Healthcare Payer Services Market size is estimated to reach $35.09 billion by 2025, growing at a CAGR of 11.83% during the forecast period 2020-2025. Healthcare payer means a health maintenance organization, insurance company, management services organization, or any other entity that pays for or arranges for the payment of any healthcare or medical care service. Rapid increase in the demand for insurance, advancements in technology, increase in the adoption of analytics in healthcare are the factors that are set to drive the growth of the global market for the forecast period 2020-2025.
Key Takeaways
- Geographically, North America Healthcare Payer Services market accounted for the highest revenue share in 2019 and it is poised to dominate during the forecast period 2020-2025 owing to the high demand.
- The increase in the technology and growing pressure of cost cutting is likely to aid in the market growth of Healthcare Payer Services Market.
- Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Healthcare Payer Services Market report.
- The increase in the number of service providers and changing dynamics of healthcare sector are creating higher opportunities for the growth of market for the forecast period 2020-2025.
By Service Type- Segment Analysis
Based on the Service Type, the Business Process Outsourcing (BPO) segment held the largest share in 2019 owing to the factors such as rapid increase in the cost cutting pressure, providing assistance in the key administrative areas and increase in the implementation of ICD-10 codes. Knowledge Process Outsourcing (KPO) segment is estimated to be the fastest growing segment during the forecast period 2020-2025. The growth in this segment is owing to the factors such as; rapid increase in the demand for highly skilled professionals, advanced knowledge database and the potential for cost reductions.
By Application- Segment Analysis
Based on the Application, the Claims Management Services segment held the largest share in 2019 owing to the factors such as ensuring accurate and consistent claiming decisions, increase in the productivity, reduction in the operational costs and rapid increase in the number of people opting for health insurance. Analytics and Fraud Management Services segment is estimated to be the fastest growing segment owing to the factors such as rapid increase in the demand for claim analytics and strengthening the process controls.
By Geography - Segment Analysis
Based on the Geography, North America held the largest share in 2019. The growth in this segment is owing to the factors such as advancements in technology, enhancement in the healthcare processes and infrastructure and rapid increase in the number of healthcare payer services providers. Asia-Pacific is estimated to be the fastest growing segment owing to the factors such as availability of services at cheaper costs and rapid increase in the demand for medical infrastructure.
Drivers – Healthcare Payer Services Market
- Advancements in technology and rapid increase in the number of people opting for insurance.
The number of people opting for insurance is rapidly increasing owing to growing awareness regarding the benefits of insurance. This led to rapid increase in the growth of Healthcare Payer Services Market. The advancements in technology reduced the turnaround time and eliminated the need for rework on claim documents, which is estimated to enhance the growth of Healthcare Payer Services Market.
- Rapid increase in the outsourcing supportive services by healthcare payers.
Outsourcing services is an increasingly popular strategy that healthcare payers or organizations are using to control the rising costs of providing services. With a significant change in healthcare landscape most healthcare firms adopted new outsourcing business models. This led to rapid increase in the growth of Healthcare Payer Services Market.
Challenges – Healthcare Payer Services Market
- Unexpected costs associated with outsourcing and health data security.
The major challenge when it comes to outsourcing is the health data security. This breach effects the reputation and sustainability of organizations and may result in financial loss if it cannot create enough confidence in clients. The unexpected costs associated with outsourcing is also said to reduce the growth of the Healthcare Payer Services Market.
Healthcare Payer Services Industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Healthcare Payer Services Market. Key companies of this market are Cognizant Technical Solutions, Concentrix Corporation, Accenture PLC, HCL Technologies Ltd, Xerox Corporation, Wipro Ltd, Hinduja Global Solutions Ltd, Exlservice Holdings Inc, Teleperformance Group, FirstSource Solutions Limited among others.
Acquisitions/Product Launches:
- In 2017, FirstSource Solutions has acquired the Business Process Outsourcing (BPO) division of ISGN Corporation, a leading provider of end-to-end technology solutions.
- In 2018, Hinduja Global Solutions has expanded its headcount in the United States to focus greatly on the healthcare payer services segment even though the firm is witnessing slower growth in India.
