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Medical Billing Outsourcing Market ForecastA new market research report indicates that the number of health care organizations outsourcing medical billing is set to grow quite significantly. The Transparency Market Research report predicts a high single digit growth rate for medical billing services during 2016-2023.

The report identifies the need for cost-effective solutions as the key driving factor for medical billing outsourcing by health care providers in the regions of North America and Europe.  This trend will fueled by:

  • Increasing demand for medical services due a rising geriatric population
  • Rising incidence of chronic and infectious diseases
  • Increase in health care expenditure due to a transition to a complex modern healthcare infrastructure
  • Small and medium-sized medical practices and facilities looking to reduce their workload, office space, and overall costs
  • Small facilities that do not have the funds to set up their own IT infrastructure

ICD-10, the Affordable Care Act, and CPT code updates are among the main factors promoting the outsourcing trend in the U.S. Established medical billing and coding companies have skilled staff that stays up to date with the changing industry regulations and insurance requirements and help health care providers manage the transition to these changes efficiently.

The research also identified the factors that hinder the growth of outsourced medical billing and coding.  These include:

  • Vendors find it difficult to keep up with constantly changing regulatory structure
  • Steady rate of data migration problems faced by client companies
  • Lack of confidence of organizations in vendor companies, which can lead to HIPAA compliance issues, heavy penalties and loss of reputation

Past experience has indicated that physician practices that outsource medical billing stand to gain many benefits. This allows them to keep up with code updates, ensure effective use of EHR (electronic health records), and submit critical information accurately to prevent claim denials, reduce costs and increase reimbursement revenue. With all the advantages that these service providers offer, it can be expected that the global medical billing outsourcing market will see steady growth in the years to come.