Medical Coding Market Trends

Global Medical Coding Market Overview

Medical coding market size is projected to reach USD 40.86 billion in 2032. The market is exhibiting a compound annual growth rate (CAGR) of 7.9% during the forecast period (2024 - 2032). The advancement and digitization in healthcare infrastructure have propelled the demand for medical coding. Additionally, the digitization of information records and billing systems has augmented the demand for medical coding across the globe. The rising mandate for automated medical billing is also likely to drive the medical coding market in the forecast timeline.

Increasing investment in the transformation of healthcare infrastructure, growing number of hospitals, modernization of lab facilities, and supportive government regulatory guidelines are driving the market of medical coding. Additionally, the industry experts are aiming at business strategies such as product launches, partnerships, and association with local and regional players to enhance the product expertise in the various geographical locations. The market of medical coding is estimated to grow over time owing to the increasing deployment of cloud infrastructure and the integration of electronic records for patient data management. The government authorities in the countries such as the US, India, China, and Japan are focusing on modernization and technological advancement of hospitals, research facilities, and medical institutions. These factors are fueling the market for medical coding and are accounted to grow at a rapid pace in the projected timeline.

Medical coding systems are used in managing bed information, healthcare providers records, vaccine information, and patient dosage details among others. In addition, the billing information for the admitted patients was fueled during the COVID-19 outbreak. The hospital management and clinics used medical coding systems to advance the billing and other payment procedures. The integration of digital platforms with diagnostic devices has leveraged the utilization of medical coding for the conversion of data from the equipment for medical analysis. The rise in COVID-19 cases have augmented the demand for technical support to advance medical services across the globe. Such practices have fueled the demand for medical coding during the coronavirus spread

Medical Coding Market Trends

• Increasing demand for advanced healthcare billing systems

Increasing geriatric population and rising prevalence of chronic diseases visit hospitals and diagnostic centers for regular checkups and treatment. The rising demand for instant, accurate and effective medical billing has strengthened the development of advanced medical coding systems. In addition, the emerging demand for compatible billing systems to deal with claim procedures and denial claims is expected to augment the market demand. Moreover, medical coding is gaining popularity due to the increasing acceptance of electronic bill systems for easy claim processing and tracking. Furthermore, the growing integration of cloud-based medical billing solutions has provided remote access and precise handling of data to the users. Such prospects have grown over the years and is accounted to accelerate the market demand in the upcoming years.

Companies are collaborating to advance the billing systems and provide retail experiences to the users. For instance, in October 2021 Blue Shield of California (US) collaborated with Google Cloud to evolve medical billing by integrating technologies such as AI to offer real-time reimbursement information and reduce the administrative burden for providers and patients. Additionally, the Delhi government (India) is expected to launch a cloud-based health management system by 2022. The launch is expected to leverage the medical services for the local individuals

Concerns pertaining to bad documentation or missing documentation.

Bad documentation about the required solution by the healthcare service providers leads to misplacement of the related documents. Missing documentation leads to the formation of different solutions that might affect the reputation of the company. In addition, the coder might miss or select wrong codes based on the documentation provided resulting in technical errors. Poor documentation may also hamper the performance of the coder further hampering the quality of the software. These factors are accounted to limit the market demand over the forecast timeline.

Medical Coding Market Segment Insights:

Medical Coding Classification System Insights

The medical coding market segmentation, based on classification system, includes Healthcare Common Procedure Code System (HCPCS), International Classification of Diseases (ICD), Current Procedural Terminology (CPT). Healthcare Common Procedure Code System (HCPCS)is a type of coding system with a collection of codes that signify procedures, products and services, and supplies for assisting healthcare professionals and individuals registered in private health insurance programs. Further, it is a type of diagnostic tool that is used for clinical applications, health management, and epidemiology. This type of medical coding classifies and monitors causes of injury and categorize mortality data from death certificates. Moreover, (CPT) is a set of codes that defines the guidelines and descriptions intended to define services and procedures carried out by physicians and other medical experts

In March 2021, Athenahealth, Inc. (US) launched a medical coding solution, athenaOne Medical Coding to provide high-quality coding support to the medical staff and other medical service providers

In November 2020, Diagnoss Inc. (US) launched an AI-based coding assistant to minimize the coding errors. The launch aims to improve clinician’s accuracy and provides real-time feedback to medical practices during the administrative process

Medical Coding Component Insights

The medical coding market segmentation, based on Component, includes Outsourced, In-House and others. Outsourcing medical coding is contracting with other organizations or third parties to do the company's medical coding instead of the employed workforce. Further, In-House: The in-house method aims to train internal employees to code for health services within an organization.

