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Healthcare IT Outsourcing Market Seen to Expand until 2020

by: Sarah Joson

Monday, October 20, 2014 | Outsourcing News |

Growth Seen in the Healthcare IT Outsourcing Market

Healthcare payers are being pushed to modify IT and operation strategies to comply with the latest regulatory reforms. Individual consumers are now more accountable for their health outcomes. This results to an increase in activity in the healthcare IT outsourcing (ITO) market. The global healthcare ITO market is predicted to expand at a CAGR of 12 percent from 2013 to 2020, reaching US$68 billion in 2020.

Much of the activity is seen within the mid-size providers segment and they are looking for affordable ways to comply with the regulatory demands as well as ground-breaking strategies that will assist them in changing to a business-to-consumer from business-to-business marketing and service models.

According to Jimit Arora, Vice-president at Everest Group, two things are affecting the shifts in the industry. There’s the transition to ICD-10 and the uncertainty of the reforms under the PPACA (Obamacare). Also, payers are looking into updating their customer acquisition strategies since consumers now have greater ownership, control, and responsibility for their health outcomes.


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