Healthcare BPO Market Size, Share, Analysis, Trends, Growth Report, 2030

Healthcare BPO Market Size And Industry Analysis

The global healthcare BPO market size was worth USD 275.7 million in 2021 and is estimated to grow to USD 464.9 million by 2028, with a compound annual growth rate (CAGR) of approximately 9.1% over the forecast period.

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The report analyses the healthcare BPO department market's drivers, restraints/challenges, and their effect on the demands during the projection period. In addition, the report explores emerging opportunities in the healthcare BPO market.

Healthcare BPO Market: Overview

Healthcare BPO, or business process outsourcing in the healthcare industry, first appeared in the 1980s. Instead of having an internal department for operations like medical billing, healthcare providers use healthcare BPO activity to outsource some of their job tasks. To put it another way, healthcare providers employ a third-party company to complete the work on their behalf.

Medical billing & coding, claims to process, and data entry services are the three most important BPO services. Healthcare BPO has several benefits, including helping healthcare professionals concentrate on their strengths, lowering costs, improving operational efficiency, and enhancing patient experience by spending time on patient care.

COVID-19 Impact:

Governments worldwide collaborated with different pharmaceutical and biotech companies to address the COVID-19 epidemic, from assisting in the creation of vaccinations to preparing for problems with the supply chain for pharmaceuticals. About 155 compounds and 115 vaccine candidates are now in their R&D pipeline. The demand for regularly used medicines like hydroxychloroquine has increased due to the need to treat COVID-19.

Due to the shortage of these medications in many nations, the great demand for these medications has created enormous potential for producers of COVID-19 medications. The pharmaceutical and biotechnology sector as healthcare BPO is anticipated to significantly expand in the next years because of the need for COVID-19 vaccines and treatment medications.

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Key Insights

• As per the analysis shared by our research analyst, the healthcare BPO market value will grow at a CAGR of 9.10% over the forecast period.
• In terms of revenue, the global healthcare BPO market size was valued at around USD 275.7 million in 2021 and is projected to reach USD 464.9 million by 2028.
• The need to contain rising healthcare expenses, the increased demand for specialized services like fraud detection and care management, and the requirement for structured processes and paperwork in the healthcare business are all factors contributing to the market expansion.
• By payer service, claim management dominated the market in 2021.
• The revenue cycle management category dominated the market by provider service in 2021.
• North America dominated the global healthcare BPO market in 2021.

Healthcare BPO Market: Growth Drivers

An increase in pressure to reduce rising healthcare cost to spur market growth

Saving money is crucial when outsourcing because it allows businesses to spend less on personnel, space, and resource management. The growth of health insurance exchanges (online marketplaces to buy health insurance from competing providers) puts pressure on healthcare payers' margins. This makes it possible for customers to get insurance from rival private healthcare providers and will probably hasten the adoption of outsourcing to reduce costs.

Structure changes, such as the drive toward paying for value, more emphasis on care management, and increased cost-sharing with customers, are taking root more firmly as healthcare continues to consume an increasing portion of the wider economy, slowing the growth of healthcare spending.

Healthcare BPO Market: Restraints

High prices and additional fees of outsourcing to hamper market growth

The cost savings and potential business value of outsourcing are frequently negatively impacted by improper planning and financial allocation for outsourcing activities. Companies that prepare their financial resources for outsourcing their business operations fail to account for unforeseen expenditures, such as those incurred during vendor evaluation and selection, contract management offshore, process transformation, and boosting security and severance pay for employees.

Rising labor expenses in emerging nations due to economic expansion raise concerns about the value of money these nations will provide. Additionally, providers' customized services and solutions will cost 15–30% more than their usual offerings. If a client terminates a contract early, costs rise, and both the buyer and the provider are subject to legal action, raising legal costs as well. Clients don't outsource when the predicted cost savings aren't as substantial. The global healthcare BPO market could suffer as a result of this.

Healthcare BPO Market: Opportunity

Increasing use of techniques based on artificial intelligence for drug discovery to boost market growth opportunities

In the early stages of medication development, artificial intelligence and machine learning significantly increase success rates and streamline drug discovery. As artificial intelligence also plays a significant part in discovering medications for chronic diseases like cancer, this will assist healthcare BPO service providers in making significant advancements. The time it takes to introduce a cancer-fighting treatment to the market is greatly shortened thanks to A.I.'s capabilities, which will cause the market for healthcare BPO services to increase significantly.

