April 21, 2024

Healthcare BPO Market is Estimated to Witness High Growth Owing to Rising Demand for Cost-effective Outsourcing Solutions

The healthcare BPO market provides various outsourcing solutions such as medical billing, medical coding, medical transcription and other services to healthcare providers and insurance companies. These solutions help reduce operational costs and improve overall efficiency of healthcare organizations. Factors such as increasing complexity of medical reimbursement processes, demand for affordable healthcare services and government initiatives are fueling the adoption of BPO services in the healthcare industry.

The Global healthcare BPO market is estimated to be valued at US$10.19 Billion in 2024 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the healthcare BPO market are Xerox Corporation, Gebbs Healthcare Solutions, QuintilesIMS, Omega Healthcare, and Accenture.
Key opportunities in the market include growing trend of medical tourism, increasing geriatric population globally and expansion of services portfolio by healthcare BPO players.
Major healthcare BPO players are expanding globally by acquiring regional players to gain access to new markets as well as expertise. For instance, Accenture acquired medical coding company Medicus to expand its clinical coding capabilities and Footprint in the US market.

Market drivers
The key driver for the healthcare BPO market is the rising demand for cost-effective outsourcing solutions from healthcare providers and insurance companies globally. Growing pressure to reduce healthcare expenditure is compelling organizations to outsource non-clinical and administrative processes to specialized BPO vendors. Additionally, advancements in technologies such as artificial intelligence, blockchain and cloud computing are enabling BPO players to offer more specialized and improved solutions, thereby driving the adoption of healthcare BPO services.

PEST Analysis
Political: Regulations regarding data privacy and security have a strong influence on this market. Stringent laws help increase transparency and ensure patient safety.
Economic: Rising healthcare costs in many countries are driving greater demand for cost-effective BPO solutions that help optimize operations and reduce expenses.
Social: An aging population and growing focus on preventive healthcare are key societal trends boosting requirements for various services addressed by this market, such as medical transcription and insurance claim management.
Technological: Advancements in areas like artificial intelligence, cloud computing and blockchain are facilitating automation and remote delivery of more BPO services. This is improving efficiency, quality and expanding the scope of outsourcing.

The North American region accounts for the largest share of the market in terms of value. This can be attributed to factors such as the presence of many leading BPO service providers and medical billing companies, a large patient pool requiring diverse services, and rising healthcare expenditure.
The Asia Pacific region is poised to grow the fastest during the forecast period. This is driven by increasing medical tourism, rapidly developing healthcare infrastructure and digitalization, rising affordability and availability of insurance, and growing focus of global players on expanding into emerging countries.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it