What Transformation Has the Medical Coding Market Undergone?
The medical coding market has seen considerable growth due to a variety of factors.
• The size of the medical coding market has seen considerable expansion in the past few years. It's anticipated to rise from $17.78 billion in 2024 to $19.13 billion in 2025, with a compound annual growth rate (CAGR) of 7.6%.
The past growth can be credited to the expansion of the healthcare industry, the introduction of ICD and CPT coding systems, a shift towards electronic health records (EHRs), regulatory compliance requirements, and a trend towards more specialized and sub-specialized areas in healthcare.
What are the Market Size and Expected Growth Rates for the Medical Coding Market?
The medical coding market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the medical coding market is poised for rapid expansion, with projections placing its worth at $29.2 billion in 2029, showing a compound annual growth rate (CAGR) of 11.1%.
Key factors driving growth in the predicted period include the expansion of global healthcare market, modifications in regulations and increasing demands for compliance, progress in telehealth and remote medicine, and the shift towards value-based care models. The forecasted period also sees trends like development and training programs, inclination towards remote work and outsourcing, the demand for specialty-specific coding, a rise in EHR integration and interoperability, and a heightened focus on precision and quality.
What Are The Core Factors Supporting Growth In Medical Coding Market?
The upward trend in the need for a globally accepted language in medical records is set to spur the development of the medical coding market. The medical sector generates massive data that is hard to manage manually without appropriate universal labels or names, and difficult to reference if a patient's history needs to be reviewed. The act of translating medical documents into universal medical alphanumeric codes, aimed at simplifying hospital billing processes, should assist in keeping medical data well-organized and ensure correct billing reimbursement while also monitoring the patient's health for potential future complaints or treatment. This will naturally result in a demand for medical codes that aid in structuring medical data and streamlining operations, thus minimizing the inefficiencies inherent in manual data recording without universal codes. For example, according to the International Classification of Diseases (ICD) upheld by the World Health Organization, human disease and mortality worldwide are reported and coded using the ICD data. Moreover, in October 2022, the American Medical Association (AMA), a US-based professional and advocacy association for doctors and medical students, introduced the Calendar Year (CY) 2023 Current Procedural Terminology (CPT) code set, which included 102 new codes, the deletion of 68 codes, and the modification of 87 code descriptions in the CY 2023 adjustments. The formulation and application of a universally acknowledged code are boosting the expansion of the medical coding market.
How Is The Globa Medical Coding Market Divided Into Key Segments?
The medical coding market covered in this report is segmented –
1) By Component: In-house, Outsourced
2) By Classification System: International Classification of Diseases (ICDs), Healthcare Common Procedure Coding System (HCPCS), Current Procedural Terminology (CPT)
3) By End User: Diagnostic Centers, Hospitals & Care Providers
Subsegments:
1) By In-house: Internal Coding Staff, In-house Coding Software Solutions
2) By Outsourced: Third-Party Coding Services, Remote Coding Solutions, Hybrid Outsourcing Models
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What Trends Are Reshaping The Medical Coding Market?
The rising integration of artificial intelligence (AI) is an emergent trend in the medical coding market. AI refers to the replication of human intelligence processes by machines, especially computer systems, and includes learning, reasoning, and self-correction. The implementation of AI is anticipated to smooth medical billing procedures while enhancing the precision and efficacy of medical coders' work. This implementation is particularly pertinent given the exponential growth in healthcare data and increasing intricacy. Moreover, it will reduce the number of searches needed to pinpoint fitting codes for unstructured data, mitigating the strain on medical coders. For example, Israel's Maverick Medical AI, an independent medical coding firm, introduced its unique medical coding platform in November 2022 to fulfil the medical coding needs of RadNet in the US. This move is set to optimize its revenue management cycle, trim operating costs, and heighten reimbursements. Maverick pairs medical coding domain expertise with advanced machine learning and dynamic AI, autonomously studying clinical notes and reports, and generating precise reimbursement codes (ICD-10, CPT) in real-time, enabling billing systems to access charges within seconds.
Who Are the Key Players in the Medical Coding Market?
Major companies operating in the medical coding market include:
• 3M Company
• Advanced Medical Coding Services
• AcerHealth Inc.
• Aveanna Healthcare LLC
• AthenaHealth
• AAPC (American Association of Professional Coders)
• Codemasters Inc.
• EqualizeRCM Services
• Alpha Coding Experts LLC
• Accurate Medical Coding LLC
• American Medical Billing & Coding Services
• Apex Medical Billing & Coding
• Associated Medical Billing & Coding
• Beacon Healthcare Coding
• Billing Advantage LLC
• Blue Star Medical Billing & Coding
• Brite Medical Coding
• Care Medical Coding
• Central Billing Services LLC
• Certified Medical Billing Specialists
• Code 1 LLC
• Coding Masters
• Complete Medical Coding Solutions
• Cypress Medical Coding
• Data Plus Services
• Dedicated Medical Billing & Coding
• Empower Medical Billing & Coding Services
• Expert Medical Coding
• First Class Medical Billing & Coding
• Global Medical Billing & Coding
• Greenlight Medical Billing & Coding
What are the Regional Insights into the Medical Coding Market?
North America was the largest region in the medical coding market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the medical coding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
