Hospital Outsourcing Market – By Service Type (Clinical {Diagnostics, Surgical, Digital Health}, Non-clinical {Administrative Services}), Size of Hospital (Large Sized Hospitals, Medium-sized Hospitals, Small Hospitals), Type (Private, Public) & Forecast, 2024 – 2032

Hospital Outsourcing Market Size

Hospital Outsourcing Market size was valued at USD 351.5 billion in 2023 and is anticipated to witness growth at a CAGR of 9.6% between 2024 and 2032. The increasing demand for hospital services outsourcing is attributed to dynamic shift in the healthcare landscape, which is driven by several key factors. Hospitals are focusing on providing patient-centric services and operational efficiencies which are expected to accelerate market growth.
 

Certain factors such as cost containment, operational efficiency, improved quality of patient care, and strategic focus on innovation are expected to offer favorable opportunity for market growth. Healthcare providers are under immense pressure to reduce costs while maintaining or improving the quality of patient care. By outsourcing non-core functions such as facility management, revenue cycle management, and IT services, hospitals can leverage the expertise and economies of scale of specialized outsourcing partners, resulting in cost savings and enhanced operational efficiency.
 

Further, technological advancements are majorly responsible for driving the demand for hospital services outsourcing. The rapid pace of innovation in healthcare technology, including electronic health records (EHR), telemedicine, and digital health solutions, requires specialized expertise and infrastructure to implement and manage effectively. For instance, in June 2023, U.S. Department of Veterans Affairs announced its plan to extend partnerships with Oracle for EHR modernization.
 

The hospital outsourcing market includes healthcare facilities, such as hospitals and clinics, contract external service providers to handle specific operational tasks and services. These services can include but are not limited to medical billing, clinical services, supply chain management, IT services, housekeeping, and facility management. The goal of outsourcing is to reduce costs, enhance efficiency, and allow healthcare providers to focus more on patient care and core medical services.
 

Hospital Outsourcing Market Trends

• Technological advancements have profoundly impacted hospital outsourcing services, revolutionizing how healthcare organizations manage operations, deliver care, and engage with patients.
   
• Technological innovations have enabled the automation and digitization of various hospital functions, including revenue cycle management, electronic health records (EHR), and telemedicine. Outsourcing partners leverage advanced technologies such as artificial intelligence (AI), machine learning, and robotic process automation (RPA) to streamline processes, improve accuracy, and enhance efficiency. For instance, in November 2023, WELL Health announced the launch of its advanced product WELL AI Inbox Admin for clinic management. This AI-powered solution enables the generation of custom AI workflows for the healthcare ecosystem.
   
• Furthermore, these advancements have facilitated the development of specialized outsourcing solutions tailored to specific healthcare needs. Hospitals can outsource IT services to vendors with expertise in EHR implementation, cybersecurity, and telehealth infrastructure. Similarly, outsourcing partners may offer innovative solutions for remote patient monitoring, virtual consultations, and digital health platforms, allowing hospitals to extend care beyond traditional settings and improve patient outcomes.
   
• The market is witnessing substantial technological advancements that are rapidly transforming hospital outsourcing services. These advancements enable healthcare organizations to leverage innovative solutions, improve efficiency, and deliver high-quality care. Outsourcing partners that embrace technology and innovation can help hospitals navigate complex challenges, capitalize on opportunities, and achieve strategic objectives in an increasingly digital healthcare landscape.
   

Hospital Outsourcing Market Analysis

Based on service type, the market is segmented into clinical services and non-clinical services. Clinical services are further sub-segmented as diagnostics, specialty and primary care, surgical, digital health, and other services. Non-clinical services segment is further categorized as administrative services, financial services, information technology, supply chain management, and patient support. The non-clinical services segment held a dominant market share of 62% in 2023.
 

• The demand for non-clinical hospital outsourcing services is on the rise due to increasing pressure on hospitals to optimize operational efficiency, costs reduction, and growing emphasis on maintaining high-quality patient care. Outsourcing non-clinical functions such as revenue cycle management, IT support, and facility management enables hospitals to streamline operations, access specialized expertise, and achieve cost savings.
   
• In addition, technological advancements have accelerated the adoption of digital solutions and automation in healthcare administration, creating opportunities for outsourcing partners to offer innovative and efficient services. For instance, in March 2022, Microsoft and Accenture entered a strategic collaboration to assist Mount Sinai health system for integration of cloud architecture for better workflows.  
   
• Hospitals are leveraging outsourcing providers expertise in areas such as electronic health records (EHR), telemedicine, and cybersecurity to enhance data management, improve workflow efficiency, and ensure regulatory compliance.
   

Based on size of hospital, the hospital outsourcing market is classified as large hospitals, medium-sized hospitals, and small hospitals. The large-sized hospital segment accounted for the highest market share and was valued at USD 173.2 billion in 2023.
 

• Large hospitals often have extensive resources and capabilities but may still benefit from outsourcing certain functions to improve efficiency and focus on strategic initiatives. Majority of these hospitals focuses on outsourcing specialized services such as complex surgical procedures, organ transplantation, and advanced medical treatments that require specialized expertise and infrastructure.
   
