Medical Coding Market Insights, Competitive Landscape and, Market Forecast - 2027

Medical Coding Market Insights, Competitive Landscape and, Market Forecast - 2027

MEDICAL CODING MARKET BY CLASSIFICATION SYSTEM (INTERNATIONAL CLASSIFICATION OF DISEASES (ICD), HEALTHCARE COMMON PROCEDURE CODE SYSTEM (HCPCS), AND CURRENT PROCEDURAL TERMINOLOGY), BY COMPONENT (IN-HOUSE SERVICE AND OUTSOURCED SERVICE), BY END-USER (HOSPITALS, DIAGNOSTIC CENTERS, AND OTHERS), AND BY GEOGRAPHY IS EXPECTED TO ADVANCE AT A RESPECTABLE CAGR FORECAST TILL 2027 OWING TO THE ACCELERATING DEMAND FOR CODING SERVICES AND THE EXPANDING REQUIREMENT FOR A UNIVERSAL LANGUAGE TO REDUCE FRAUDS AND MISINTERPRETATIONS ASSOCIATED WITH INSURANCE CLAIMS

The global medical coding market was valued to be USD 16.23 billion in 2021, and will grow at a CAGR of 10.91% during the forecast period from 2022 to 2027 in order to reach USD 30.17 billion by 2027. The medical coding market is observing an optimistic market growth due to the factors such as the escalating demand for coding services owing to the surging cases of chronic disorders and hospitalization across the globe. Further, the rising need for a universal language to reduce frauds and misinterpretations associated with insurance claims will spur the market of medical coding. Additionally, the increasing demand for streamlining hospital billing procedures in the healthcare and insurance industry along with the increasing adoption rate of advanced healthcare solutions in routine hospital operations and clinics will create a necessity for medical coding in the market. Therefore, the market for medical coding is estimated to grow at a substantial CAGR during the forecast period from 2022 to 2027.

MEDICAL CODING MARKET DYNAMICS:

One of the key aspect for driving the medical coding market is the rising demand of medical coding services due to the increasing prevalence of chronic disorders globally.

For instance, according to the World Health Organization (WHO) 2022, chronic diseases kills nearly 41 million people each year, equivalent to 74% of all deaths globally. The main types of chronic diseases are cardiovascular diseases such as heart attacks and stroke, cancers, chronic respiratory diseases such as chronic obstructive pulmonary disease and asthma, diabetes, and others. Also, the source listed the incidence of cancer in 2020, globally. The most common form of cancers was breast cancer with 2.26 million cases, followed by lung cancer with 2.21 million cases, colon and rectum cancer with 1.93 million cases, prostate cancer with 1.41 million cases, skin cancer 1.20 million cases, and stomach cancer with 1.09 million cases. Thus, the increasing incidence will increase the number of hospitalization, thereby increasing the demand of medical coding used to track injectable drugs and supplies, medical bills, insurance claims, and others.

Furthermore, there is a need for a more streamlined and convenient coding and billing solution in the healthcare industry. Medical coding also allows for consistent documentation across medical facilities. Medical coding companies allow administrators to examine the frequency and efficacy of treatment in their facility. This is especially important for large medical facilities such as tertiary care hospitals. As a result, frequent market launches are expected to drive the market. For instance, in July 2022, Greenway Health, a leading health information technology services provider, launched Greenway Medical Coding services, its newest healthcare solution for ambulatory practices. Greenway Medical Coding enables practices to capture cost efficiencies, improve practice earning potential, and collect insurance payments efficiently with the knowledge and precision of a personalized coding team.

Additionally, the rising need for a universal language to reduce frauds and misinterpretations associated with insurance claims will also spur the market of medical coding in the upcoming years.

Therefore, the factors stated above collectively will drive the overall medical coding market during the forecast period from 2022-2027.

However, the continuously changing regulations in different regions, data security and privacy concerns, lack of sufficiently equipped information technology (IT) professionals in healthcare industry, and others may prove to be challenging factors for medical coding market growth.

