Medical billing and coding companies use the latest technologies to develop and implement processes and policies to help physician practices and hospitals stay financially healthy as they treat patients and save lives. According to Global Market Insights, Inc., the U.S. healthcare revenue cycle management (HRCM) industry will cross USD 38 billion by 2024. The global healthcare revenue cycle management market is expected to be worth over $100 billion by 2024.
Healthcare revenue cycle management involves managing the administrative and clinical tasks related to an entire gamut of financial processes such as medical billing and coding, claims processing and submission, payment collection, and other revenue generation aspects. According to the Global Market Insights report, the HRCM market was worth more than USD 39 billion in 2015 and several factors will drive the growth in the global HRCM market in the coming years:
- Rising need for timely medical bill reimbursements and claims processing
- Increased complexity in the medical coding process and need to minimize medical billing errors
- Growth in healthcare spending and implementation of cost-cutting measures by governments
- Rise in the number of healthcare providers implementing revenue cycle management practices
- Periodic upgradations in healthcare IT software
- Increased demand for medical billing services, electronic health records, and patient appointment scheduling
The report predicts that the above-mentioned factors will lead the HRCM to grow at a CAGR of 11 percent over 2016-2024.
According to the report, physician billing companies will remain a major end-user segment and that they accounted for 40 percent of the overall HRCM market share in 2015. With more and more healthcare providers adopting these services to ease the medical billing process and claims processing, the HRCM industry from physical billing organizations is expected to grow at a CAGR of 12.3% over 2016-2024.
The HRCM market in the U.S. is also propelled by the availability of robust practice management systems and medical billing software for clinics, practices, hospitals and medical billing companies. Advanced clinical, financial and management information solutions allow physicians see more patients and medical billing and coding outsourcing companies optimize these processes to help clinicians generate more revenue. Working on state-of-the-art practice management systems allows them to process clearinghouse claims quickly and with a high rate of success.
Besides the U.S. and Europe, the report predicts that China will also experience a surge in its healthcare revenue cycle management industry, with a growth rate of more than 15% over 2016-2024. The growth will be driven by increase in business digitization and rising demand for medical insurance. The growing elderly population and resulting rise in illnesses, and increased adoption of IT in healthcare will push the demand reliable insurance policies, which will further boost China’s healthcare revenue cycle management market to exceed USD 5 billion by 2024.
Global Market Insights reports that the cloud-based healthcare revenue cycle management market was a major factor contributing to the overall revenue share in 2015. More cost-effective than on-premise systems, cloud-based solutions can be installed more conveniently across the medical sector. As a result, the report predicts that in cloud-based healthcare revenue cycle management industry share will reach over USD 80 billion by 2024.
Rajeev Rajagopal, the President of OSI, has a wealth of experience as a healthcare business consultant in the United States. He has a keen understanding of current medical billing and coding standards.