Medical Billing Outsourcing market is expected to expand at a compound annual growth rate (CAGR) of 12.66% from 2021 to 2028.

The global medical billing outsourcing market size was valued at USD 10.2 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.66% from 2021 to 2028. Medical billing involves the revenue cycle management (RCM) process, which comprises the most complex and crucial components of the healthcare IT business. The current systems in practice for managing revenue are gradually becoming obsolete due to the lack of expertise in tackling new payment models and revenue management tools. Moreover, the increasing usage of billing and medical coding procedures in revenue cycle management is estimated to bolster market growth. There are frequent revisions in the classification systems for medical coding, which also drives the market.

The spread of the novel coronavirus has adversely affected the sector. New codes were created for COVID-19. For instance, the World Health Organization created the International Classification of Diseases (ICD-11) codes, which will come into effect in January 2022. The advent of new technological solutions, increasing and changing government requirements, and bad debt and uncollectible accounts have sparked a new trend leading to an increased preference for medical billing outsourcing by several healthcare providers.

The coronavirus pandemic has made unparalleled consequences on daily lives in addition to the global economy. A substantial burden is formed on healthcare systems around the world. The COVID-19 pandemic has negatively affected and is expected to adversely affect the medical billing outsourcing sector by reducing patient or service volumes and payment ability. Healthcare providers need to prevail over these challenges by reconsidering their financial plans to lessen the impact of the COVID-19 pandemic on revenues. On the other hand, telemedicine solutions can boost patient volumes, improve patient satisfaction and experience, and eventually propel revenues.

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

Medical billing outsourcing increases cash flow, helps save on the cost of equipment and software, and reduces staff size and employee expenses. The growing geographical reach of the key companies through mergers and acquisitions is expected to drive the market for medical billing outsourcing in the coming years. For instance, in December 2016, Allscripts acquired an Australian healthcare IT software provider, Core Medical Solutions, to significantly increase Allscripts offerings in the country.

North America emerged as the largest regional market for medical billing outsourcing in 2020 and is expected to maintain its lead over the forecast years. This is attributed to the high awareness levels about outsourcing healthcare IT services and the strong presence of prominent market players in the region. In 2019, Becker's Hospital Review listed around 210 revenue cycle management solutions in the global market space and recognized Athenahealth (U.S.), Accenture (Ireland), R1 RCM (U.S.), Atos (France), and Experian Health (U.S.) as some of the leading revenue cycle vendors.

Europe is a major market for outsourcing healthcare services, which is majorly driven by the demand for minimizing the overall healthcare delivery costs. The region has high growth potential owing to factors, such as the consolidation of large healthcare providers, changes in pricing and reimbursement policies, and increasing pressure on European healthcare providers to build more sustainable healthcare systems.

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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:

Medical Billing Outsourcing Component Outlook (Revenue, USD Million, 2016 - 2028)

• In-house
• Outsourced

Medical Billing Outsourcing Service Outlook (Revenue, USD Million, 2016 - 2028)

• Front End
• Middle End
• Back End

Medical Billing Outsourcing End-use Outlook (Revenue, USD Million, 2016 - 2028)

• Hospital
• Physician Office
• Others

Medical Billing Outsourcing Regional Outlook (Revenue, USD Million, 2016 - 2028)

• North America

o   U.S.

o   Canada

• Europe

o   Germany

o   U.K.

o   Spain

o   France

o   Italy

• Asia Pacific

o   China

o   Japan

o   India

• Latin America

o   Brazil

o   Mexico

• Middle East & Africa (MEA)

o   South Africa

o   Saudi Arabia

 Market Share Insights

December 2020 - Quest Diagnostics (NYSE: DGX), the world's leading provider of diagnostic information services, and The Commons Project, a non-profit public trust dedicated to building and operating global digital platforms and services for public good, today announced a collaboration that will give individuals more control over how and when they can access their data.

April 2022 - GE Healthcare and the Hampshire Hospitals NHS Foundation Trust (HHFT) have signed a 10-year partnership agreement with the aim of transforming their radiology services and improve patient care.

Key Companies profiled:

Some prominent players in the global Medical Billing Outsourcing market include

• R1 RCM, Inc.
• Cerner Corporation
• Allscripts Healthcare Solutions, Inc.
• Experian Information Solutions, Inc.
• eClinicalWorks
• GE Healthcare
• Genpact
• HCL Technologies Limited
• Kareo, Inc.
• McKesson Corporation
• Quest Diagnostics
• Athenahealth Inc.
• The SSI Group, LLC.

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