The medical coding market was positively impacted during the period of COVID- 19 pandemic owing to the increasing number of hospitalization due to the huge spread of COVID-19 infection across the globe. Further, many new codes were provided by various organizations to ease the process of medical coding for the patients suffering from the infection. The WHO, activated emergency codes for COVID-19 in February 2020 for the confirmed diagnosis of COVID-19 and clinical or epidemiological diagnosis including suspected or probable cases of COVID-19. In addition, the WHO also published international guidelines for certification and classification or coding of COVID-19 as the cause of death in seven languages in April 2020. Likewise, the Centers for Medicare and Medicaid Services (CMS) has been at the forefront of assisting providers with COVID-10 medical billing and coding. In March 2020, the CMS released two Healthcare Common Procedure Coding System (HCPCS) codes that laboratories can use to bill for certain COVID-19 diagnostic tests, including those developed in-house according to the new United States Food and Administration (USFDA) guidelines. Thus, the increasing number of hospitalization, increasing demand of medical bills and insurance claims, along with the release of new codes, surged the demand of medical coding during the pandemic and is expected to grow at the steady rate during the forecast period of 2022 – 2027.

MEDICAL CODING MARKET SEGMENT ANALYSIS:

Medical Coding Market by Classification System (International Classification of Diseases [ICD], Healthcare Common Procedure Code System [HCPCS], and Current Procedural Terminology), Component (In-House Service and Outsourced Service), End-User (Hospitals, Diagnostic Centers, and Others), and Geography (North America, Europe, Asia-Pacific, and Rest of the World).

In the classification system segment of the medical coding market, the International Classification of Disease (ICD) segment is expected to have a significant revenue share in the year 2021. This was primarily owing to the increasing prevalence of diseases.

Moreover, the ICD classification is easy to use and flexible. It enables the use of health information for the variety of purposes, including improved patient outcomes, quality analysis, safety, integrated care, strategic planning, population health reporting, and health care service delivery. Also, ICD 11 codes are simple to use. They enable the coding tool to be embedded in local digital records and information technology systems. This increases user compliance while decreasing training costs and time. Thus, multiple ICD codes and revisions to accommodate the rapidly changing health industry are driving segment growth of ICD segment.

Furthermore, with the launches of new ICD versions, its use is expected to increase, as newer versions provide more information than previous versions. The ICD-11 version was released in June 2018 to allow member countries to prepare for implementation, including translation of the ICD into their native languages. The ICD-11 version vastly improves on the ICD-10 version, with 55,000 unique codes for injuries, diseases, and causes of death as opposed to 14,400 in ICD-10. This ICD-11 version could go into effect in 2022.

Therefore, owing to the advantages and applications associated with International Classification of Diseases (ICD) segment, the category is expected to witness a considerable growth eventually contributing to the overall growth of the global medical coding market during the forecast period.

NORTH AMERICA IS EXPECTED TO DOMINATE THE OVERALL MEDICAL CODING MARKET:

Among all the regions, North America is expected to dominate the global medical device testing services in the year 2021 and is expected to do the same during the forecast period from 2022-2027. This can be ascribed to the growing demand for coding services owing to the increasing prevalence of various diseases in the region. Additionally, the increasing demand for streamlining hospital billing procedures, and the presence of key market players in the region will increase the demand of medical coding in the given forecast period.

For instance, according to the American Hospital Association (AHA) Hospital 2021 report, around 36,241,815 admissions were reported in all the hospitals in the United States in 2020. The increasing number of hospitalization will in turn increase the demand of medical coding as the coding services are used to track the disease, drugs, medical bills, insurance claims, and other activities.

The increasing formations of healthcare digitization organizations, growing capitalization in the advancement of healthcare infrastructure, and increasing government interests in developing new technologies are also projected to boost the regional market's growth over the forecast period.

In addition, the factors such as growing communication with nurses, physicians, and other healthcare professionals and the integration of uniform classification codes are also projected to increase the regional medical coding market's growth over the upcoming years.

Further, the increasing launches of medical coding services in the market will propel its demand in the forthcoming years. For instance, in October 2022, Nym, the leader in translating clinical language into actionable information, announced that its medical coding engine is now being offered to radiology departments across the United States.

Also, other activities among the key players in the region such as acquisitions, agreements, partnerships, and other will shoot up the demand of medical coding in the market. In September 2021, AGS Health, a leader in revenue cycle management solutions for major healthcare providers across the United States, acquired EZDI, a leader in modernizing computer-assisted coding (CAC) to support healthcare providers with revenue cycle management.

Therefore, the interplay of the aforementioned factors above would provide a conducive growth environment for the North American region in the medical coding market.

