Healthcare BPO Market size is projected to grow commendably between 2022 to 2028, driven by the rising benefits of medical business process outsourcing, such as reduced costs, data security, and access to skilled professionals. The significant reduction in errors in medical billing as well as staff training courses through healthcare outsourcing, alongside the increasing concern about high healthcare costs, will also foster industry demand in the upcoming years. Healthcare BPO refers to activities where the healthcare organizations contract their business functions to external service providers, enabling hospitals and healthcare providers to focus on core business functions and treat patients efficiently. Common healthcare BPO services include claim processing, data processing services, and medical billing and coding.
Rapid digitalization and the expansion of nearshore outsourcing companies are some of the key trends amplifying the healthcare BPO market dynamics through 2028. For example, a nearshore agile custom software development firm, Cinq, expanded its activities across North America in 2021, with an aim to help companies in industries such as healthcare boost digital business growth. This factor, along with the rising healthcare costs and the strong demand for health insurance exchange in the U.S., will also propel the requirement of healthcare BPO services for resource management and cost reduction. However, risk factors including data breaches, patient privacy issues, and other IT-related outsourcing challenges may hamper industry size to some extent in the upcoming years.
Medical coding services segment will hold a commendable share in the healthcare BPO market by 2028, on account of the significant increase in demand and supply gap of certified medical coders in developing economies. In addition, several benefits of outsourcing medical coding services, like improved billing accuracy and high transparency and accuracy, will further augment the need for medical coders and in turn, impel the use of BPO for healthcare during the forecast timeline.
The Asia Pacific healthcare BPO market is poised to register considerable revenue by 2028. This is given the emergence of India as one of the largest healthcare outsourcing destinations, owing to the heightened capabilities of Indian players in discovering hidden patterns and unknown correlations as well as analyzing Big Data. Over 80% of U.S. hospitals and healthcare providers outsource their businesses to the country. Factors such as these, alongside the deployment of cutting-edge technologies such as AI in drug design and development, will also provide growth opportunities for the regional industry in the coming years.
Major participants of the industry include IQVIA, Invensis Technologies, IBM Corporation, GeBBS, HCL Technologies Limited, Infosys, TCS, Genpact, Xerox, Accenture, and Cognizant, among others. Strategic product launches and business expansions are among the initiatives being undertaken by these firms to strengthen their geographical footprint across the global market.
The ongoing coronavirus pandemic has significantly strained healthcare delivery worldwide. According to the WHO’s pulse survey, nearly 90% of the countries were still witnessing one or more disruptions to essential healthcare services as of April 2021. Many of these countries also reported health workforce-related issues, as well as challenges in the delivery of essential diagnostics and medicines due to the supply chain crisis. These situations may have created a hindrance to the steady industry expansion. However, the industry may regain momentum over the foreseeable future, owing to the commendable increase in reliance on outsourcing services amid the pandemic. Labor issues, for example, which were exacerbated by the outbreak, have fueled interest in alternative solutions like outsourcing across the healthcare sector to address key pain points, thus augmenting the industry outlook.
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