According to estimates, the healthcare market in United States is worth USD 2.5 trillion and is predicted that it will rise to USD 4.6 trillion by 2020. It is predicted that the healthcare outsourcing market in the United States will be worth USD 24 billion in the next 4 to 5 years. Observers in the Information Technology and Business Process Outsourcing industry predict that the industry will target the segment for their future growth.
In the near future, the service providers will be benefitted from the need for change in the existing code systems in the healthcare system in the US. The healthcare system in the US need to shift from the present ICD 9 to ICD 10 diagnostic classification and this should be complete by October 2013. This alone presents an opportunity worth USD 1 billion to the Indian service providers.
There are also other opportunities for the India BPO service industry. Cognizant says that the payers and providers in the United States healthcare sector are on the search for methods to contain increasing costs and to handle the dynamics among the doctors better.
In healthcare outsourcing, services that are related to healthcare such as insurance business, electronic health records and their maintenance are commonly outsourced. One among the leading service providers HCL says that there will be about 117 million new enrollments that are estimated to enter the system as a result of reforms. Performing all the activities has led to increase in cost and as a result they would look for adopting platform based services.
A forecast made by a research agency indicates that the healthcare outsourcing market in United States was worth USD 1.2 billion in 2011 and will grow at rates between 15 to 20 % over the next three years. This will be as a result of the mounting pressure to handle regulatory reforms.
Service providers say that the major factor that will decide on the growth of the outsourcing industry in the healthcare market is the expertise of the service providers and the quality of the service they offer. Service providers need to respond quickly to the any situation that they confront as healthcare is a mission critical service.
The service providers have also moved from providing discrete solutions to strategic solutions which includes end to end solutions and knowledge based processes. They will have to face challenges with the fragmented market in order to reap the benefits.