Medical Billing Software and Market Size Globally

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Global Medical Billing Outsourcing Market

Key takeaways

  • The medical billing outsourcing market is vibrant — experts expect significant growth over the coming years at a CAGR of 15%.
  • Even though the North American region currently dominates this market, the APAC region is expected to become the new high-growth area thanks to a bulging geriatric population and increased demand for ancillary support services.
  • Growth drivers include the increased demand for software solutions critical for efficient maintenance of health records, the need to make processes efficient, a growing emphasis on risk management and compliance, and a desire to achieve business goals.
  • On the other hand, growth constraints include the variable cost charged per billing and the lack of trained professionals.

Introduction

Medical billing outsourcing is a management strategy used by healthcare providers to save on resources that would typically go into undertaking certain activities. Generally, medical billing outsourcing helps organizations save on training expenses, staff salaries, and other costs.
Medical billing outsourcing entails healthcare organizations contracting third-party entities to undertake billing services on their behalf. This can happen through partnerships or independent contracting. As a general practice, only services and goods sold to end-users are considered ‘sales’ and therefore included in the billing.

Main Findings

Overview

Growth drivers

Growth constraints

  • However, the variable cost charged by service providers is expected to have a shrinking effect on the medical billing outsourcing market. Medical billing service providers charge a price for every service offered. This usually ranges between 3% to 10% per bill. This essentially means the more the number of tabs (more patients), the more the healthcare provider pays the service provider. Experts contend that the variable cost will negate the growth of the medical billing outsourcing market.
  • Another growth constraint is the lack of trained professionals. This aspect will impede the growth of the medical billing outsourcing market because, without trained personnel, service providers cannot offer medical billing services.

Research strategy

The research strategy entailed sourcing information that met the research requirements. The sources used for this research are updated and not older than two years.

Sources
Sources