Medical Billing Outsourcing Market Size, Share & Industry Analysis, By Service (Front End, Middle End, Back End), By Components (In-House, Outsourced), By End User (Hospitals, Physician Office, Others) And Regional Forecast 2023-2030

Medical billing involves the revenue cycle management (RCM) process which is one of the most important components of healthcare IT. The present system that manages the revenue are becoming outdated due to the latest revenue models and management tools and the lack of presence of expertise in the present systems to tackle complex problems.

Medical billing has a number of benefits such as cash flow increases, reduction in software and equipment costs, and also a decline in staff costs due to decreased number of employees. In the complex and evolving healthcare marketplace, successful management of billing and coding are strategically advantageous point for medical professionals. Medical practices with their in-house employees performing the billing functions are more at risk than those outsourcing medical billing services. These companies have the experts who have the necessary expertise to carefully perform the medical billing processes.

Outsourcing medical billing increases the revenue of the healthcare organizations, this is attributed to the money saved as means of salaries for the employees, infrastructure, purchasing and maintenance of the billing software. Furthermore, due to the increase in patient load, the hospitals may witness that increases in the number of billing process creates issue in the point-of-care delivery. Therefore, outsourcing the medical billing process assists the medical practitioners in the management of patients as well as the billing process.

However, different costs that are charged in this outsourcing of medical billing services is expected to hinder the market growth. The healthcare IT services charges a certain percentage of collections as per each bill, therefore the more the organization earns, and the more amount is paid to these service providers. Reducing the usage of these services due to this factor is leading to the decline of market growth.

Key Market Driver -

Increase in revenue generation of the organizations due to the outsourcing process to drive market growth.

Key Market Restraint -

Concerns associated with data privacy and breaches hampers the market growth.

Market Segmentation:

Globally, the medical billing outsourcing market can be segmented on the basis of service, component, end user and region. Based on service, the market can be segmented into front end, middle end, and back end. Based on component, the market can be segmented into in-house, and outsourced. Based on end user, the market can be segmented into hospital, physician office, and others. Geographically, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

Key Players Covered:

The major companies in the global medical billing outsourcing market report include HCL Technologies Limited, McKesson Corporation, GENERAL ELECTRIC COMPANY, Allscripts Healthcare, LLC, Genpact, R1 RCM, Inc., eClinicalWorks and, other prominent players.

Key Insights

• Technological Advancements in Medical Billing Outsourcing Systems


• New Product Launches


• Impact of COVID-19 on the Global Medical Billing Outsourcing Market


• Key Industry Development - Mergers and Acquisitions

Regional Analysis:

North America accounts for the largest revenue share, which is attributed to the changes in medical systems, current medical coding implementations, advancements in IT healthcare technologies, incorporation of EMR, and the presence of key players.

The Europe market for medical billing outsourcing is driven by the increase in demand for cost reduction in the healthcare sector. The region can witness significant growth because of the reimbursement policies, and the price changes. One of the most important reasons for the growth of this market in this region is increasing pressure on the healthcare providers to develop a sustainable healthcare system. The Asia Pacific region is expected to be the fastest growing region in the forecast period due to a growth in awareness on medical billing software, improving healthcare facilities and supportive government initiatives.

The Latin America and the Middle Eastern market is expected to witness growth in the forecast period as there is significant rise in population below the poverty line requiring proper healthcare solutions, the increased prevalence of chronic diseases also leading to the demand of proper healthcare facilities. Due to this reason, the healthcare providers are eliminating the burden of administration and billing and concentrating on providing quality healthcare to the patients. Thus, increasing the demand for medical billing outsourcing market in this region.

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Segmentation

Medical Billing Outsourcing Industry Developments

• In June 2020, R1 RCM acquired Cerner RevWorks which enables the expansion in R1 RCM’s revenue.


• In February 2019, Athenahealth, Inc. was acquired by Veritas Capital, this helped them gain access to their network enabled services for hospitals.