global-medical-billing-outsourcing-market

Medical Billing Outsourcing Market by Service Type (Front-end, Middle-end, and Back-end), Component (In-house and Outsourced), End-user (Physician Offices, Hospitals, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2022 – 2030

  • Report ID: HC-4860
  • Author: Growth Market Reports
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  • No. Of Pages: 199
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The global medical billing outsourcing market size was USD 12.1Bn in 2021 and is likely to reach USD 30.1 Bn by 2030, expanding at a CAGR of 12.2% during 2022–2030. The market growth is attributed to the wide use of outsourcing services to reduce the workload and errorless billing process in hospitals and private practitioners.

medical-billing-outsourcing-market-outlook

Medical billing outsourcing is a service provided by a vendor or a third-party organization based outside the hospital or physician’s office that takes care of the entire medical billing process of the patients. This service helps physicians and other hospital staff to focus on better treatment of their patients. Billing outsourcing services usually take a certain amount of percentage from hospitals or physicians’ collections as a payment.

Billing outsourcing services help to maximize staff productivity and efficiency. These services offer patients better human resources administration and benefits assistance. Outsourcing services provide up-to-date technology for appropriate analysis and data collection.

COVID-19 Impact on the Global Medical Billing Outsourcing Market

The market report finds that the COVID-19 pandemic had opened immense growth opportunities for the global medical billing outsourcing market. During the pandemic, the rapid spread of the coronavirus led to an increasing number of patients in hospitals, clinics, and physicians’ offices for better treatment. This led to the rising demand for medical billing outsourcing services as the patient numbers were rapidly increasing in major hospitals the whole staff was more focused on the treatment of patients.

The rising number of COVID-19 patients across the globe put hospitals on an alarm and the workload of hospitals was increased. The wide use of outsourcing services helped to reduce the workload of hospital staff and the whole billing process was managed by major third-party billing services. Outsourcing services aided hospitals and private medical practitioners to focus on taking care of their patients.

Market Dynamics of the Global Medical Billing Outsourcing Market

The research report presents a complete market overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The medical billing outsourcing market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

global-medical-billing-outsourcing-market-by-market-dynamics

What are the Key Factors Propelling the Global Medical Billing Outsourcing Market?

Rising Demand for Efficient Medical Billing Process

The rising demand to make the medical billing process efficient for patients’ convenience can drive the global market in the coming years. One of the major issues in the healthcare sector is errors in medical bills and a slow billing process and a lack of better treatment for patients but the rapid adoption of the efficient medical billing process as it helps to increase the productivity of hospital staff and improves patient care can fuel the market growth.

What are the Major Restraining Factors that can Hamper the Global Medical Billing Outsourcing Market Expansion?

Concerns Regarding Data Privacy and Breaches

Medical billing outsourcing is a service provided by third-party service providers which handles all the patients’ medical bills. The rising concerns regarding data privacy and breaches can hamper market growth. The third-party service provider has all the basic details and data of the patients and that can be used anywhere which is one of the major factors hindering the global market.

What are the Growth Opportunities in the Global Medical Billing Outsourcing Market?

Rising use of IT resources in healthcare

The Healthcare sector is booming since the COVID-19 pandemic. The rising use of IT resources in the healthcare sector owing to the various advantages and to improve efficiency and easy access. IT resources help hospitals and practitioners to store and access data regarding patients’ health records. Practitioners can reduce medical errors with the use of better IT resources.

Rising medical costs in industrialized countries with continuous new technological advancements can create lucrative opportunities for global medical billing outsourcing services.

Scope of the Global Medical Billing Outsourcing Markets

The global medical billing outsourcing market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

Medical Billing Outsourcing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2021

Historic Data

2019–2020

Forecast Period

2022–2030

Segmentation

Service Type (Front-end, Middle-end, and Back-end), Component (In-house and Outsourced), and End-user (Physician Offices, Hospitals, and Others)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast

Key Players Covered in the Report

R1 RCM, Inc.; Quest Diagnostics; AdvancedMD, Inc.; Genpact.; Oracle; Allscripts Healthcare, LLC; eClinicalWorks; MCKESSON CORPORATION; Kareo, Inc.; Promantra Inc.; The SSI Group, LLC; Athenahealth; Experian Information Solutions, Inc.; and Omega Healthcare

Market Segment Insights of The Global Medical Billing Outsourcing Market

What Key Factors Contribute to the Rapid Expansion of the Service Type Segment?

