U.S. Medical Billing Outsourcing Market To Reach $17.69 Billion By 2033

U.S. Medical Billing Outsourcing Market Growth & Trends

The U.S. medical billing outsourcing market size is expected to reach USD 17.69 billion by 2033, registering a CAGR of 12.56% from 2026 to 2033, according to a new report by Grand View Research, Inc. Increasing complexity in health reimbursement and high chances of claim denials are expected to drive market growth. The growing burden of the patient pool, patient data, and claims volumes during and after the pandemic forced the hospital industry to outsource services. This is expected to propel market growth during the forecast period.

The challenges faced by in-house billing services during the pandemic increased the need for an alternative, such as outsourcing services. The challenge mounts when the billing process necessitates adherence to the ICD-11 code and dealing with declining reimbursements and rising healthcare costs. Several healthcare providers such as acute care hospitals and clinics/physician offices prefer outsourcing their billing processes to curb or eliminate these challenges.

The healthcare companies are expanding their product offerings to relieve the burden of claims and reimbursement processes. For instance, in April 2023, Concierge Diagnostics Inc., a mobile diagnostic imaging company in South Florida, added medical billing and consulting services to its portfolio of over 100 referral partners. The aim is to enhance revenue and minimize claim denial while reducing costs for physician practices.

Acceptance of revenue cycle management (RCM) in various healthcare facilities varies with application. Scheduling, coding, billing, patient registration, and claims processing are adopted more than other RCM applications in the U.S. Advantages associated with outsourcing medical billing services include improvement in billing process by decreasing errors, swift turnaround time, and smooth administrations for hospitals and other medical institutes.

The COVID-19 pandemic drastically impacted the market. Reduction in hospital revenue and patient volumes slowed down market growth. New billing and telehealth codes were introduced during the pandemic. Growing patient burden and increased workload on healthcare staff posed a challenge to adapt new codes as well as implement them into the setting. Medical billing providers have spent significant amounts on resources and technology, which can be utilized by healthcare providers after outsourcing the billing process.

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U.S. Medical Billing Outsourcing Market Report Highlights

• Based on components, the outsourced segment held the largest revenue share of 58.41% in 2025 and is expected to grow fastest over the forecast period.

• Based on service, the front-end services segment dominated the market with a revenue share of 38.69% in 2025. Moreover, middle-end services are anticipated to witness the fastest growth in the coming years due to the entry of new market players, growing awareness among healthcare practitioners, and increasing service adoption.

• Based on end-use, the hospital segment accounted for the largest revenue share of 46.97% in 2025. The physician offices segment is projected to grow fastest during the forecast period.

U.S. Medical Billing Outsourcing Market Segmentation

Grand View Research has segmented U.S. medical billing outsourcing market report based on component, service, and end-use:

U.S. Medical Billing Outsourcing Component Outlook (Revenue, USD Million, 2021 - 2033)

• In-House

• Outsourced

U.S. Medical Billing Outsourcing Service Outlook (Revenue, USD Million, 2021 - 2033)

• Front-end Services

• Middle-end Services

• Back-end Services

U.S. Medical Billing Outsourcing End-use Outlook (Revenue, USD Million, 2021 - 2033)

• Hospitals

• Physician Offices

• Others

List of Key Players of U.S. Medical Billing Outsourcing Market

• R1RCM Inc.

• Veradigm LLC (Allscripts Healthcare, LLC)

• Oracle (Cerner Corporation)

• eClinicalWorks

• Kareo, Inc.

• McKesson Corporation

• Quest Diagnostics

• Promantra Inc.

• AdvancedMD, Inc.

• eBilling Inc