by Medical coding involves analyzing healthcare documentation, abstracting key details, and assigning standardized numeric codes established by systems such as ICD-10 and CPT. Coders play a vital role in ensuring accurate healthcare claim submissions and reimbursements by translating medical documentation into these codes. The importance of precision in medical coding has grown significantly as it directly impacts the revenue cycle and quality of care delivered. Coding errors can lead to denial of claims, litigation risk, and financial losses for providers as well as insurers. Therefore, coding accuracy is required to support current medical billing standards and regulations.
The global Medical Coding Market is estimated to be valued at US$ 20282.64 Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the medical coding market is rising adoption of automated coding solutions. Automated coding software utilizes Natural Language Processing (NLP) and machine learning algorithms to learn from structured and unstructured clinical documentation and assign appropriate medical codes. They offer significant advantages over manual coding such as higher coding accuracy, reduced operational costs, and improved coder productivity. Various healthcare organizations are implementing automated coding systems to address challenges of staffing shortages and workload increases in the current healthcare landscape. It is estimated that automated coding solutions can help improve productivity by 20-50% and accuracy by 15-30%. Their rising efficacy is expected to drive increased adoption over the forecast period.
Porter’s Analysis
Threat of new entrants: The medical coding market requires high investments and regulatory compliance which pose significant entry barriers for new players.
Bargaining power of buyers: Individual buyers have low bargaining power due to the specialized nature of services, however healthcare facilities can negotiate on price and volumes.
Bargaining power of suppliers: The market has a large number of coding suppliers with differentiated offerings providing moderate bargaining power to buyers.
Threat of new substitutes: There are limited substitutes to medical coding services due to requirements of specialized skills, training and certification.
Competitive rivalry: The global market is consolidated with top players competing in services and technological capabilities.
Key Takeaways
The Global Medical Coding Market Size is expected to witness high growth over the forecast period supported by rising healthcare spending and demand for automated coding solutions. The North American region dominates the market currently due to stringent regulations and guidelines promoting medical coding adoption. Europe is expected to grow at a high rate due to initiatives for reducing healthcare costs.
Regional analysis:
North America accounted for the largest market share in 2021 led by the US due to stringent regulations and compliance mandates for medical coding practices. Europe is expected to grow at a notable rate during the forecast period supported by increasing healthcare costs and initiatives to control costs through automated coding solutions.
Key players:
Key players operating in the medical coding market are Accora Ltd, Antano Group, Bristol Maid, G & J Logistics Limited, Promotal, Roma Medical, and Stryker Corporation. Accora Ltd specializes in healthcare coding and analytic services while Antano Group provides coding and clinical documentation services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
