The global medical billing outsourcing market is projected to grow at a CAGR of over 10% during the forecast period. 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. The advent of new technological solutions, increasing and changing government requirements, and poor debt and uncollectible accounts have sparked a new trend leading to an increased preference for medical billing outsourcing by several healthcare providers.

Impact of COVID-19 Pandemic on Global Medical Billing Outsourcing Market

The digital development accelerated by the COVID-19 pandemic is expected to have a significant positive impact on the market studied. This pandemic situation has firmly established the need for active action and the establishment of a robust, collaborative, scalable, and agile digital healthcare infrastructure. As a result, many of the companies are now building up a new roadmap such as adopting digitization and outsourcing non-core aspects of their businesses, such as billing and accounts, which is expected to augment the market growth. During this period, a sudden shift towards digital billing was observed which is further expected to drive the market growth. Additionally, consumer interest has also increased significantly towards online bill payments since the pandemic began, leading to greater demand for medical billing outsourcing as it forms a non-core business operation for most healthcare institutes.

Segmental Outlook

The global medical billing outsourcing market is segmented based on end-user into hospitals, physician offices, and others. The hospital segment is estimated to hold a prominent share in the market as the hospitals are major users of these services due to high claim volume. The hospital segment is followed by the physician's office in terms of revenue generation. 

Global Medical Billing Outsourcing Market by End-User 2019 (%)

Regional Outlook

Geographically, the study of the global medical billing outsourcing market covers the analysis of four major regions including North America (the US and Canada), Europe (Germany, Spain, Italy, France, the UK, and the Rest of Europe), Asia-Pacific (India, China, Japan and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). The robust growth of healthcare infrastructure in the North American region and the increase in hospital admissions is leading to the rising demand for software solutions. In addition, greater government initiatives towards digital health record maintenance are expected to boost market growth. The emergence of novel technologies and their adoption is helping the US to expand in the healthcare sector. The rising healthcare cost is the prime factor responsible for the growth of this sector.

In the US, the healthcare industry is one of the most data-intensive sectors. The industry is deeply invested in applying innovative solutions, to enhance the development of advanced healthcare and to support improvements in patient care. ?? Moreover, the US federal government and other public stakeholders are opening their vast stores of healthcare knowledge, including data and information on patients covered under public insurance programs.

Global Medical Billing Outsourcing Market Growth by Region, 2020-2026

Market Players Outlook

Some of the prominent players operating in the global medical billing outsourcing market include R1 RCM, Inc., Allscripts Healthcare Solutions, McKesson Corp., Kareo Inc., and others. These key players are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships and collaborations, and many others in order to thrive in a competitive environment. For instance, in July 2019, Cerner Corp partnered with Amazon Web Services (AWS) for access to its cloud space and global infrastructure to drive healthcare IT innovations. The partnership is expected to improve clinical efficiency and lower operational budgets for healthcare organizations.

The Report Covers

• Market value data analysis of 2019 and forecast to 2026.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global medical billing outsourcing market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.