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Medical Coding Market size was valued at USD 14.4 billion in 2023 and is expected to exhibit growth at a CAGR of 10.1% from 2024 to 2032. This high growth is attributed to growing focus on streamlining healthcare processes, extensively increasing hospital visits, and rising emphasis on fraud detection and control. Moreover, increasing prevalence of chronic conditions is also expected to have substantial impact on the growth of market during the forecast period.
In addition, implantation of government regulations is also projected to accelerate market growth by 2032. For instance, in July 2024, the U.S. Department of Health and Human Services (HHS) proposed a new rule for physician payment in order to improve patient care along with quality of healthcare services. Furthermore, the increasing volume of healthcare data, fueled by the rising prevalence of chronic diseases and the aging population, necessitates the demand for medical coding services.
Report Attribute | Details |
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Base Year: | 2023 |
Medical Coding Market Size in 2023: | USD 14.4 Billion |
Forecast Period: | 2024 - 2032 |
Forecast Period 2023 - 2032 CAGR: | 10.1 |
2023 Value Projection: | USD 34.2 Billion |
Historical Data for: | 2021 - 2023 |
No of Pages: | 100 |
Tables, Charts & Figures: | 149 |
Segments Covered: | Category, Mode, Application, End-use, and Region |
Growth Drivers: |
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Pitfalls Challenges: |
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Furthermore, growing number of technologically advanced products are boosting the adoption of medical coding platforms. For instance, in December 2023, CorroHealth announced launch of its new AI-driven medical coding platform PULSE. This platform incorporates automation features. Such industrial developments are projected to have positive impact on the market growth.
Medical coding is the process of transforming healthcare diagnoses, procedures, medical services, and equipment into standardized alphanumeric codes. Also, it is one of the important factors in healthcare revenue cycle management. These codes, derived from universally recognized systems such as ICD (International Classification of Diseases), CPT (Current Procedural Terminology), and HCPCS (Healthcare Common Procedure Coding System), are essential for documenting patient information, billing insurance companies, and maintaining accurate medical records.
The medical coding industry is experiencing significant transformations due to technological advancements and evolving regulatory landscapes. One of the key trends is the integration of Artificial Intelligence (AI) and Natural Language Processing (NLP), which is revolutionizing medical coding by automating and enhancing the accuracy of coding tasks. These technologies analyse clinical data to improve coding efficiency, reduce errors, and expedite the revenue cycle?.
Based on category, the market is classified into ICD (International Classification of Diseases), CPT (Current Procedural Terminology), and HCPCS (Healthcare Common Procedure Coding System). The ICD (International Classification of Diseases) segment generated the highest revenue of USD 7 billion in 2023.
Based on mode, the medical coding market is classified into outsourced and in-house. The outsourcing segment dominated the market in 2023 with a market share of 73%.
Based on application, the medical coding market is segmented into oncology, neurology, cardiology, anaesthesia, emergency services, and other applications. The oncology segment dominated the market in 2023 and is anticipated to reach USD 12.1 billion by the end of forecast period.
Based on end use, the medical coding market is segmented into hospitals, diagnostic centres, and other end-users. The hospital segment dominated the market in 2023 and is anticipated to reach USD 22 billion by the end of forecast period.
North America medical coding market accounted for USD 7 billion market revenue in 2023 and is anticipated to grow at CAGR of 9.1% between 2024 – 2032 period.
U.S. medical coding market accounted for USD 6.6 billion market revenue in 2023 and is anticipated to grow at substantial rate during the forecast period.
U.K. medical coding market is projected to grow remarkably in the coming years.
Japan holds a dominant position in the Asia Pacific medical coding market.
The market is characterized by the presence of several key players and a focus on technological innovation and strategic partnerships. These companies are emphasizing on development of technologically advanced products by incorporating intelligent algorithms. Strategic initiatives such as mergers, acquisitions, and collaborations are common strategies employed by key players to strengthen their market position and expand their geographic footprint.
Prominent players operating in the medical coding industry include:
Market, By Category
Market, By Mode
Market, By Application
Market, By End-use
The above information is provided for the following regions and countries:
3M, Episource, Medical Record Associates, LLC., Nuance Communications, Inc., Optum, Inc., Oracle Corporation, Parexel International Corporation, Precyse Solutions LLC, Talix, The Coding Network, and Verisk Analytics, Inc., are some of the major medical coding companies worldwide.
North America medical coding industry is expected to register 9.1% CAGR from 2024-2032 due to adoption of advanced healthcare IT systems, increased focus on healthcare data management, and the need for accurate medical billing and insurance claims in the region.
Medical coding industry from the ICD (International Classification of Diseases) segment reached USD 7 billion in 2023 and is expected to register an appreciable CAGR from 2024-2032 due to its wide adoption and regulatory requirements in healthcare systems worldwide.
Medical coding market size was USD 14.4 billion in 2023 and is expected to register 10.1% CAGR from 2024-2032 due to growing focus on streamlining healthcare processes, extensively increasing hospital visits, and rising emphasis on fraud detection and control worldwide.