Medical Billing Outsourcing Market to Grow at 16% CAGR

The medical billing outsourcing market is anticipating historical growth during 2022, with its value expected to grow at a CAGR of 16 percent between 2022 and 2032, according to a recently published Future Market Insights report.

As of 2021, the global sales of the medical billing outsourcing market were held at  $ 11.1 billion, experts believe it will reach a valuation of $55.6 billion by the end of 2032.

Healthcare revenue cycle management outsourcing has become more attractive to healthcare leaders over the years.

A 2022 report showed that over one in five revenue cycle leaders that manage inpatient RCM services themselves have turned to outsourcing for some of their outpatient RCM services.

The COVID-19 pandemic has been a significant factor in this increase. During this period, a sudden shift toward digital billing spearheaded the move to outsourcing.

“It is due to the expanding influence of technology in the healthcare business, which has traditionally relied on localized healthcare systems,” the report mentioned. “The pandemic has accelerated market growth by accelerating digital development in a variety of industries, including healthcare.”

Consumers have also had an increased interest in online bill payments since the start of the pandemic.

The pandemic highlighted a need for proactive actions and the establishment of a robust, extendable, collaborative, and reactive digital healthcare infrastructure, the report stated.

“As a result, in order to enhance market development, numerous organizations are adopting methods such as digitization and outsourcing of all non-core areas of their operations, such as invoicing and accounting,” the report explained.

The medical billing outsourcing market is very competitive, with numerous medium and small businesses battling against one another.

The digitalization of the healthcare industry and increasing demand for medical billing outsourcing services is providing an excellent opportunity for companies that wish to establish their market presence and grab a substantial share.

According to the Future Market Insights report, some of the key medical billing outsourcing service providers include R1 RCM Inc., Cerner Corporation, Allscripts Healthcare Solutions Inc., Experian Information Solutions Inc., eClinicalWorks LLC, Athenahealth, Quest Diagnostics, Promantra Inc., AdvancedMD, Inc., Kareo, Inc., and McKesson Corporation.

To cope with this competitive market, corporations are doing mergers, partnerships, and acquisitions to increase their market share.

Notably, in March 2022, Omega Healthcare acquired Reventics, a revenue cycle management solution developer who delivers provider engagement solutions to increase physician reimbursement & compliance.

In late 2021, R1 RCM Inc completed the acquisition of patient payments platform provider VisitPay.

The acquisition integrated VisitPay's customer payments infrastructure with R1's patient access technology, enabling a seamless financial journey for patients.

EHR Vendor Cerner scooped up Kantar Health for $375 million in cash to accelerate life sciences research with an overarching goal of improving patient outcomes

“Kantar Health's highly experienced employees have a thorough awareness of the demands of the pharmaceutical and life sciences industries,” the report stated. “Cerner's research and consulting services, along with RWD, position the company to assist life sciences corporations and research organizations with all phases of the therapeutic lifecycle.”