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The global healthcare sector has witnessed a rapid rise in costs owing to factors such as growing geriatric population, increasing rate of chronic diseases, rising demand for quality healthcare services, and technological advancements in the medical field. Healthcare business process outsourcing (BPO) helps reduce operational costs for healthcare providers by outsourcing several non-core business functions such as medical billing, medical coding, medical transcription, and claim management to third-party vendors. This allows healthcare organizations to focus on improving patient care services.
The global Healthcare BPO Market is estimated to be valued at US$ 10.19 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Adoption of advanced technologies: Growing adoption of advanced technologies such as robotic process automation (RPA), artificial intelligence (AI), machine learning, and blockchain is expected to drive growth of the healthcare BPO market during the forecast period. These technologies help improve process efficiency, reduce costs, ensure data security, and enhance customer experience. For instance, AI assists in automating repetitive tasks such as medical coding and claims management.
Companies are focusing on development of technologically advanced products to hold the largest share in the healthcare BPO market. They are upgrading their existing product portfolios and innovating new products with advanced technologies to gain competitive advantage.
Porter’s Analysis
Threat of new entrants: Low healthcare BPO requires high capital investments and regulatory compliances which makes entry difficult for new players.
Bargaining power of buyers: Buyers have high bargaining power as they can switch between service providers easily based on price and quality of service.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of several players in the industry resulting in low switching costs for buyers.
Threat of new substitutes: Limited threat as there are no cost-effective substitutes for healthcare BPO services.
Competitive rivalry: Intense competition in the industry has pushed players to focus on innovation and offering value-added services.
Key Takeaways
The global Healthcare BPO market is expected to witness high growth. Regional analysis comprises Regional analysis comprises the North America market is dominating due to early adoption of BPO services by healthcare providers to reduce operational costs.
Key players related content comprises Key players operating in the healthcare BPO market are Companies are focusing on development of technologically advanced products to hold the largest share in the healthcare BPO market. They are focusing on expanding their geographic reach through mergers and acquisitions.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
