Medical Billing Outsourcing Industry Overview

The global medical billing outsourcing market size was valued at USD 12.2 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.26% from 2023 to 2030.

Emerging new trends mainly due to bad debts, new technological solutions, & bills, and changing regulatory guidelines, are contributing to the increasing impact of healthcare claim outsourcing. Medical billing outsourcing can help in lowering equipment and software expenses, improving cash flow, and reducing employee size and costs.

Gather more insights about the market drivers, restrains and growth of the Medical Billing Outsourcing Market

Due to the rising use of IT resources in the healthcare business and steady government support, the market is growing at a substantial rate. The increased cost of healthcare, particularly in developed countries, has led to continuous advancements, allowing for the high adoption of modern technology devices and equipment, such as RCM software. The rising patient load and the need to address the ever-growing record and bills are creating a burden on health practitioners. To counter such a situation, hospitals are outsourcing the clinical billing process which is expected to drive the growth of the market.

Medical billing involves revenue cycle management, which is the most complex and important component of the healthcare IT business. Due to a lack of expertise in dealing with new payment models and revenue management tools, current revenue management systems are becoming obsolete. In addition, the increasing use of billing and medical coding techniques in revenue cycle management is estimated to spur market growth.

The medical coding classification is subject to various changes, which is favoring the market growth. Billing for surgeries can be a daunting task for many health professionals and businesses, who may not have access to qualified personnel to undertake their duties. As a result, healthcare providers, hospitals, clinicians, and physicians prefer to outsource their healthcare financing needs to third-party providers.

The advent of advanced technology, money, labor, and time savings are rising the preference for healthcare billing outsourcing among healthcare providers. The need for medical billing outsourcing services is increasing due to the efforts of healthcare providers to reduce errors and internal procurement costs. It increases organization revenue by substantial cost savings and time on infrastructure, payroll, maintenance, purchase, and software updates. Well-established outsourcing companies offer a very transparent process.

Browse through Grand View Research's Medical Devices Industry Research Reports.

• The global revenue cycle management market size was estimated at USD 306.8 billion in 2023 and is projected to grow at a CAGR of 11.39% from 2024 to 2030.
• The global healthcare IT market size was estimated at USD 663.0 billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030.

Medical Billing Outsourcing Market Segmentation

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, 2018 - 2030)

• In-house
• Outsourced

Medical Billing Outsourcing Service Outlook (Revenue, USD Million, 2018 - 2030)

• Front-end Services
• Middle-end Services
• Back-end Services

Medical Billing Outsourcing End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Hospitals
• Physician Offices
• Others

Medical Billing OutsourcingRegional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America
  • US
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Sweden
  • Norway
  • Denmark
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Kuwait

Key Companies profiled:

• R1RCM Inc.
• Veradigm, LLC
• Oracle
• eClinicalWorks
• Kareo, Inc.
• McKesson Corporation
• Quest Diagnostics Incorporated
• Promantra Inc.
• AdvancedMD, Inc.

Key Medical Billing Outsourcing Company Insights

The market is highly fragmented, with many small, medium, and large-sized companies competing with one another. Partnerships, technological advancements, mergers, and acquisitions are key strategies undertaken by major companies to strengthen their market position. For instance, in March 2022, Omega Healthcare acquired Reventics, an RCM solution developer that provides solutions for provider engagement to improve compliance and physician reimbursement. Furthermore, in May 2023, Aspirion, a leading RCM provider announced the acquisition of FIRM Revenue Cycle Management Services, Inc.

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