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Global Medical Coding Market Size, Share, Trends, COVID-19 Impact & Growth Analysis Report - Segmented By Component, Classification System, End-user & Region (North America, Europe, APAC, Latin America, Middle East and Africa) – Industry Forecast (2023 to 2028)

Published: March, 2023
ID: 13093
Pages: 190
Formats: report pdf report excel report power bi report ppt

Global Medical Coding Market Size (2023 to 2028)

The global market size for medical coding is predicted to be worth USD 34.65 billion by 2028 from USD 19.64 billion in 2023, growing at a CAGR of 12.02% from 2023 to 2028.

Medical coding converts medical reports into a short code for use within the healthcare industry. The main aim is to translate diagnoses and procedures and supply information from patient records into universal medical codes billers use to submit claims. This helps to summarize the reports into efficient, data-friendly codes. It evaluates the spread of diseases among individuals. It provides information on national healthcare trends, allowing federal and state governments to plan for the resources required to fight against health issues. Medical coding professionals are responsible for ensuring whether the codes are applied correctly or not. The process involves extracting the information from documentation, assigning the appropriate codes, and creating a claim to be paid by insurance companies.

Impact of COVID-19 impact on the medical coding market:

The outbreak of the COVID-19 pandemic has resulted in affecting all industries in the world. However, the medical coding market demand rose during the pandemic. Centers for Medicare and Medicaid Services (CMS) helps a physician handle the medical billing and coding aspect of COVID-10 testing and treatment. Advanced new codes were created during the COVID-19 pandemic for COVID-19 and telemedicine. For the confirmed diagnosis of COVID-19 ​and clinical or epidemiological diagnosis of COVID-19, emergency codes were activated for COVID-19. In April 2020, based on the international guidelines for certification and classification, seven languages were published by the WHO. In addition, the World Health Organization (WHO) introduced new ICD 10 codes used between April and September 2020. As a result, the introduction and modification of codes positively impact market growth.

MARKET DRIVERS:

Increasing utilization of CACS, rising incidence of insurance frauds, and rising adoption of AI are primarily fuelling the growth of the medical coding market.

Increasing Utilization of Computer-Aided Coding Systems (CACS) is a primary factor driving the market growth. In addition, growing technological advancements and rising adoption of technologies, such as natural language processing (NLP), artificial intelligence (AI), and the internet of medical things (IoMT), in the healthcare vertical are raising the demand for CACS.

The increasing incidence of insurance fraud in the healthcare industry is anticipated to boost the medical coding market during the forecast period. A report by the National Health Care Anti-Fraud Association (NHCAA) is resulting in the intrusion of excessive financial losses, which amount to billions of dollars annually, as estimated by the National Health Care Anti-Fraud Association (NHCAA). In 2018, around USD 3.8 trillion was spent on public health activities, healthcare services, the cost of health insurance, and investments related to healthcare in the U.S., which represented a large number of health insurance claims, out of which some claims were fraudulent.

Growing demand for advanced healthcare billing systems, increasing aging population, increasing prevalence of chronic diseases, rising number of hospital and diagnostic centers visits, rising need for a universal language to reduce fraud, and the growing demand for instant, accurate and effective medical billing, increasing adoption of telehealth services for outpatient care are further anticipated to offer lucrative opportunities for the medical coding market. Nowadays, the impact of social media is more on healthcare. As per Binary Foundation, 52% of Americans were looking for service suppliers on social media in 2019. It is used for gathering feedback, managing appointments, health promotion campaigns, product recall awareness, patient education, and recruitment. Revenue cycle management increasing utilization of medical coding. The aforementioned factors will favor the medical coding market growth during the forecast period.

MARKET RESTRAINTS:

On the other hand, learning new codes in different languages and lacking skilled professionals are significant restraints to the growth of the medical coding market. In addition, missing or insufficient documentation is one of the considerable challenges to the medical coding market.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2022 to 2028

Base Year

2022

Forecast Period

2023 to 2028

Segments Covered

By Component, Classification System, End-user & Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

This market research report on the global medical coding market has been segmented and sub-segmented based on component, classification system, end-user, and region.

