Hospital Outsourcing Market Analysis

Hospital Outsourcing Market Analysis

To get key market trends

  Download Free Sample

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.