Healthcare BPO Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The healthcare BPO market is segmented by Payer Service (Human Resource Management, Claims Management, Customer Relationship Management (CRM), Operational/Administrative Management, Care Management, Provider Management, Other Payer Services), Provider Service(Patient Enrollment and Strategic Planning, Patient Care Service, Revenue Cycle Management), Pharmaceutical Service (Research and Development, Manufacturing, Non-clinical Service(Supply Chain Management and Logistics, Sales and Marketing Services, Other Non-clinical Services) and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The report offers the value (USD million) for the above segments.

Market Snapshot

Healthcare BPO Market Summary
Study Period: 2019-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 8 %
Healthcare BPO Market Major Players

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Market Overview

The Healthcare BPO market is projected to register a CAGR of 8% during the forecast period (2022-2027).

The Covid-19 pandemic had a significant impact on the market studied. During the initial phase of the pandemic, the healthcare sector's growth was hampered. Due to strict lockdowns and shutdowns, research and development were halted. However, service providers, their clients, and companies with in-house shared services centers performing business process work across the world leveraged a range of strategies to keep their businesses afloat while putting employee safety at the center of their efforts. Amid the pandemic, in May 2021, Predible, a Bangalore (India) based start-up, enabled precision diagnostics for chronic lung diseases. Therefore, owing to the abovementioned factors, the COVID-19 pandemic is anticipated to have a considerable impact on the studied market.

Factors responsible for the market's growth include a rapid increase in clinical process outsourcing (CPO). Implementing the Patient Protection and Affordable Care Act (PPACA) compelled healthcare players to move toward outsourcing, and fewer errors in several non-critical functions, like finance and accounting, customer care services, etc.

Another major driving factor is the rising strategic activities such as product launches, partnerships, and others by major companies, which are anticipated to drive the market growth over the forecast period. For instance, in December 2021, the company Teleperformance, a leading global group in digitally integrated business services, announced that it had acquired Senture, a significant business process outsourcing (BPO) operator for government services in the United States. In October 2021, the Competition Commission of India (CCI) approved Betaine B.V's acquisition of Hinduja Global Solutions' healthcare BPO services. These major developments are anticipated to drive market growth over the forecast period.

Therefore, owing to the above factors, the healthcare BPO market is anticipated to grow over the forecast period. However, the stringent regulations and the hidden cost associated with outsourcing are anticipated to hamper the market growth slightly over the analysis period (2022 - 2027).

Scope of the Report

As per the scope, business process outsourcing (BPO) is a process that enables healthcare providers to select the most suited third-party vendors for specific business processes. It allows hospitals and medical professionals to spend their valuable time on patient care over other mundane jobs in the office. The healthcare BPO market is segmented by Payer Service (Human Resource Management, Claims Management, Customer Relationship Management (CRM), Operational/Administrative Management, Care Management, Provider Management, Other Payer Services), Provider Service(Patient Enrollment and Strategic Planning, Patient Care Service, Revenue Cycle Management), Pharmaceutical Service (Research and Development, Manufacturing, Non-clinical Service(Supply Chain Management and Logistics, Sales and Marketing Services, Other Non-clinical Services) and Geography (North America, Europe, Asia-Pacific, Middle East & Africa, and South America). The report also covers the estimated market sizes and trends for 17 different countries across major regions globally. The report offers the value (USD million) for the above segments.

By Payer Service
Human Resource Management
Claims Management
Customer Relationship Management (CRM)
Operational/Administrative Management
Care Management
Provider Management
Other Payer Services
By Provider Service
Patient Enrollment and Strategic Planning
Patient Care Service
Revenue Cycle Management
By Pharmaceutical Service
Research and Development
Manufacturing
Non-clinical Service
Supply Chain Management and Logistics
Sales and Marketing Services
Other Non-clinical Services
Geography
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
Middle-East and Africa
GCC
South Africa
Rest of Middle-East and Africa
South America
Brazil
Argentina
Rest of South America

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Key Market Trends

Revenue Cycle Management Segment is Anticipated to Witness Growth Over the Forecast Period

Healthcare systems use revenue cycle management (RCM) to track the financial dealings with patients, from their initial appointment to the final payment of the balance associated with the healthcare system. The RCM can be defined as all clinical and administrative functions that contribute to managing and collecting patient service revenues. Hence, the increasing need for RCM services in healthcare is expected to boost segment growth.

