Medical Coding Market to Touch USD 4500 million by 2021

Research Nester released a report titled “United States (U.S.) Medical Coding Market: Demand Analysis & Opportunity Outlook 2028” which delivers detailed overview of the United States (U.S.) medical coding market in terms of market segmentation by service mode, solution, classification, patient type and by end-user.

Further, for the in-depth analysis, the report encompasses the industry growth indicators, restraints, supply and demand risk, along with detailed discussion on current and future market trends that are associated with the growth of the market.

The United States (U.S.) medical coding market is segmented by classification into international classification of diseases (ICD), healthcare common procedure code system (HCPCS), current procedural terminology (CPT), international classification of functioning, disability & health (ICF), and diagnostic-related groups (DRGs), out of which, the international classification of diseases (ICD) segment with respect to diagnostic centers is projected to register the largest share of 67.85% of the market in the year 2021. This type of medical coding classification is used for classifying and monitoring causes of mortality and morbidity and is used widely in the healthcare sector. Additionally, the segment is anticipated to grab the largest market share owing to the frequent update of ICD classification systems. According to the World Health Organization (WHO), ICD-11, which is the latest version, was adopted in May 2019 by the Seventy-second World Health Assembly. The version of this classification would come into effect on the 1st of January 2022.

The United States (U.S.) medical coding market is forecasted to grow with a CAGR of 8.8% during the forecast period, i.e., 2020-2028. Increasing implementation of IT in the healthcare sector for real-time data monitoring, along with the growing utilization of data analytics, and the advent in data enrichment tools, such as mobile health or mHealth and electronic health records (EHRs), among others, are some of the major factors anticipated to promote the market growth in the coming years. Additionally, the for United States (U.S.) medical coding market, which recorded a value of USD 4050.4 million in the year 2019, is further projected to cross USD 4500 million by the end of 2021.

Growing Need for Streamlining Revenue Cycle Management in Healthcare Organizations

In the statistics by the World Bank, in the United States, the current healthcare expenditure between 2000 and 2018 increased by around 35% of the GDP of the nation.

With the increasing expenditure of the U.S. government in the healthcare sector, the number of healthcare service providers, along with the need amongst people for quality healthcare services has increased massively. As a result, there is also a growing need amongst the healthcare organizations to streamline their revenue cycle operations, which is raising the need for medical coding services. On the other hand, the rising number of healthcare frauds in the nation, which according to the estimates of National Health Care Anti-Fraud Association (NHCAA), creates a financial loss of around 3% of the total health care expenditure, is further raising the need for the adoption of medical coding services so as to properly follow hospital management protocols. Such factors are anticipated to drive the market growth in the coming years.

However, concerns for data security and privacy of information of the patients, along with the rising number of cybercrimes are some of the additional factors anticipated to hinder the market growth.