Healthcare BPO Market: Challenges

Concerns related to data security to pose challenges for market expansion

Approximately one-third of data breaches in the healthcare industry result in medical identity theft, primarily caused by a lack of internal controls over patient information, a lack of support from top management, out-of-date policies and procedures, or a disregard for already-existing ones, and insufficient staff training. As a result, maintaining patient anonymity in the healthcare sector is extremely difficult. The National Centre for Biotechnology Information (NCBI) reports 2,216 data breaches from 65 nations were recorded in 2018. 536 of these breaches affected the healthcare sector (the highest number of breaches among all industries). The global healthcare BPO market may suffer as a result until security solutions are available.

Healthcare BPO Market: Segmentation

The global healthcare BPO market has been segmented into provider, payer, life science services, and region.

Based on provider service, revenue cycle management, patient enrolment, and patient care are segments of the global healthcare BPO market. Since it lowers healthcare costs, revenue cycle management has reportedly gained the largest market and is the fastest-growing industry. The government's expanding awareness initiatives have also aided in implementing solutions.

Based on payer service, the market is classified into claims management, product development & business acquisition (PDBA), member management, provider management, care management, integrated front-end services & back-office operations, billing & accounts management services, and H.R. services. The claims management category holds the biggest market share for global healthcare BPO in 2021 and is anticipated to keep this position throughout the forecast period. Claim management is a procedure that manages claims while creating plans to reduce expenses and cut fraud while maintaining customer satisfaction. The segment is anticipated to grow as a result.

Based life science services, manufacturing, research & development, and non-clinical services are segments of the global healthcare BPO market. Research & development are predicted to have the fastest growth rate during the projection period. The segment's expansion can be attributed to rising research and development expenditures for novel medications and vaccines in response to an increase in COVID-19 patients.

Recent Developments

• May 2021: To deliver its Artificial Intelligence (A.I.) solutions that forecast risk for the early onset of chronic diseases for the health insurance and provider communities, NTT DATA entered into a multi-year collaboration with ScoreData.
• April 2021: By integrating Groupe CT's document management services expertise and leadership with Xerox's portfolio of workplace solutions, Xerox Corporation aims to increase its market share in North America. Groupe CT is an independent document management provider in Eastern Canada.

Healthcare BPO Market: Report Scope

Healthcare BPO Market: Regional Landscape

North America dominated the healthcare BPO market in 2021

In 2021, North America accounted for the largest market for healthcare BPOs, followed by Europe and the RoW. Due to the Medicare Prescription Medication Coverage (Part D) program, which provides prescription drug coverage to all Medicare beneficiaries, pharmaceutical companies in the region, particularly those in the U.S., are under substantial price pressure. Additionally, it is anticipated that the revenue of major pharmaceutical corporations in the U.S. and Canada will be impacted by the patent expiration of several blockbuster medications. Several pharmaceutical companies are concentrating on cost reduction through outsourcing in light of these considerations, causing market expansion in North America.

Healthcare BPO Market: Competitive Landscape

Some of the main competitors dominating the global healthcare BPO market include:

• Accenture
• Cognizant
• Tata Consultancy Services
• Xerox Corporation
• WNS (Holdings) Limited
• NTT Data Corporation
• IQVIA (US)
• Mphasis
• Genpact
• Wipro
• Infosys BPM
• Firstsource Solutions
• IBM Corporation
• HCL Technologies
• Sutherland Global
• GeBBS Healthcare Solutions
• Lonza
• Omega Healthcare
• R1 RCM
• Invensis Technologies
• UnitedHealth Group
• Sykes Enterprises
• Parexel International
• Access Healthcare
• Akurate Management Solutions.

Global Healthcare BPO Market is segmented as follows:

By Provider Service

• Revenue cycle management
• Patient enrollment
• Patient care

By Payer Service

• Claims management
• Product development & business acquisition (PDBA)
• Member management
• Provider management
• Care management
• Integrated front-end services and back-office operations
• Billing and accounts management services
• HR services

By Life Science Service

• Manufacturing
• R&D
• Non-Clinical Services

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa