by Medical coding involves analyzing healthcare providers’ documentation and assigning standardized codes for diagnoses, procedures, medical services, and equipment. Coded clinical data is used for reimbursement purposes, data analytics, public health reporting, medical research, and resource allocation. Accurate medical coding is essential for healthcare facilities’ revenue cycle management by facilitating insurance claims processing and payment. The global Medical Coding industry relies upon coders’ proficiency in health information management principles, medical terminology, reimbursement guidelines, and classification systems such as ICD-10-CM/PCS and CPT.
The global Medical Coding Market is estimated to be valued at US$ 23365.61 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Adoption of artificial intelligence and machine learning technologies is growing to reduce documentation errors and increase coding consistency and productivity. Use of AI-powered medical coding tools can analyze clinical notes using natural language processing algorithms and automatically generate suggested medical codes. This helps reduce coder workload and frees up resources. As regulatory compliance and documentation requirements continue growing in scope and complexity, innovative technologies enhancing the accuracy and efficiency of medical coding processes are expected to see higher demand. Automating repetitive tasks through AI also helps address challenges around staffing shortages and aging workforce in the healthcare coding industry.
Porter’s Analysis
Threat of new entrants: Low as Medical Coding market size requires specialized coding knowledge and high investments in skilled workforce which acts as entry barriers for new players.
Bargaining power of buyers: Moderate as there are many medical coding service providers. However, buyers focus on quality, accuracy and compliance in coding which gives some bargaining power to existing players.
Bargaining power of suppliers: Low as medical coders are individual professionals and there is availability of ample qualified workforce.
Threat of new substitutes: Low as there are no close substitutes that can provide medical coding services.
Competitive rivalry: High among existing players to gain higher market share by expanding service offerings, workforce and technology.
Key Takeaways
The global Medical Coding market is expected to witness high growth. The global Medical Coding Market is estimated to be valued at US$ 23365.61 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2031.
Regional analysis comprises growing need to comply with reimbursement regulations is driving demand in North America which holds the largest share currently However, Asia Pacific region is expected to grow at the fastest pace owing to increasing patient pool, healthcare infrastructure and focus on reducing insurance costs.
Key players operating in the medical coding market are Accora Ltd, Antano Group, Bristol Maid, G & J Logistics Limited, Promotal, Roma Medical, and Stryker Corporation. Accora Ltd and Antano Group being the largest players with global presence. The market is witnessing increased adoption of automated coding solutions and platforms by major players to improve accuracy and streamline operations.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
