Growing Innovations (G.I.) Health Solutions LLC. Renders medical billing services to industry personnel, helping them maximize reimbursements and decrease expenses. They render their service to prevent the locking of operators who render medical services into long-term contracts.
The industry sector is of high value due to the rising demand for medical billing services, leading to more operators entering the industry. Demand in this industry has also risen due to the growing population of baby boomers who require medical billing services after doctor visits. A report published by IBISWorld revealed that the medical billing sector of the industry was worth $3 billion registering an 8.8 % annual CAGR growth between the five years from 2011 to 2016. There are over 2,300 medical billing businesses in the United States of America, employing over 7,000 people.
The industry was predicted to experience steady growth as more senior citizens will make their demands via Medicare from 2016 till 2022, which is already evident. Also, within the stipulated period, the number of people with insurance expectedly rose in line with healthcare reforms, allowing those with pre-existing conditions to receive insurance. This growing demand will further help the industry not only to have huge demands, which will be taken care of by operators but also boost industry revenue.
Recent research published by Grand View Research, Inc. revealed that the medical billing outsourcing market was worth over $6 billion and is predicted to reach $17 billion by 2024. This is large because medical billing has become an intricate part of medical practice, especially as there have been several challenges from in-house billing processes, especially with untrained staff, lack of proper financial policy, improper I.T. structure, and billing errors. These challenges contributed to why most hospitals and doctors’ offices prefer to outsource their medical billing processes; 95 % of most independent physicians have stated that they prefer outsourcing their medical billing processes to running one in-house.
Globally, North America has the highest revenue growth in this industry. The United States has had rapid changes in its healthcare structure, and rising healthcare costs have been the major driver in the North American region. In the industry, consolidation has been one of the major factors helping the market’s growth.
Medical billing companies are among the largest clients and provide the highest revenue. The rise in healthcare costs has resulted in hospitals experiencing declining profits, forcing them to turn to medical billing businesses for revenue management. The medical billing market is segmented into in-house and outsourced billing. According to Grand View Research, Inc., the total costs incurred by providers for in-house operations amounted to $252 billion. These costs included running costs such as I.T. and maintenance costs for the in-house billing team and the administrative team. This is compared to outsourcing, which significantly reduced hospital costs, including fewer errors. Also, outsourcing meant that doctors and physicians could now concentrate on their primary duty, providing the best possible care to patients without having to worry about managing billings and recovering claims.