New York, Oct. 03, 2023 (GLOBE NEWSWIRE) -- According to a recent report by Market.us, the U.S. Medical Coding Market size is expected to be worth around USD 44.0 Billion by 2032 from USD 18.6 Billion in 2022, growing at a CAGR of 9.4 % during the forecast period from 2023 to 2032.
Medical errors and frauds can lead to financial losses and ineffective revenue cycle management. This has led to a growing demand for revenue cycle management software and services, including medical coding software. The market is supported by digital technologies like Electronic Health Records (EHR), mHealth applications, and telehealth. In 2021, more than 88% of physicians in the U.S. used EHRs in their offices. The latest version of the ICD 11 code, launched in January 2022, is more flexible and scalable, supporting electronic health records (EHRs). With around 55,000 codes, it classifies disorders, diseases, injuries, and deaths.
The introduction and revision of codes have positively impacted the market growth of medical records and health information employees. The Bureau of Labor Statistics predicts a 7% increase in employment for medical records from 2021 to 2031, making it the fastest-growing occupation among all occupations. Medical coding is a popular occupation in the U.S.
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Key Takeaway
- By Classification System, the ICD segment dominated the market with largest revenue share of 65% in 2022.
- By Component, the outsourced segment accounted for the largest revenue share of 70%.
- By Medical Specialty, the other services segment accounted for the highest revenue share of 49%.
Factors Affecting The Growth of U.S Medical Coding Market
- Technological Advancements: Emerging technologies like AI and machine learning have made coding more accurate and efficient. Automation tools reduce manual errors, thereby increasing the demand for advanced medical coding solutions.
- Increased Focus on Healthcare Analytics: With the rising prominence of big data and healthcare analytics, there’s a growing need for high-quality data. Accurate medical coding is essential for this, thereby driving growth in this market.
- Rise in Insurance Coverage: Increased insurance coverage means more people have access to healthcare services, which translates to more billing and medical coding requirements.
Trends
The demand for simplified coding and billing solutions for hospitals is increasing due to the need for a universal language to reduce fraud and insurance claims. Medical coding is being used for uniform documentation, and technological advancements are fueling market growth. The increasing demand for ICD and the need for accurate patient records and faster payments are also driving growth opportunities. Major market players are investing in R&D to offer next-generation solutions, which is expected to boost sales and profitability.
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| Report Attributes | Details |
| Market Value (2022) | USD 18.6 Billion |
| Market Size in 2032 | USD 44 Billion |
| CAGR (2023 to 2032) | 9.4% |
| By Classification System Revenue Share | 65% |
| By Component Revenue Share | 70% |
| By Medical Specialty Revenue Share | 49% |
| Historic Period | 2016 to 2032 |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
Market Drivers
The U.S. medical coding market is experiencing a surge in demand due to the increasing importance of standardized medical documentation in the healthcare industry. EHRs are playing a crucial role in ensuring proper billing, reimbursement, and communication between providers and payers. The development of EHR software, particularly voice recognition, is driving market growth. EHRs help medical coders and billers work efficiently by reducing paperwork and data entry errors, thus boosting the market.
Market Restraints
The market growth of EHRs is hindered by high costs, ranging from 0$ upfront to potentially $10,000, and the high maintenance and updating costs. As demand for EHRs rises globally, factors related to EHR costs could hinder the market's growth in the coming years. The U.S medical coding market faces challenges due to the continuous evolution of coding systems and regulations, such as ICD and CPT, which require extensive training and undergo regular updates, making staying updated a significant challenge for coders.
Market Opportunities
The U.S. medical coding market is experiencing growth due to the integration of artificial intelligence (AI) into electronic health record software (EHRs). This technology is enhancing productivity and streamlining the coding process, with governments and private organizations investing heavily in these initiatives to drive market expansion.
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Report Segmentation of the U.S. Medical Coding Market
Classification System Insight
The ICD segment, which dominated the market with 65% revenue in 2022, is expected to grow rapidly due to increased usage and flexibility. ICD 11, which came into effect on January 1, 2022, is precise and flexible, allowing for various health information purposes. The coding tool can be integrated into local digital records, reducing costs and training time. The fastest-growing segment is CPT, which describes medical procedures and is monitored by the government for disease prevalence and health expenditure.
Component Insight
In 2022, the outsourced segment accounted for 70% of revenue, with a CAGR of 8.4%. This trend is driven by the reduction of administrative costs, time savings, and improved workflow in medical coding. Outsourcing allows healthcare providers to focus on high-quality patient care and patient engagement. The in-house segment is expected to grow the fastest, allowing providers to regulate operations and have in-house coders available for coding errors. Both segments are positively impacting the market growth.
Medical Specialty Insight
In 2022, the US market's other services segment held a 49% market share, driven by high demand for medical coding services in specialties like obstetrics, gynecology, and nephrology. The cardiology segment is expected to experience the fastest growth due to the increasing prevalence of cardiac disorders and complicated procedures.
Recent Development of the U.S Medical Coding Market
- In January 2023, AQuity, a US-based company, has introduced AI Autonomous Coding Solution to expand its coding solutions portfolio.
- In August 2021, GeBBS Healthcare Solutions, Inc. has acquired Aviacode, Inc., aiming to expand its geographical reach and modify its product portfolio.
Market.us has identified key trends, drivers, and challenges in the market, which will help clients improve their strategies to stay ahead of their competitors. - View a PDF sample report @ https://market.us/report/u-s-medical-coding-market/request-sample/
Market Segmentation
Based on Classification System
- ICD
- HSPCS
- CPD
Based on Component
- In-House
- Outsourced
- On-shore
- Off-shore
Based on Medical Specialty
- Emergency Services
- Oncology
- Anesthesia
- Cardiology
- Pathology
- Radiology
- Other Services
Competitive Landscape
Key market players are utilizing partnerships, mergers, acquisitions, and investments to expand their product portfolio, while U.S. stakeholders are announcing new products and services to expand their presence in the U.S.
- StarTek
- Oracle
- Maxim Healthcare Services
- Parexel International Corporation
- Aviacode Inc.
- Verisk Analytics, Inc.
- Medical Record Associates, LLC.
- Optum
- Dolbey System Inc.
- Other Key Players
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