Healthcare BPO Market Expected to Reach $282.3 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Healthcare BPO Market" The healthcare bpo market was valued at $121.6 billion in 2022, and is estimated to reach $282.3 billion by 2032, growing at a CAGR of 8.7% from 2023 to 2032.

Healthcare BPO is a process wherein a healthcare provider outsources its non-core tasks to a third party. The healthcare company employs a third-party company to complete the task on their behalf rather than doing it themselves. Healthcare institutions and hospitals can concentrate on their main competencies by outsourcing non-essential activities. The healthcare business outsourcing includes various services such as medical coding, medical billing, and supply chain management services. In addition, some advantages of healthcare BPO are it helps healthcare providers to focus on their core competencies, lowers costs & increases efficiency of operations, improves patient experience by dedicating more time to patient care. Healthcare BPO Industry provides various services such as payer service, provider service, and pharmaceutical service.

The healthcare BPO market has witnessed notable growth owing to Healthcare BPO Market Trends such as growing concern of organizations to improve efficiency and agility. In addition, surge in demand of healthcare organization to reduce operational cost and rise in focus on patient-centric healthcare services across the globe drive the market growth. Furthermore, government initiatives to reduce healthcare cost and to make healthcare services affordable for everyone contributes to the growth of market. For instance, U.S. government has implimented Affordable Care Act (ACA) to control the healthcare services cost.

Lack of in-house trained professionals for specific processes and cost-effective availability of workforce are some key factors which drive the healthcare BPO market. Moreover, increase in prevalence of chronic diseases, rise in geriatric population, surge in demand for these services due to increased quality of patient care, lower costs, and increased efficiency of operations are the factors, which fuel the market growth.

Moreover, rise in demand for structured processing and documentation by healthcare providers, increase in number of key players in healthcare business process outsourcing sector, and surge in expenditure from market players boost the Healthcare BPO Market Growth. Moreover, BPO services provide cost-effective and accurate business process operations to companies which further contribute to the adoption of healthcare business out processing market. However, rise in data security concerns is expected to hinder the growth of this market. Conversely, increase in number of health insurance and surge in demand for outsourcing are expected to create lucrative opportunities for the market expansion. 

The global healthcare BPO market is segmented into service type, end user, and region. On the basis of service type, the market is categorized into provider outsourcing services, payer outsourcing services, operational outsourcing services, and IT infrastructure management services. By end user, it is classified into healthcare providers, healthcare payers, and others. Region wise, it is studied across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and rest of Europe), Asia-Pacific (Japan, China, Australia, India, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA). 

On the basis of service type, the payer outsourcing services segment is projected to exhibit the fastest growth during the forecast period, owing to increase in demand for hustle-free and accurate healthcare business process by healthcare payers such as hospitals and government organizations. In addition, rise in need for cost-effective business operations and rise in demand for reducing billing errors to improve quality of business process operations drive the growth of Healthcare BPO Market Share.

By end user, the healthcare payers segment is anticipated to grow at the highest rate, owing to upsurge in demand for healthcare BPO services for healthcare payers. Wide adoption of health insurance and increase in adoption of healthcare BPO services with aims to reduce operational costs while delivering accurate, effective, and patient care at all stages of journey of patients contribute toward the growth of Healthcare BPO Market Size. Moreover, lack of in-house expertise and surge in demand for outsourcing propel the growth of the Healthcare BPO Market Size.   

In 2022, North America dominated the market and is expected to continue this trend throughout the forecast period, owing to presence of well-established healthcare infrastructure, advancements in healthcare business outsourcing by market players, increase in the number market players present in the region such as Accenture, and IBM, In addition, high adoption rate of health insurance, and surge in demand of cost-effective healthcare services. However, Asia-Pacific is expected to witness the highest CAGR during the analysis period, owing to increase in the number of patient-centric healthcare services, which help to accelerate the demand for healthcare BPO services and presence of key players such as Tata Consultancy Services Ltd., wipro, genpact, and Infosys. In addition, increase in number of strategies and trends adopted by market key players such as product launch, merger and acquisition. 

Key findings of the study 

• On the basis of service type, the provider outsourcing services segment accounted for major share of the market in 2022.  

• Depending on end user, the healthcare payers segment is anticipated to grow with the highest CAGR throughout the forecast period. 

• Region wise, North America was the major shareholder in 2022.