A recent report published by Infinium Global Research on the hospital outsourcing market provides an in-depth analysis of segments and sub-segments in the global as well as regional hospital outsourcing market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional hospital outsourcing market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast, and dollar values of the global hospital outsourcing market. According to the report, the global hospital outsourcing market is projected to grow at a CAGR of 10.6% over the forecast period of 2021- 2027, growing from over USD 278.7 billion in 2020 to more than USD 556 billion in 2027.
The healthcare systems have become very complex over the past few years due to advancements in technology, and development in business models. Many hospitals outsource certain functions such as logistics, IT, and finance. By outsourcing these functions, hospitals can focus more on primary clinical operations. With the help of outsourcing, healthcare providers improve their productivity and offer better comfort and care to patients. Hospital outsourcing solutions further offer benefits including cost savings, human capital reduction, and streamlined operations. Moreover, the market for hospital outsourcing has witnessed several new players entering the industry. Many key players are offering differentiated services to consolidate their position in the market.
The COVID-19 pandemic is had a fairly positive impact on the hospital outsourcing market over a shorter period of time. Several national and local governments executed strict lockdowns during the pandemic, in order to control the spread of the novel coronavirus. These lockdowns disrupted the business operations of several industries including healthcare. Moreover, the growing COVID-19 infection exerted heavy stress on the healthcare industry. Thus, many hospitals outsourced secondary functions such as logistics, IT, and financing. Furthermore, several hospital outsourcing providers offered services for COVID-19 cases. The transportation and rehabilitation services for COVID-19 were in high demand during the pandemic. This, in turn, is anticipated to boost the hospital outsourcing market during the pandemic.
The lack of in-house expertise in certain functions is one of the major drivers for the growth of the hospital outsourcing market. Hospital staff is inadequately qualified to carry out functions such as billing, IT solutions, and logistics. With the help of third-party service providers, hospitals carry out such functions. Moreover, the government has issued several regulations and requirements for third-party service providers to offer their services to healthcare providers. Several government and private organizations grant certificates and licenses to the service providers to offer their services to the healthcare organizations. This further augments the growth of the hospital outsourcing market. However, factors including concerns over data privacy, and lack of properly trained staff are expected to hamper the market growth. Nevertheless, the growing adoption of digital solutions among healthcare providers is anticipated to offer business opportunities for the market players.
In terms of region, North America generated the highest revenue for the hospital outsourcing market in 2020. The increasing investment by the governments to develop healthcare infrastructure is majorly supporting the domination of North America in the global market. Moreover, the higher number of clinics and hospitals in the region is driving the growth of the North American hospital outsourcing market. On the other hand, the Asia Pacific hospital outsourcing market is anticipated to grow with the highest CAGR over the forecast period of 2021-2027. Factors such as improving IT infrastructure, growing demand for affordable healthcare, and favorable government regulations are expected to boost the adoption of hospital outsourcing in this Asia Pacific.
The report on the global hospital outsourcing market covers segments such as service type, and end user. On the basis of service type, the sub-markets include healthcare it services, clinical services, business services, transportation services, and others. On the basis of end user, the sub-markets include public hospitals, and private hospitals.
The report provides profiles of the companies in the market such as Cerner Corporation, The Allure Group, Alere, Inc., Allscripts Healthcare Solutions, Inc., Integrated Medical Transport LLC, ABM Industries Inc., Aramark Corporation, Flatworld Solutions, Sodexo Group, and LogistiCare Solutions, LLC.
The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the hospital outsourcing market. Moreover, the study highlights current market trends and provides forecast from 2021-2027. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.