Market Size & Trends

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.

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.

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

Component Insights

By component, the market is bifurcated into in-house and outsourced. The outsourced segment held the largest revenue share of 53.2% in 2022 and is expected to register the highest CAGR from 2023 to 2030. Outsourcing service significantly reduces costs and have proven to be a good fit for small and medium operations. Physician health operations at clinics and acute care hospitals are faced with challenging times as reimbursements have declined and costs are rising, and the newly introduced regulations have made business more complex. 

Service Insights

Based on service, the market is segmented into front-end services, middle-end services, and back-end services. The front-end services segment dominated the market and accounted for a revenue share of 38.7% in 2022. Front-end services consist of processes, such as scheduling, preregistration, registration, pre-authorization, and insurance verification. It involves the major functions of medical billing. Managing front-end services well is key to reducing repetitive work and improving the patient experience with faster service. Therefore, the demand for outsourcing these services is strong.

End-use Insights

The hospital segment with a share of 47.0%, held the maximum portion of the market in 2022. The segment is expected to maintain its dominance throughout the forecast period. This is primarily due to the increasing demand for financing services in healthcare facilities. In addition, the consolidation of hospitals adds to the complexity of the reimbursement and billing process. This is driving the demand for medical billing outsourcing services in the hospital sector.

Regional Insights

North America dominated the market with a share of 47.3% in 2022. The presence of numerous healthcare providers in the U.S. and the shift in their focus on end-to-end outsourcing solutions for managing billing processes is augmenting the market in North America. Due to the increased awareness about the benefits offered by outsourcing, providers are preferring outsourced services to maximize profits and manage high-value transactions.

Key Companies & Market Share 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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Some prominent players in the global medical billing outsourcing market include:

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

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
• U.S.
• 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

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