Medical Coding Market Size (2023 - 2030)

The medical coding market size at the global level was worth USD 16.34 million in 2022 and is expected to reach USD 29.36 million by 2030, growing with a CAGR of 11.23% during the forecast period 2023 - 2030. 

Medical coding is termed as the conversion of healthcare diagnosis, procedures, medical services, and equipment into universal medical alphanumeric codes. Maintain documentation for healthcare visitors giving enough information regarding the patient diagnosis, bills, and health conditions providing healthcare insurance providers.

The medical coding professionals are to assure whether the codes are applied correctly or not. Moreover, medical coding is broadly used to produce proper records of patient care, update and simplify medical billing techniques, simple and fast payments transfer to physicians, and clinical decision support systems by emergency clinics. Healthcare insurance companies and claims majorly use medical coding systems. International Classification of Diseases (ICD) is the most commonly used systems and maintained by the World Health Organization (WHO). 

COVID-19 Impact on Medical Coding Market

The recent outbreak of novel coronavirus (COVID-19) has significantly impacted the medical coding market. During the pandemic period, the increasing advancements of new medical codes for COVID-19, with reimbursement policies and the critical growth in COVID cases are some of the essential elements cause for the growth in 2022. 
The post COVID outlook has transferred the focus of the healthcare community over the significance of documentation during any medical service transaction that declines the claim disclaimer rate. 

MARKET DRIVERS

Factors driving the medical coding market due to the growing demand for specialist coders and favorable healthcare systems, surging need for coding services. Growing demand for a universal language to decrease deceptions, and misinterpretations concerned with insurance claims, and increasing demand to streamline hospital billing procedures augment the medical coding market growth during the historical period. 
 

The effortless availability of skilled resources at a competitive price is one factor escalating the medical coding market growth. Insurance fraud in the healthcare field is surging which plays a prominent role in the growth of the medical coding market. 
 

Advanced technologies and stimulating use of computer-aided coding systems (CACS) drive the medical coding market forward. 

MARKET RESTRAINTS

However, the ongoing changing regulations, data security issues, and the absence of IT professionals across the healthcare sector hamper the market growth during the timeline period.

MEDICAL CODING MARKET REPORT COVERAGE

Segmentation Analysis

The global medical coding market has been segmented and sub-segmented based on the classification system, and component.

Medical Coding Market - By Classification System

• International Classification of Diseases (ICDs)
• Healthcare Common Procedure Coding System (HCPCS)
• Current Procedural Terminology (CPT)

By classification system, the International Classification of Diseases (ICD) segment is dominating the medical coding market globally in terms of revenue. The need for trained medical coders is increasing gradually, drives the market growth during the foreseen period. As per the World Health Organization, cardiovascular diseases is the most occurring cause of death globally. The demand for ICD is surging due to the increasing occurrence of diseases boom the medical coding market. 

The CPT and HCPCS segments grow with the highest CAGR rate during the foreseen period. Insurance providers like Medicaid, Medicare, and third-party insurance providers drive the segment growth in the medical coding market. CPT is used for describing surgery, tests, and other procedures, and is a part of HCPCS codes. 

Medical Coding Market - By Component

• Out-sourced
• In-house

The outsourced component segment holds the largest share in terms of revenue with over 64% in 2022. The increase in the number of healthcare organizations outsourcing their revenue cycle management, and the market need knowledge regarding different codes like ICD, HCPCS, and CPT. 

The in-house component provides the benefits of maintaining managing the entire coding operations. Accessing in-house medical coders is easy booming the medical coding market growth during the forecast period. 

Medical Coding Market - By End-User

• Hospitals
• Diagnostic Centers
• Others

Hospitals end-user segment dominates the medical coding market with the growing number of patients visiting hospitals, and surging demand to store patient data efficiency augment the segment market growth. The number of healthcare institutions across the developing economies is propelling the end-user segment growth. 

Medical Coding Market - By Region

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Geographically, North America is said to dominate the medical coding market in terms of revenue. In the U.S., 3M company supplies next-generation coding and reimbursement solutions powered by the 3M 360Encompass System. Nearly 36,241,15 admissions were recorded in all the hospitals in the United States in 2022, as per the American Hospital Association (AHA) Hospital Statistics 2022 survey. In September 2022, Fathom used artificial intelligence (AI) to computerize medical coding and develop the speed and exactness of coding. The U.S is the largest and leading market in medical coding globally. The demand for standard billing systems in hospitals and healthcare systems and the growing adoption of advanced healthcare solutions across regular hospitals and the obtainability of a huge number of medical coding solutions providers help in booming the market growth in the region. 

The European medical coding market is estimated to rank second during the foreseen period. The growth in the region relies on high patient volume and mandates of medical coding over the healthcare settings. Whenever a patient arrives at the hospital, the majority of the hospitals use medical coding as part of their revenue management process, in countries like Germany, France, and the U.K. Medical coding allowed European healthcare bodies in producing statistical analysis of diseases and suggesting appropriate therapies. The medical coding supported the healthcare insurance providers in swift and simple reimbursements of medical bills. 

However, Asia-Pacific is expected to have the swiftest growth throughout the mentioned period due to developing healthcare services, and medical coding techniques that have assured efficacy and timely approval of medical claims and motivated a huge number of people than before to take health insurance. The need for medical coding facilities is surging in countries like China, Indonesia, India, and South Korea, and also growing adoption of electronic health records (EHRs) for superior monitoring of diseases, and related diagnostic methods in developing countries like Indonesia, Vietnam, India, and Thailand. 

Latin American medical coding market is due to the growing trend of using computer-aided coding systems (CACS), rising acceptance of technologies like AI, Natural Language Processing (NLP), and Internet of Medical Things (IoMT). 

The Middle East & African region is considered to have high growth in the medical coding market over the upcoming years. 

Key Market Players

• Optum Inc.
• Nuance Communications Inc.
• 3M Company
• Precision Practice Management
• Parexel International Corporation
• Dolbey Systems Inc.
• Aviacode Inc.
• Medical Record Associates LLC
• Maxim Healthcare Services Inc.
• Oracle Corporation

In June 2022, Paraxel made a strategic partnership with Clariness GmbH to strengthen its clinical trial recruitment and channels for engagement with patients in China. 

In June 2022, Shockwave unveiled that the Centres for Medicare and Medicaid Services (CMS) delivered new codes for Intravascular Lithotripsy (IVL) methods for peripheral arteries in both inpatient and outpatient settings. 

In August 2022, a new website featuring complete services of its medical coding, auditing, and global revenue cycle management services, launched by Aviacode. 

In February 2022, Verisk Analytics Inc. combined with SCOR in launching an AI-enabled platform for automated underwriting of life insurance. 

Recent Developments

• On March 03, 2018, Optum required Atrius Health, a Massachusetts-based physician group. With the acquisition, Optum enlarges its mark in Massachusetts and increasing its physician network.
• On August 13, 2022, 3M Prevena Therapy in Surgery Centres for TJA surgeries, outpatient settings are in.
• On March 25, Athenahealth attempts to confront physician burnout through Medical Coding. Several physicians spend an average of 90 minutes focused on coding work.