APAC to see highest growth in hospital outsourcing

A rising consolidation in the healthcare industry has promoted its growth in the region.

Although North America maintains the position as the biggest hospital outsourcing market, Asia Pacific is expected to exhibit the highest compound annual growth rate (CAGR) across the world from 2020 to 2027, according to a report from Report Ocean.

This is attributed to a rising consolidation in the healthcare industry, along with surging healthcare costs across developing nations such as China and India, which would create lucrative growth prospects for the hospital outsourcing market across Asia-Pacific.

The global hospital outsourcing market is valued at around $271b in 2019 and is anticipated to grow at a CAGR of more than 10.4% over 2020-2027. Hospitals are gradually outsourcing core activities to third-party service providers, like IT services and medical billing. the report noted.

This is attributed to a dearth of expertise and unavailability of trained professionals in the industry. Further, the industry has transformed outsourcing processes amidst developments of global delivery models, reduction in costs, and facility of secured data access.

“Moreover, the rise in the number of patient visits in hospitals and other healthcare organizations, along with surging healthcare costs are the few factors responsible for the CAGR of the market during the forecast period,” the report added.

According to Statista, in 2018, there were almost 116 million patients visited in healthcare centers, rising from 74 million patients visited in 2009. Similarly, there were nearly 8.3 billion persons who visited hospitals in China in 2018, rising from 5.5 billion since 2009.