Medical Coding Market
Number of pages: 100 | Report Format: PDF | Published date: April 05, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
|
Report Attribute |
Details |
|
Market Size Value in 2022 |
US$ 37.41 billion |
|
Revenue Forecast in 2031 |
US$ 73.54 billion |
|
CAGR |
7.80% |
|
Base Year For Estimation |
2022 |
|
Forecast Period |
2023-2031 |
|
Historical Year |
2021 |
|
Segments Covered |
Classification System, Component, End User, and Region |
|
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global medical coding market was valued at US$ 37.41 billion in 2022 and is expected to register a revenue CAGR of 7.80% to reach US$ 73.54 billion by 2031.
Medical Coding Market Fundamentals
Medical coding transforms healthcare diagnoses, procedures, medical services, and equipment into alphanumeric codes for record-keeping, billing, and statistical analysis. These codes represent medical information in a standardized procedure, making it easier for healthcare providers, insurers, and researchers to communicate and analyze medical data. The different coding systems used include the International Classification of Diseases (ICD), Current Procedural Terminology (CPT), and the common healthcare procedure coding system (HCPCS). Medical coders must have a strong understanding of anatomy and medical terminology, as well as knowledge of coding guidelines and regulations.
The global medical coding market forecast is expected to be rapid in the coming years due to the various trends and opportunities. Such factors include an increased focus on data analytics, a notable shift toward value-based care, and increasing demand for healthcare services.
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Medical Coding Market Dynamics
As the global population grows, the demand for healthcare services is increasing. This drives the need for more efficient and accurate medical coding systems to manage the increasing volume of healthcare data. Additionally, with an aging population and an increase in the frequency of chronic diseases, more people are visiting hospitals and diagnostic centers for frequent exams and treatments. The growing demand for immediate, precise, and efficient medical billing has fueled the advancement of improved medical coding systems. Furthermore, the growing requirement for suitable billing systems to handle claim procedures and denial claims is likely to boost market demand.
Moreover, medical coding is becoming more prevalent as electronic bill systems for quick claim processing and tracking gain popularity. This drives the need for more sophisticated medical coding systems to manage this data effectively. These factors support the ongoing medical coding market trends.
The healthcare industry is moving from a fee-for-service model towards a value-based care model, where providers are paid based on patient outcomes rather than the number of services provided. This drives the need for more accurate and comprehensive medical coding systems to track patient outcomes and ensure proper reimbursement. Healthcare providers increasingly use data analytics to improve patient outcomes and optimize operations. This drives the need for more advanced medical coding systems to capture and analyze complex medical data. Healthcare costs are rising globally, driving the need for more efficient and effective healthcare management. Medical coding can help healthcare providers reduce costs by optimizing their operations, reducing billing and claims processing errors, and improving patient outcomes. Based on these factors, the medical coding market revenue growth is expected to accelerate during the forecast period.
Additionally, insurance fraud and vulnerabilities are increasingly likely to arise as the global medical coding market revenue grows. When medical records are misread more frequently, and electronic health record (EHR) shortcuts increase mistakes, the danger of inaccuracy and even malpractice increases. Keeping a clean and accurate coding system with expert medical coding helps ensure that patients get the appropriate treatment and that physicians give patients the greatest quality of care. Due to the expanding demand for a universal medical coding system, enhancing technologies have assisted healthcare organizations in recording correct medical documentation in a world of frequent ICD system revisions. Computer-Assisted Coding (CAC), blockchain, and Electronic Health Record (EHR) alignment are healthcare technologies that help decrease difficult coding challenges, enhance accuracy in medical documentation, and boost efficiency. These medical systems ensure the sustained global medical coding market demand by offering medical coding solutions and classification modifications.
However, medical coding challenges include a need for more skilled expertise in medical coding and issues related to maintaining the confidentiality of patient privacy. While automated technologies greatly reduce effort, many jobs still need manual labor. Due to the sensitive nature of the data, concentration and a high level of competence are required. Errors are conceivable, and a medical billing practitioner must strive to avoid them. Moreover, changes in healthcare regulations and policies can impact the medical coding process, requiring healthcare providers to adapt quickly to stay compliant.
Medical Coding Market Ecosystem
The global medical coding market has been analyzed from four perspectives: classification system, component, end user, and region.
Medical Coding Market by Classification System
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Based on the classification systems, the global medical coding market is segmented into the healthcare common procedure code system (HCPCS), international classification of diseases (ICD), and current procedural terminology (CPT).