Wide Use of Front-end Service Type Owing to Direct Interaction with Patients

Based on service type, the global medical billing outsourcing market is divided into front-end, middle-end, and back-end. The front-end segment dominated the market for medical billing outsourcing and accounted for a revenue share of 36.2% in 2021. It is expected to expand at a significant growth rate during the projected period owing to the various advantages such as direct interaction with patients, patient appointment scheduling, insurance eligibility, authorizations, and patient registration.

The back-end segment is anticipated to hold a key share of the market in the coming years due to the extensive use of this service in after-disease diagnosis in hospitals and physicians’ offices. This service includes claim forms, claim generation, claim tracking, patient payments, credit balances, and many others.

What are the Main Aspects for Boosting the Component Segment?

Cheaper Rates of Outsourced Components for Small and Medium Practitioners

On the basis of the component, the global market is bifurcated into in-house and outsourced. The outsourced segment is projected to register a considerable CAGR during the forecast period owing to its cheaper as the billing is outsourced and it reduces the expenses on office space and technical support. The outsourced method significantly reduces costs and proves a good fit for small and medium practices.

The in-house segment is anticipated to account for a major market share in the coming years due to the advantage of having more control over the billing process. Health organizations have direct control and oversight over the financial procedure when medical billing is done with an in-house method. With the track of finances, organizations can be more transparent and accountable for their decisions.

The in-house segment enables organizations to have control over the patients’ records and they can maintain patients’ confidentiality. It enables monitoring of the transaction and customization options as per the requirement.

Which Major Factors influence the Substantial Growth of the End-user Segment?

Rising Demand for Outsourcing Services in Hospitals

In the terms of end-users, the global market is divided into physician offices, hospitals, and others. The hospital segment is expected to expand at a significant rate due to the wide use and increasing demand for medical billing outsourcing services to reduce the workload and for patients’ convenience.

Hospitals are using revenue cycle management to store all the financial procedures that help to track, identify, collect, and manage incoming payments. Medical billing outsourcing is gaining rapid traction in hospitals across the globe, especially in US healthcare systems.

Most patients prefer hospitals for disease diagnosis and increasing use of Electronic Health Records (EHR) which is an electronic version of a patient’s medical history maintained by a provider that includes all the key administrative clinical data relevant to the person’s health under the provider.

The physician’s clinic segment is expected to register a considerable CAGR during the forecast period due to the rising awareness of outsourcing services in smaller healthcare organizations. Physicians are focusing on adopting advanced medical technological solutions for new payment models, revenue management tools, and billing processes.

medical-billing-outsourcing-market-by-end-user

Why is North America dominating the Global Medical Billing Outsourcing Market?

Increasing Expenditure on Healthcare Sector

In terms of region, the global medical billing outsourcing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market size of North America is expected to dominate the market during the projected period owing to the increasing healthcare expenditure and the presence of major key players in the region. The rapid growth in the adoption of the revenue management cycle by major hospitals in the region is likely to boost the demand for outsourcing services.

The rapid growth in healthcare infrastructure and greater government initiatives toward keeping digital health records in North America can propel market growth. For instance, in US.

The healthcare sector is one of the most data-intensive sectors as the government spends major expenditure on new technological solutions in the healthcare sector. Increasing numbers of healthcare providers can open new pathways for medical billing outsourcing technologies.

The market of the Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the rapid growth in healthcare infrastructure in emerging economies such as India and China can boost the global medical billing outsourcing market. The rising awareness of billing outsourcing technologies and the adoption of the latest technology in the healthcare sector can fuel market growth in the coming years.

medical-billing-outsourcing-market-regions

Segments

The global medical billing outsourcing market has been segmented on the basis of

Service Type

  • Front-end
  • Middle end
  • Back-end

Component

  • In-house
  • Outsourced

End-user

  • Physician Offices
  • Hospitals
  • Others

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • R1 RCM, Inc.
  • Quest Diagnostics
  • AdvancedMD, Inc.
  • Genpact.
  • Oracle
  • Allscripts Healthcare, LLC
  • eClinicalWorks
  • MCKESSON CORPORATION
  • Kareo, Inc.
  • Promantra Inc.
  • The SSI Group, LLC
  • Athenahealth
  • Experian Information Solutions, Inc.
  • Omega Healthcare

