The medical coding market is estimated to secure a valuation of US$ 6.7 billion in 2023 and is estimated to rise to US$ 15.3 billion by 2033, concludes Future Market Insights. The market is anticipated at a CAGR of 8.6% during the 2023 to 2033 forecast period. The factors accelerating the demand for medical coding are as follows-
The medical coding market is expected to grow owing to the increased prevalence of chronic diseases as increased chronic diseases led to an increased number of hospitalization, medical bills, drug supplies, and medical claims.
The increasing availability of a large number of medical coding service providers and the rising adoption rate of advanced healthcare solutions like electronic health records, revenue cycle management software, and mhealth applications in routine hospital operations and the is driving the market growth.
Increased adoption of computer-aided coding & artificial intelligence-assisted medical coding to speed up the medical coding process and is expected to drive the market growth during the forecast period
North America is anticipated to dominate the medical coding market due to the increased prevalence of various diseases in the region and the presence of key market players in the region.
Europe is expected to hold the largest share of the medical coding market owing to the increased burden of chronic diseases in countries like the United Kingdom is driving the growth of the market. Also, the increased adoption of advanced healthcare solutions in hospitals drives the market growth in the region.
Asia Pacific is expected to witness the fastest growth in the medical coding market. The increased healthcare digitalization in countries like India and China is projected to drive market growth in the region
Some of the leading players operating in the medical coding market are STARTEK Health, Aviacode Inc, Maxim Health Information Services, Precyse Solution, LLC, Medical Records Associates LLC, Parexel International Corporation, Dolbey, MRA Health Information Services, Thriev Inc, Nuance Communications, Optum Inc, Medical Record associates LLC, Oracle Corporation, Verisk Analytics, Velan Business Solutions, Inc, and Meditwitt India Pvt Ltd, among others.
With the presence of such a high number of participants, the medical coding market is highly competitive. To increase, the market presence key players are involved in partnerships and collaboration.
For instance, in March 2023- Nuance & Microsoft announce the first fully AI-automated clinical documentation application for healthcare i.e. Drageon Ambient eXperience (DAX) express, a workflow integrated & fully automated clinical documentation application.
The medical coding market is expected to grow in coming years driven by increasing demand for healthcare services, the ongoing shift toward electronic health records, and the need for accurate and timely billing & reimbursement. Start-ups are entering the medical coding market with AI-based services.
For instance, founded in 2018- CODAMETRIX is the provider of AI-based medical coding software for healthcare professionals and a cloud-based platform for medical organizations and professionals to assist with autonomous coding. The platform provides clinical workflow optimization and management tools and an AI-enabled medical history translator for automated reimbursement.
| Data Points | Key Statistics |
|---|---|
| Expected Market Value of Medical Coding in 2023 | US$ 6.7 billion |
| Projected Market Value of Medical Coding in 2033 | US$ 15.3 billion |
| Growth Rate (2023 to 2033) | CAGR of 8.6% |
Medical coding has always been in demand and is expected to remain at a steady growth in the forecasted period. Medical coding has been in demand in the USA as is designed to support Electronic Health Records (EHRs).
Maintaining a high quality of healthcare will drive the medical coding market. Medical coding is the transformation of healthcare diagnosis, procedures, medical services, and equipment into universal medical alphanumeric codes. Thus maintaining documentation for the visits to healthcare providers gives a lot of information about the patient diagnosis, bills, and health conditions that are provided to healthcare insurance companies.
Increasing demand for standardized billing procedures is also a driving factor for the medical coding market. Escalating demand for coding services, coupled with the aforementioned factors is an opportunity for the medical coding market.
In addition, the incidence of insurance fraud in the healthcare industry is increasing, globally, which plays a pivotal role in the growth of the medical coding market. This situation is resulting in the incursion of excessive financial losses, which amount to billions of dollars every year, as estimated by the National Health Care Anti-Fraud Association (NHCAA). These factors will give rise to the medical coding market.
The rising adoption of computer-assisted coding to speed up the medical coding process and increase accuracy is also driving the market. Moreover, it enhances productivity, increases transparency, improves accuracy and compliance, reduces costs, and provides traceability.
Moreover, the development of new technologies, such as Artificial Intelligence (AI)-assisted medical coding, is supporting market growth. For instance, in September 2019, Fathom, a USA-based startup, utilized Artificial Intelligence (AI) to automate medical coding and improve the speed and accuracy of coding.
The USA is one of the largest markets for medical coding globally. The USA medical coding market is set to tread on the historic pattern of bust and boom during the assessment period 2021 to 2031. The need for standard billing systems in hospitals and healthcare systems will lead the medical coding market growth.
The high adoption rate of advanced healthcare solutions in routine hospital operations and the availability of a large number of medical coding solution providers are factors expected to aid in maintaining the dominance of the region throughout the forecast period. Frequent revisions in the medical codes is one of the major parameter driving the market growth.
Moreover, new codes were developed for coding and billing of the COVID-19 disease. For instance, new ICD codes were launched by the World Health Organization, such as U07.1, B34.2, and B97.29. Moreover, CPT published new codes for COVID-19 testing. The Centers for Medicare & Medicaid Services (CMS) also developed new codes for lab testing.
With the growing landscape of healthcare and technical advancements in the USA and Canada medical coding will be in high demand in the region.
Europe is seeing growth in advancement in the healthcare sector and an increase in demand for better healthcare providing opportunities will lead the medical coding market in Europe. There has been a rise in inpatient visits to hospitals in Europe which have given the need to incur medical coding system in their medical billing system.
This has significantly given rise to the medical coding in the European healthcare system. Rising awareness for the better medical billing system and increasing insurance frauds has created opportunities to enable medical coding in the European healthcare system. The outbreak of COVID 19 has enhanced the requirement which has given an opportunity to better track the patients’ medical bills and provide better medical care.
Some of the leading companies in medical coding include
Key players are involving partnerships and collaborations as key solutions to expand their global presence and provide better solutions to the end-user. For instance, In June 2019, Paraxel International Corporation announced its strategic partnership with Clariness GmbH, a patient recruitment company, to enhance its clinical trial recruitment and channels for engagement with patients in China.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators, and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
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