According to the newly released Black Book Insights report, the U.S. healthcare outsourcing market continues to grow, reaching $662 billion by 2028 from $366.6 billion in 2025, marking a 21.3% compound annual growth rate (CAGR). This growth is driven by workforce shortages, rising operational complexity, and accelerating digital transformation.
From cost saving to core strategy
Healthcare outsourcing is no longer a means of cutting costs; it has evolved into a strategic imperative. Providers, payers, and public agencies increasingly rely on third-party partners for mission-critical services such as revenue cycle management (RCM), medical billing, healthcare IT, clinical documentation, and virtual care operations.
The report outlines that mid-sized hospitals, rural health systems, and specialty facilities increasingly turn to third-party vendors for RCM, IT services, and patient access support to streamline reimbursement and bridge staffing gaps.
Similarly, health plans and insurers leverage outsourcing to manage utilization, boost analytics, and enhance member engagement in support of value-based care. Government agencies also use outsourced models to modernize public health infrastructure while keeping costs under control.
RCM and billing lead market surge
Among all segments, RCM and medical billing services experience the fastest growth. The RCM market is projected to expand from $34.7 billion in 2025 to $51.8 billion by 2028, as providers aim to streamline collections and reduce reimbursement delays.
According to Black Book, medical billing outsourcing is expected to rise from $19.3 billion to $29.8 billion by 2028. A separate Polaris Market Research report projects that the U.S. medical billing outsourcing market will reach $18.88 billion by 2034, driven by growing telemedicine adoption, AI integration, and billing complexity.
Healthcare IT outsourcing is another high-growth area, forecasted to reach $80.2 billion by 2028 as providers invest in cloud computing, cybersecurity, and data interoperability. Meanwhile, the demand for virtual staffing, patient access solutions, and clinical documentation has driven healthcare services outsourcing to grow from $152.5 billion in 2025 to $217.9 billion by 2028.
A strategic shift in healthcare operations
The healthcare sector is grappling with immense pressure to deliver quality care amid staff shortages, defend against increasing cyber threats, and prepare for potential healthcare funding cuts, including Medicare.
Hospitals increasingly outsource non-core functions such as IT and facilities management to address these concerns, allowing greater focus on patient care. In the U.S., this trend is deepening as organizations face regulatory burdens and labor shortages. Managed services remain essential for resilience, scalability, and continuity in modern healthcare operations.
Furthermore, a surge in mergers and acquisitions, especially among analytics, member services, and population health vendors, is reshaping the competitive landscape and aligning outsourcing providers more closely with the evolving strategic priorities of healthcare payers and providers.
With the U.S. healthcare system’s continuous digitization and decentralization, outsourcing emerges as a solution and a strategic cornerstone of future-ready healthcare delivery.
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ACCESS Newswire. (2025, April 14). Rapid Expansion of Healthcare Outsourcing Market to Reach $662 Billion by 2028, Driven by Workforce Shortages and Digital Transformation, Black Book Report. European Business Magazine. Retrieved from https://europeanbusinessmagazine.com/accessnewswire/rapid-expansion-of-healthcare-outsourcing-market-to-reach-662-billion-by-2028-driven-by-workforce-shortages-and-digital-transformation-black-book-report/
Nualla, JM. (2025, March 13). Healthcare IT sector faces uncertainty amid U.S. policy changes. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/healthcare-it-uncertainty-trump/
