A recently released study concludes that the healthcare revenue cycle management industry is poised for continued growth over the next decade. Specifically, it finds that the industry, which represents approximately $12.5 billion in revenue annually, is expected to grow at 12% CAGR.
The research indicates that this growth and stability appears to be driven by three primary factors: rising healthcare costs, the complication of billing and coding privately, and the expanding need for billing and coding. Legal and compliance mandates are adding ever-increasing complexity and further the demand for outsourcing as market participants seek to avoid exposure to bad press and punitive state action for non-compliance.
Finally, the report concludes that efforts by physicians to appropriately manage their revenue cycle often cause the adoption of outsourcing as the industry advances with new coding and billing programs. Further, the increased use of healthcare information systems and electronic health records has accelerated the transition toward outsourced medical billing as a means to bring down costs.
In spite of the promising projections of growth, many physicians hold serious concerns regarding the potential leakage of patient data. These concerns limit the adoption of medical billing outsourcing and will need to be addressed by companies that seek to widen the acceptance of their outsourcing services.