Medical Coding Market - By Component:

  • In-house
  • Outsourced

Based on the component, the outsourced segment led the medical coding market in 2022. This is due to increasing outsourcing in medical coding requirements. Outsourcing helps in the reduction of time and reduction of cost.

Medical Coding Market - By Classification System:

  • International Classification of Diseases (ICD)
  • Healthcare Common Procedure Code System (HCPCS)

Based on the classification system, the International Classification of Diseases (ICDs) segment accounted for a significant share of the medical coding market in 2021. ICD helps gather information into standard groupings of diseases, allowing easy storage, retrieval, and analysis of health information for decision-making and sharing health information among healthcare institutions and countries. In addition, ICD provides a method of diagnostic codes for identifying diseases, and the rising incidence of CVDs boosts the market growth. Advanced improvements of the ICD-10 version are the ICD-11 version. The ICD-11 version has 55,000 unique codes for injuries. However, this version has been ineffective in use in recent years.

Medical Coding Market – By End-User:

  • Hospitals
  • Diagnostic Centers

Based on the end-user, the hospital segment will lead the medical coding market during the forecast period. Hospitals are the first options for patients for medical procedures. Therefore, most hospitals in developing countries use medical coding when patients visit as part of their revenue management process. This is further expected to support the high growth of the market in this segment during the forecast period.

Medical Coding Market – By Region:

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

Geographically, the North American medical coding market dominates the global market over the forecast period. This is due to technological advancements, the increasing geriatric population and a growing number of chronic diseases, and improved healthcare infrastructure in various countries in this region. The U.S. dominates the market for medical coding globally. Advanced healthcare solutions in hospital operations and the availability of many medical coding solution providers are factors expected to aid in maintaining the dominance of the region. The U.S. medical coding market growth is attributed to the development of new technologies, such as Artificial Intelligence (AI)-assisted medical coding. For instance, in September 2019, Fathom, a U.S.-based startup, used Artificial Intelligence (AI) to automate medical coding and increase the speed and accuracy of coding. The increasing use of digital technologies such as electronic health records, revenue cycle management software, health applications, and telehealth in the U.S. drives the market forward. As per the Centers for Disease Control and Prevention., 86.5% of physicians’ offices are using electronic health records in the U.S.

The Asia-Pacific medical coding market is expected to grow substantially in the coming years. Factors such as accelerating adoption of medical management systems, technological advancements across the regional healthcare sector, increasing preventive health programs, modernization & privatization of healthcare technology, augmenting investment in healthcare IT infrastructure, and digitization of supportive government policies are also projected to drive the regional market's growth.

Advancements in the healthcare industry and increased demand for better healthcare opportunities will lead the medical coding market in Europe. In addition, there has been a rise in inpatient visits to hospitals in Europe which has given the need to incur medical coding systems in their medical billing system.

TOP COMPANIES IN THIS MARKET:

Aviacode Inc., Oracle Corporation, Nuance Communications Inc., athenahealth, Medical Record Associates LLC, Maxim Healthcare Services Inc., 3M Company, and Parexel International Corporation are some of the key players in the global medical coding market and are profiled in this report.

RECENT MARKET DEVELOPMENTS:

  • In 2021, athenahealth announced the general availability of its new athenaOne Medical Coding solution.
  • In 2021, Innoventrum, developers of QPro products and services, in collaboration with Dental Medical Billing, announced the launch of its premier credentialing program for dental-to-medical cross-coding and billing.

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FAQ's

How much is the global medical coding market going to be worth by 2027?

As per our research report, the global medical coding market size is predicted to value USD 30.94 billion by 2027.

At What CAGR, the global medical coding market is expected to grow from 2022 to 2027?

From 2022 to 2027, the global market for medical coding is projected to be growing at a CAGR of 12.02%.

Which region held the major share in the global medical coding market in 2021?

Geographically, the North American region led the medical coding market in 2021.

Which are the top industry players in the global medical coding market?

Companies playing a major role in the global medical coding market are Aviacode, Inc., Parexel International Corporation, Maxim Health Information Services, Precyse Solutions, LLC., Medical Record Associates LLC., Dolbey, MRA Health Information Services, Oracle Corporation, Precyse Solutions LLC., Verisk Analytics, Inc., Thrive Inc., Nuance Communications, Inc., Optum Inc., and Medical Record Associates LLC.

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