Medical Coding End User Insights

The medical coding market data has been bifurcated by surgery into Hospitals, and Diagnostic Centers. Hospitals use medical coding for streamlining their processes from diagnostic procedures to billing systems. The diagnostic centers apply medical coding to enhance their diagnosis procedures and analytical abilities. Other segment consist of ambulatory centers, laboratory units, and research facilities. In ambulatory centers, the medical coding is utilized to generate and manage clinical bills, whereas in labs the coding system is used to manage the inventory and the records of the clinical trials and patents.

Figure 2: Medical coding market, by Surgery, 2023 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Medical Coding Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. North America market for Medical Coding accounted for largest market share in 2021 and is expected to exhibit an health CAGR during the study period. owing to the rising capitalization in the transformation of healthcare infrastructure, growing establishments of healthcare digitization organizations, increasing government interests in developing new technologies for diagnosis, treatment, billing, and record management. Other factors strengthening the medical coding market demand include growing communication with physicians, nurses, and other healthcare professionals to categorize the services for patient. Integration of HCPS, CPT, and ICD-10 CM standardized codes for accurate reflection of services is gaining attention among the healthcare sector. In addition, the growing demand for advanced and smart healthcare systems is accelerating the demand for medical coding across the region.

Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: MEDICAL CODING MARKET SHARE BY REGION 2023 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Medical Coding market accounts for the second-largest market share. Further, the Germany market of Medical Coding held the largest market share, and the UK market of Medical Coding was the fastest growing market in the European region.

The Asia-Pacific Medical Coding Market is expected to grow at a robust CAGR from 2024 to 2030. This high growth is mainly attributed modernization and privatization of healthcare technology, digitization supportive government policies, augmenting investment in healthcare IT infrastructure, growing adoption of preventive health programs, and accelerating adoption of medical management systems. These dynamics are anticipated to strengthen the medical coding market demand in the considered timeline. Moreover, increasing capitalization in drug and vaccine development is accounted to accelerate the market of Medical Coding throughout the region. Moreover, China market of Medical Coding held the largest market share, and the India market of Medical Coding was the fastest growing market in the Asia-Pacific region.

Medical Coding Key Market Players & Competitive Insights

The medical coding system is consistently evolving with growing medical diagnostics and treatments across the globe. Increasing investment in enhancement of hospital infrastructure and growing demand for quick and precise clinical billings is driving the market of Medical Coding. Moreover, medical coding providers are embracing various business approaches to propel their market growth. The companies are capitalizing on developing efficient technologies such as artificial intelligence integrated medical codes to advance the functioning of hospitals, ambulatory centers, and diagnostic units. Moreover, the industry players are focusing on various business strategies such as acquisitions and mergers, upgrading services, fundings, and partnering with other regional or local players to expand their global footprint.

Key Companies in the Medical Coding market includes

• Startek Health (US)


• Oracle Corporation (US)


• Verisk Analytics (US)


• Aviacode, Inc. (US)


• Parexel International Corporation (US)


• Maxim Health Information Services (US)


• Precyse Solutions, LLC (US)


• AGS Health (India)


• GeBBS Healthcare (India)


• Medical Record Associates LLC (US)


• 3M (US)


• Dolbey Systems Inc. (US)


• Semantic Health (Canada)


• MRA Health Information Services (US)


• Nuance Communications Inc. (US)


• Optum Inc. (US)


• Talix (US)


• nThrive (Precyse Solutions LLC) (US)


• The Coding Network LLC (US)

Medical Coding Industry Developments

In September, 2021 AGS Health (US) acquired EZDI, Inc. (US), a modern computer-assisted coding organization headquartered in the US. The acquisition aims to enhance company's AI-based clinical documentation and medical coding

In August 2021, GeBBS Healthcare (US) acquired a US-based organization, Aviacode Medical Coding & Coding Audit Services. This acquisition will strengthen the company's medical coding product portfolio providing the competitive edge in Health Information Management (HIM) space

Medical Coding Market Segmentation:

Medical Coding Classification System Outlook

• Healthcare Common Procedure Code System (HCPCS)


• International Classification of Diseases (ICD)


• Current Procedural Terminology (CPT)

Medical Coding Component Outlook

• Outsourced


• In-House

Medical Coding End User Outlook

• Hospitals


• Diagnostic Centers


• Others

Medical Coding Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America