Computer-assisted Coding Market Size

Computer-assisted Coding Market Analysis

The Computer-assisted Coding Market size is estimated at USD 5.73 billion in 2024, and is expected to reach USD 9.66 billion by 2029, growing at a CAGR of 11.02% during the forecast period (2024-2029).

• The COVID-19 pandemic significantly impacted the computer-assisted coding (CAC) market since many healthcare organizations implemented CAC, which enabled the translation of patient information more accurately during the pandemic. 
• For instance, a study published in October 2022 in PubMed discusses the introduction of a new diagnosis code (U09.9) by the Centers for Disease Control and Prevention (CDC) in October 2021. This code, found in the International Classification of Diseases, Tenth Revision, Clinical Modification (ICD-10-CM), is designed for identifying cases of post-COVID-19 conditions. In the context of the post-COVID-19 situation, the market is anticipated to experience steady growth due to the heightened adoption of coding systems in hospitals and the increased prevalence of digital health solutions in healthcare systems.
• Some factors driving the market growth include increasing implementation of electronic health record (EHR) systems, increasing utilization of computer-assisted coding (CAC) solutions to curtail the rising healthcare costs, and increasing regulatory requirements for patient data management. 
• For instance, according to the European Commission's June 2022 report, the European Commission issued a recommendation on a European electronic health record exchange standard to enable the transfer of health data across borders. It accomplishes this by supporting European Union (EU) nations in their initiatives to ensure that residents can safely access and exchange their health data from any location within the EU. Hence, such initiatives associated with the advancements in healthcare are anticipated to boost market growth over the forecast period.
• Furthermore, an increase in software launches and related advancements in medical coding is expected to fuel the market growth over the study period. For instance, in October 2022, Nym launched radiology coding solutions for radiology departments across the United States. This expansion offers the company's autonomous medical coding technology to a third outpatient specialty area, expanding access to the company's industry-leading solution for revenue cycle management (RCM). Moreover, an increase in research funding for the development of coding platforms is expected to drive market growth over the forecast period.
• For instance, in November 2022, Fathom, an AI-powered medical coding automation platform, raised USD 46 million in Series B funding co-led by Alkeon Capital and Lightspeed Venture Partners with participation from Vituity's Inflect Health, Cedars-Sinai, ApolloMD, Jonathan Bush, and other healthcare executives. They utilized the funding to advance the standard in automated medical coding in response to the challenges faced by the providers. Hence, owing to such research, funding to develop and promote coding platforms is expected to augment the market growth over the forecast period.
• Thus, owing to the government initiatives to implement digital health care and the rise in strategic activities by the key players, the studied market is expected to witness significant market growth over the forecast period. However, the high maintenance cost and lack of skilled professionals for system support have restrained market growth.