Medical Billing Outsourcing Market

Global Medical Billing Outsourcing Market Outlook for 2024 to 2034

Medical Billing Outsourcing Market analysis report shows that the revenue expectation from this sector is USD 19,184.1 million in 2024. The projected market CAGR for the next ten years is anticipated to be 16.6%. The medical billing outsourcing industry value is expected to reach around USD 88,879.4 million by the end of the projected period.

Medical Billing Outsourcing Industry Trends & Analysis

• Some businesses are creating or implementing new cloud-based medical billing technologies to improve patient data protection. In 2018, eClinicalWorks, an outsourced medical billing services company, developed healthcare revenue cycle management software which is a cloud-based application.
• The medical billing process is becoming more complex because of the growing mergers, partnerships, and acquisitions that have occurred in the healthcare industry. For instance, in April 2021, Cerner Corporation completed its acquisition of Kantar Health, a Kantar Group company, for USD 375 million. Furthermore, hospital consolidation complicates the reimbursements as well as the billing insurance billing procedure.

Report Attribute	Details
Medical Billing Outsourcing Market Size (2024)	USD 19,184.1 million
Market Anticipated Forecast Value (2034)	USD 88,879.4 million
Market Projected Growth Rate (2024 to 2034)	16.6% CAGR

Medical Billing Outsourcing Market Historical Analysis Vs Forecast Outlook

The medical billing outsourcing market was valued at USD 9,754.2 million in 2019. The revenue of medical billing outsourcing increased at a rate of 14.4% per year during the historical period. The overall market value was about USD 16,683.9 million in 2023.

With increased patient traffic, hospitals witnessed a steep increase in the number of billing processes, which caused problems with point-of-care delivery.

As the hospital footfall increased dramatically in 2020 and 2021, healthcare personnel were under tremendous strain, and as a result, the demand for medical billing outsourcing services skyrocketed.

So, outsourcing the medical billing process aided medical practitioners in both patient administration and billing during these difficult times.

Attributes	Details
Medical Billing Outsourcing Market Value (2019)	USD 9,754.2 million
Market Revenue (2023)	USD 16,683.9 million
Market Historical Growth Rate (CAGR 2019 to 2023)	14.4% CAGR

Impact of Market Centralization on the Medical Billing Outsourcing Market Growth

The increased business operations have wreaked havoc on healthcare professionals since patient information is frequently erroneous, difficult to exchange with all stakeholders, and orders are frequently not fulfilled.

Digital order management helps to address this issue by providing healthcare professionals with automated clinical and financial data input that is connected to a single, easily accessible medical claims management system.

The burden on healthcare infrastructure caused by diseases and pandemics has encouraged several nations to invest in digitization. This is expected to further improve the healthcare billing outsourcing market's development potential.

The quick change and ambiguity of the legislation and regulatory framework being proclaimed are likely to benefit the sector during the forecast period. However, the increased possibility of data breaches may hinder the industry's expansion in the coming years.

Country-wise Insights

The table below lists countries that are expected to create better opportunities for medical billing services and outsourcing market participants.

Regional Market Comparison	Forecasted CAGR (2024 to 2034)
United States	13.4%
Germany	12%
Japan	11.3%
Australia	20.1%
China	17.1%

United States at the Center of North America Medical Billing Outsourcing Industry

The United States medical billing outsourcing market is likely to register a CAGR of 13.4% over the next ten years.

• During the projected period, North America is expected to have a sizable share of medical billing size of over USD 25 billion, to which the United States is estimated to make a significant contribution.
• The healthcare system in the United States has been changing with the adoption of ICD-10 coding and government pressure to adopt an Electronic Medical Record (EMR) management system.

Stringent Regulations are Driving Outsourced Medical Billing Services Demand in Germany

Germany is poised to witness a 12% CAGR in the expansion of its medical billing outsourcing sector through the forecast years.

• The significant presence of numerous healthcare service providers in the country has heightened their need for end-to-end outsourcing firms to manage their billing operations.
• The rigorous regulation and compulsion over the use of digital record-keeping by healthcare providers is predicted to fuel the industry in Germany.

The Healthcare Sector has improved the Medical Billing Outsourcing Industry in China

The medical billing outsourcing industry in China is forecasted to expand at a CAGR of 17.1% over the forecast period.

• With a growing number of burn cases, road accidents, and skin diseases, China is projected to grow at a faster rate throughout the projection period.
• The need for healthcare services is constantly on the rise in China after the COVID-19 pandemic outbreak in 2019.

Government Support is Fueling the Medical Billing Outsourcing Adoption in Japan

The adoption of medical billing outsourcing services in Japan is expected to thrive at a CAGR of 11.3% from 2024 to 2034.

• The increasing government investment in healthcare infrastructure is anticipated to be a key growth driver for the medical billing outsourcing industry.
• Many regional healthcare providers are adopting outsourced medical billing services to maximize their profitability and better manage high-volume transactions.

Australia is Emerging as the Most Lucrative Country for Global Market Players

The medical billing outsourcing services demand in Australia are projected to rise at a lucrative CAGR of 20.1% till 2034.

• The medical billing outsourcing market is expanding fast in Australia due to the rising awareness of the benefits given by outsourcing businesses.
• Increasing patient visits and the advantages of healthcare revenue cycle outsourcing are expected to favor the market in Australia during the forecasted years.

Category-wise Insights

In-house Medical Billing Services Garner more than half of the Revenue

Based on component type, the in-house medical billing segment is estimated to contribute 56.3% of the total revenue share in 2024.