The RCM offers several benefits to the provider, from handling billing and collections to handling administrative functions. It is a technologically advanced system that handles administrative functions through sophisticated billing, payment processing, and electronic health record systems. The article "Revenue Cycle Management in Healthcare," published in July 2022, stated that because many hospitals handle billing using ineffective manual systems, the most frequent billing issues are caused by human error, such as data entry blunders. The term "healthcare revenue cycle management" (RCM) refers to the full procedure for processing payments and handling reimbursements. Additionally, as per the source mentioned above, RCM seamlessly merges billing information with administrative data, patient personal information, clinical data, insurer names, and medical codes with minimal error. Thus, the usage of RCM has increased across healthcare, thereby driving the segment growth.

Currently, the market players are focusing on new launches to strengthen their market positions, which is ultimately attributed to the segment growth. For instance, in January 2020, R1 RCM Inc., a pioneer in technology-enabled revenue cycle management services to healthcare providers, announced the launch of its new physician solution for revenue cycle management, R1 Professional, serving large independent practices and hospital-owned medical groups. Thus, such developments are thus expected to drive segment growth.

Therefore, the abovementioned factors are expected to drive the segment to grow significantly and contribute to the overall market growth over the forecast period.

Total Healthcare Spending (in thousands), Global, 2021

North America Dominates the Market and is Expected to do Same during the Forecast Period

Currently, North America dominates the market for healthcare BPO and is expected to continue its stronghold for a few more years. The United States holds the largest market share in the North American region. The United States healthcare system is a rapidly growing industry, which includes pharmacies, pharmaceutical companies, medical equipment manufacturers, and medical care facilities. This complex industry infrastructure relies on specialized professionals who oversee these operations. High awareness levels about outsourcing healthcare IT services and the strong presence of prominent market players in the region are attributed to the regional market's growth.

Furthermore, rising government initiatives in the country are anticipated to drive the studied market growth in the country. For instance, in February 2022, the Department of Health and Human Services (HHS) awarded nearly USD 55 million to 29 HRSA-funded health centers to increase healthcare access and quality for underserved populations through virtual care. Virtual care has been a game-changer for patients, especially during the pandemic. Thus, the initiatives by government organizations are expected to drive market growth in the country.

In June 2020, GE Healthcare partnered with five start-ups for Edison, its artificial intelligence-based healthcare platform. The Edison platform enables GE Healthcare and its partners to develop, deploy, manage, secure, and distribute advanced applications, services, and AI algorithms. Thus, the activities done by the major players are expected to drive the studied market growth in the country.

Furthermore, the increasing number of people seeking insurance, pressure to cut healthcare delivery costs, consolidation of the healthcare system, pharmaceutical companies facing patent cliffs, and the mandatory implementation of ICD-10 codes (10th revision of the International Statistical Classification of Diseases and Related Health Problems) are the major factors propelling the growth of the United States healthcare BPO market.

Thus, the market is expected to grow in North America due to the abovementioned factors.

Healthcare BPO Market - Growth Rate by Region

Competitive Landscape

The competitive landscape of the healthcare BPO market covers the business overview, financials, products, and strategies followed by major companies. The healthcare BPO market is moderately competitive and consists of several major players. In terms of the market share, few of the major players currently dominate the market. The rising need for mobile health and advances in healthcare systems are also helping a few other smaller players to enter the market with a substantial share. Some of the major players in the market are Accenture, Global Growth, GeBBS Healthcare Solutions, Genpact, International Business Machines Corporation (IBM), Parexel International Corporation, IQVIA, and Sutherland Global Services, UnitedHealth Group, and Cognizant Technology Solutions, among others.

