New, smaller buyers are the driving force behind a 14 percent growth in healthcare payer BPO.
DALLAS, February 18, 2015 — As the Affordable Care Act boosts healthcare insurance enrollments as well as the number and value of claims, healthcare payers are outsourcing their business processes at a growing rate; in fact, the healthcare payer business process outsourcing (BPO) market grew at a rate of 14 percent in 2013 to cross US$4 billion in size and is likely to continue at a 14 percent compound annual growth rate for the next few years.
The driving force behind this rapid growth is the adoption of BPO by new, smaller buyers who tend to prefer short-term deals. Claims processing, provider management and member management are the most commonly demanded process by the payers.
These findings and more are discussed in a research report recently published by Everest Group—Healthcare Payer BPO – State of market with PEAK Matrix™ Assessment. The report analyzes the healthcare payer BPO service provider landscape, focusing on a market overview and buyer adoption trends.
In addition, the report features the proprietary PEAK Matrix Assessment, which analyzes the capabilities of 15 leading healthcare BPO service providers, which are categorized as Leaders, Major Contenders, Emerging Players and/or Star Performers. The 2015 healthcare payer BPO Market Leaders—based on their market successes and delivery capabilities—are Accenture, Cognizant, Dell and Xerox.
***Download Complimentary Preview Reports***
- Preview of Healthcare Payer BPO State of Market Report (12 pages)
- PEAK Matrix 2015 Global Preview: Healthcare Payer BPO Service Providers’ Assessment (4 pages)
“The Affordable Care Act is having a tremendous impact on the healthcare payer BPO market, but other factors are shaping the market as well,” said Rajesh Ranjan, partner at Everest Group. “Federal and state-level regulations are playing an increased role in healthcare payer BPO, as are measures to control fraud, waste and abuse. The result is wide windows of opportunity for BPO service providers to help payers who want to streamline operations, reduce costs, speed their time to market with new service plans, and use data analytics to reduce risk.”
High-resolution graphics illustrating key takeaways from these reports can be included in news coverage, with attribution to Everest Group. Graphics include:
- Healthcare provider BPO: One market, two stories
- Market instability drives down healthcare payer BPO deal lengths
- Healthcare payer market changes are driving adoption of more strategic use of BPO
- Increased BPO traction among smaller healthcare payers is driving technology model changes.
- Report: IT Outsourcing (ITO) in the Payer Industry – Annual Report 2014: Regulations on Payers’ Minds
- Report: IT Outsourcing (ITO) in the Payer Industry – Service Provider Landscape with PEAK Matrix™ Assessment 2014: Rise of the Challengers
- Report: Outsourcing Implications of Healthcare Payer-Provider Convergence