It probably comes as no surprise that the global market is currently challenged these days. At a time of need to recover from the tough economic blows of the recent 2-year Covid-19 pandemic, the Russia-Ukraine war suddenly came into the picture, further crippling the global economy. Banks raising interest rates to combat inflation, and a surge in the price of commodities, coupled with supply chain disruptions that have caused inflation, are current issues that face economies worldwide.
As a result of the rising inflation, there has been a slowdown of new job creation, as well as economic activity and growth. With inflation worries and weaker demand, companies are taking it slow with capital expenditure and other investments.
To paint an overview of the global economic scene in 2023, financial markets are volatile, trade tensions are growing due to the ongoing Russia-Ukraine war, and stricter regulations are being implemented with regard to the environment and pressures created by climate change. Thus, 2023 is expected to be a tough year for the majority of markets, investors, and consumers.
Despite this seemingly negative outlook however, there is and has always been opportunity for businesses to rise above such challenges and demonstrate adaptability and resilience, which many have proven to accomplish time and again.
One opportunity for growth currently lies in the medical billing services industry. Medical Billing Outsourcing is a time-and-money-saving practice in which a healthcare provider hires a third-party or outside organization to take care of all the billing.
In North America and Europe, demand for healthcare has seen significant rise in trend over the past few years, fueled mainly by:
- Increased incidences of chronic & infectious diseases
- A rising geriatric population needing medical services
- SMEs looking to reduce their workload, office space, and other operational costs
- Small facilities with no funds to set up their own IT infrastructure
- The transition to complex modern healthcare infrastructure requiring greater expenditure
For these reasons, Medical Billing Outsourcing is seen to be the most practical, efficient, and cost-effective solution for healthcare institutions both large and small.
In 2022, the global market for Medical Billing Outsourcing was estimated at US$38.4 billion. At the rate it is now rising, Medical Billing is projected to reach up to $50.3 billion by 2023, which means it will be growing at a compound annual growth rate (CAGR) of 3.4% from 2022 to 2030. However, if post pandemic recovery will be taken into account, CAGR would be readjusted to 2.1% over the stated 8-year period.
In the U.S., Medical Billing Outsourcing was estimated at US$10.3 billion in 2022, while China, the second largest economy in the world, is predicted to reach US$11.5 billion and a CAGR of 6.9% by 2030. Other noteworthy markets include Japan and Canada, who are forecast to grow at 1.2% and 1.7% CAGR respectively into 2023. In Europe, Germany leads at a forecasted growth of 1.6% CAGR.
Historically, healthcare institutions and physicians who have practiced outsourced medical billing have gained many benefits which include:
- Enabling them to keep up with code updates
- Accurate critical information
- Reduced costs
- Increased reimbursement revenue
- Effective use of EHR (electronic health records)
Thus, a steady growth in demand of Medical Billing Outsourcing can be confidently forecast in the years to come.
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