Hospital outsourcing market to reach $824.5Bn by 2032: SNS Insider
PUNE, INDIA — The hospital outsourcing market is expected to grow at a rapid rate in the coming years, estimated to increase from $347.8 billion in 2023 to $824.5 billion by 2032 at a compound annual growth rate (CAGR) of 10.1%.
According to market research firm SNS Insider, this trend is attributable to the increasing costs and challenges in the management of healthcare organizations that have led to the utilization of external service providers for less critical functions.
Hospital outsourcing market dynamics
Currently, many healthcare organizations are referring to external vendors for both clinical and administrative support activities.
This strategic decision helps the hospitals to concentrate on the delivery of patient care and also to gain advantages such as reducing the overall costs, improving the efficiency of the operations and gaining access to technologies and skills that would be otherwise impossible to acquire.
Some of the factors that are driving this market growth include:
- Increasing complexity of healthcare services
- The need to cut down on operational costs
- The need to meet stiff regulatory compliance requirements
This has been mainly due to the increasing healthcare costs in the United States, where outsourcing is used as a key means of controlling costs.
At the same time, European countries are encouraging the partnership between the public and private sectors to improve the quality of services delivered and to reduce the burden on the public health systems.
Key players and segments
Outsourcing services are provided by healthcare and technology companies across the globe. Well-known companies include Baxter International Inc., Stryker Corporation, and Siemens Healthineers Inc., among others.
Market segmentation:
- Clinical services were the most lucrative segment in 2023, capturing 22% market share
- The trend was mainly endorsed by private hospitals who constituted 71% of the market
- Revenue cycle management was also found to be a popular domain for outsourcing
Regional outlook
Ambulatory healthcare services outsourcing is most advanced in North America, which was the leading region in 2023. It accounts for 68% of the market share because of strong healthcare systems and high healthcare spending.
The Asia-Pacific region is expected to post the highest CAGR during the forecast period due to rising healthcare expenditures in countries such as China, India, and Japan.
Outsourcing is, therefore, expected to remain a key factor in solving the challenges facing the healthcare sector. It will keep on growing in the future as organizations aim to reduce costs, improve efficiency and enhance the quality of services they deliver.
