Like the information technology (IT) sector, healthcare business process outsourcing (BPO) has a strong market in the United States. According to a JM Financial report, 80% of its services are delivered offshore, emphasizing the industry’s significant role in global outsourcing.
Rising U.S. healthcare costs, staffing shortages, and complex regulations increase the need for greater efficiency, improved service quality, and cost savings. Healthcare BPO addresses it by managing claims processing, revenue cycle, and patient support.
So far, the market has been lucrative. In 2003, the country’s healthcare market spent $4.8 trillion, while payers and providers allocated $200 billion to operational processes. Of the industry’s total addressable market (TAM), $45 billion (22%) is outsourced.
Overall, the outsourcing trend could achieve a 7% to 12% compound annual growth rate (CAGR).
Roadblocks to healthcare outsourcing
Despite its remarkable growth, U.S. healthcare BPO faces communication barriers, data insecurity, regulatory compliance, evolving technology, and intense competition from emerging destinations.
To maintain trust and service quality, BPO providers and medical organizations must follow federal and state laws such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Upskilling the workforce, adopting artificial intelligence (AI), and strengthening client relationships are also necessary to sustain industry growth.
Tariff tensions: how Trump’s trade policies could shake up healthcare
President Trump’s tariff policies might also worsen stakeholders’ financial burden. The current administration’s 25% on Canada’s products and 20% on China’s imports could raise pharmaceutical, medical supplies, and equipment costs.
Economic pressure might drive more organizations to hire healthcare BPO firms, but this approach could increase technology and infrastructure spending for offshore operations.
Philippines showcases healthcare outsourcing strength in Las Vegas
The Philippines reinforced its status as a top healthcare outsourcing destination at a recent industry event in Las Vegas. The Healthcare Information Management Association of the Philippines (HIMAP) connected Philippine healthcare information management services (HIMS) companies with potential U.S. partners searching for their expertise.
Backed by the Department of Trade and Industry – Export Marketing Bureau (DTI-EMB) and the Philippine Economic Zone Authority (PEZA), the event showcased the country’s digital healthcare, AI, and other innovative healthcare solutions.
With its skilled, English-speaking workforce and competitive pricing, the Philippines remains a top choice for healthcare BPO services.
Read more Unity Communications and industry news on our main BPO News page.
DevDiscourse. (2025, March 10). Healthcare BPO Industry Expands with U.S. Market Dynamics. Retrieved March 10, 2025, from https://www.devdiscourse.com/article/business/3301592-healthcare-bpo-industry-expands-with-us-market-dynamics
