The global hospital outsourcing market is anticipated to reach market size of around US$ 500 Bn by 2027 and is anticipated to grow at a CAGR of around 10% in terms of revenue during the forecast period 2020 - 2027.
Outsourcing encourages hospitals to focus on their core goal of delivering productive healthcare services. Outsourcing supplementary operations can improve financial efficiency by lowering overhead costs and increasing revenue, output, and overhead quality. In hospitals, most auxiliary roles require technical skills or a vast infrastructure.
Market Insights
Hospitals are increasingly contracting third-party functions to external resources such as health accounting and IT resources. As there is little experience and no access to qualified on-site resources, hospitals primarily provide non-participating care providers medical facting and IT services. By establishing and accrediting these service providers, they are also responsible for their quality standards. In addition, in-house expertise, capability and expenditure constraints arise for private hospitals in the field. Contract healthcare providers are the perfect option for containing private hospitals' low cost facilities. This resulted in mutually advantageous ties between hospitals and third-party vendors. In the fields of sales cycle management, payroll processing and central supply management, and home utilities, there are also important factors that fuel demand during the expected period of volatility and a lack of expertise. The growing concern for data security, cultural and linguistic gaps is projected to continue to restrict the growth of the hospital sector during the projected period.
Currently, the healthcare sector is seeing by the federal requirement to offer Electronic Medical Records (EMR) an expansion in outsourcing of in-house facilities, increased insurance expenses and the introduction of complex ICD-10 coding schemes. The growth of the market can be supported by the increasing patient traffic and pressure of medical processes, such as health eligibility and patient check-in records.
Due to the involvement of a large number of service providers in the region, North America represented the highest revenue share of 71.1% in 2019. Furthermore, the rising outsourcing of local hospitals pushes the hospital externalization markets in the area further. Since hospitals follow the paperless method in developing nations, such as the US, there's a massive volume of patient data, so many hospitals employ third-party service vendors to handle such vast volumes of data. The growth of the hospital outsourcing industry in the area is expected to be led. However, it is predicted that Middle East and Africa will record the highest growth during the estimated timeframe as hospital facilities are more and more outsourced to countries like Saudi Arabia. There is estimated to be a large demand in the area because of the available professional capital, low-cost facilities and rising use of modern technology.
The other segment was the largest share of sales in 2019 at 39.0%, including laundry, cafeteria and catering, defense, housing and maintenance. However, the highest CAGR of 11.3% over the forecast period is projected to be registered in the Clinical Services Segment as hospitals can outsource these services to third-party service providers or joint partners in a wide scale. Medical facilities include laboratory (pathology and microbiology), radiology, pharmaceuticals, dialysis and recovery.
The outsourcing industry of hospitals is highly competitive and involves many main players. However, the medium-sized firms have expanded their market presence by launching new goods and services at low costs, through technical advances and product improvements. Some of the prominent players in the hospital outsourcing market include Sodexo, Cerner Corporation, The Allure Group, Allscripts, Integrated Medical Transport, LogistiCare Solutions, LLC, Flatworld Solutions, Aramark Corporation, Alere, Inc., ABM Industries Inc., and others.
