Medical Billing Outsourcing Market is estimated to be valued at USD 21.60 Bn in 2026 and is expected to reach USD 77.4 Bn in 2033, exhibiting a compound annual growth rate (CAGR) of 20.0% from 2026 to 2033.
The global medical billing outsourcing market is experiencing strong growth due to the growing trend of outsourcing in healthcare and rapidly changing healthcare regulations worldwide. Furthermore, federal mandate to implement digital record keeping by healthcare providers and rise in healthcare digitalization is expected to boost the growth of the market. However, factors such as high threats of data breaching and high cost of outsourcing are expected to hamper the market growth.
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Description and its Impact |
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U.S. Healthcare Reform and Regulatory Changes |
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Artificial Intelligence and Automation Revolution in Healthcare |
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Outsourcing medical billing can save considerable amounts of money, usually cutting costs by 30–40% compared to doing it in-house. U.S. hospitals spend a lot on compliance, training, and administrative staff. In-house billing costs about $4–$6 per claim. Outsourcing brings this down to $2–3 per claim and also lowers costs like salaries, benefits, and IT infrastructure. Depending on the number of claims, studies show that outsourcing can save mid-sized hospitals between $200,000 and $500,000 a year. Outsourcing partners also tend to have reimbursement cycles that are 10–15% faster and denial rates that are up to 20% lower. This makes cash flow and the revenue cycle even more efficient. This means that outsourcing can be a useful tool for hospitals that have small profit margins and a lot of rules to follow.
In terms of component, the outsourced segment is expected to dominate the medical billing outsourcing market with 53.3% share in 2026, as healthcare providers increasingly rely on specialized vendors to reduce administrative burdens, ensure compliance, and improve revenue cycle efficiency. Rising complexity in coding, insurance regulations, and cost pressures make outsourcing more attractive than in-house systems, driving its majority market share globally.
For instance, in February 2025, Infinx Healthcare’s launch of AI-driven revenue cycle management platforms highlights the growing role of technology in medical billing outsourcing. By automating eligibility checks, claim status, denial management, and payment posting, these solutions reduce administrative burdens, improve compliance, and accelerate reimbursements, reinforcing outsourcing’s dominance in healthcare billing operations for 2025.
In terms of service, the back-end service segment is expected to dominate the market over the forecast period as they directly impact cash flow through claims submission, denial management, and collections. Hospitals and clinics prioritize outsourcing these functions to minimize revenue leakage and accelerate reimbursements. With growing patient volumes and payer complexities, back-end outsourcing remains the most critical service segment.
In terms of end user, the hospitals segment is expected to dominate the market during the forecast period due to their large patient base, complex billing structures, and stringent compliance requirements. Outsourcing helps them manage high-volume claims efficiently while reducing errors and administrative costs. Their reliance on professional billing partners ensures smoother revenue cycles, making hospitals the largest contributors to market growth.
For instance, in August 2025, 24/7 Medical Billing Services stated that they are experts in outsourced billing for hospital-based specialties like cardiology, oncology, radiology, and emergency care. The company helps hospitals speed up their revenue cycles, lower their administrative costs, and speed up reimbursements by handling complicated claims and compliance requirements. This shows how important outsourcing is in healthcare billing operations.
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North America is expected to gain 47.5% share in the market during the forecast period owing to the growing digitalization in healthcare, increasing need to make billing processes efficient, need to decrease in-house processing costs, and growing emphasis on compliance and risk management in the region.
For instance, in September 2024, Plutus Health, based in Dallas, Texas, is changing the way U.S. companies outsource medical billing with AI-powered revenue cycle management. Becker's 2024 featured its solutions, which make claims, denials, and collections easier. Plutus lowers administrative costs, improves compliance, and speeds up reimbursements across North America's healthcare market by combining outsourcing expertise with cutting-edge automation.
Asia Pacific is anticipated to be the fastest growing region, due to expanding healthcare infrastructure, rising patient volumes, and cost-efficient skilled workforces in countries like India and the Philippines. Rapid adoption of digital health technologies and growing compliance needs drive providers to outsource billing, making the region the fastest-growing market.
For instance, in December 2025, iMark Infotech, based in Mohali, India, makes its medical billing outsourcing services for U.S. healthcare providers even better. The company works to reduce costs and make things run more smoothly by handling claims, collections, coding, and compliance. This India–U.S. outsourcing model helps hospitals and clinics focus on patient care while making their revenue cycle management more efficient.
In 2026, the U.S. medical billing outsourcing market is expected to be competitive driven by more paperwork, complicated payer rules, a lack of staff, and more patients. Healthcare providers hire outside companies to handle billing in order to cut costs, improve compliance, speed up claims processing, and protect their profit margins. This has led to strong growth in revenue cycle management services.
