Dive Brief:
- A new report by Research and Markets expects the global healthcare payer BPO market to reach over $34.2 billion by 2022.
- Some main drivers behind this growth include Obamacare, ICD-10 coding, an aging population, higher disease burden, and increased insurance coverage in emerging economies.
- The American Health Insurance Plans (AHIP) estimates U.S. healthcare spending is $2.7 trillion but the system loses nearly $800 billion due to process inefficiencies.
Dive Insight:
As healthcare expenditures increase, governments are encouraging more outsourcing of payer services. The ICD-10 shift has created a strain for payers to upgrade their systems and train staff to accommodate the 68,000 codes. This will, in turn, reinforce the payer BPO outsourcing market growth over the next seven years, according to the report.
Companies mentioned in the report include Accenture, Capgemini, Cognizant Technology Solutions, Exiservice Holdings, Inc., Genpact Limited, Hewlett-Packard, HCL Technologies, Hinduja Global Solutions, Wipro Limited, and Xerox Corporation.
"The shift from ICD-9 coding system to ICD-10 coding has created huge work load for the payers to upgrade their systems, train their staff and has significantly increased the financial burden," the market researcher noted in a press release.
"This shift from the legacy system to the latest system has significantly increased the need for medical coding, accounting, HR, and other technical professionals, thereby is expected to positively reinforce the healthcare payer BPO outsourcing market growth in the next seven years."