Competitive Landscape

Key players competing in the global medical billing outsourcing market are R1 RCM, Inc.; Quest Diagnostics; AdvancedMD, Inc.; Genpact.; Oracle; Allscripts Healthcare, LLC; eClinicalWorks; MCKESSON CORPORATION; Kareo, Inc.; Promantra Inc.; The SSI Group, LLC; Athenahealth; Experian Information Solutions, Inc.; and Omega Healthcare. Some of these major companies adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.

On August 31, 2022, a US-based leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, R1 RCM Inc. announced an agreement to be the exclusive provider of revenue cycle management services for the Emergency Physicians Professional Association (EPPA), a physician group providing high-quality emergency medicine and urgent care across Minnesota.

On April 13, 2022, a leading technology-enabled healthcare management solutions provider US-based company, Omega Healthcare, announced its acquisition of ApexonHealth, an AI and automation-based revenue cycle management and payor solutions provider, and Vasta Global, a provider of real-world data abstraction and analytics for the oncology market.

On June 3, 2020, a US-based leading provider of technology-driven solutions, R1 RCM Inc. acquired Cerner RevWorks services business and commercial, non-federal client relationships. In this acquisition, both companies have committed to seamless integration between the company’s technology-enabled services platform and Cerner’s software.

medical-billing-outsourcing-by-key-players

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Medical Billing Outsourcing Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. Medical Billing Outsourcing Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Medical Billing Outsourcing Market - Supply Chain
  4.5. Global Medical Billing Outsourcing Market Forecast
     4.5.1. Medical Billing Outsourcing Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Medical Billing Outsourcing Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. Medical Billing Outsourcing Market Absolute $ Opportunity
5. Global Medical Billing Outsourcing Market Analysis and Forecast by End Users
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by End Users
     5.2.2. Y-o-Y Growth Projections by End Users
  5.3. Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     5.3.1. Physician Offices
     5.3.2. Hospitals
     5.3.3. Others
  5.4. Absolute $ Opportunity Assessment by End Users
  5.5. Market Attractiveness/Growth Potential Analysis by End Users
6. Global Medical Billing Outsourcing Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Medical Billing Outsourcing Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Medical Billing Outsourcing Demand Share Forecast, 2019-2026
7. North America Medical Billing Outsourcing Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Medical Billing Outsourcing Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     7.4.1. Physician Offices
     7.4.2. Hospitals
     7.4.3. Others
  7.5. Basis Point Share (BPS) Analysis by End Users
  7.6. Y-o-Y Growth Projections by End Users
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Medical Billing Outsourcing Demand Share Forecast, 2019-2026
8. Latin America Medical Billing Outsourcing Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Medical Billing Outsourcing Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     8.4.1. Physician Offices
     8.4.2. Hospitals
     8.4.3. Others
  8.5. Basis Point Share (BPS) Analysis by End Users
  8.6. Y-o-Y Growth Projections by End Users
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Medical Billing Outsourcing Demand Share Forecast, 2019-2026
9. Europe Medical Billing Outsourcing Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Europe Average Pricing Analysis
  9.2. Europe Medical Billing Outsourcing Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     9.4.1. Physician Offices
     9.4.2. Hospitals
     9.4.3. Others
  9.5. Basis Point Share (BPS) Analysis by End Users
  9.6. Y-o-Y Growth Projections by End Users
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Medical Billing Outsourcing Demand Share Forecast, 2019-2026
10. Asia Pacific Medical Billing Outsourcing Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Medical Billing Outsourcing Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     10.4.1. Physician Offices
     10.4.2. Hospitals
     10.4.3. Others
  10.5. Basis Point Share (BPS) Analysis by End Users
  10.6. Y-o-Y Growth Projections by End Users
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Medical Billing Outsourcing Demand Share Forecast, 2019-2026
11. Middle East & Africa Medical Billing Outsourcing Market Analysis and Forecast
  11.1. Introduction
     11.1.1. Basis Point Share (BPS) Analysis by Country
     11.1.2. Y-o-Y Growth Projections by Country
     11.1.3. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Medical Billing Outsourcing Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Medical Billing Outsourcing Market Size and Volume Forecast by End Users
     11.4.1. Physician Offices
     11.4.2. Hospitals
     11.4.3. Others
  11.5. Basis Point Share (BPS) Analysis by End Users
  11.6. Y-o-Y Growth Projections by End Users
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Medical Billing Outsourcing Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Medical Billing Outsourcing Market: Market Share Analysis
  12.2. Medical Billing Outsourcing Distributors and Customers
  12.3. Medical Billing Outsourcing Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. R1 RCM, Inc.
     12.4.2. Quest Diagnostics
     12.4.3. AdvancedMD, Inc.
     12.4.4. Genpact.
     12.4.5. Oracle
     12.4.6. Allscripts Healthcare, LLC
     12.4.7. eClinicalWorks
     12.4.8. MCKESSON CORPORATION
     12.4.9. Kareo, Inc.
     12.4.10. Promantra Inc.
     12.4.11. The SSI Group, LLC
     12.4.12. Athenahealth
     12.4.13. Experian Information Solutions, Inc.
     12.4.14. Omega Healthcare