For instance, in March 2025, Coronis Health, based in Annapolis, Maryland, uses UiPath's automation platform to improve U.S. medical billing outsourcing. It speeds up claims processing, lowers the number of claims that are denied, and speeds up payments by combining AI and robotic process automation. This new idea makes outsourced revenue cycle management stronger, which makes it easier for administrators and makes the complicated healthcare billing system in the United States work better.
In 2026, India's medical billing outsourcing market is expected to be in high demand considering its skilled workers, low costs, and advanced digital infrastructure. Indian companies handle claims processing, coding, and compliance for healthcare providers in the U.S. and around the world. India is becoming an even better place to outsource due to a growing amount of healthcare companies are using digital technology and AI.
For instance, in April 2025, I-conic Solutions, which is based in India, is becoming more important in the outsourcing of medical billing for U.S. healthcare providers. The company helps cut costs and boost productivity by handling claims, coding, collections, and compliance. This India–U.S. outsourcing model helps hospitals and clinics manage their revenue cycles more efficiently while still focusing on patient care.
| Report Coverage | Details | ||
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| Base Year: | 2025 | Market Size in 2026: | USD 21.60 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2026 to 2033 CAGR: | 20.0% | 2033 Value Projection: | USD 77.4 Bn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
GE Healthcare, R1 RCM, Inc. (Accretive Health), Allscripts Healthcare Solutions, Inc., Kareo, Inc., Cerner Corporation, Quest Diagnostics, and Experian Information Solutions, Inc., among others. |
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| Growth Drivers: |
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| Restraints & Challenges: |
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Another factor which is driving the growth of the global medical billing outsourcing market is the increasing outsourcing in healthcare. For instance, around 65% of medical billing companies have a positive outlook on the outsourced billing industry, according to a report by Tebra. Tebra's State of the U.S. Medical Billing Industry Report surveyed 277 medical billing companies to examine the outsourced billing landscape. Almost half of companies (43%) see outsourcing as a significant opportunity, while 42% see significant opportunities to expand services. This in turn is expected to augment the growth of the market during the forecast period.
One of the key factors expected to augment the growth of the global medical billing outsourcing market during the forecast period is the rapidly changing healthcare regulations across the world. Many healthcare providers across the world are undertaking initiatives to facilitate smoother health data exchange and improve efficiency of healthcare systems. For instance, an initiative undertaken by healthcare suppliers in the United States to utilize paperless healthcare systems and incorporate HIT systems is expected to increase demand for medical billing outsourcing services in the U.S., driving the growth of market in the region.
Federal mandate to implement digital record keeping by healthcare providers is expected to offer significant growth opportunities for players in the global medical billing outsourcing market. For instance, implementation of digital record keeping helps increase staff efficiency, reduce coding errors, and improve reimbursement rates. Integration of EHR and medical billing services enables seamless transfer of billing data from documentation system to billing company, eliminating the tedious task of entering patient data in two systems. Many governments around the world have set aside billions for an incentive program that encourages hospitals and providers to adopt electronic health record systems (EHR) to reduce the administrative burden on medical billing.
Rise in healthcare digitalization is also expected to offer lucrative growth opportunities for players in the global medical billing outsourcing market. For instance, technology is a key differentiator in today's healthcare systems, including localized healthcare systems that existed earlier.
Medical billing outsourcing refers to a process of outsourcing billing by a company or healthcare institution. It assists in reducing billing errors while ensuring accuracy with the timely submission of work. It helps accelerate cash flow, improve patient satisfaction, and save money, and provide quality care by managing hospital staff and hospital operations effectively. Furthermore, medical billing outsourcing is widely used in hospitals and clinics as it helps in faster insurance payments and increases transparency. This trend is expected to continue over the forecast period.
Rapid growth of healthcare infrastructure and increase in hospital admissions is increasing or has increased the demand for software (technologically advanced) solutions, along with government initiatives towards digital health. Moreover, emergence of novel technologies and their adoption is helping several healthcare facilities worldwide to improve their healthcare infrastructure. The rising healthcare cost is the prime factor responsible for the growth of this sector. This trend is also expected to continue over the forecast period, diving the market growth.
*Definition: Medical billing outsourcing refers to a process of outsourcing billing by a company or any healthcare institution. It enhances the health of the patients by providing quality care and managing hospital staff and other operations effectively.
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About Author
Komal Dighe is a Management Consultant with over 8 years of experience in market research and consulting. She excels in managing and delivering high-quality insights and solutions in Health-tech Consulting reports. Her expertise encompasses conducting both primary and secondary research, effectively addressing client requirements, and excelling in market estimation and forecast. Her comprehensive approach ensures that clients receive thorough and accurate analyses, enabling them to make informed decisions and capitalize on market opportunities.
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