Hospital Outsourcing Market

Hospital Outsourcing Market Size (2023 to 2028)

As per our report, the global hospital outsourcing market size is predicted to be growing at a CAGR of 12.42% from 2023 to 2028.

Hospital outsourcing is when a contractor takes over the management of a hospital's business or services. Hospitals are now under a lot of pressure from rivals and are dealing with many problems in providing high-quality healthcare services while staying within budget. These include clinical services like laboratory and investigation, treatment procedures, therapeutic interventions, and support services such as pharmacy, medical tourism, and home-based care. Non-clinical services include data innovation for charging and installment frameworks, keeping up electronic health records, and performing distributed computing and medical clinic administration, including equipment planning, acquisition, maintenance, problem control, sanitization, and cleaning administrations, and patient vehicle administrations and security.

MARKET DRIVERS:

Increasing hospital admissions are expected to accelerate the global hospital outsourcing market growth during the forecast period.

The hospital outsourcing industry is driven by rising hospital admissions and a growing emphasis on quality treatment. Hospital admissions are on the rise as disease incidence rises. In the United States, approximately 36.3 million people were admitted to hospitals in 2018. In addition, the Centers for Disease Control and Prevention estimates that about 136 million individuals in the United States visit emergency departments each year. Almost 1.5 million individuals were hospitalized in NHS hospitals in England between July and September of this year. In England, nearly 6 million people visited accident and emergency departments (A&E) each quarter of the year in 2018/19. With the rising number of hospital admissions, it is more important than ever to provide high-quality treatment. Patient happiness is one of the top three objectives for more than half of healthcare executives, according to the HealthLeaders Media Industry Survey). Also, due to value-based payments, evolving patient-centered care models, and competition from other hospitals, greater patient satisfaction is also required. Outsourcing allows hospitals to concentrate on their core operations and services, such as clinical diagnosis, medical treatment, and nursing assistance. This allows them to acquire a competitive advantage and provide more appealing patient care. As a result, hospitals have begun to demand outsourcing solutions.

Rising demand for IT services outsourcing by hospitals is expected to fuel the growth rate of the global hospital outsourcing market.

The hospital outsourcing industry is being propelled forward by the rising demand for IT services outsourcing by hospitals. As old systems are replaced with new ones, hospitals are searching for a wide range of complicated technology services from outside sources, including complete IT department management and outsourcing of discrete activities like network infrastructure, service desk, application support, and legacy maintenance Small (rural or urban) hospitals are having a hard time attracting and maintaining the IT expertise they need to build a long-term, high-quality IT organization. Specialty outsourcing businesses can use their staff to handle these challenges in a long-term, cost-effective manner. As a result, three-quarters of health systems with more than 300 beds outsource different IT services, while 81 % of those with fewer beds do so. There are also additional services available, such as medical billing, imaging, and accounting. Approximately 60% of magnetic imaging services, approximately 26% of accounting services, and nearly 48% of other imaging services were shown to be outsourced. The need for hospital IT outsourcing is growing as eHealth solutions become more advanced.

MARKET RESTRAINTS:

Data breaches are one of the significant concerns for the global hospital outsourcing market’s growth rate.  The number of persons who have access to private and confidential patient information increases while outsourcing. This can result in unintentional or intentional exposure of patient information. In addition, there is a considerable risk of data breaches, especially in IT outsourcing. As a result, hospitals prefer to avoid outsourcing.

Impact of COVID-19 on the global hospital outsourcing market:

The continuing COVID-19 is driving up healthcare outsourcing demand. The coronavirus outbreak startled the medical community. There was already a lack of medical supplies, but the hospitals were overburdened with the covid – 19 hospital admissions. Covid-19 only underlines the need for backup plans for firms to continue operating. Experts in outsourcing have emerged as one response to the present corporate environment. The hospital's capacity will be stretched as the number of admissions rises. Some hospitals have it, while others prefer to outsource medical services such as X-rays, EHR, and even hospital personnel. While the government and payers have enacted measures to alleviate COVID-19's sales cycle concerns, physician practices, healthcare networks, and medical facilities continue to experience financial difficulties resulting from COVID-19's implementation. As a result, the outsourcing of account services has increased. Using a reputable medical billing outsourcing to handle COVID-19 claims is also a significant relief for hospitals. These agents can focus on collecting personal security devices, providing telemedicine, and chasing cash services. Outsourcing medical billing during COVID-19 offered financial support and freed up resources. However, because hospitals outsource, they must pay a monthly portion of net collections throughout the epidemic. Furthermore, hospitals benefit from outsourcing COVID-19 testing to other laboratory partners. In addition, the trend of digital patient services such as telehealth and virtual patient control and the convergence of all patient touchpoints, including preparation, payment, and telehealth, to reduce no-shows and improve satisfaction have increased in covid – 19, necessitating hospital outsourcing. Outsourcing can aid in integrating organizational systems and the streamlined process of hospital accreditation. As a result, the pandemic boosts the healthcare outsourcing market's development.

REPORT COVERAGE:

This research report on the global hospital outsourcing market has been segmented and sub-segmented into the following categories.

Hospital Outsourcing Market – By Service:

• Healthcare IT
• Clinical services
• Business services
• Transportation services
• Others

Hospital Outsourcing Market – By Type:

• Public
• Private

Hospital Outsourcing Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa

KEY MARKET PLAYERS:

A few of the notable companies operating in the global hospital outsourcing market are Allscripts Healthcare Solutions, Inc., The Allure Group Inc., Alere Inc., Cerner Corporation, Integrated Medical Transport, Aramark Corporation, Flatworld Solutions, ABM Industries Inc., Sodexo, and LogistiCare Solutions, LLC.

These players adopted mergers and acquisitions, services expansion, and cost-effective solutions as strategies to enhance share in the industry.

RECENT MARKET HAPPENINGS:

• On 16 March 2021, Omega Healthcare, a major supplier of outsourced revenue cycle management and other healthcare support services, has acquired himagine Solutions, a medical coding and registry services company situated in St. Louis, Missouri. Omega Healthcare will be able to extend both its worldwide delivery strategy and its clinical services portfolio due to this purchase.
• 17 July 2018, Southwest Mississippi Regional Medical Center has signed a long-term contract for IT department management and software and infrastructure maintenance with Phoenix Health Systems, the leading independent hospital IT outsourcing and consulting services supplier.