- The front-end strategy dominated the market for medical billing outsourcing and calculated for the highest revenue share of 39.3% in 2020.
- The front-end process contains scheduling, preregistration, registration, eligibility, insurance verification, and pre-authorization.
- However, the front-end services are gradually declining in revenue growth due to market saturation and increased competition.
- The middle-end services are coping up with the situation and are increasing to grow faster in the upcoming years because of the new market players and growing awareness among healthcare professionals.
End-use Insights of Medical Billing Outsourcing Companies:
- The hospital segment had the highest revenue share of 47.8% in the medical billing outsourcing market in 2020.
- The presence of multiple healthcare professionals in the U.S has changed their concentration on end-to-end outsourcing firms for managing their billing processes.
- Because of the awareness raised regarding the benefits offered by outsourcing companies, healthcare professionals mostly rely on other companies to maximize operating margins and manage high-volume transactions.
- Most developing regions of the Asia Pacific and Latin America are expected to have a record in the upcoming years due to the standardization of outsourcing companies across the globe.
- The recently introduced International Classification of Diseases ICD-11 has made the medical billing process even more complicated.
- Due to this, the demand for revenue cycle management has increased enormously.
- In addition to it, healthcare professionals choose medical billing outsourcing companies that offer a perfect combination of RCM with Electronic Medical Records (EMR) for improved patient outcomes.
Market share Insights & Key Companies:
- All the partnerships, mergers, and acquisitions, along with the technological advancement, are some of the key strategies of these companies to expand their geographical reach and service offerings.
- For example, in July 2019, Cerner Corporation has partnered with Amazon Web Services to access its cloud space and global infrastructure to drive healthcare IT innovations.
- The partnership improves clinical efficiency and lowers operational budgets for healthcare organizations.
- Some of the prominent players in the medical billing outsourcing market include:
- Allscripts Healthcare Solutions, Inc
- Athenahealth Inc.
- Cerner Corporation
- Experian Information Solutions, Inc.
- GE Healthcare
- HCL Technologies Limited
- Kareo, Inc.
- McKesson Corporation
- R1 RCM, Inc.
- The SSI Group, LLC.
- Quest Diagnostics
- QWay Health
Segments Covered in the report include:
- The reports reveal the revenue growth at the global, regional, and country levels that provides an analysis of the latest healthcare industry trends from 2016-2028.
- Grand View Research segmented the global medical billing outsourcing market report depending on the component, service, end-use, and region.
- Component Outlook (Revenue, USD Million, 2016 – 2028)
- Service Outlook (Revenue, USD Million, 2016 – 2028)
- End-use Outlook (Revenue, USD Million, 2016 – 2028)
- Physician Office
- Regional Outlook (Revenue, USD Million, 2016 – 2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
- South Africa
- Saudi Arabia
However, the medical billing outsourcing companies market will keep on increasing than it is in the current scenario. Healthcare organizations must have to seek better outsourcing companies to stand first in the competition. It’s never a big deal to choose the best companies based on the practices’ requirements.
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