SAN FRANCISCO, March 24, 2020 /PRNewswire/ -- The global medical billing outsourcing market size is projected to reach USD 23.1 billion by 2027, expanding at a CAGR of 12.3%, based on a new report by Grand View Research, Inc. 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, posing significant challenges. Currently, the healthcare system is witnessing a subsequent rise in the outsourcing of clinical billing services by hospitals and physicians due to obligatory implementation of complex ICD-10 coding systems, increasing healthcare costs, and a federal mandate to implement electronic medical records (EMR) to maintain reimbursement levels.
Key suggestions from the report:
The outsourced segment accounted for the largest market share in the component segment in 2019 and is expected to witness a high CAGR attributed to rising preference of hospitals, physician office, and startups opting for outsourced medical billing services for hassle-free claim management at low cost
Front-end services led the market in 2019. However, the middle-end services segment is expected to register the highest CAGR over the forecast period due to the growing demand for revenue cycle management (RCM) services offering electronic health records (HER) software
Hospitals, possessing higher claim volumes, accounted for the largest revenue share in the market in 2019 and is estimated to maintain the dominance even during the forecast years
North America held the largest share of the global medical billing outsourcing market. It is projected to expand further as U.S. has witnessed a change in the healthcare system with the implementation of ICD-10 coding and pressure from the government to incorporate the EMR management system
Some of the key firms in this industry include R1 RCM, Inc.; Allscripts Healthcare Solutions, Inc.; Cerner Corporation; eClinicalWorks, LLC; Experian Information Solutions, Inc.; GE Healthcare; Genpact; HCL; Kareo, Inc.; McKesson Corporation; Quest Diagnostics; and The SSI Group, LLC.
Medical billing and revenue cycle management (RCM) companies such as AetnaHealth, are offering successful implementation of EMR at the practice level and are expected to transform the market.
Furthermore, clinics/physician offices are gradually outsourcing their revenue management to cut unnecessary costs and prevent the burden of managing an administrative team to ensure effective handling of in-house billing functions. In addition, multispecialty healthcare groups are implementing consolidation requiring EHR integration and building large healthcare networks. This integration creates a need for revenue cycle management (RCM), which, in turn, demands additional expertise and trained personnel to manage the same. Thus, the consolidation of large healthcare practices is also expected to be one of the factors fueling market growth.
Grand View Research has segmented the global medical billing outsourcing market based on component, service, end use, and region:
Medical Billing Outsourcing Component Outlook (Revenue, USD Million, 2016 - 2027)
Medical Billing Outsourcing Service Outlook (Revenue, USD Million, 2016 - 2027)
Medical Billing Outsourcing End-Use Outlook (Revenue, USD Million, 2016 - 2027)
Medical Billing Outsourcing Regional Outlook (Revenue, USD Million, 2016 - 2027)
Medical Coding Market– The global medical coding market size was worth USD 10.6 billion in 2016 and is anticipated to exhibit a CAGR of 10.0% during the forecast period.
Medical Image Analysis Software Market– The global medical image analysis software market size was estimated at USD 2.41 billion in 2016 and is expected to witness a CAGR of 8.1% over the forecast period.
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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.
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