The Global Medical Coding Market is estimated to be valued at US$ 20282.64 Mn in 2023 and is expected to exhibit a CAGR of 9.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Medical coding involves transforming descriptions of medical procedures, diagnoses, clinical services, and equipment into universal medical alphanumeric codes. There are generally two medical coding systems: ICD-10-CM/PCS (diagnosis and inpatient procedures) and CPT/HCPCS (outpatient procedures and services). Medical coders review patients’ records and assign diagnostic and procedural codes according to these standardized clinical vocabularies. This helps in billing health insurance companies, generating claims, maintaining medical records, tracking health outcomes, and measuring the quality of care delivered. Over the years, demand for medical coding has increased considerably owing to increasing healthcare costs, complex regulatory frameworks, digitization of healthcare systems, and the need for accurate and timely medical billing and reporting.
Market key trends:
One of the major trends driving growth in the medical coding market is the integration of artificial intelligence and machine learning technologies. AI helps automate routine medical coding tasks by analyzing unstructured clinical texts and assigning appropriate medical codes. This significantly reduces coding errors and boosts coder productivity. Another key trend is the rising adoption of end-to-end coding solutions which integrate revenue cycle management, reporting analytics tools, coder allocation software, and quality control analytics. Such integrated platforms allow healthcare providers and insurance companies to streamline their revenue cycle processes. In addition, growing emphasis on specialty coding is seen as hospitals hire specialized coders for different clinical departments like cardiology, oncology, etc. This helps improve revenue capture from complex cases.
Porter’s Analysis
Threat of new entrants: The barriers to entry are moderately high as the market requires expertise and substantial capital investment to set up medical coding infrastructure and facilities.
Bargaining power of buyers: The bargaining power of buyers is moderate to low as there exists a large number of coding service providers to choose from and switching costs are low.
Bargaining power of suppliers: The bargaining power of suppliers is low due to availability of substitutes and large number of coding providers.
Threat of new substitutes: The threat of new substitutes is moderate as healthcare facilities are constantly innovating alternative technologies like artificial intelligence in medical coding.
Competitive rivalry: is high due to presence of large number of players providing similar coding services.
Key Takeaways
The Global Medical Coding Market Share is expected to witness high growth, exhibiting CAGR of 9.6% over the forecast period, due to increasing need for accurate coding practices to combat healthcare fraud, reduce errors and ensure regulatory compliances.
Regionally, North America holds the largest share in medical coding market and is expected to continue dominating the market over the forecast period. Factors such as presence of developed healthcare infrastructure, shortage of medical coders and rising healthcare costs are expected to drive growth in the North America medical coding market. Asia Pacific is anticipated to witness highest growth rate over the forecast period owing to improving healthcare systems and rising medical tourism in countries like India and China.
Key players operating in the medical coding market are 3M Company, nThrive (Precyse Solutions LLC), Talix, Oracle Corporation, Optum Inc., Nuance Communications Inc., Dolbey Systems Inc., Aviacode Inc., MRA Health Information Services, The Coding Network, L.L.C, and Maxim Health Information Services, among others. 3M Company holds the leading position in global medical coding market followed by Optum Inc. and Nuance Communication Inc. These companies are focusing on strategic collaborations and acquisition activities to expand their global presence and coding capabilities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it