AI in Medical Coding Market size is evaluated at USD 3.1 billion in 2024 and is set to cross USD 16.6 billion by the end of 2037, registering more than 13.9% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of AI in medical coding is estimated at USD 3.5 billion.
The increased emphasis on accuracy is fueling the use of artificial intelligence (AI) in medical coding. Cutting-edge tools like robotic process automation (RPA), automated machine learning, and natural language processing (NLP) are revolutionizing the coding process by improving precision and decreasing errors. For example, in March 2023, Clinical technology startup Clinion unveiled a medical coding solution for clinical trials driven by artificial intelligence. The solution improves clinical trial medical coding speed, accuracy, and efficiency. The amount of time and effort needed for coding can be greatly decreased by using sophisticated AI algorithms, which can swiftly evaluate and comprehend enormous volumes of clinical trial data, extract pertinent information, and assign suitable codes.
Significant financial losses result from incorrect billing, false insurance claims, and misinterpretations of medical records. Medical coding software and revenue cycle management services are in higher demand as a result of the growing inefficiencies in medical billing and revenue cycle management. The AI in medical coding market for these services is anticipated to increase significantly as a result of these factors. This market is growing as a result of the ongoing attempts to digitize healthcare in the United States and the adoption of digital technologies like telemedicine, mhealth applications, revenue cycle management software, and electronic health records. For instance, in 2021, the Centers for Disease Control and Prevention estimated that 88.2% of U.S. physician offices used electronic health records.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
13.9% |
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Base Year Market Size (2024) |
USD 3.1 billion |
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Forecast Year Market Size (2037) |
USD 16.6 billion |
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Regional Scope |
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Mode (Outsourced, In-house)
Outsourced segment is anticipated to hold AI in medical coding market share of over 63.8% by the end of 2037. Medical coders with certification and experience working for outsourcing companies are knowledgeable about the most recent rules and guidelines. Higher coding accuracy and compliance are ensured by this experience, which is essential for accurate invoicing and regulatory compliance. Furthermore, without being constrained by workforce levels, outsourcing enables healthcare organizations to quickly scale up or down their coding operations in response to demand. This flexibility helps to drive segmental growth because it is especially useful at busy times or when dealing with abrupt spikes in patient volumes.
Healthcare providers can take advantage of AI-driven coding benefits without having to make the initial financial investment by contracting with specialized vendors for medical coding services. It offers affordable options, particularly for smaller medical facilities. In addition to relieving internal workers of coding responsibilities, outsourced coding services may quickly integrate AI technology, guaranteeing code correctness, scalability, and compliance. This strategy makes outsourcing a desirable option in the developing field of AI in medical coding since it helps healthcare organizations simplify their processes, cut expenses, and concentrate on core healthcare responsibilities.
End use (Healthcare Providers & Diagnostic Centers, Insurance Companies, Medical Coding Companies, Government Bodies)
In AI in medical coding market, healthcare providers & diagnostic centers segment is projected to hold revenue share of more than 44.9% by 2037 due to its essential role in putting these technologies into practice and reaping their benefits. Healthcare organizations, such as clinics, hospitals, and medical centers, are eager to increase revenue cycle management, decrease coding errors, and improve operational efficiency. By using AI in medical coding, they can guarantee accurate code assignments, speed up billing processes, and simplify the coding process. This is a major factor in the industry's adoption of AI since it not only saves money and generates more income but also enables healthcare professionals to refocus their energies on providing better patient care.
Our in-depth analysis of the AI in medical coding market includes the following segments:
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Mode |
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Application |
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End use |
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North America Market Analysis
North America AI in medical coding market is expected to hold revenue share of over 54.5% by the end of 2037, owing to developments in technology and improved healthcare infrastructure. One of the main drivers of AI in medical coding market expansion in the region's countries is the rising prevalence of chronic illnesses. For example, the American Cancer Society projects that 1,918,030 new cases of cancer will be diagnosed in the U.S. alone in 2022, necessitating the need for effective hospital billing practices. As a result, it is anticipated that demand for medical coding services will increase, propelling regional AI in medical coding market expansion.
There is a rising need for AI solutions that can increase accuracy and lower the chance of coding errors due to the complexity of medical billing and coding laws in the U.S. The use of AI in medical coding is being driven by this need. The American healthcare system also prioritizes cutting expenses and boosting productivity. In keeping with more general cost-reduction objectives, AI-driven medical coding systems are being used to optimize workflows, lessen administrative demands, and decrease errors.
Asia Pacific Market Analysis
Asia Pacific in AI in medical coding market is expected to experience a stable CAGR during the forecast period due to rising healthcare costs, government programs, technology developments, expanding healthcare infrastructure, the prevalence of chronic illnesses, and outsourcing possibilities. APAC is a strong for AI in medical coding market due to the region's emphasis on developing new healthcare facilities, implementing cutting-edge technology like artificial intelligence, and enhancing healthcare infrastructure. These factors have all contributed to the growing demand for precise and efficient medical coding services.
China is home to much of the world's population. Effective healthcare solutions are becoming more and more necessary as a result of this and the increased frequency of many ailments. In major healthcare systems, artificial intelligence (AI) in medical coding can help ensure proper billing and coding and streamline administrative chores.
The government of Japan is actively promoting advancements in digital health and the use of AI technology in the medical field. The AI in medical coding market is expanding as a result of financing and initiatives designed to encourage the use of AI in medical coding.
To increase their AI in medical coding market share, the major competitors use tactics including alliances, joint ventures, and mergers and acquisitions. Important players are expanding their reach by launching new goods and services. For example, in May 2023, Henry Ford Health and Codametrix jointly presented the Autonomous Bedside Pro (ABP) medical coding solution. With the help of the ABP system, physicians may record clinical documentation in real time. AI algorithms then evaluate this data to provide accurate and compliant codes. This creative approach streamlines the workflow, gets rid of the need for manual coding, and minimizes coding backlogs while increasing productivity and coding accuracy. Here are some leading players in the AI in medical coding market:
Author Credits: Radhika Pawar
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