Hospital Outsourcing Market Report 2025

The hospital outsourcing market size has grown rapidly in recent years. It will grow from $415.51 billion in 2024 to $460.4 billion in 2025 at a compound annual growth rate (CAGR) of 10.8%. The growth in the historic period can be attributed to cost containment, focus on core competencies, regulatory compliance, globalization, risk mitigation, quality improvement.

The hospital outsourcing market size is expected to see rapid growth in the next few years. It will grow to $695.55 billion in 2029 at a compound annual growth rate (CAGR) of 10.9%. The growth in the forecast period can be attributed to patient-centric services, increased complexity in healthcare services, flexibility and scalability, cybersecurity concerns, population health management. Major trends in the forecast period include technological advancements, digital transformation, rise of business process outsourcing (BPO) in healthcare, growing adoption of IT outsourcing, focus on revenue cycle management outsourcing.

The rising number of diabetic patients in hospitals is anticipated to drive the growth of the hospital outsourcing market in the coming years. Hospitals often turn to outsourcing services when patient numbers increase and their existing infrastructure cannot accommodate the demand. This trend is largely due to the surge in chronic illnesses such as diabetes and cardiovascular disease, which leads to more hospital admissions and puts additional pressure on medical procedures. For example, in April 2023, Diabetes UK, a UK-based trade association, reported that approximately 4.3 million individuals in the UK are currently diagnosed with diabetes. Data from the 2021-22 registration period indicates an increase of 148,951 cases compared to 2020-21. Furthermore, over 2.4 million people are identified as being at high risk of developing type 2 diabetes. Thus, the growing flow of diabetic patients in hospitals is driving the expansion of the hospital outsourcing market.

The increasing growth in the geriatric population is poised to drive the growth of the hospital outsourcing market. The geriatric population, comprising elderly or senior citizens, is on the rise, as reported by The United States Census Bureau. Hospital outsourcing provides specialized care, utilizes technology for remote services, and offers cost-effective solutions to address the unique challenges faced by older adults. The country's median age rose by 0.2 years to 38.9 years in 2022, indicating a continued aging trend. Therefore, the rising growth in the geriatric population is driving the growth of the hospital outsourcing market.

Major companies are developing advanced technologies, such as digital platforms, to improve revenue cycle outcomes and increase profitability. In October 2023, Omega Healthcare, a US-based healthcare services company, launched the Omega Digital Platform, employing AI, RPA, ML, bots, and NLP. This platform aims to enhance efficiency in revenue cycle tasks, reduce human intervention, and optimize revenue for various healthcare organizations.

Major companies are focusing on investments to increase profitability. Investments in hospital outsourcing involve financial commitments in services provided by external entities to manage specific functions or processes within a hospital. For instance, in 2023, Warburg Pincus LLC, a US-based equity firm, is set to invest in Everise, a US-based healthcare services outsourcing company, at a valuation of approximately $1 billion. This strategic investment aims to propel Everise as an industry leader through mergers and acquisitions, leveraging Warburg Pincus' extensive network and resources in Asia and the US.

In September 2024, EQT AB, a private equity firm based in Sweden, acquired GeBBS Healthcare Solutions for an undisclosed amount. This acquisition is intended to accelerate growth in the healthcare technology sector by improving revenue cycle management services, broadening customer segments, and strengthening technological infrastructure. This move aligns with EQT's strategy to generate long-term value in the expanding healthcare outsourcing market. GeBBS Healthcare Solutions is a US-based provider specializing in technology-enabled Revenue Cycle Management (RCM) services.

Major companies operating in the hospital outsourcing market include Johnson & Johnson, Abbott Laboratories, MMM Group, 3M Company, Sodexo S.A., Becton Dickinson and Company, Aramark Corporation, ABM Industries Incorporated, Fortive Corporation, Cerner Corporation, Steris Plc, bioMérieux S.A., Getinge AB, AllScripts Healthcare Solutions Inc., LogistiCare Solutions LLC, Alere Inc., Ansell Limited, Cantel Medical, Sotera Health LLC, TriMedx LLC, Halyard Health Inc., Tri Source International Inc., Sterigenics International LLC, Belimed AG, The Allure Group, Flatworld Solutions, Matachana Group, Integrated Medical Transport Inc., Honeywell International Inc., Pal International Ltd., PDI Inc., Reckitt Benckiser Group plc, Schülke & Mayr GmbH.

North America was the largest region in the hospital outsourcing market in 2024. The regions covered in the hospital outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hospital outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Hospital outsourcing involves assigning certain hospital processes to another vendor or specialized facility to support hospital processes and ensure smooth operations.

The main types of hospitals in the hospital outsourcing market are private and public. A private hospital refers to a hospital that is not owned by the government, these hospitals provide various types of services and activities conducted for the development and smooth function of hospitals. The various sizes of hospitals include small and medium hospitals and large hospitals that provide several services such as healthcare IT, clinical services, business services, transportation services, and others. The various end-users include nursing homes and assisted living, specialty hospitals, general medical and surgical hospitals, emergency and other outpatient care centers, and others.

The hospital outsourcing market research report is one of a series of new reports that provides hospital outsourcing market statistics, including hospital outsourcing industry global market size, regional shares, competitors with a hospital outsourcing market share, detailed hospital outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the hospital outsourcing industry. This hospital outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The hospital outsourcing market includes revenues earned by entities by providing medical administration, medical transcription, it systems management and consultancy services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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