Global Hospital Outsourcing Market Size, Trends & Analysis - Forecasts to 2026 By Service (Healthcare IT, Clinical services, Business services, Transportation services, and Other services); By Type (Public, and Private); By Region (North America, Europe, Asia Pacific, MEA, and CSA); End-User Landscape, Vendor Landscape, and Company Market Share Analysis & Competitor Analysis
Hospital Outsourcing Market Insights
The hospital outsourcing market will register an upward trend at a CAGR of 10.55% over the estimated period (2020-2026). In Hospital outsourcing, some operations of a healthcare system are assigned to other vendors or small facilities who have specialization and expertise in that particular area. The lack of in-house technical expertise, capability, and budget constraints are the prime hurdles faced by the private healthcare sector which get resolved by the mutual relationship between the hospital and the third-party service provider. This helps the hospital to sever and focus on its core services like clinical diagnosis, nursing support, and medical care.
Profit enhancement by using local resources and access to a skilled workforce who can deal with both technical and complex issues at the same time is triggering the demand for hospital outsourcing services around the globe. Lack of proficiency in payroll processing, revenue recycle management, central supply system, and home care service is creating opportunities for the market in the coming years. Many multi-specialty hospital chains up to adopt the third-party service for interpretation of imaging results or arranging physician case notes which are expected to boom the outsourcing market in healthcare.
However, data security, language, and culture are some unavoidable restraints affecting the market growth.
Hospital Outsourcing Market: By Service
Given by type of service hospital outsourcing market can be segmented into healthcare IT, clinical services, business services, transportation services, and other services
Clinical service is the highest revenue-building segment of the hospital outsourcing market. Clinical service comprises laboratory services (pathology and microbiology), dialysis, radiology, mental health, nuclear medicine, pharmacy, and others. Between the mentioned time frame hospitals are expected to outsource the aforementioned services from third-party service providers at a much higher rate than other segments.
Although other segments include services related to security, housekeeping, laundry, and maintenance which accounted for the largest revenue share of 2019 business and expected to proliferate the demand in the coming years.
Hospital Outsourcing Market: By Type
Based on type, the hospital outsourcing market is bifurcated into two segments public, and private. The private segment showed the largest growth in the last year and is expected to grow at the highest CAGR in the conjecture period. The reason behind the significant growth is the restriction on cost coupling with operational flexibility and focus on core clinical business. Private hospital outsourcing targets to achieve customer satisfaction with the help of skilled professionals. Change in government regulatory hospital policies and insufficient in-house services to solve complex problems leads to build outsourcing business in private hospital sectors.
Hospital Outsourcing Market: By Region
North America builds the largest revenue share of the 2019 hospital outsourcing market owing to the high involvement of service providers and the increasing outsourcing of local hospitals in the region. Adoption of the digital platform for storing huge data of patients many developed countries like the U.S are shifting their interest in outsourcing services.
The Middle East is projected to show the fastest growth peak between the estimated time frame as countries like Saudi Arabia are more inclined towards new technologies at a cut-down cost.
Hospital Outsourcing Market Share and Competitor Analysis
The key players operating in the market include Sodexo, Aramark Corporation, Flatworld Solutions, Allscripts, Cerner Corporation, Integrated Medical Transport, LogistiCare Solutions, LLC, The Allure Group, Alere, Inc, and ABM Industries Inc. among others.
Please note: This is not an exhaustive list of companies profiled in the report.
In August 2020, Allscripts collaborated with Israel’s Sheba Medical Center to upscale the pace of AI technology and provide quality patient care. ARC innovation center is the backbone of the partnership, which is bringing new technology into the healthcare system.
In September 2020, Cerner Corporation announced its partnership with Finland regional leadership. The prime aim of the collaboration is to provide high-quality care and social services with the help of government investment.
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The Global Hospital Outsourcing Market has been studied from the year 2017 till 2026. However, the CAGR provided in the report is from the year 2018 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply side analysis for the Hospital Outsourcing Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the companies and customer analytics.
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