Hospital Outsourcing Market Growth & Trends
The global hospital outsourcing market size is expected to reach USD 679.2 billion by 2027, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 10.4% from 2020 to 2027. Hospitals are increasingly outsourcing internal activities to third-party service providers to control the rising costs of providing services, focus on the core competencies, and avail access to service professionals.
Along with the financial benefits, outsourcing of hospital services promotes access to skilled personnel to take care of both clinical and non-clinical responsibilities. The availability of experienced and professionally qualified manpower is very important in the healthcare sector as it is a people-driven industry.
In the hospital industry, patient satisfaction mainly depends on the human touch and the services offered by the staff. Hence, the hospitality aspect plays a vital role, and finding clinically qualified labor with essential soft skills is a task, thus requiring external assistance.
In addition, hospitals outsource their internal activities to third-party service providers as it allows healthcare professionals to focus on patient needs and deliver quality care. Non- clinical services that are routinely outsourced are facility management, catering, laundry, and home care staffing.
The introduction of the value-based care reforms has increased pressure on the healthcare facilities to offer cost-effective care and reduce inpatient volumes in the facilities. To maintain profitability in such a situation, hospitals are outsourcing their services to reduce cost consumption.
However, lack of control, continuity, dependency, long turnaround than in-house, and limited commitment to client organizations are a few challenges being faced by the market, which are expected to impact its growth over the forecast period.
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Hospital Outsourcing Market Report
Hospital Outsourcing Market Report Highlights
- The clinical services segment is expected to register the highest CAGR over the forecast period owing to an increase in outsourcing of laboratory and investigation services such as microbiology, x-rays, pathology, magnetic resonance imaging, radiology, and nuclear medicine
- The private segment dominated the market and is expected to register the highest CAGR over the forecast period, owing to the cost restrictions followed by operational flexibility in the industry
- North America dominated the market in 2019 and accounted for the largest revenue share of 71.1% due to the high penetration/affinity towards outsourcing within the region. Furthermore, it is flooded with numerous service providers that are competent in providing high quality and regulatory compliance
- The Middle East and Africa is expected to register the highest CAGR over the forecast period owing to the expansion of healthcare, leading to new healthcare facilities being opened over the next 10 years
Hospital Outsourcing Market Segmentation
Grand View Research has segmented the global hospital outsourcing market based on service, type, and region:
Hospital Outsourcing Services Outlook (Revenue, USD Billion, 2016–2027)
- Healthcare IT
- Clinical services
- Business services
- Transportation services
Hospital Outsourcing Type Outlook (Revenue, USD Billion, 2016–2027)
List of Key Players of Hospital Outsourcing Market
- Cerner Corporation
- The Allure Group
- Integrated Medical Transport
- Aramark Corporation
- LogistiCare Solutions, LLC
- Flatworld Solutions
- Alere, Inc.
- ABM Industries Inc.