Business process outsourcing is a process of contracting of non-primary business activities such as human resources (HR), payroll, accounting, etc. to a third-party vendor or service provider in order to provide expert knowledge in the required field. The global healthcare BPO market is estimated to grow with a CAGR of 11.4% during the forecast period of 2016-2023. The key trend affecting the global healthcare BPO market is the advancement of technology. Through the technological innovation such as cloud computing, business analytics software, social media platforms etc the BPO can offer better technology to support in optimizingthe revenue cycle which may be costly and time consuming. The innovations can enhance customer service, receivables and data security .The global healthcare BPO market is primarily driven by following factors:
- Pressure to reduce increasing healthcare costs
- Complex clinical trial protocols
- Enactment of PPACA (Patient Protection and Affordable Care Act)
- Patent expiry of blockbuster drugs
- Increasing trend of medical document outsourcing
The key factor contributing to the growth of global healthcare BPO market is the pressure to reduce healthcare expenditure which will lead to the rise in the demand of business process outsourcing in healthcare sector. The BPO aids various policymakers to reduce the current level of healthcare expenditure without creating unnecessary burdens for providers. However, the fear of losing control over the business process and hidden costs of outsourcing are the major factors restraining the growth of global healthcare BPO market. Sometimes outsourcing prices are downright hidden or less visible. The major hidden costs in the outsourcing are currency, software or hardware refresh, lack of governance, retained organization, internal transition, poor change communications, retirement costs, planned headcount reduction, staff augmentation and shadow organizations. Some of the key opportunities of healthcare BPO market are mandatory implementation of ICD (the International Statistical Classification of Diseases and Related Health Problems)-10 Codes in and consolidation of the healthcare system developed regions. ICD – 10 (the International Statistical Classification of Diseases and Related Health Problems), introduced by World Health Organization (WHO) is the set of codes of over 14,500 different codes of symptoms and signs, complaints, external causes of diseases or injury, social circumstances, and various other diseases; and, also allows tracking of new diagnosis.
Source: OBRC Analysis
The global healthcare BPO market is segmented into provider service, payer service, and pharmaceutical service. The provider service of global healthcare BPO market is further sub segmented into:
- Medical billing
- Medical coding
- Medical transcription
- Finance & accounts
Payer service is further segmented into:
- Front-end services and back-office operations
- Claims management services
- Member management services
- Provider management services
- Billing and accounts management services
- Analytics and fraud management services
- HR services
Pharmaceutical service is further segmented into:
- Research & Development
- Manufacturing
- Non-clinical services
- Other non-clinical services
The revenue for the above services are specific to the healthcare BPO market. However, the total revenue of these services in general has been excluded from the scope of the report. Also, the total market revenue has been calculated by summing up provider, payer and the pharmaceutical services segment.
Geographically, the global healthcare BPO market is segmented into:
- North America (U.S. & Canada)
- Asia Pacific (China, India, Japan, RoAPAC)
- Europe (UK, France, Germany, RoE)
- Rest of World
North America is expected to hold the largest market share during the forecast period 2016-2023 followed by Europe. In North America, U.S. is the major source for the outsourcing of healthcare services owing to enactment of PPACA (Patient Protection and Affordable Care Act) and implementation of ICD-10 codes. After North America, Europe is the biggest source for outsourcing healthcare services due to minimum healthcare delivery prices. In Asia-Pacific, China and India are the most ideal locations for outsourcing from due to availability of adept personnel and has less operating business costs.
The global healthcare BPO market is segmented on the basis of provider service, payer service, and pharmaceutical service. By provider service, the global healthcare BPO market is further segmented into medical billing, medical coding, medical transcription, and finance & accounts. Medical billing had the largest market share in 2016. Based on the payer service, the market is segmented into claims management services, integrated front-end services and back-office operations, member management services, provider management services, billing and accounts management services, analytics and fraud management services, and HR services. Claims management services is further segmented into claims adjudication services, claims settlement, information management services, claims repricing, claims investigation services, claims indexing services, and litigation management. Based on the pharmaceutical service, the market is segmented into research & development, manufacturing, and non-clinical services. The non-clinical services are further segmented into supply chain management & logistics, sales and marketing services, and other non-clinical functions. Sales and marketing services are also further segmented into sales and marketing services, performance reporting, analytics, research, and marketing services.
The major market players of the global healthcare BPO market are:
- ACCRETIVE HEALTH, INC.,
- ACCENTURE
- IBM CORPORATION
- INFOSYS BPO LIMITED
- QUINTILES TRANSNATIONAL HOLDINGS
- OTHERS
These companies use various strategies such as mergers & acquisition, collaboration, partnership and product launching. Example: In March 2016, Quintles Transnational Holding got merged with the IMS health. The merger created one of the largest portfolios for deep therapeutic domain, healthcare information, regulatory and commercial analytical expertise and proprietary technology application with more than 50000 employees operating in more than 100 countries. The IMS-Quintles merger became a global real world evidence solutions platform through joining a leading portfolio of technology enabled data collection, patient’s records and observational research experts to discourse important healthcare issues such as value, cost and patient outcomes.
Detailed analysis of these companies provided in this report comprises of overview, scot analysis, product portfolio, strategic initiative and strategic analysis.
Why to buy the report:
This report will:
- Provide you the business strategies adopted by market player such as merger as on March 2016 IMS health merged with Quintles Transnational Holdings.
- Provide in detail the different segments such as provider service, payer service and pharmaceutical service which affect the global healthcare BPO market.
- Provide you the patent analysis of global healthcare BPO market.
- Identify and understand the strengths, opportunities, challenges and threat of the global healthcare BPO market.
- Provide revenues of major players of the market such as Cognizant Technology Solutions Corporation, Accretive Health, Inc.
- Provide you the various regulatory policies which affect the global healthcare BPO market.
How we are different from others:
At Occams we provide an extensive portfolio which is comprehensive market analysis along with the market size, market share, and market segmentations. Our report on global healthcare BPO offers the longest chain of market segmentation covering major market segmentation based on products and end users.The report tracks the major market trends in the global healthcare BPO market such as technological innovations which leads to more value added services. For each market segments covered in global healthcare BPO market report, we provide opportunity matrix, and DROC analysis, that enable the clear growth assessment across each market segment. The report discusses competitive landscape of the healthcare BPO industry, with giving extensive strategy analysis of more than 15 companies. Moreover, the report discusses various models such as 360 degree analysis, See Saw analysis, and Porter five force model and so on. For the high level analysis in the report we provide a comparative analysis of historic and current year data.
Key findings of the global healthcare BPO market:
- North America had the largest revenue share in 2016.
- Claims management segment is dominating the market due to validation of PPACA and high pressure to make healthcare more affordable.
- Merger and partnership are the key strategies adopted by various market players of global healthcare BPO market.
- Manufacturing segment is the major segment of pharmaceutical services segment
