Healthcare BPO market to reach $6.45Bn by 2029

PUNE, INDIA — The global healthcare business process outsourcing (BPO) market is projected to reach $6.45 billion by 2029, driven by the rapid expansion of revenue cycle management (RCM) services, which involve processes like patient enrollment, medical billing and coding, and claims processing.

According to a report by Maximize Market Research (MMR), the key factors spurring demand for outsourced RCM services include decreasing reimbursements in healthcare, the need for cost reduction, and government initiatives to implement RCM solutions.

The report added that healthcare organizations are seeking to optimize possible revenue losses and speed up payment cycles to improve cash flows. This is increasing reliance on specialized third-party vendors who can efficiently handle the entire revenue cycle at reduced costs.

Other growth drivers that MMR cited include technological advancements like artificial intelligence (AI), automation, and the rising prevalence of chronic diseases. 

However, stringent regulations and hidden costs of outsourcing may still restrain the market’s growth in the next five years.

Geographically, North America and Europe will likely remain the largest regional markets heading into 2029. 

At the same time, Asia Pacific is expected to register the fastest CAGR of 12.5% as it offers lucrative expansion opportunities for global BPO providers.