Medical Billing Market

Growing online billing platforms and government support to drive market growth

Increasing government funds and rising government schemes drive the growth of medical billing. Increased use of billing and medical coding procedures in revenue cycle management is further expected to propel medical billing market revenue. With the current increase in patient load, hospitals are experiencing a problem with the billing process, which is also causing challenges with point-of-care delivery. Thus, outsourcing the medical billing process will help medical practitioners manage patients and the billing process. The government is providing funds and advanced billing systems to hospitals to make the billing process more accessible, and the market is growing.

In 2021, Epic Systems was a software company based in the United States that provided cloud-based healthcare software that can be utilized in various practices and sizes. The platform offers complete revenue cycle management (RCM) capabilities, including integrated electronic medical records, billing and coding, patient management capabilities, and more.

The Global Medical Billing Market Industry experiences a notable surge in demand for healthcare services, driven by an aging population and rising prevalence of chronic diseases. As healthcare providers expand their services to accommodate this growing demand, the need for efficient medical billing solutions becomes paramount. In 2024, the market is projected to reach 17.8 USD Billion, reflecting the industry's response to the increasing complexity of billing processes. This trend indicates that healthcare organizations are investing in advanced billing technologies to streamline operations and enhance revenue cycle management, thereby ensuring financial sustainability in a competitive landscape.

By Region, the study provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The North American medical billing market, which is expected to reach USD 6.5 billion in 2022, is anticipated to grow at a significant CAGR due to evolving medical systems, the use of medical coding that is currently in use, improvements in IT medical technology, the incorporation of electronic medical records, and the presence of significant players.

The further existence of several healthcare providers in the United States and their shift in focus to end-to-end outsourcing firms for billing process management is increasing the market share in North America. Regional healthcare providers primarily rely on companies to maximize operating margins and manage high-volume transactions due to the increased awareness of the advantages offered by outsourcing firms.

Moreover, the significant countries studied in the market report are the United States, Canada, Germany, France, the United Kingdom, Italy, Spain, India, China, Australia, Japan, South Korea, and Brazil.

Figure 2:  Medical Billing Market Share By Region 2022 (%)

Source: Primary Research, Secondary Research, Market Research Future Database, and Analyst Review

The European medical billing market is the second largest in the world, owing to rising demand for cost-cutting measures in the healthcare sector. Reimbursement procedures and price changes may result in substantial growth for the region. In this region, there is growing pressure on medical providers to create a sustainable healthcare system, which is one of the key factors driving medical billing market growth. Further, the German market of medical billing held the largest market share, and the UK market of medical billing was the fastest-growing market in the European region.

The Asia-Pacific Medical Billing Market is expected to grow at the fastest CAGR from 2024 to 2032, owing to increased awareness of medical billing software, improved healthcare facilities, and supportive government initiatives. Expanding patient populations and enhanced healthcare infrastructure make emerging regional nations like Australia, India, Singapore, and China the most profitable markets. The growing need to reduce healthcare delivery costs drives the Asia Pacific market of medical billing share. Moreover, China’s market of medical billing held the largest market share, and the Indian market of medical billing was the fastest-growing market in the Asia-Pacific region.

The medical billing industry is fiercely competitive, with numerous large, medium, and small businesses competing. Partnerships, mergers, acquisitions, and technological advancements are some crucial business development strategies used by major companies to strengthen their market position in the medical billing industry. The market players concentrate on streamlining their product offerings and identifying opportunities for cost reduction. As a result, more healthcare practitioners will outsource their revenue management process to maximize their returns. Major industry players are further increasing their R&D investments to expand their solution and service offerings, which will help the medical billing industry grow.

Manufacturing locally to cut operational costs is one of the main business tactics used by the medical billing industry to serve customers and increase the market sector. The medical billing industry has recently given medicine some of the most important advantages. The major players include Accenture (US), TCS (India), AGS Health (India), Cognizant Technology Solutions (US), GeBBS Healthcare (US), Genpact (US), HCL Technologies (India), INFINIT Healthcare and Medusind (India).

eClinicalWorks is a privately held healthcare IT leader that provides comprehensive Practice Management (PM) and Electronic Health Record (EHR) solutions to over 850,000 medical professionals in over 20 countries. In March 2021, eClinicalWorks officially confirmed that Soma Medical Center P.A., which provides a wide range of medical services to communities in Palm Beach County, Florida, had implemented its integrated cloud service and platform for its 50+ providers. The patient engagement and automation solutions from eClinicalWorks help to guarantee that therapy is provided consistently and give Soma Medical Center's clinicians more effective ways to communicate with patients and their family members.

The cloud-based nature of eClinicalWorks EMR allows Soma Medical Center to always maintain the security and accessibility of practice and patient data.

R1 RCM Inc is a revenue cycle management company based in the United States that serves hospitals, health systems, and physician groups. In July 2021, R1 RCM Inc, a provider of technology-driven solutions that improve healthcare providers' patient experiences and financial results, announced the successful completion of its acquisition of VisitPay, a digital payment solution provider. The acquisition combines VisitPay's client payments infrastructure with R1's renowned patient access technology, enabling providers to provide a smooth financial journey to their patients.