The market is forecasted to grow at a compound annual growth rate of close to 13 percent through 2020. The growth in outsourced services is driven in part by an increase in healthcare needs of older adult population, a rise in recovery audits due to changing healthcare regulations, and an increased need to minimize revenue leakage.
“The growth in older population will result in more people to be insured under the U.S. federal government Medicare program. This rising number of patients will lead to increased business for healthcare organizations and increased adoption of healthcare RCM solutions in the years to come,” Amrita Choudhury, a lead analyst at Technavio for research on enterprise application, said in a prepared statement.
Technavio, a global technology research and advisory company, said providers’ revenue is also being squeezed further due to continuous audits, and, to reduce the negative revenue effect of recovery audits, providers are increasingly outsourcing their RCM process to third-party vendors.
Additionally, providers today must address revenue leakage resulting from several factors such as incorrect claims and mismanagement of older records, Technavio notes.
“As it is very hard for the providers to focus on these issues along with the maintenance of healthcare services, the demand for RCM in the healthcare sector is rising to increase the business productivity and to remain competitive in the market,” added Ms. Choudhury.
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