More payers are flocking to outside companies to manage their population health, accountable care payments and analytics platform, driving the healthcare business practice outsourcing market.
The market is expected to reach $8 billion by 2016, according to a Black Book Market Research survey. The market, currently worth $5.2 billion, is expected to grow at a faster rate because of increased innovation and the presence of new administrative services, including government payers, private health plans, commercial insurers, hospital- and physician-sponsored plans, third-party payers, managed care organizations, ACOs and care management groups, according to a news release.
The most popular BPO services now include analytics, new plan setup, claims modernization, security, population health and big data initiatives. Approximately 87 percent of health plan managers indicated population health as a top priority in the next year, according to the release.
The BPO market expected a boom after the Affordable Care Act passed, but the growth failed to come despite spiking health insurance enrollment. However, it is now expected to attain a 22 percent year-over-year increase, according to the news release.