Attributes	Details
Top Component Segment	In-house Medical Billing
Total Market Share in 2024	56.3%

• In-house medical billing considerably cuts expenses and is suited for both small as well as medium-sized operations.
• Healthcare providers are putting more emphasis on essential services fuelling the demand for in-house medical billing and outsourcing services.

Hospitals Get the Top Spot in Analysis of the Medical Billing Outsourcing Industry

Based on end use, hospitals are likely to contribute 47.3% of the global healthcare billing outsourcing industry revenue in 2024. During the forecast period, the category is expected to retain its supremacy.

Attributes	Details
Top Product Type or Segment	Hospital
Total Market Share in 2024	47.3%

• Since most patients prefer hospitals for illness diagnosis and treatment, hospitals are projected to occupy a sizable share of the medical billing outsourcing demand.
• Hospitals have been the primary customers of the revenue cycle management outsourcing market due to the large claim volume and growing demand for hospital finance services.

Competitive Landscape for Medical Billing Outsourcing Market

The overall market is very competitive, with numerous medium and small businesses fighting against one another. Mergers, partnerships, and acquisitions are some of the key business methods corporations use to increase their market share.

Recent Developments in the Global Medical Billing Outsourcing Market

• In March 2022, Omega Healthcare, a prominent healthcare management services and solution firm, acquired Reventics, a revenue cycle management solution developer that delivers provider engagement solutions to increase physician reimbursement & compliance.
• In July 2021, R1 RCM Inc., a supplier of technology-driven solutions that enhance healthcare providers' patient experiences and financial performance, announced the completion of its purchase of VisitPay, a digital payment solution provider. The purchase integrates VisitPay's customer payments infrastructure with R1's leading patient access technology, allowing providers to offer their patients a smooth financial journey.
• In April 2021, Cerner Corporation completed its acquisition of Kantar Health, a Kantar Group company, for USD 375 Million in cash, depending on adjustment. Kantar Health's extensive life sciences experience will be paired with Cerner's substantial library of real-world data (RWD) & technology, with the goal of accelerating innovation and development in life sciences research and improving patient outcomes globally.
• In March 2021, eClinicalWorks, a pioneer in healthcare IT solutions, announced that Soma Medical Center, P.A., which provides a comprehensive range of medical services to families in Palm Beach County, Florida, has deployed its integrated cloud platform and services for its 50+ providers. Soma Medical Center's clinicians now have more efficient methods to communicate with patients and their families due to eClinicalWorks' patient engagement and automation solutions, which help to ensure that therapy is delivered consistently. Since eClinicalWorks EMR is cloud-based, Soma Medical Center can keep practice and patient data secure and accessible in every scenario.

Key Players Profiled in the Medical Billing Outsourcing Market Report

• R1 RCM Inc.
• Cerner Corporation
• Allscripts Healthcare Solutions Inc.
• Experian Information Solutions Inc.
• eClinicalWorks LLC
• Athenahealth
• Quest Diagnostics

Key Coverage in the Medical Billing Outsourcing Market Report

• Adjacent study on the Global Medical Billing Software and Medical Billing Market
• Overview of Medical Billing Company Revenue
• Profiling of Medical Billing Outsourcing Companies in the USA
• Financial Constraints on Medical Billing Outsourcing Process

Medical Billing Outsourcing Market Report Scope

Attribute	Details
Estimated Market Size (2024)	USD 19,184.1 million
Projected Market Size (2034)	USD 88,879.4 million
Forecasted Growth Rate (2024 to 2034)	16.6%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	USD million or billion for Value and Units for Volume
Key Regions Covered	North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania
Key Countries Covered	United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa
Key Segments Covered	By Service Type, By Component, By End Use Verticals, and By Region
Key Companies Profiled	R1 RCM Inc.; Cerner Corporation; Allscripts Healthcare Solutions Inc.; Experian Information Solutions Inc.; eClinicalWorks LLC; Athenahealth; Quest Diagnostics
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Table of Content

• 1. Executive Summary
• 2. Market Overview
• 3. Market Background
• 4. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034
• 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component
  • 5.1. In-house Medical Billing
  • 5.2. Outsourced Medical Billing
• 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Service Type
  • 6.1. Front End
  • 6.2. Middle End
  • 6.3. Back End
• 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-User
  • 7.1. Hospital
  • 7.2. Physician Office
  • 7.3. Other End-Users
• 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region
  • 8.1. North America
  • 8.2. Latin America
  • 8.3. Western Europe
  • 8.4. Eastern Europe
  • 8.5. South Asia and Pacific
  • 8.6. East Asia
  • 8.7. Middle East and Africa
• 9. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 10. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 11. Western Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 12. Eastern Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 13. South Asia and Pacific Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 14. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 15. Middle East and Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Country
• 16. Key Countries Market Analysis
• 17. Market Structure Analysis
• 18. Competition Analysis
  • 18.1. R1 RCM Inc.
  • 18.2. Cerner Corporation
  • 18.3. Allscripts Healthcare Solutions Inc.
  • 18.4. Experian Information Solutions Inc.
  • 18.5. eClinicalWorks LLC
  • 18.6. Athenahealth
  • 18.7. Quest Diagnostics
  • 18.8. Promantra Inc.
  • 18.9. AdvancedMD, Inc.
  • 18.10. Kareo, Inc.
  • 18.11. McKesson Corporation
• 19. Assumptions & Acronyms Used
• 20. Research Methodology