PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930129
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930129
The global healthcare BPO (Business Process Outsourcing) market is witnessing rapid expansion, driven by rising operational complexities, regulatory pressures, and digital transformation initiatives. According to Fortune Business Insights, the market was valued at USD 396.80 billion in 2025 and is projected to grow to USD 423.1 billion in 2026, ultimately reaching USD 756.55 billion by 2034, reflecting a CAGR of 7.5% during the forecast period. In 2025, North America dominated the market with a 49.6% share, underscoring the region's advanced healthcare infrastructure, stringent regulatory environment, and high adoption of outsourcing services.
The growth of healthcare BPO is primarily fueled by the need to manage administrative and operational complexities such as billing, coding, claims management, and compliance with regulations like HIPAA and GDPR. Outsourcing enables healthcare providers, payers, and life sciences companies to focus on patient care while delegating repetitive back-office tasks. Additionally, the digitalization of healthcare, including EHR/EMR adoption, telehealth expansion, and AI integration, has further accelerated demand for specialized BPO services. Life sciences companies increasingly rely on outsourcing for pharmacovigilance, clinical data management, and regulatory submissions to comply with stringent FDA and EMA requirements.
Market Dynamics
Drivers
The rising administrative burden due to evolving coding standards, stricter reimbursement policies, and regulatory compliance is a major growth driver. In 2025, the American Hospital Association reported that claim denials averaged 20.2% for commercial claims and 55.7% for Medicare Advantage claims between 2022-2023, increasing the need for outsourcing solutions. BPO services provide cost-effective, efficient handling of functions such as billing, coding, claims adjudication, and payment integrity, allowing healthcare organizations to focus on clinical care.
Restraints
Data privacy and security concerns pose a significant challenge to market adoption. Handling protected health information (PHI) and sensitive patient data makes BPO providers vulnerable to cyberattacks. Breaches can lead to financial loss, regulatory penalties, reputational damage, and loss of trust. For instance, in August 2025, the HHS Office for Civil Rights reported 58 healthcare breaches affecting over 3.7 million individuals, highlighting the need for robust security measures.
Opportunities
The integration of artificial intelligence (AI) into revenue cycle management, medical coding, and workflow automation presents substantial growth opportunities. AI-powered platforms reduce errors, shorten turnaround times, and enhance operational efficiency. In April 2025, RamSoft Inc. partnered with Maverick Medical AI to integrate the CodePilot platform into radiology practice systems, optimizing billing and revenue cycle processes.
Challenges
High transition and integration costs present obstacles to market growth. Migrating critical processes like RCM and medical coding to BPO vendors involves significant technology upgrades, workflow redesigns, and staff retraining. Mid-sized hospitals and insurers with limited budgets may face delays in adopting outsourcing services due to these operational and financial challenges.
Market Trends
A prominent trend is the shift toward value-based and outcome-driven outsourcing models, where vendors are evaluated on KPIs such as reduction in claim denials, improved coding accuracy, and enhanced patient/member satisfaction. In February 2024, Allina Health transitioned 2,000 IT and RCM employees to Optum, leveraging advanced technologies to streamline billing and revenue operations.
By Product
The market is classified into healthcare providers and healthcare payers. The healthcare providers segment led with 59.99% share in 2026, adopting BPO services for patient access, care management, and revenue cycle operations. For example, Benefis Health System partnered with Ensemble Health Partners in September 2025 for end-to-end revenue cycle management. The healthcare payers segment is expected to grow at a CAGR of 6.69%.
By Application
Applications include claims management, medical coding, billing & enrollment, fraud & risk management, risk & compliance, audit services, and payment integrity. The claims management segment held the largest share at 19.87% in 2026, driven by rising claim volumes and complex reimbursement rules. The risk & compliance segment is projected to grow at a CAGR of 8.1%.
Competitive Landscape
The healthcare BPO market is fragmented, with NTT DATA, Inc., MDI NetworX LLC., and Invensis Technologies Pvt Ltd. leading due to technology integration, AI adoption, and diverse service offerings. Other key players include Accenture, Optum, Knack RCM, Genpact, Cognizant, and TCS, focusing on R&D, strategic partnerships, and geographic expansion.
Key developments include:
Conclusion
The global healthcare BPO market is projected to grow from USD 396.8 billion in 2025 to USD 756.55 billion by 2034, driven by rising administrative complexity, digitalization, AI integration, and demand for cost-efficient outsourcing. Despite challenges such as data security concerns and high integration costs, the shift toward value-based, outcome-driven outsourcing models, coupled with advanced technologies, is expected to transform operational efficiency, improve care delivery, and sustain market growth worldwide.
Segmentation By Product, Application, and Region
By Product * Healthcare Payers
By Application * Medical Coding & Documentation
By Geography * North America (By Product, Application , and Country)