MarketsandMarkets, a US-based global market research and consultancy firm, released a study stating that the global healthcare business process outsourcing (BPO) market will post revenues reaching $330 billion by 2016. Entitled "Healthcare BPO Market - Payer (Claims processing), Provider (Medical Billing & Coding) and Pharmaceutical (Clinical trial & Contract manufacturing) Outsourcing - Global Analysis & Forecasts (2011-2016)", the report highlights the key influencers of the global healthcare outsourcing market and provides details on risks and opportunities in various regions.
A compound annual growth rate (CAGR) of 21.4% was posted by the healthcare outsourcing market, with pharmaceutical outsourcing taking 64.3% and is predicted to establish a CAGR of 14.6% from 2011 to 2016.
Under the healthcare payer outsourcing market, claims processing represents the largest share with 59% and is identified as the most expensive function in the industry.
The report also states that outsourcing is still considered as the best solution to reduce cost and maintain the quality of service for the payer industry. Insurance companies, for instance, see outsourcing as a solution considering certain factors such as decreasing margins, higher rate of claims, as well as tighter competition in the market.
There are more opportunities for the payer industry, as 1,300 health insurance companies have emerged since 2009. However, only 10% of work from the large market is being outsourced at present.