Medical Coding Market Size & Share, by Component (Outsourced, In-House); Classification Type (International Classification of Diseases (ICD), Healthcare Common Procedure Code System (HCPCS), Current Procedural Terminology); End-User (Hospitals, Diagnostic Centers)-Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5899
  • Published Date: Mar 19, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

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.


Medical Coding Market overview
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Medical Coding Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Adoption of Electronic Health Record (EHR) Systems in Healthcare– EHR Systems is an electronic version of a patient's medical record, which is designed to automate many tasks and make it easier for medical billers and medical coders to work efficiently and store patient information, medical images, and test results.
  • Growing Digital Transformation- Digitalization of billing systems has increased the need for medical coding around the world as digitized bills are accurate and can be customized with patient medical information, including location, medical history, diagnosis, and other relevant information.
  • Surging Need for Universal Language in Healthcare- Medical codes are the universal language of communication between payers and healthcare providers, that allow healthcare professionals, organizations, and systems around the world to communicate effectively and efficiently.

Challenges

  • Data security and privacy concerns - Medical records have become a valuable asset for hackers since security issues with electronic health records can pose problems for data security, patient safety, and regulatory compliance, which is a major concern for both telemedicine professionals and patients.
  • Lack of standardization owing to varying healthcare systems and regulations across several regions
  • Lack of skilled professionals may hamper the medical coding market growth

Medical Coding Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~10%

Base Year Market Size (2023)

~ USD 22 Billion

Forecast Year Market Size (2036)

~ USD 50 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Medical Coding Segmentation

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:

          Component

  • Outsourced
  • In-House

          Classification Type

  • International Classification of Diseases (ICD)
  • Healthcare Common Procedure Code System (HCPCS)
  • Current Procedural Terminology

          End-User

  • Hospitals
  • Diagnostic Centers

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Medical Coding Industry- Regional Synopsis

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.

Research Nester
Medical Coding Market size
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Companies Dominating the Medical Coding Landscape

top-features-companies
    • 3M
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Aviacode Inc.
    • Maxim Healthcare Services
    • MRA Health Information Services
    • Oracle
    • Verisk Analytics, Inc.
    • Nuance Communications, Inc.
    • Optum Inc.
    • Outsource Strategies International
    • VertMarkets, Inc.
    • S&P Global
    • AltuMED
    • Coding Network
    • PAREXEL International Corporation
    • Startek
    • GeBBS Healthcare Solutions

In-the-news

In The News

  • GeBBS Healthcare Solutions announced the acquisition of Aviacode Medical Coding & Coding Audit Services to position itself as a leader in the RCM/HIM space, and to meet the market demand.
  • Oracle announced to launch of generative AI tools integrated with HER to automate note-taking during visits with patients and allow physicians to send information to patients through chat in the patient portal, such as reminding patients to bring test results.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5899
  • Published Date: Mar 19, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The growing healthcare spending across the globe and the growing technological advancements are the major factors driving the growth of the market.

The market size of Medical Coding is anticipated to attain a CAGR of 10% over the forecast period, i.e., 2024-2036.

The major players in the market are Aviacode Inc., Maxim Healthcare Services, MRA Health Information Services, Oracle, Verisk Analytics, Inc., Nuance Communications, Inc., Optum Inc., Outsource Strategies International, VertMarkets, Inc., S&P Global, AltuMED, Coding Network, and others.

The Outsourced segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Medical Coding Market Report Scope
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