Global Healthcare BPO Market Booming to Reach USD 645 Billion by 2029
Global healthcare BPO market size is flourishing owing to growing focus on reducing high healthcare costs, increasing demand for niche services, and stringent regulations.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimates global healthcare BPO market size at USD 331.54 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects global healthcare BPO market size to grow at a significant CAGR of 10.10% reaching a value of USD 644.67 billion by 2029. The significant growth of the healthcare industry, along with the rising prevalence of various cardiovascular diseases, particularly among the aging population, are two major factors propelling the growth of the healthcare BPO market. As a result, more people are being admitted to hospitals worldwide. Market expansion is being supported by rising consumer awareness of the availability of various health insurance plans and telehealth services. Rapid technological advancements and the incorporation of cloud-based BPO solutions in hospitals and clinics for the implementation of global service delivery models at affordable rates are additional growth-promoting factors.
Global Healthcare BPO Market – Overview
Healthcare organizations use business process outsourcing (BPO) as a strategy to select and delegate particular business-related operations to outside vendors for execution. It assists with the processing of claims, enrollment, account management, strategic planning, analysis of patient data, and billing. As a result, it aids healthcare organizations in streamlining workflow, cutting costs, and offering patients high-quality services while lowering errors and unauthorized data access. For example, front- and back-end services make up different service categories in the current healthcare BPO industry.
Opportunity: Pressure to reduce the escalating healthcare costs
As outsourcing enables businesses to spend less on labor, space, and resource management, cost savings are an important consideration. The margins of healthcare payers are under pressure due to the expansion of health insurance exchanges (an online market where customers can purchase health insurance from competing providers) in the US. Customers can now obtain insurance from competing for private healthcare providers, which will likely hasten the adoption of outsourcing to cut costs. As healthcare continues to consume an increasing portion of the overall economy, slowing the growth of the healthcare industry, the push for paying for value has increased focus on care management and increased cost-sharing with consumers. Medical costs, on the other hand, have remained stable over the last five years, ranging between 6% and 7%, and this is expected to drive healthcare spending. Rising healthcare costs are expected to boost offshore outsourcing and, as a result, the global healthcare BPO market.
Challenge: Hidden outsourcing costs
Inadequate planning and financial allocation for outsourcing activities frequently harm cost savings and the potential business value of outsourcing. Businesses that budget their finances while outsourcing their business processes frequently forget to include unforeseen costs, such as those related to vetting and selecting a vendor, transitioning to offshore contracts, and improving employee security and severance pay. Concerns about the value for money that these countries will offer are raised by rising labor costs in emerging economies because of economic growth. The price of the vendors' customized services and solutions will be 15–30% higher than their standard prices. Premature client termination of a contract results in increased costs as well as increased risk of legal action for both the purchaser and the provider. When the anticipated cost savings are not made, clients avoid outsourcing. This might prevent the healthcare BPO market from expanding.
Impact of COVID-19 on Global Healthcare BPO Market
The Covid-19 pandemic had a significant impact on the market under consideration. The initial stages of the pandemic hampered the expansion of the healthcare industry. As a result of strict lockdowns and shutdowns, research and development were put on hold. However, service providers, their customers, and businesses with internal shared services centers performing business process work all over the world used a variety of strategies to keep their operations running while putting employee safety first. Predible, a Bengaluru-based start-up, enabled precision diagnostics for chronic lung diseases amid the pandemic in May 2021. As a result of the aforementioned factors, the COVID-19 pandemic is expected to have a significant impact on the market under consideration.
Global Healthcare BPO Market – By Provider Services
The global healthcare BPO market is divided into three segments based on provider services: patient enrollment and strategic planning, revenue cycle management, and patient care. Billing monitoring is a tool used by medical facilities to keep track of all financial communications with patients from the time of their initial consultation until the payment of any unpaid recovery debt. The RCM (revenue cycle management) is the umbrella term for all medical and administrative tasks required to monitor and recoup care delivery costs. As a result, increased hospital demand for RCM products is expected to drive segment growth. The process of accepting revenue and managing returns is referred to as supply chain administration. The previously cited source claims that RCM also efficiently and accurately combines payment information with aggregate records, insurer names, client personal information, health findings, and medical classifications. RCM was consequently once extensively utilized in the medical sector, increasing product demand.
Global healthcare BPO market is fiercely competitive. Prominent players in the market include Genpact (Bermuda), IBM Corporation (US), Infosys (India), Lonza (Switzerland), Omega Healthcare (India), and Quintiles IMS (US), Accenture (Ireland), Cognizant (US), Firstsource Solutions (India), and GeBBS Healthcare Solutions (US). These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in global healthcare BPO market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Global Healthcare BPO Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Global Healthcare BPO Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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