Hospital Outsourcing Market Size, Share & Trends Analysis Report By Services (Healthcare IT, Clinical Services, Business Services, Transportation Services), By Type (Public, Private), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global hospital outsourcing market size was valued at USD 270.9 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 10.4% from 2020 to 2027. Hospitals are increasingly outsourcing internal activities to third-party service providers such as medical billing and IT services. The hospitals are mainlyoutsourcing medical billingand IT services to third-party service providers due to a lack of expertise and the unavailability of skilled resources in the industry. Furthermore, with the establishment of regulations and accreditation of these service providers, they are also held accountable for their quality standards.

In addition, a lack of in-house expertise, capabilities, and budget constraints are the major issues faced by private hospitals in the industry. Contract hospital service providers are an effective approach to limit such issues of private hospitals due to the low-cost service offering. It helped to established mutually beneficial relationships between hospitals and third-party service providers.

Furthermore, complexity and lack of expertise inrevenue cycle management, payroll processing, central supply management, and home care services are the key factors driving the market over the forecast period. However, the growing concern for data security, cultural, and language barriers are expected to restrain the growth of the market for hospital outsourcing over the forecast period.

Currently, the hospital industry is witnessing a rise in the outsourcing of in-house services owing to the federal mandate to implement Electronic Medical Records (EMR), increasing healthcare costs, and implementation of complex ICD-10 coding systems. Increasing patient flow and the rising burden of medical processes, such as insurance eligibility and records of patient check-ins are expected to propel the growth of the market.

Type Insights

The private segment accounted for the largest revenue share of 69.5% in 2019 and expected to register the highest CAGR of 11.3% over the forecast period. According to the article published in the National Center for Biotechnology Information, the prime reason for the outsourcing of private hospitals is cost restrictions followed by operational flexibility, and focus on the core business.

Private hospital outsourcing offers opportunities for improved customer satisfaction owing to experienced professionals. Furthermore, the change in government regulations and the increasing complexity of the in-house functions are responsible for a significant number of private hospitals to adopt the outsourcing model in the industry. However, internal organizational resistance and dependence on external resources are expected to restrain the market for hospital outsourcing.

Service Insights

The others segment accounted for the largest revenue share of 39.0% in 2019, which includes several services such as laundry, cafeteria and catering, security, housekeeping, and maintenance. However, the clinical services segment is expected to register the highest CAGR of 11.3% over the forecast period as hospitals are expected to outsource these services on a large scale to the third-party service providers or collaborative partners.

Clinical services include laboratory (pathology and microbiology), radiology, pharmacy, dialysis, nuclear medicine, physiotherapy, mental health services, and rehabilitation.

Regional Insights

North America accounted for the largest revenue share of 71.1% in 2019 owing to the presence of a large number of service providers in the region. In addition, increasing outsourcing of the local hospitals is further driving the hospital outsourcing market in the region. As hospitals are adopting the paperless working system in the developed countries such as the U.S., there is a huge inflow of patient data, to manage such a large amount of data most of the hospitals are hiring third-party service providers. This is expected to propel the growth of the market for hospital outsourcing in the region.

However, the Middle East and Africa is expected to register the fastest growth over the forecast period due to the increasing outsourcing of hospital services to countries such as Saudi Arabia. The availability of skilled resources, low-cost service offerings, and the increasing adoption of new technologies is expected to drive the market in the region.

Key Companies & Market Share Insights

To sustain in the highly competitive environment and to improve market share, the key companies are adopting mergers and acquisitions as a key strategy. For instance, in February 2019, Veritas Capital in collaboration with Evergreen Coast Capital, as a minority investor acquired Athenahealth, Inc. It has strengthened the service offering of Virence Health, a subsidiary of Veritas Capital for hospital and ambulatory customers. In July 2019, Cerner Corporation and Amazon Web Services (AWS) partnered to drive healthcare IT innovations. This is expected to lower operational budgets and improve clinical efficiency for healthcare organizations. Companies such as Cerner and Allscripts offer healthcare IT services and Sodexo offers catering and facility management services in the industry. Some of the prominent players in the hospital outsourcing market include:

• Allscripts

• Cerner Corporation

• The Allure Group

• Integrated Medical Transport

• Sodexo

• Aramark Corporation

• LogistiCare Solutions, LLC

• Flatworld Solutions

• Alere, Inc.

• ABM Industries Inc.

Hospital Outsourcing Market Report Scope

Report Attribute	Details
Market size value in 2020	USD 340.4 billion
Revenue forecast in 2027	USD 679.2 billion
Growth Rate	CAGR of 10.4% from 2020 to 2027
Base year for estimation	2019
Historical data	2016 - 2018
Forecast period	2020 - 2027
Quantitative units	Revenue in USD billion and CAGR from 2020 to 2027
Report coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments covered	Service, type, region
Regional scope	北美;欧洲;亚太地区;拉丁美洲; MEA
Country scope	U.S.; Canada; U.K.; Germany; France; Italy; Spain; China; India; Japan; Australia; South Korea; Brazil; Argentina; South Africa; Saudi Arabia
Key companies profiled	Allscripts; Cerner Corporation; The Allure Group; Integrated Medical Transport; Sodexo; Aramark Corporation; LogistiCare Solutions, LLC; Flatworld Solutions; Alere, Inc.; ABM Industries Inc.
Customization scope	Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global hospital outsourcing market report on the basis of service, type, and region:

• 服务前景(收入,十亿美元,2016 - 2027)

  • Healthcare IT

  • Clinical services

  • Business services

  • Transportation services

  • Others

• Type Outlook (Revenue, USD Billion, 2016 - 2027)

  • Public

  • Private

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • India

    • China

    • Japan

    • Australia

    • South Korea

  • 拉丁美洲

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia