Healthcare BPO Market Growth. Why do businesses outsource? For a variety of reasons. Chief among them is “to save money.” Almost all business sectors can profit from using a Business Process Outsourcing partner. But the BPO industry is growing by leaps and bounds, so what are the leading sectors?
Well, you would have to put BPO Healthcare at or near the top of the list. Due to the rise of healthcare exchanges, that is, the online marketplaces to obtain health insurance from competing providers, there is a rapidly decreasing profit margin for this sector, which in turn drives up the demand for the use of a Healthcare BPO.
This will likely accelerate the adoption of outsourcing to lower costs as healthcare continues to take up a large part of the economy. Many reasons include increased life expectancy, advanced care, more intensive treatments, and patients' ability to afford care. So, the Healthcare BPO Market is expanding. Along with a growing Healthcare BPO Services Market, including the Healthcare Payer BPO Market, the demand for Healthcare Business Process Outsourcing is the answer to efforts to reign in Healthcare Costs.
A looming drawback, however, is Higher labor expenses in developing nations. The second and third world is moving forward, impacting labor costs for outsourcing and other business sectors. At some point, the practice's profitability will cease to be viable.
Balancing this is the increased use of AI and machine learning. This is particularly true in the medical field, where these advanced technologies are booming. For instance, AI has reduced FDA approval time and thus makes newer treatments available sooner. And the success of this innovation has powered this growth.
As with any developing business, security must remain a significant consideration. Not only for patient privacy but for the integrity of the mission. As hacks grow in sophistication and number, more and more resources must be allocated to security, which has a definite impact on cost.
In fact, North America houses the majority of outsourcing firms in the medical AI marketplace. Will this adversely affect the marketplace? Or will offshoring eventually come into play?
The Scope of Today's BPO Market.
Financial planning is crucial when considering the pros and cons of outsourcing. It allows businesses to spend less on personnel, infrastructure, and management systems.
Health coverage marketplaces in the United States have burdened healthcare providers' profitability. The added paperwork and staff requirements to fulfill that paperwork decreases profitability for healthcare providers. And now, there is an enhanced marketplace for customers to shop for the best rates. Brand loyalty is a thing of the past, as almost all healthcare insurance providers will cover nearly all healthcare providers. This creates a problem that can be solved by outsourcing. Spending less through outsourcing means reduced outlay for personnel infrastructure and management systems.
Healthcare BPO market revenue was nearly $300 billion in 2021, growing to an estimated $470 billion by 2026. That would be a growth rate of almost 10% per year. All of this is driven by the need to reduce Healthcare costs in North America, Europe, Asia Pacific, the Middle East, Africa, and Latin America. In other words, worldwide.
The savings and the potential value stream of offshoring are frequently impacted by incomplete finance and investment information. Healthcare providers that intend to export critical company operations must consider unanticipated costs, including those required for vetting partners' contractual relationships overseas. Knowing the actual cost of the total outsourcing project will positively impact budget allocations.
Services provided include Claims Adjudication, Claims Settlement, Information Management, Claims Negotiation, Claims Investigation, Claims Indexing, and Fraud Detection. Product R&D, Member Management, Provider Management, Care Management, Integrated Front End and Back Office Services, Billing and Account Management, and HR Services.
And in the Life Sciences, Manufacturing, Research and Development, and non-clinical services such as Logistics, Sales and Marketing, Forecasting, Performance, Analytics, Research, Marketing, and other non-clinical services.
In medical research, AI and machine learning significantly increase the chances of success and streamline the testing process. Developing medications for severe diseases like cancer will also enable health BPO network operators to make significant advancements. Because the time it takes to introduce a cancer-fighting treatment to the industry is significantly decreased because of AI, the opportunity for medical BPO services should increase dramatically.
And the primary source of BPO providers comes from India, China, Philippines, the United States, Bulgaria, the EU, Brazil, and Saudi Arabia.
Healthcare BPO Market Growth And Segmentation.
Healthcare BPO made its debut in the 1980s. Medical professionals are moving away from internal departments and all the costs this practice entails to a more streamlined and affordable approach to outsourcing some of those tasks. Today the major players in healthcare employ different companies, and outsourced companies, to complete these tasks. Healthcare coding, reimbursements, and data entry are the three most popular BPO solutions.
Partnering with a Medical BPO has several benefits, such as allowing medical practitioners to concentrate on existing core strengths, reducing price, improving productivity, and enhancing clinical outcomes because they have more time and resources for patient care.
With these significant medical efficiency gains, most software BPO network operators are utilizing AI to give consumers increased accuracy and efficiency in the billing process. Insurance processing, treatment, and pharmacy operations are just part of the services offered by Medical BPOs.
As a growing market, BPO is still developing and experiencing growing pains. The mergers and acquisitions in the industry display this.
- UnitedHealth Group, Inc. has acquired InstaMed, a Healthcare payment platform, for an undisclosed sum.
- Cigna Corporation has acquired ScriptDrop, a medication delivery platform, for an undisclosed sum.
- Optum Inc. has acquired Change Healthcare, a technology firm, for $13 billion.
- Anthem Inc. has acquired Evolent Health, a population health management company, for $4.7 billion.
- Humana Inc. has acquired Genoa Healthcare, a behavioral health management company, for $1 billion.
- Aetna Inc. has acquired Heathgen, a population health management company, for an undisclosed sum.
- Cerner Corp. has acquired NanHealth, a healthcare tech firm, for an undisclosed sum.
- Allscripts Healthcare Solutions has acquired McKesson Corporations US Hospital and Health Systems business for an undisclosed.
- Cognizant Technology Solutions has acquired TriZetto, a healthcare information technology provider, for @2.7 billion.
- HCL Technologies Ltd. Has acquired Medix, a healthcare BPO provider, for $85 million.
Seen the Light? Grab The Future.
Clearly, Healthcare BPOs are more than a coming trend. It's the present, and it's growing. If your Healthcare enterprise is growing and you see evolving challenges, it's time to talk to an experienced BPO—one with two decades of a proven track record helping clients succeed. That's Rely Services! Get in touch with us today.
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