Medical Coding Market: Current Analysis and Forecast (2021-2027)
Emphasis on Classification System (Healthcare Common Procedure Code System (HCPCS), International Classification Of Diseases (ICD), Current Procedural Terminology (CPT)); Component (Outsourced, In-House); End-User (Hospitals, Diagnostic Centers, Others) and Region/Country.
The medical coding market is expected to witness a CAGR of around 11% during the forecast period (2021–2027). Medical coding is the transformation of healthcare diagnosis, documentation, medical services, procedures, and equipment into universal medical alphanumeric codes. Medical coding is being increasingly used in the present scenario to create a proper record of patient care, the high demand for streamlining hospital billing procedures, accelerating payments to physicians, and identifying the healthcare areas that require focus, rising need for a universal language to reduce frauds and misinterpretations associated with insurance claims. These factors are the main reason for the growth of this market during the forecast period. Moreover, key market players are launching new technologies in this segment. Furthermore, In March 2020, the CMS released two Healthcare Common Procedure Coding System (HCPCS) codes that laboratories can use to bill for certain COVID-19 diagnostic tests, including those developed in-house according to the new United States Food and Administration (USFDA) guidelines.
Some of the major companies operating in the medical coding market include 3M Company, Aviacode Inc., Maxim Health Information Services, Optum Inc., Oracle Corporation, Talix, The Coding Network LLC, Precyse Solutions LLC, Episource Pvt Ltd, OMH HealthEdge Holdings Inc.
Insights Presented in the Report
“Amongst Classification System, the removable braces category accounted for the majority share in the market in 2020”
Based on the classification system, the medical coding market is segmented into the healthcare common procedure code system (HCPCS), international classification of diseases (ICD), and current procedural terminology (CPT). In 2020, the international classification of diseases (ICD) category is anticipated to witness a significant growth rate during the forecast period. ICD codes are related to diagnoses, and it allows the systematic recording, analysis, interpretation, and comparison of mortality and morbidity data. The major factors for the growth of this market are morbidity coding and reporting including primary care, certification & reporting of causes of death, diagnosis-related grouping (DRG), assessing and monitoring the safety, efficacy, and quality of care, cancer registries, etc. Furthermore, in January 2021, Innoventrum and Dental Medical Billing entered a partnership under which they launched a premier credentialing program for dental-to-medical cross-coding and billing.
“Amongst Component, the outsourced category is expected to witness the highest CAGR during the forecast period”
Based on components, the medical coding market is categorized into outsourced and in-house. The outsourced category witnessed a significant growth rate during the forecast period medical coding market. Medical care suppliers are progressively outsourcing their medical coding requirements to reduce regulatory expenses. Outsourcing helps in expense reduction, saves time, and smoothing out the work process. Hence, medical services suppliers can focus on quality patient care & engagement. Furthermore, Aviacode Inc. signed a partnership with athenahealth Inc., a U.S.-based company providing network-enabled services to the healthcare sector, through its More Disruption Please (MDP) program. As part of the partnership, Aviacode Inc.’s coding services are now available as an integrated offering, to athenahealth’s growing network of more than 100,000 healthcare providers, to help reduce their operational costs, eliminate backlogs, and ensure more-accurate reimbursements.
“Amongst End-User, the hospitals’ category is expected to witness the highest CAGR during the forecast period”
Based on end-user, the medical coding market is categorized into hospitals, diagnostic centers, and others. The hospitals’ category witnessed a significant growth rate during the forecast period medical coding market. Expanding interest in the transformation of the medical services infrastructure, an increasing number of emergency hospitals, rising electronic records for patients, modernization of lab offices, and government administrative rules are driving the medical coding market in this segment. also, the business specialists are focused on business systems, such as item dispatches, organizations, and relationships with provincial players.
“North America to witness significant growth during the forecast period”
For a better understanding of the market, the report provides a detailed analysis of major regions and countries including North America (U.S., Canada, Rest of North America); Europe (Germany, U.K., France, Spain, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific) and Rest of World. In 2020, North America accounted for a significant market share. This is mainly due to the higher per capita income and the availability of advanced healthcare infrastructure, increasing the adoption rate of new technological advancements in medical coding, EHR, and ongoing initiatives of the government to enhance awareness and provide funding in this region. For instance, according to the Centers for Medicare & Medicaid Services (CMS), U.S. health care spending grew 9.7 percent in 2020, reaching $4.1 trillion or $12,530 per person. As a share of the nation’s Gross Domestic Product, health spending accounted for 19.7 percent.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The medical coding market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Medical Coding Market Analysis (2021-2027)
Analyzing the historical market, estimating the current market, and forecasting the future market of the medical coding market were the three major steps undertaken to create and analyze the adoption of the medical coding market in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the medical coding market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the medical coding market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the medical coding market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as a classification system, component, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the medical coding market. Further, we conducted factor analysis using dependent and independent variables such as various classification system, component, and end-user of the medical coding market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and new technology launches in the medical coding market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the medical coding market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the medical coding market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the medical coding market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the medical coding market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of classification system, component, and end-user in the medical coding market.
The main objective of the medical coding market Study
The current & future market trends of the medical coding market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the medical coding market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of classification system, component, and end-user.
- Define and analysis of the regulatory framework for the medical coding market industry.
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the medical coding market for the major region.
- Major regions and countries studied in the report include North America (U.S., Canada, Rest of America); Europe (Germany, U.K., France, Spain, Italy, Rest of Europe); Asia-Pacific (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific) and Rest of World.
- Company profiles of the medical coding market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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