The global revenue cycle management market size is projected to reach USD 216,990.6 million by 2026, exhibiting a CAGR of 12.4% during the forecast period. Rising labor costs in the healthcare sector will be the chief growth driver for this market, enumerates Fortune Business Insights™ in its report, titled “Revenue Cycle Management Market Share and Industry Analysis By Structure (In-house Outsource) By Function (Claims & Denial Management, Medical Coding & Billing, Clinical Documentation Improvement (CDI), Insurance, Others) By Type (Software, Services) and Regional Forecast, 2019 – 2026”. The health industry, especially in western developed countries, is suffering from a severe shortage of healthcare workers and medical professionals.
The supply-demand imbalance has caused wages to skyrocket and have, in turn, considerably raised labor costs in healthcare facilities. For example, according to the US Bureau of Labor Statistics, there have been over 500,000 new hospital positions created in the past decade and employment in hospitals has risen by 13% during the same period. Further, Fitch Ratings notes that while share of labor costs in hospital expenses in 2008 stood at 50.9%, in 2018 they had risen to 54.9%, indicating a stiffening labor market. As a result, healthcare facilities are increasingly demanding innovative technologies that can be used to perform routine tasks such as billing, which will allow staff managing these activities to be engaged in more productive activities.