A recent Transparency Market Research (TMR) market report indicates that the global medical billing outsourcing market will see steady expansion during the period 2016-2023.
Several factors are driving this growth. The healthcare sector is growing rapidly as governments and industry stakeholders strive to ensure effective, efficient, and equitable care. Spending on health care is increasing, driven by aging populations, spread of chronic diseases, increased focus on quality of care, new financial regulations and business, clinical, and operating models, infrastructure improvements, and novel treatments and technologies. According to the TMR report, these factors are inducing healthcare systems to become more efficient so that they can make the best use of these monetary allocations. This is driving the demand for efficient medical billing services.
The TMR market research report identifies the high-impact factors at play in the global medical billing outsourcing market as:
- Growing emphasis on compliance and risk management
- Changing needs of healthcare providers, insurers, and other public and private ancillary entities
- Need to improve process efficiency
- Focus of healthcare providers on achieving business goals
- Technological capabilities of medical billing vendors
According to the report, the growth of the medical billing market is driven by the growing perception among small and mid-sized healthcare firms that outsourcing can help reduce operational costs and boost efficiency. Many healthcare organizations lack the investment capabilities to set up full-fledged IT departments on their own. Moreover, the initial cost of investment for billing management software is quite high. As technology is crucial to streamline operations and manage transactions with greater transparency, IT and medical billing service providers play a crucial role in ensuring the smooth operation of the healthcare industry as a whole. As a result of these factors, the global medical billing outsourcing market is expected to report a high single digit growth rate over the period 2016-2023.
TMR identifies the factors that could restrain the growth of the medical billing market as the ever-shifting and disparate regulatory landscape and data migration issues.
Experienced medical billing companies are well-equipped to help healthcare providers maximize ROI, minimize the cash conversion cycle, and achieve a balance between expenditures and earnings. However, only vendors that ensure reliable services can survive in this competitive landscape. A data breach or error in billing can affect vendors’ credibility and lead to loss of customers.