MEDICAL CODING MARKET KEY PLAYERS:

Some of the key market players operating in the medical coding market includes 3M, Nuance Communications, Inc., Oracle Corporation, Coding Network., Optum Inc., aidéo technologies, LLC, Dolbey, Aviacode Inc., MRA Health Information Services., Talix, PCS, Access Healthcare, Global Healthcare Resource, Episource, Omega Healthcare., Startek, GeBBS Healthcare Solutions, Outsource Strategies International., PAREXEL International Corporation, AltuMED, and others.

RECENT DEVELOPMENTAL ACTIVITIES IN MEDICAL CODING MARKET:

In January 2022, National Medical Billing Services, an industry leading healthcare revenue cycle management company serving the ambulatory surgery center (ASC) market, acquired mdStrategies, a full-service medical coding company focused on ASCs.

In August 2021, GeBBS Healthcare Solutions, a provider of technology-enabled revenue cycle management and risk adjustment, announced the acquisition of Aviacode Medical Coding & Coding Audit Services

In June 2021, Semantic Health Inc., a Toronto-based healthcare technology company, launched its premier coding & auditing platform, the Semantic Health Information Platform. The platform empowers medical coders and auditors to conduct concurrent review of clinical documentation, reduce revenue cycle inefficiencies and enable actionable use of unstructured data.

In March 2021, athenahealth launched athenaOne Medical Coding Solution, an EHR coding solution that could mitigate clinician coding-related work and ultimately reduce clinician burnout.

KEY TAKEAWAYS FROM THE MEDICAL CODING MARKET REPORT STUDY

Market size analysis for current medical coding market size (2020), and market forecast for 5 years (2021-2027)

The effect of the COVID-19 pandemic on this market is significant. To capture and analyze suitable indicators, our experts are closely watching the medical coding market.

Top key product/services/technology developments, merger, acquisition, partnership, joint venture happened for last 3 years

Key companies dominating the global medical coding market.

Various opportunities available for the other competitor in the medical coding market space.

What are the top performing segments in 2020? How these segments will perform in 2027.

Which is the top-performing regions and countries in the current medical coding market scenario?

Which are the regions and countries where companies should have concentrated on opportunities for medical coding market growth in the coming future?

TARGET AUDIENCE WHO CAN BE BENEFITED FROM THIS MEDICAL CODING MARKET REPORT STUDY

Medical coding products providers

Research organizations and consulting companies

Medical coding -related organizations, associations, forums, and other alliances

Government and corporate offices

Start-up companies, venture capitalists, and private equity firms

Distributors and Traders dealing in medical coding

Various end users who want to know more about the medical coding market and latest technological developments in the medical coding market.

FREQUENTLY ASKED QUESTIONS FOR MEDICAL CODING MARKET:

1. What is Medical Coding?

The conversion of healthcare diagnoses, procedures, medical services, and equipment into universal medical alphanumeric codes is known as medical coding. Diagnoses and procedure codes are derived from medical record documentation, such as transcriptions of physician's notes, laboratory and radiologic results, and others.

2. What is the global market for medical coding?

The global medical coding market was valued to be 16.23 billion in 2021, and will grow at a CAGR of 10.91% during the forecast period from 2022 to 2027 in order to reach USD 30.17 billion by 2027.

3. What are the drivers for global medical coding market?

The medical coding market is witnessing a positive market growth owing to the factors such as escalating demand for coding services owing to the surging cases of chronic disorders across the globe and due to the rising need for a universal language to reduce frauds and misinterpretations associated with insurance claims. Further, the increasing demand for streamlining hospital billing procedures in the healthcare and insurance industry will surge the demand of medical coding services in the upcoming years. Also, the increasing adoption rate of advanced healthcare solutions in routine hospital operations and clinics will create an exigency for the medical coding market.

4. Who are the key players operating in the global medical coding market?

Some of the key market players operating in the medical coding market includes 3M, Nuance Communications, Inc., Oracle Corporation, Coding Network., Optum Inc., aidéo technologies, LLC, Dolbey, Aviacode Inc., MRA Health Information Services., Talix, PCS, Access Healthcare, Global Healthcare Resource, Episource, Omega Healthcare., Startek, GeBBS Healthcare Solutions, Outsource Strategies International., PAREXEL International Corporation, AltuMED, and others.

5. Which region has the highest share in medical coding market?

Among all the regions, North America is estimated to amass the significant revenue share in the global medical coding market. This can be ascribed to the escalating demand for coding services owing to the increasing prevalence of various diseases in the region. Additionally, the increasing demand for streamlining hospital billing procedures, and the presence of key market players in the region are another factors which acts as a supportive factor for the North America medical coding market growth.

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