PUBLISHER: The Business Research Company | PRODUCT CODE: 1713365
PUBLISHER: The Business Research Company | PRODUCT CODE: 1713365
Medical billing outsourcing involves healthcare providers contracting third-party companies to manage their billing processes. These providers ensure accurate and timely submission of medical service claims to insurance companies and patients. By outsourcing, healthcare facilities can concentrate on patient care while the billing company handles tasks such as payment tracking, collections management, and dispute resolution. This service helps healthcare providers reduce administrative burdens, enhance revenue cycle management, minimize errors, and maintain compliance with evolving healthcare regulations.
The main categories of services in medical billing outsourcing can be classified into the front end and back end. The front end is responsible for managing the patient's experience, while the back end focuses on claims processing and reimbursement. Each of these components has its own dedicated departments, personnel, and policies to ensure that revenue flows smoothly throughout the billing cycle. These services can be executed both in-house within the healthcare facility or outsourced to specialized service providers. They find application in various healthcare sectors, including hospitals and physician offices.
The medical billing outsourcing market research report is one of a series of new reports from The Business Research Company that provides medical billing outsourcing market statistics, including medical billing outsourcing industry global market size, regional shares, competitors with a medical billing outsourcing market share, detailed medical billing outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the medical billing outsourcing industry. This medical billing outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The medical billing outsourcing market size has grown rapidly in recent years. It will grow from $17.02 billion in 2024 to $18.97 billion in 2025 at a compound annual growth rate (CAGR) of 11.5%. The growth in the historic period can be attributed to increasing complexity of medical billing, shift to electronic health records (ehrs), increased patient volume, focus on patient care.
The medical billing outsourcing market size is expected to see rapid growth in the next few years. It will grow to $31.58 billion in 2029 at a compound annual growth rate (CAGR) of 13.6%. The growth in the forecast period can be attributed to telehealth expansion, healthcare IT integration, globalization and offshoring, economic and labor factors. Major trends in the forecast period include AI and automation, cybersecurity and data protection, customized revenue cycle solutions, patient-centric billing, technology advancements.
The increasing demand for error reduction has played a significant role in the expansion of the medical billing outsourcing market. In the United States, it's estimated that a staggering 80% of medical bills contain errors. For example, Equifax, a credit agency firm, discovered in its audit that hospital bills exceeding $10,000 have an average error amount of $1,300. Additionally, poor billing practices are believed to cost doctors around $125 billion annually in the USA. This growing need to minimize errors and streamline the billing process has been a key driver behind the growth of the medical billing outsourcing market.
The global healthcare industry's continuous growth is expected to be a major catalyst for the medical billing outsourcing market in the coming years. The healthcare sector encompasses various economic segments that provide goods and services to individuals dealing with a range of medical conditions. To enhance efficiency and focus on core patient care, the healthcare industry has increasingly turned to outsourcing medical billing services. For instance, in September 2024, according to the Centers for Medicare & Medicaid Services, a US-based federal agency, total National Health Expenditure (NHE) in the United States increased by 4.1% in 2022, reaching $4.5 trillion, or approximately $13,493 per person. This represented 17.3% of the Gross Domestic Product (GDP), compared to $4.3 trillion in 2021. Hence, the expanding healthcare industry is poised to be a driving force behind the growth of the medical billing outsourcing market in the foreseeable future.
Major companies in the medical billing outsourcing market are increasingly focusing on developing healthcare workflow automation platforms to improve efficiency, reduce costs, and enhance accuracy in the billing process. These platforms aim to streamline operations for healthcare providers and ensure timely reimbursement for services rendered. A healthcare workflow automation platform is a software solution designed to automate and optimize various processes within the healthcare system. This innovative platform transforms order entry and results for outpatient clinics, reducing costs while improving accuracy, efficiency, and the quality of patient care. For instance, in November 2023, Shadowbox, Inc., a US-based company, launched the Shadowbox Automation Platform. This healthcare workflow automation platform integrates with a library of electronic health records (EHRs) and Radiology Information Systems (RIS), enabling a paperless workflow for order entry and results. By eliminating manual processes and complex EHR integration projects, the platform enhances data transfer efficiency and offers complete patient information, including automated insurance verification and prior authorization at the time of order.
In October 2022, National Medical Billing Services (NMBS), a portfolio company of Aquiline Capital Partners, a US-based financial services and technology provider in the medical sector, acquired MedTek for an undisclosed sum. This strategic move enhances National Medical's position as a comprehensive provider of outsourced revenue cycle solutions for Ambulatory Surgery Centers (ASCs), surgical practices, and anesthesia groups, offering end-to-end services that encompass medical billing services within their portfolio. National Medical Billing Services (NMBS) is a leading US-based healthcare revenue cycle management company, providing services such as CRM, medical billing, managed care contracting, and other solutions to the medical sector.
Major companies operating in the medical billing outsourcing market include Experian Information Solutions, Cerner Corporation, Kareo, GE Healthcare, Genpact, Quest Diagnostics, McKesson, eClinicalWorks, The SSI Group, HCLTech, Allscripts, R1 RCM, Accretive Health, Connext Global Solutions, AdvancedMD Inc., CareCloud Inc., Revele Billing Services, Infinite Outsourcing Solutions, Promantra Synergy Solutions Ltd., 4D Global Medical Billing Services, Helpware, Wing Assistant, Medwave Billing & Credentialing Services, Atlas Billing Company LLC, GeBBS Healthcare Solutions, Med-Write, Inc., Solutions for Medical Billing, Inc., Onion Creek Medical Billing Services, MedAstin Medical Billing Services, iCare Billing Solutions, Unity Communications LLC, Remote CoWorker, P3 Healthcare Solutions, PracticeMax, RRAH Services, 24/7 Medical Billing Services, MedBillingExperts, Flatworld Solutions Pvt. Ltd., MedUSA Healthcare Services
North America was the largest region in the medical billing outsourcing market in 2024. Western Europe was the second-largest region in the global medical billing outsourcing market analysis. The regions covered in the medical billing outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the medical billing outsourcing market report are Australia; China; India; Indonesia; Japan; South Korea; Bangladesh; Thailand; Vietnam; Malaysia; Singapore; Philippines; Hong Kong; New Zealand; USA; Canada; Mexico; Brazil; Chile; Argentina; Colombia; Peru; France; Germany; UK; Austria; Belgium; Denmark; Finland; Ireland; Italy; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Russia; Czech Republic; Poland; Romania; Ukraine; Saudi Arabia; Israel; Iran; Turkey; UAE; Egypt; Nigeria; South Africa
The medical billing outsourcing market includes revenues earned by entities by providing Medical Billing Services, medical coding services, patient demographic entry, submission of claims, medical coding analysis services, and ASC billing services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Medical Billing Outsourcing Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on medical billing outsourcing market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for medical billing outsourcing ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The medical billing outsourcing market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.