Medical Coding Market size is expected to reach USD 50 Billion by the end of 2036, growing at a CAGR of 10% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of medical coding was USD 22 Billion. The reason behind the growth is due to the growing healthcare spending across the globe. Healthcare spending is steadily growing faster than GDP as a result of general inflation, rising prices for prescription drugs, higher wages for healthcare providers, an aging population, lifestyle, and several other factors.
According to estimates, global health spending is estimated to increase by more than 35% between 2018 and 2022, reaching around USD 10 trillion.
The growing technological advancements are believed to fuel the market growth. AI-based medical coding systems enable real-time medical coding that leverages machine learning to automate the medical coding process, which aids in improving medical billing and coding accuracy, reduces the risk of medical coding errors, and can assist human programmers with real-time medical coding by providing recommendations that can significantly improve accuracy, and productivity.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~10% |
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Base Year Market Size (2023) |
~ USD 22 Billion |
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Forecast Year Market Size (2036) |
~ USD 50 Billion |
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Regional Scope |
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Component (Outsourced, In-House)
The outsourced segment is predicted to account for 60% share of the global medical coding market during the forecast period owing to the benefits provided by outsourcing. Accurate medical coding is important to all healthcare providers therefore outsourcing medical coding has gained immense importance and is quite common among healthcare providers since it allows facilities to better manage their coding needs., and provides instant relief from uncertainty regarding the original claimant's retirement, and can suggestively improve the accuracy of the coding decisions.
Outsourcing medical coding has proven to be more cost-effective since it reduces the need for office supplies, paper consumption, and the cost associated with infrastructure development. Moreover, it allows healthcare providers to make better use of their time, providing superior patient care and increasing overall satisfaction.
Medical billing allows us to earn more revenue with far less effort, eliminate overhead administrative tasks, increase cash flow, while reducing costs and billing errors, improve compliance, and also allow staff to connect with patients without the stress of discussing bills.
In addition, hospital medical billing is the process of overseeing billing and coding policies within a medical facility or clinic, which necessitates office space, technical support, and a dedicated team, that can further increase an employee's already stressful initial workload.
Classification Type (International Classification of Diseases (ICD), Healthcare Common Procedure Code System (HCPCS), Current Procedural Terminology)
The international classification of diseases (ICD) segment in medical coding market is set to garner a notable share shortly. The International Classification of Diseases (ICD) was developed by the World Health Organization (WHO) as a globally recognized diagnostic tool, which is intended to facilitate international comparisons and convert diagnoses of diseases and other health problems from text to alphanumeric codes. The ICD classification is one of the oldest and most important classifications in medicine, which involves several components that provide detailed information about a specific health condition or procedure that is widely used by clinical coders around the world for clinical coding in administrative health databases.
In addition, the Healthcare Common Procedure Coding System (HCPCS) is a standardized coding system required for healthcare providers, which is used to facilitate the processing of health insurance claims by Medicare Medicaid, and several other insurance companies. HCPCS Healthcare Common Procedure Coding System "HCPCS" is a code set developed by the Centers for Medicare and Medicaid Services (CMS), established in 1978, which is usually used as a billing standard for representing medical procedures, and makes medical bills clearer for patients.
Our in-depth analysis of the global market includes the following segments:
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Component |
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Classification Type |
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End-User |
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North American Market Forecast
Medical Coding market in North America is predicted to account for the largest share of 40% by 2036 impelled by the growing medical industry. The medical field is one of the fastest-growing industries in the United States, as people spend more on healthcare in the region than in any other country in the world. This has led to an increase in the amount of data, leading to higher demand for medical coding. For instance, U.S. health spending increased by more than 4% in 2022.
European Market Statistics
The European medical Coding market is estimated to be the second largest, during the forecast timeframe led by growing health awareness. Europe's health and fitness industry has experienced marvelous growth, owing to the increasing awareness of the importance of health and well-being, and the implementation of E-Health to advance healthcare delivery and accessibility. In addition, European countries are using electronic health records (EHRs) to improve healthcare as funding and allow citizens to quickly access and share their health data with medical professionals. This is expected to drive the demand for medical coding in the region.
Author Credits: Abhishek Verma, Hetal Singh
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