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The healthcare industry has moved gradually towards outsourcing non-core business operations such as revenue cycle management, medical billing & coding, claims processing and other clinical functions to specialized third party service providers known as Healthcare BPO’s (Business Process Outsourcing). This helps hospitals and other healthcare providers reduce capital and operational expenditures while focusing on their core clinical competencies. Revenue cycle management is one of the major functions outsourced to Healthcare BPOs which involves insurance verification, payment posting and collection of balances from patients. The global Healthcare BPO Market is estimated to be valued at US$ 10.19 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing outsourcing of healthcare operations: As mentioned in the heading, growing outsourcing of non-core business operations such as revenue cycle management, medical billing & coding, claims processing etc. to specialized BPO providers are driving the growth of global healthcare BPO market. This helps healthcare facilities reduce costs and focus on patient care.
Revenue cycle management provides opportunity: Revenue cycle management which involves activities from patient registration to collection of payment is one of the major business functions that is outsourced to healthcare BPOs. The complex nature of US healthcare reimbursement system makes revenue cycle management a critical and challenging task for hospitals. This is creating significant opportunities for healthcare BPO companies specializing in revenue cycle management. Their technical expertise and economies of scale help hospitals optimize the process and boost financial performance.
Segment Analysis
The Healthcare BPO market is dominated by the payer services sub segment. Payer services accounted for over 45% of the total market share in 2023. They help health insurers streamline various back-office operations such as claims processing, customer interactions, and enrollment services. The increasing number of health insurance policies and rise of complicated health plans have created significant demand for payer services.
PEST Analysis
Political: Countries are introducing favorable regulations to attract healthcare BPO companies and optimize healthcare costs. For example, tax benefits for outsourcing clinical services.
Economic: Growing per capita GDP and high healthcare expenditure are fueling the market. Healthcare BPO reduces operational costs significantly for insurers and providers.
Social: Changing demographics with rising elderly population coupled with the shortage of skilled labor is propelling the demand for BPO services.
Technological: Adoption of AI, blockchain, cloud computing is helping companies provide advanced services quickly and securely. Automation is boosting efficiency.
Key Takeaways
The global Healthcare BPO market is expected to witness high growth at a CAGR of 6.1% during the forecast period of 2023 to 2030. Regional analysis revealed that North America dominated with over 35% market share in 2023 owing to early adoption of outsourcing. Asia Pacific is anticipated to be the fastest growing region supported by growing medical tourism, favorable policies and low-cost skilled labor availability.
Key players operating in the healthcare BPO market are Companies are focusing on development of technologically advanced products to hold the largest share in the chromatography instruments market. They aim to expand into developing countries presenting lucrative opportunities. Strategic partnerships for service portfolio expansion and inorganic growth through mergers and acquisitions are trends to observe.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