• Outsourcing enables large hospitals to optimize operations, enhance patient care delivery, and adapt to changing market dynamics while maintaining their position as leaders in healthcare innovation and excellence.

Based on type of hospitals, the hospital outsourcing market is categorized into private and public hospitals. The private segment is projected to reach USD 599 billion by 2032.
 

• Private hospitals are under increasing pressure to reduce costs while maintaining high-quality patient care. Outsourcing non-core functions allows them to leverage the expertise and economies of scale of specialized partners, resulting in cost savings and enhanced operational efficiency.
   
• By outsourcing revenue cycle management, IT support, and facility management, private hospitals can redirect resources toward core clinical activities, optimize resource allocation, and achieve greater cost-effectiveness.
   
• Hospitals are increasingly partnering with experts in electronic health records (EHR), telemedicine, and cybersecurity to improve data management, workflow efficiency, and regulatory compliance. For instance, in March 2024, Ascension announced its collaboration with an Illinois hospital to provide staffing outsourcing.
   
• Outsourcing also enables private hospitals to access the latest technology and expertise without the burden of managing complex systems internally.

North America hospital outsourcing market size in 2023 was valued at USD 203.1 billion and is predicted to grow at a CAGR of 9.8% over the analysis timeframe.
 

• The rising cost of healthcare delivery in North America has pressured hospitals to reduce expenses while maintaining or improving patient care quality. Outsourcing non-core functions allows hospitals to leverage specialized partners expertise and economies of scale, resulting in cost savings and enhanced operational efficiency.
   
• The growing trend of hospital outsourcing in North America, particularly in the U.S., reflects a strategic response to the challenges and opportunities in the healthcare industry. By leveraging outsourcing solutions, hospitals can optimize operations, improve efficiency, and deliver high-quality care. This is crucial in a rapidly evolving healthcare landscape characterized by cost pressures, regulatory complexities, technological advancements, and competitive dynamics.
   

U.S. hospital outsourcing market is anticipated to grow at a CAGR of 9.7% to reach USD 430.3 billion by the end of the forecast timeframe.
 

• The growth of the U.S. market is driven by several factors, including the increasing number of product launches, a heightened focus on improving patient care, and the rising patient burden on hospitals due to chronic conditions.
   
• Additionally, the growing investments by hospitals to provide superior services are expected to further propel market growth during the forecast period.
   

UK hospital outsourcing market is projected to grow remarkably in the coming years.
 

• UK National Health Service (NHS) faces significant budget constraints and increasing demand for healthcare services, leading hospitals to seek cost-effective solutions to maintain service quality. Outsourcing certain non-clinical functions such as IT support, facility management, and administrative services allows hospitals to reduce costs, optimize resource allocation, and focus on core clinical activities.
   
• The UK hospital outsourcing market is projected to grow significantly due to an increasing number of collaborations between hospitals and market players focused on streamlining and improving hospital process workflows. For instance, in March 2024, Cromwell Hospital partnered with eXeX to utilize Apple Vision Pro as a computing device, with eXeX providing installation and support for the technology. Such partnerships underscore the emphasis on enhancing operational efficiency and are expected to positively impact market growth by 2032.
   

China is experiencing high market growth in the hospital outsourcing market.
 

• The growth of the China market is driven by several factors, including technological advancements, the demand for effective patient management, and an increasing number of product launches.  
   
• Furthermore, China healthcare sector is undergoing a significant digital transformation, with the adoption of digital health technologies and innovative solutions to enhance patient care delivery and operational efficiency. As a result, the China market is expected to witness substantial growth during the forecast period.  
   

Hospital Outsourcing Market Share

The hospital outsourcing industry features numerous established and emerging players providing a wide range of treatments worldwide. Competition among these market participants hinges on factors like treatment excellence, innovation, regulatory adherence, customer service, and pricing strategies.
 

Hospital Outsourcing Market Companies

Prominent players operating in the market industry include:

• ABM Industries Inc.
• Allscripts
• Aramark 
• Cerner Corporation
• Crothall Healthcare
• Integrated Medical Transport
• Logisticare
• McKesson Medical-Surgical Inc.
• Medphine
• ModivCare
• Morrison Healthcare
• Oracle 
• Outsource Strategies International
• Sodexo Healthcare
• Tenet Health Medical
   

Hospital Outsourcing Industry News:

• In October 2023, Omega Healthcare introduced its latest offering, the Omega Digital Platform (ODP), with an aim to streamline administrative tasks and boost financial performance for healthcare organizations, marking a significant advancement in operational efficiency within the hospital outsourcing sector.
   
• In April 2022, the Australian Department of Health announced an extension of its IT outsourcing agreement with Datacom. This strategic step has been taken to augment the department's IT capabilities while preserving its current infrastructure and support services.
   

The hospital outsourcing market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2021 - 2032 for the following segments:

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Market, By Service Type

• Clinical services
  • Diagnostics
  • Specialty and primary care
  • Surgical
  • Digital health
  • Other services 
• Non-clinical services
  • Administrative services
  • Financial services
  • Information technology
  • Supply chain management
  • Patient support  

Market, By Size of Hospital

• Large hospitals
• Medium-sized hospitals
• Small hospitals

Market, By Type of Hospital

• Private
• Public

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa