Healthcare Business Process Outsourcing (BPO) Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 371.20 Billion |
| Market Size (2029) | USD 592.99 Billion |
| CAGR (2024 - 2029) | 9.82 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Healthcare Business Process Outsourcing (BPO) Market Analysis
The Healthcare BPO Market size is estimated at USD 371.20 billion in 2024, and is expected to reach USD 592.99 billion by 2029, growing at a CAGR of 9.82% during the forecast period (2024-2029).
It is clear that the COVID-19 epidemic had a major effect on the analysed market.The expansion of the healthcare industry was stunted in the early stages of the epidemic. Research and development ceased as a result of the mandatory lockdowns and shutdowns. However, hospitals undoubtedly still suffer from the COVID-19 pandemic's effects, and they will continue to do so for some time. For instance, in July 2022, Quorum Health Resources, LLC published a report on the post-pandemic impact on hospital revenue cycle management which states that the system, as well as its inhabitants, entered a chronic, cumulative condition of overload as a result of the hardships of the last two years, which does not completely subside in the brief intervals between COVID-19 waves. Hence the demand for revenue cycle management, one of the provider services of Healthcare BPO suffered due to the cumulative overload of previous years and is expected to do the same over the coming period with a significant impact on the 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 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 and thus 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.
Healthcare Business Process Outsourcing (BPO) 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. According to the report published by Hyperon in September 2022, it is clear that every step of the patient care revenue process, from initial visits through complete reimbursement, is difficult and time-consuming. This becomes easy with efficient RCM processes. It also states that healthcare facilities cannot deliver high-quality care while maintaining their financial stability without properly configured RCM processes. Thus, the usage of RCM has increased across healthcare, thereby driving segment growth.
Currently, the market players are focusing on new collaborations and agreements to strengthen their market positions, which is ultimately attributed to segment growth. For instance, in July 2021, Revenue cycle management (RCM) vendor Waystar planned to acquire Patientco, in the latest deal between an RCM vendor and a patient payment company. The RCM vendor intends for the combination to boost the patient's financial experience by offering users consumer-friendly options for paying medical bills.
Therefore, the abovementioned factors are expected to drive the segment to grow significantly and contribute to the overall market growth over the forecast period.
North America is Expected to Dominate the Market Over the Forecast Period
The healthcare BPO market is now led by North America, and this trend is predicted to continue for the next few years. In North America, the United States has the biggest market share.The United States healthcare system is a rapidly growing industry, which includes pharmacies, pharmaceutical companies, medical equipment manufacturers, and medical care facilities. This complex industry infrastructure relies on specialized professionals who oversee these operations. High awareness levels about outsourcing healthcare IT services and the strong presence of prominent market players in the region are attributed to the regional market's growth.
Furthermore, rising government initiatives in the country are anticipated to drive the studied market growth in the country. For instance, in February 2022, the department of HHS awarded nearly USD 55 million to 29 HRSA-funded health centers to increase healthcare access and quality for underserved populations through virtual care. Virtual care has been a game-changer for patients, especially during the pandemic. Thus, the initiatives by government organizations are expected to drive market growth in the country.
In March 2022, CPSI, a healthcare solutions company, acquired Healthcare Resource Group Inc., based in Spokane, Washington. HRG is a leading provider of customized revenue cycle management ('RCM') solutions and consulting services that enable hospitals and clinics to improve efficiency, profitability, and patient satisfaction. Thus, the activities done by the major players are expected to drive the studied market growth in the country.
Furthermore, the increasing number of people seeking insurance, pressure to cut healthcare delivery costs, consolidation of the healthcare system, pharmaceutical companies facing patent cliffs, and the mandatory implementation of ICD-10 codes are the major factors propelling the growth of the United States healthcare BPO market.
Thus, the market is expected to grow in North America due to the abovementioned factors.
Healthcare Business Process Outsourcing (BPO) Industry Overview
The competitive landscape of the healthcare BPO market covers the business overview, financials, products, and strategies followed by major companies. The healthcare BPO market is fragmented and consists of several major players. In terms of market share, few of the major players currently dominate the market. The rising need for mobile health and advances in healthcare systems are also helping a few other smaller players to enter the market with a substantial share. Some of the major players in the market are Accenture, Global Growth, GeBBS Healthcare Solutions, Genpact, International Business Machines Corporation (IBM), Parexel International Corporation, IQVIA, Sutherland Global Services, UnitedHealth Group, and Cognizant Technology Solutions, among others.
Healthcare Business Process Outsourcing (BPO) Market Leaders
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Accenture
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Genpact
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IQVIA
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IBM
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Paraxel
*Disclaimer: Major Players sorted in no particular order
Healthcare Business Process Outsourcing (BPO) Market News
- October 2022 : Performant Healthcare Solutions a leading provider of technology-enabled payment integrity, eligibility, and related analytics services, entered a new strategic engagement with Priority Health to provide a customized, end-to-end solution focused on all aspects of payment integrity.
- September 2022 : Surgical Solutions, a leading provider in the on-site operating room and sterile processing support, has been awarded a group-purchasing agreement for outsourced surgical services with Conductiv. Conductiv is a leading third-party spend improvement company, uniting an alliance of buyers and suppliers to transform the acquisition of services.
Healthcare Business Process Outsourcing (BPO) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rise of Nearshore Outsourcing Destinations and Access to Technology
4.2.2 Rapid Increase in Clinical Process Outsourcing (CPO)
4.2.3 Implementation of PPACA Compelled Healthcare Player to Move toward Outsourcing
4.2.4 Fewer Errors in Several Non-critical Functions, like Finance and Accounting, Customer Care Services, etc.
4.3 Market Restraints
4.3.1 Complex Regulations
4.3.2 Hidden Costs of Outsourcing
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Value - USD million)
5.1 By Payer Service
5.1.1 Human Resource Management
5.1.2 Claims Management
5.1.3 Customer Relationship Management (CRM)
5.1.4 Operational/Administrative Management
5.1.5 Care Management
5.1.6 Provider Management
5.1.7 Other Payer Services
5.2 By Provider Service
5.2.1 Patient Enrollment and Strategic Planning
5.2.2 Patient Care Service
5.2.3 Revenue Cycle Management
5.3 By Pharmaceutical Service
5.3.1 Research and Development
5.3.2 Manufacturing
5.3.3 Non-clinical Service
5.3.3.1 Supply Chain Management and Logistics
5.3.3.2 Sales and Marketing Services
5.3.3.3 Other Non-clinical Services
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Spain
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 Australia
5.4.3.5 South Korea
5.4.3.6 Rest of Asia-Pacific
5.4.4 Middle East and Africa
5.4.4.1 GCC
5.4.4.2 South Africa
5.4.4.3 Rest of Middle East and Africa
5.4.5 South America
5.4.5.1 Brazil
5.4.5.2 Argentina
5.4.5.3 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Accenture
6.1.2 Global Growth (Eli Global)
6.1.3 GeBBS Healthcare Solutions
6.1.4 Genpact
6.1.5 International Business Machines Corporation (IBM)
6.1.6 Parexel International Corporation
6.1.7 IQVIA
6.1.8 Sutherland Global Services
6.1.9 United Health Group
6.1.10 Cognizant Technology Solutions
6.1.11 Tata Consultancy Services Limited
6.1.12 Wipro
6.1.13 Infosys Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Healthcare Business Process Outsourcing (BPO) Industry Segmentation
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 and 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.
| By Payer Service | |
| Human Resource Management | |
| Claims Management | |
| Customer Relationship Management (CRM) | |
| Operational/Administrative Management | |
| Care Management | |
| Provider Management | |
| Other Payer Services |
| By Provider Service | |
| Patient Enrollment and Strategic Planning | |
| Patient Care Service | |
| Revenue Cycle Management |
| By Pharmaceutical Service | |||||
| Research and Development | |||||
| Manufacturing | |||||
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| Geography | ||||||||
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Healthcare Business Process Outsourcing (BPO) Market Research FAQs
How big is the Healthcare BPO Market?
The Healthcare BPO Market size is expected to reach USD 371.20 billion in 2024 and grow at a CAGR of 9.82% to reach USD 592.99 billion by 2029.
What is the current Healthcare BPO Market size?
In 2024, the Healthcare BPO Market size is expected to reach USD 371.20 billion.
Who are the key players in Healthcare BPO Market?
Accenture, Genpact, IQVIA, IBM and Paraxel are the major companies operating in the Healthcare BPO Market.
Which is the fastest growing region in Healthcare BPO Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Healthcare BPO Market?
In 2024, the North America accounts for the largest market share in Healthcare BPO Market.
What years does this Healthcare BPO Market cover, and what was the market size in 2023?
In 2023, the Healthcare BPO Market size was estimated at USD 334.75 billion. The report covers the Healthcare BPO Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Healthcare BPO Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the growth opportunities in the Healthcare Business Process Outsourcing (BPO) Market?
The growth opportunities in the Healthcare Business Process Outsourcing (BPO) Market are a) Integration of AI, automation, and cloud-based solutions can enhance the efficiency and accuracy of BPO services b) Growing healthcare sectors in developing countries can create opportunities for BPO service expansion
What are the growth opportunities in the Healthcare Business Process Outsourcing (BPO) Market?
The growth opportunities in the Healthcare Business Process Outsourcing (BPO) Market are a) Integration of AI, automation, and cloud-based solutions can enhance the efficiency and accuracy of BPO services b) Growing healthcare sectors in developing countries can create opportunities for BPO service expansion
Healthcare BPO Industry Report
The global healthcare business process outsourcing (BPO) market is experiencing substantial growth, driven by the demand for cost-effective healthcare management solutions and technological advancements. This market, diverse in its offerings, includes payer services like claims management and human resource services, provider services such as revenue cycle management, and pharmaceutical services that encompass manufacturing and research. As healthcare regulations evolve, the adoption of BPO services by healthcare providers is increasing, primarily to enhance operational efficiency and compliance while focusing more on patient care. Significant opportunities also arise from outsourcing medical coding and transcription services, reflecting a shift towards digital healthcare practices. The market is competitive, with healthcare BPO companies actively engaging in strategic partnerships and acquisitions to bolster their market positions and adapt to the dynamic healthcare sector. These companies are essential to managing the complexities of modern healthcare systems and are pivotal in the industry's growth across key regions such as the United States, Canada, and Europe. For detailed insights and forecasts on market trends, leading players, and opportunities, a free report PDF by Mordor Intelligenceā¢ Industry Reports on the healthcare BPO market is available for download.
Healthcare BPO Market Report Snapshots