Recent Developments

· In March 2022, CPSI, a healthcare solutions company, acquired Healthcare Resource Group Inc., based in Spokane, Washington. HRG is a leading provider of customized revenue cycle management (“RCM”) solutions and consulting services that enable hospitals and clinics to improve efficiency, profitability, and patient satisfaction.

· In January 2022, NextGen Healthcare, an ambulatory technology company, planned to expand its portfolio in the RCM business during the fiscal year 2022.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumption and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rise of Nearshore Outsourcing Destinations and Access to Technology

      2. 4.2.2 Rapid Increase in Clinical Process Outsourcing (CPO)

      3. 4.2.3 Implementation of PPACA Compelled Healthcare Player to Move toward Outsourcing

      4. 4.2.4 Fewer Errors in Several Non-critical Functions, like Finance and Accounting, Customer Care Services, etc.

    3. 4.3 Market Restraints

      1. 4.3.1 Complex Regulations

      2. 4.3.2 Hidden Costs of Outsourcing

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size by Value – USD million)

    1. 5.1 By Payer Service

      1. 5.1.1 Human Resource Management

      2. 5.1.2 Claims Management

      3. 5.1.3 Customer Relationship Management (CRM)

      4. 5.1.4 Operational/Administrative Management

      5. 5.1.5 Care Management

      6. 5.1.6 Provider Management

      7. 5.1.7 Other Payer Services

    2. 5.2 By Provider Service

      1. 5.2.1 Patient Enrollment and Strategic Planning

      2. 5.2.2 Patient Care Service

      3. 5.2.3 Revenue Cycle Management

    3. 5.3 By Pharmaceutical Service

      1. 5.3.1 Research and Development

      2. 5.3.2 Manufacturing

      3. 5.3.3 Non-clinical Service

        1. 5.3.3.1 Supply Chain Management and Logistics

        2. 5.3.3.2 Sales and Marketing Services

        3. 5.3.3.3 Other Non-clinical Services

    4. 5.4 Geography

      1. 5.4.1 North America

        1. 5.4.1.1 United States

        2. 5.4.1.2 Canada

        3. 5.4.1.3 Mexico

      2. 5.4.2 Europe

        1. 5.4.2.1 Germany

        2. 5.4.2.2 United Kingdom

        3. 5.4.2.3 France

        4. 5.4.2.4 Italy

        5. 5.4.2.5 Spain

        6. 5.4.2.6 Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. 5.4.3.1 China

        2. 5.4.3.2 Japan

        3. 5.4.3.3 India

        4. 5.4.3.4 Australia

        5. 5.4.3.5 South Korea

        6. 5.4.3.6 Rest of Asia-Pacific

      4. 5.4.4 Middle-East and Africa

        1. 5.4.4.1 GCC

        2. 5.4.4.2 South Africa

        3. 5.4.4.3 Rest of Middle-East and Africa

      5. 5.4.5 South America

        1. 5.4.5.1 Brazil

        2. 5.4.5.2 Argentina

        3. 5.4.5.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Accenture

      2. 6.1.2 Global Growth (Eli Global)

      3. 6.1.3 GeBBS Healthcare Solutions

      4. 6.1.4 Genpact

      5. 6.1.5 International Business Machines Corporation (IBM)

      6. 6.1.6 Parexel International Corporation

      7. 6.1.7 IQVIA

      8. 6.1.8 Sutherland Global Services

      9. 6.1.9 United Health Group

      10. 6.1.10 Cognizant Technology Solutions

      11. 6.1.11 Tata Consultancy Services Limited

      12. 6.1.12 Wipro

      13. 6.1.13 Infosys Limited

    2. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Competitive Landscape Covers - Business Overview, Financials, Products and Strategies, and Recent Developments

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Frequently Asked Questions

The Global Healthcare BPO Market market is studied from 2019 - 2027.

The Global Healthcare BPO Market is growing at a CAGR of 8% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Accenture, Genpact, IQVIA, IBM, Paraxel are the major companies operating in Global Healthcare BPO Market.

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