The international classification of diseases (ICD) segment is expected to show notable revenue growth during the forecast period from 2023 to 2031. International classification of diseases (ICD) is the most widely used classification system for coding medical diagnoses and procedures globally. This system is maintained by the World Health Organization (WHO) and is used for statistical and epidemiological purposes, as well as for reimbursement and resource allocation in healthcare. The ICD classification system is recognized and used by healthcare providers, insurers, and governments across the globe. This allows for consistent coding practices and easier communication of medical information between different parties.
Additionally, the ICD system is updated regularly to reflect advances in medical knowledge and changes in healthcare practices. This ensures the classification system remains relevant and accurate and accommodates new medical conditions and treatments. Furthermore, the ICD is an open-source system, meaning it can be used without restriction by anyone who wishes to use it. This has led to widespread adoption and use of the system in healthcare settings in many countries and ensures that the global medical coding industry trends are positive.
Medical Coding Market by Component
The global medical coding market is segmented based on the components into outsourced and in-house.
Due to various factors, the medical coding outsourcing segment is expected to show significant growth in terms of revenue share during the forecast period. Medical coding outsourcing to third-party organizations can be considerably less expensive than employing and training in-house workers, particularly for small or mid-sized healthcare organizations. Outsourced companies can benefit from economies of scale and lower labor costs in other countries. Outsourcing provides highly trained and experienced staff that is specialized in medical coding. This allows them to provide accurate and efficient coding services, leading to fewer claim denials, increased revenue, and better patient outcomes. It can also provide coding services on-demand, which can help healthcare providers to scale up or down their coding needs as necessary. Third-party outsourcing companies are often highly familiar with the regulations and guidelines related to medical coding, which can help healthcare providers to ensure compliance with industry standards and avoid penalties or fines. They promptly invest in the latest technologies and software tools to improve efficiency and accuracy in coding. This can lead to faster turnaround times and fewer errors in coding. Based on these factors, the outsourced segment has the largest medical coding market revenue size.
Healthcare providers may control their operations by using in-house medical billing, coding, and revenue cycle management. Also, in-house developers are quickly accessible in the event of a mistake. However, the high expense of in-house coding due to the need for trained coders, software, and infrastructure is boosting the usage of outsourcing.
Medical Coding Market by End User
The global medical coding market is segmented based on the end users into hospitals, diagnostic centers, and others.
The hospital segment accounts for the prominent revenue share in the global market. The growth of the segment's revenue can be attributed to the large patient pool due to its high preference rate among the population. The high prevalence of chronic diseases and rising incidences of HAIs (hospital-associated infections) are also observed among people. Moreover, the increasing adoption of medical coding in well-developed economies such as the U.S., U.K., and France during patient administration for enhanced revenue management further contributes to the growth of this segment's revenue.
Medical Coding Market by Region
The global medical coding market can be further segmented based on the regions into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America dominates the global medical coding market. Due to technological advancements and sophisticated healthcare infrastructure in this region, the medical coding market in North America is expected to account for a major market revenue share. The rising need for medical coding services and the high demand for simplifying hospital billing operations due to the growing number of chronic diseases, with strategic initiatives implemented by market participants in the region, drive the region's market revenue growth. The rising burden of chronic illnesses in the region's various countries also contributes to market revenue expansion. Strategic initiatives adopted by market players are also pushing the global medical coding market revenue growth.
Asia Pacific is the fastest-growing regional market due to the rapidly emerging economies in this region. Additionally, the significantly growing adoption of electronic health record (EHR) systems for enhanced disease monitoring and diagnostic procedures is also boosting the medical coding market revenue growth in Japan, China, and India.
Competitive Landscape of the Global Medical Coding Market
The prominent players operating in the global medical coding market are:
Strategic Development in Medical Coding Market
Medical coding is obtaining healthcare information from a physician's documentation, such as medical procedures, diagnoses, essential medical equipment, and medical services. This data is transformed into universal medical alphanumeric codes by a medical coder.
The international classification of diseases (ICD) segment dominates the global medical coding market with the largest revenue share.
The expected revenue size of the global medical coding market in 2031 is US$ 73.54 billion at a CAGR of 7.8%
The need for more skilled expertise in medical coding and issues related to maintaining the confidentiality of patient privacy are key impediments to global market growth.
Some key players in the global medical coding market are 3M Company, Optum Inc., Oracle Corporation, and Nuance Communications Inc.
Insights on financial performance are subject to the availability of information in the public domain