Healthcare BPO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The Healthcare BPO market is projected to register a CAGR of 8% during the forecast period (2022-2027).

The Covid-19 pandemic had a significant impact on the market studied. During the initial phase of the pandemic, the healthcare sector's growth was hampered. Due to strict lockdowns and shutdowns, research and development were halted. However, service providers, their clients, and companies with in-house shared services centers performing business process work across the world leveraged a range of strategies to keep their businesses afloat while putting employee safety at the center of their efforts. Amid the pandemic, in May 2021, Predible, a Bangalore (India) based start-up, enabled precision diagnostics for chronic lung diseases. Therefore, owing to the abovementioned factors, the COVID-19 pandemic is anticipated to have a considerable impact on the studied market.

Factors responsible for the market's growth include a rapid increase in clinical process outsourcing (CPO). Implementing the Patient Protection and Affordable Care Act (PPACA) compelled healthcare players to move toward outsourcing, and fewer errors in several non-critical functions, like finance and accounting, customer care services, etc.

Another major driving factor is the rising strategic activities such as product launches, partnerships, and others by major companies, which are anticipated to drive the market growth over the forecast period. For instance, in December 2021, the company Teleperformance, a leading global group in digitally integrated business services, announced that it had acquired Senture, a significant business process outsourcing (BPO) operator for government services in the United States. In October 2021, the Competition Commission of India (CCI) approved Betaine B.V's acquisition of Hinduja Global Solutions' healthcare BPO services. These major developments are anticipated to drive market growth over the forecast period.

Therefore, owing to the above factors, the healthcare BPO market is anticipated to grow over the forecast period. However, the stringent regulations and the hidden cost associated with outsourcing are anticipated to hamper the market growth slightly over the analysis period (2022 - 2027).

Scope of the Report

As per the scope, business process outsourcing (BPO) is a process that enables healthcare providers to select the most suited third-party vendors for specific business processes. It allows hospitals and medical professionals to spend their valuable time on patient care over other mundane jobs in the office. The healthcare BPO market is segmented by Payer Service (Human Resource Management, Claims Management, Customer Relationship Management (CRM), Operational/Administrative Management, Care Management, Provider Management, Other Payer Services), Provider Service(Patient Enrollment and Strategic Planning, Patient Care Service, Revenue Cycle Management), Pharmaceutical Service (Research and Development, Manufacturing, Non-clinical Service(Supply Chain Management and Logistics, Sales and Marketing Services, Other Non-clinical Services) and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (USD million) for the above segments.

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Key Market Trends

Revenue Cycle Management Segment is Anticipated to Witness Growth Over the Forecast Period

Healthcare systems use revenue cycle management (RCM) to track the financial dealings with patients, from their initial appointment to the final payment of the balance associated with the healthcare system. The RCM can be defined as all clinical and administrative functions that contribute to managing and collecting patient service revenues. Hence, the increasing need for RCM services in healthcare is expected to boost segment growth.

The RCM offers several benefits to the provider, from handling billing and collections to handling administrative functions. It is a technologically advanced system that handles administrative functions through sophisticated billing, payment processing, and electronic health record systems. The article "Revenue Cycle Management in Healthcare," published in July 2022, stated that because many hospitals handle billing using ineffective manual systems, the most frequent billing issues are caused by human error, such as data entry blunders. The term "healthcare revenue cycle management" (RCM) refers to the full procedure for processing payments and handling reimbursements. Additionally, as per the source mentioned above, RCM seamlessly merges billing information with administrative data, patient personal information, clinical data, insurer names, and medical codes with minimal error. Thus, the usage of RCM has increased across healthcare, thereby driving the segment growth.

Currently, the market players are focusing on new launches to strengthen their market positions, which is ultimately attributed to the segment growth. For instance, in January 2020, R1 RCM Inc., a pioneer in technology-enabled revenue cycle management services to healthcare providers, announced the launch of its new physician solution for revenue cycle management, R1 Professional, serving large independent practices and hospital-owned medical groups. Thus, such developments are thus expected to drive segment growth.

Therefore, the abovementioned factors are expected to drive the segment to grow significantly and contribute to the overall market growth over the forecast period.

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