The global medical billing outsourcing market has been segmented on the basis of

Service Type

  • Front-end
  • Middle end
  • Back-end

Component

  • In-house
  • Outsourced

End-user

  • Physician Offices
  • Hospitals
  • Others

Region

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • R1 RCM, Inc.
  • Quest Diagnostics
  • AdvancedMD, Inc.
  • Genpact.
  • Oracle
  • Allscripts Healthcare, LLC
  • eClinicalWorks
  • MCKESSON CORPORATION
  • Kareo, Inc.
  • Promantra Inc.
  • The SSI Group, LLC
  • Athenahealth
  • Experian Information Solutions, Inc.
  • Omega Healthcare

Key players competing in the global medical billing outsourcing market are R1 RCM, Inc.; Quest Diagnostics; AdvancedMD, Inc.; Genpact.; Oracle; Allscripts Healthcare, LLC; eClinicalWorks; MCKESSON CORPORATION; Kareo, Inc.; Promantra Inc.; The SSI Group, LLC; Athenahealth; Experian Information Solutions, Inc.; and Omega Healthcare. Some of these major companies adopted various business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share.

On August 31, 2022, a US-based leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers, R1 RCM Inc. announced an agreement to be the exclusive provider of revenue cycle management services for the Emergency Physicians Professional Association (EPPA), a physician group providing high-quality emergency medicine and urgent care across Minnesota.

On April 13, 2022, a leading technology-enabled healthcare management solutions provider US-based company, Omega Healthcare, announced its acquisition of ApexonHealth, an AI and automation-based revenue cycle management and payor solutions provider, and Vasta Global, a provider of real-world data abstraction and analytics for the oncology market.

On June 3, 2020, a US-based leading provider of technology-driven solutions, R1 RCM Inc. acquired Cerner RevWorks services business and commercial, non-federal client relationships. In this acquisition, both companies have committed to seamless integration between the company’s technology-enabled services platform and Cerner’s software.

medical-billing-outsourcing-by-key-players

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FAQ Section

Some frequently asked quetions about this report!

The global medical billing outsourcing market size was USD 12.1Bn in 2021 and is likely to reach USD 30.1Bn by 2030, expanding at a compound annual growth rate of 12.2% during 2022–2030.

Based on service type, the front-end segment dominated the market for medical billing outsourcing and accounted for a revenue share of 36.2% in 2021.

The key drivers for the global market are the wide use of outsourcing services to reduce the workload and the errorless billing process in hospitals and private practitioners.

For regional analysis, North America dominates the global market owing to the rapid growth in healthcare infrastructure and greater government initiatives toward keeping digital health records.

The medical billing outsourcing key market players are R1 RCM, Inc.; Quest Diagnostics; AdvancedMD, Inc.; Genpact.; Oracle; Allscripts Healthcare, LLC; eClinicalWorks; MCKESSON CORPORATION; Kareo, Inc.; Promantra Inc.; The SSI Group, LLC; Athenahealth; Experian Information Solutions, Inc.; and Omega Healthcare.