PUBLISHER: The Business Research Company | PRODUCT CODE: 1713434
PUBLISHER: The Business Research Company | PRODUCT CODE: 1713434
Payer services play a vital role in helping organizations within the healthcare sector streamline their business processes and provide enhanced services to their customers. Payers, in this context, refer to entities responsible for determining service prices, collecting payments, managing claims, and disbursing payments to healthcare service providers. Notable examples of payers include Medicare, Medicaid, and various health plan providers.
The primary outsourcing services offered within the realm of payer services encompass business process outsourcing (BPO) services, knowledge process outsourcing (KPO) services, and information technology outsourcing services. Business process outsourcing involves the practice of contracting specific work processes or procedures to external service providers to improve operational efficiency. These outsourcing services find application in areas like revenue cycle management, healthcare reimbursement, medical billing outsourcing, and others, and are utilized by both public and private payer organizations.
The payer services market research report is one of a series of new reports from The Business Research Company that provides payer services market statistics, including payer services industry global market size, regional shares, competitors with a payer services market share, detailed payer services market segments, market trends and opportunities, and any further data you may need to thrive in the payer services industry. This payer services 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 payer services market size has grown rapidly in recent years. It will grow from $157.66 billion in 2024 to $182.53 billion in 2025 at a compound annual growth rate (CAGR) of 15.8%. The growth in the historic period can be attributed to growing demand for cost containment, healthcare complexity, rising need for data analytics, rising demand for member engagement, aging population, increased chronic conditions.
The payer services market size is expected to see rapid growth in the next few years. It will grow to $323.5 billion in 2029 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to population health management, value-based care models, expansion of telehealth, demand for personalized healthcare. Major trends in the forecast period include data analytics and ai, telehealth integration, consumer-centric approaches, health equity and inclusivity, remote monitoring and wearables.
The increase in healthcare frauds is expected to drive the payer services market for tightening its security systems. Healthcare fraud includes malpractices such as individuals obtaining subsidized or fully-covered prescription pills that are actually unneeded and then selling them on the black market for a profit billing by practitioners for care that they never rendered, filing duplicate claims for the same service rendered, altering the dates and modifying medical records. The healthcare industry continues to suffer losses attributed to frauds and errors. For instance, according to the National Health Care Anti-Fraud Association, in the USA the loss from healthcare fraud was estimated to be $300 billion. Therefore, increasing healthcare fraud in the healthcare industry is propelling the demand for rigid security systems, thereby driving the growth of the payer services market.
The growing demand for telehealth is expected to drive the expansion of the payer services market in the coming years. Telehealth, which involves using telecommunications and digital technologies to provide remote healthcare services to patients and healthcare providers, offers payers the opportunity to enhance care quality, boost member satisfaction, and effectively manage healthcare costs. This benefits both payers and their members. For instance, in April 2023, FAIR Health Inc., a US-based non-profit organization, reported a 7.3% increase in national telehealth utilization, rising from 5.5% of medical claim lines in December 2022 to 5.9% in January 2023. Hence, the growing demand for telehealth is a key driver behind the growth of the payer services market.
The increasing adoption of technologically advanced products is gaining substantial traction in the payer services market. This trend has led to improved price transparency, more affordable payer services, greater resource utilization, enhanced service quality, and increased member satisfaction and loyalty toward service providers. For example, in January 2022, Jopari, a US-based health information technology company, launched an All-Payer Attachments model, offering a cost-effective solution for delivering electronic Attachments to All Payers, regardless of their preference for electronic or paper submissions. This innovation has resulted in enhanced transparency and cost-effective alternatives for payers.
Prominent companies in the payer services market are prioritizing innovative solutions such as automating vendor integrations to boost their market revenues. Automating vendor integrations involve streamlining the connection between a business or organization and its vendors or suppliers using technology and software solutions. For instance, in March 2023, Flume Health, a US-based healthcare technology and insurance company, introduced a solution called Flume Relay, which serves as a global translation layer for data transfer between payers and vendors. Flume's user-friendly approach allows anyone to set up and manage data transactions. This capability enables payers to accommodate the various configurations required by self-insured consumers.
In September 2022, Zelis, a US-based healthcare and financial technology company, acquired Payer Compass for an undisclosed sum. This acquisition empowers Zelis to enhance and expand its top-tier solutions for offering healthcare services outside of network offerings. It provides advanced claims management solutions and addresses the challenges of healthcare's increasing complexity and costs, benefiting payers, providers, and members.
Major companies operating in the payer services market include United Health Group, Anthem Insurance Companies Inc., Concentrix Corporation, Aetna Inc., CIGNA Corp., HealthPartners, Blue Cross Blue Shield of Massachusetts, Group Health Cooperative, Accenture PLC, Cognizant Technology Solutions Corp., Tata Consultancy Services Limited., Xerox Holdings Corporation, WNS (Holdings) Limited., NTT Data Corporation, IQVIA Holdings Inc., Mphasis Limited., Genpact Limited., Wipro Limited., Infosys BPM Limited., Firstsource Solutions Limited., International Business Machines Corporation, HCL Technologies Limited., Lonza Group AG, Omega Healthcare Investors Inc., R1 RCM Inc., Invensis Technologies Pvt Ltd., PAREXEL International Corporation, Optum Inc., Humana Inc., McKesson Corporation, Change Healthcare Inc., Conifer Health Solutions LLC., Experian Health Inc.
North America was the largest region in the payer services market in 2024. Western Europe was the second-largest region in the global payer services market share. The regions covered in the payer services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
The countries covered in the payer services 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 payer services market includes revenues earned by entities by providing BPO services, ITO services, and KPO 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.
Payer Services Global Market Report 2025 -By Outsourcing Services (Business Process Outsourcing Services, Knowledge Process Outsourcing Services, Information Technology Outsourcing Services), By Application (Revenue Cycle Management, Healthcare Reimbursement, Medical Billing Outsourcing, Other Applications), By End-User (Public Payers, Private Payers) 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 payer services 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 payer services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The payer services 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.