Global healthcare BPO market to reach $330B by 2016

By Freddie Pierce
The “Healthcare BPO Market - Payer (Claims processing), Provider (Medical Billing & Coding) and Pharmaceutical (Clinical trial & Contract...

The “Healthcare BPO Market - Payer (Claims processing), Provider (Medical Billing & Coding) and Pharmaceutical (Clinical trial & Contract manufacturing) Outsourcing - Global analysis & Forecasts (2011-2016)” analyzes and studies the major market drivers, restraints, and opportunities in regions such as the U.S., Eastern Europe, Asia, and the rest of the world.

The global healthcare BPO market is growing at a healthy CAGR of 21.4 percent. Pharmaceutical outsourcing accounts for the largest share of 64.3 percent, but will grow at a CAGR of 14.6 percent from 2011 to 2016 since the market is saturated. Healthcare provider outsourcing has the highest growth rate of 31.9 percent from 2011 to 2016 and accounts for 15.7 percent to the total market. The healthcare payer outsourcing market will also grow at about 30 percent in the forecast period; it contributes 20 percent of the total market.

Claims processing is one of the costly functions of the payer industry and has the highest share in the healthcare payer outsourcing market, accounting for 59 percent, followed by member services/customer care services. The payer in U.S. were using 30 percent of the premium dollar paid on administrative cost, but due to the Health Insurance Portability and Accountability (HIPAA) Act, the payer has to spend 80-85 percent on improving the services and providing quality healthcare.

This is forcing the payer to cut the administrative costs, while outsourcing is the best solution available to reduce cost and maintain the quality.

In the year 2009, the payer industry in U.S. comprised of 1,300 health insurance companies. This represents a huge market for outsourcing which is yet to be tapped as only 10 percent of the work is outsourced currently.

SEE OTHER TOP OUTSOURCING STORIES IN THE SUPPLY CHAIN DIGITAL CONTENT NETWORK

Tips to reducing outsourcing costs

Top 10 Reasons to Outsource

January’s issue of Supply Chain Digital is live!

Insurance companies have traditionally been among the slowest adopters of outsourcing/offshoring services, but the recent situation of shrinking margins, higher claims disbursement and increasing competition, has forced many insurance companies to look at outsourcing to improve efficiencies and align resources towards the core functions of product development and innovation.

The major players in the payer and provider of healthcare BPO market are Accenture (Ireland), Medusind (U.S.), GeBBS Healthcare (U.S.), Omega Healthcare (India) and Inventive (U.S.). The pharmaceutical outsourcing market is captured by players such as Quintiles (U.S.), Covance (U.S.), PPD (U.S.), Parexel (U.S.), Charles Rivers Laboratories (U.S.) and ICON (Ireland) in the CRO space.

In the CMO market, the major competitors are Lonza (Switzerland), Catalent (U.S.), Boehringer Ingelheim (Germany), DSM Pharma (U.S.), and Jubilant Life Sciences (India).

Click here to download Supply Chain Digital’s iPad app!

Edited by Kevin Scarpati

Share

Featured Articles

PwC Examines Digital Trends in Operations for 2024

PwC’s Digital Trends in Operations Survey for 2024 demonstrates a significant proportion of firms are struggling to achieve their desired outcomes

P&SC LIVE New York 2024 Virutal - SAVE THE DATE

Don’t miss out on your chance to attend Procurement & Supply Chain LIVE New York in 2024 Virtually, 5-6 June

Charities & NGOs Submit to The Global P&SC Awards for FREE

The Global Procurement & Supply Chain Awards hosted at P&SC LIVE London Sept 2024 welcomes charities and NGOs to submit for FREE

Procurement & Supply Chain LIVE: 2024 Dates to Remember

Digital Supply Chain

Gartner Unveils Top Supply Chain Technology Trends for 2024

Technology

What the Latest CSDDD Milestone Means for Supply Chains

Sustainability