The global hospital outsourcing market is segmented as below:
Market Segmentation
Hospital Outsourcing Market By Service
Healthcare IT
Clinical services
Business services
Transportation services
Others
Hospital Outsourcing Market By Type
Public
Private
Hospital Outsourcing Market By Geography
North America
Europe
- UK
- Germany
- France
- Spain
- Rest of Europe
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
Middle East & Africa
- GCC
- South Africa
- Rest of Middle East & Africa
CHAPTER 1. Industry Overview of Hospital Outsourcing
1.1. Definition and Scope
1.1.1. Definition of Hospital Outsourcing
1.1.2. Market Segmentation
1.1.3. Years Considered for the Study
1.1.4. Assumptions and Acronyms Used
1.1.4.1. Market Assumptions and Market Forecast
1.1.4.2. Acronyms Used in Global Hospital Outsourcing Market
1.2. Summary
1.2.1. Executive Summary
1.2.2. Hospital Outsourcing Market By Type
1.2.3. Hospital Outsourcing Market By Service
1.2.4. Hospital Outsourcing Market by Regions
CHAPTER 2. Research Approach
2.1. Methodology
2.1.1. Research Programs
2.1.2. Market Size Estimation
2.1.3. Market Breakdown and Data Triangulation
2.2. Data Source
2.2.1. Secondary Sources
2.2.2. Primary Sources
CHAPTER 3. Market Dynamics And Competition Analysis
3.1. Market Drivers
3.1.1. Driver 1
3.1.2. Driver 2
3.2. Restraints and Challenges
3.2.1. Restrain 1
3.2.2. Restrain 2
3.3. Growth Opportunities
3.3.1. Opportunity 1
3.3.2. Opportunity 2
3.4. Porter’s Five Forces Analysis
3.4.1. Bargaining Power of Suppliers
3.4.2. Bargaining Power of Buyers
3.4.3. Threat of Substitute
3.4.4. Threat of New Entrants
3.4.5. Degree of Competition
3.5. Market Concentration Ratio and Market Maturity Analysis of Hospital Outsourcing Market
3.5.1. Go To Market Strategy
3.5.1.1. Introduction
3.5.1.2. Growth
3.5.1.3. Maturity
3.5.1.4. Saturation
3.5.1.5. Possible Development
3.6. Technological Roadmap for Hospital Outsourcing Market
3.7. Value Chain Analysis
3.7.1. List of Key Manufacturers
3.7.2. List of Customers
3.7.3. Level of Integration
3.8. Regulatory Compliance
3.9. Competitive Landscape, 2019
3.9.1. Player Positioning Analysis
3.9.2. Key Strategies Adopted By Leading Players
CHAPTER 4. Hospital Outsourcing Market By Type
4.1. Introduction
4.2. Hospital Outsourcing Revenue By Type
4.2.1. Hospital Outsourcing Revenue (US$ Mn) and Forecast, By Type, 2016-2027
4.2.2. Public
4.2.2.1. Public Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
4.2.3. Private
4.2.3.1. Private Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
CHAPTER 5. Hospital Outsourcing Market Revenue By Service
5.1. Introduction
5.2. Hospital Outsourcing Revenue (US$ Mn) By Service
5.2.1. Hospital Outsourcing Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
5.2.2. Healthcare IT
5.2.2.1. Healthcare IT Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.3. Clinical services
5.2.3.1. Clinical services Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.4. Business services
5.2.4.1. Business services Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.5. Transportation services
5.2.5.1. Transportation services Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
5.2.6. Others
5.2.6.1. Others Market Revenue (US$ Mn) and Growth Rate (%), 2016-2027
CHAPTER 6. North America Hospital Outsourcing Market By Country
6.1. North America Hospital Outsourcing Overview
6.2. U.S.
6.2.1. U.S. Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
6.2.2. U.S. Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
6.3. Canada
6.3.1. Canada Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
6.3.2. Canada Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
6.4. North America PEST Analysis
CHAPTER 7. Europe Hospital Outsourcing Market By Country
7.1. Europe Bioanlytical Testing Services Market Overview
7.2. U.K.
7.2.1. U.K. Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
7.2.2. U.K. Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
7.3. Germany
7.3.1. Germany Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
7.3.2. Germany Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
7.4. France
7.4.1. France Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
7.4.2. France Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
7.5. Spain
7.5.1. Spain Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
7.5.2. Spain Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
7.6. Rest of Europe
7.6.1. Rest of Europe Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016-2027
7.6.2. Rest of Europe Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016-2027
7.7. Europe PEST Analysis
CHAPTER 8. Asia Pacific Hospital Outsourcing Market By Country
8.1. Asia Pacific Hospital Outsourcing Market Overview
8.2. China
8.2.1. China Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.2.2. China Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.3. Japan
8.3.1. Japan Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.3.2. Japan Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.4. India
8.4.1. India Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.4.2. India Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.5. Australia
8.5.1. Australia Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.5.2. Australia Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.6. South Korea
8.6.1. South Korea Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.6.2. South Korea Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.7. Rest of Asia-Pacific
8.7.1. Rest of Asia-Pacific Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
8.7.2. Rest of Asia-Pacific Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
8.8. Asia Pacific PEST Analysis
CHAPTER 9. Latin America Hospital Outsourcing Market By Country
9.1. Latin America Hospital Outsourcing Market Overview
9.2. Brazil
9.2.1. Brazil Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
9.2.2. Brazil Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
9.3. Mexico
9.3.1. Mexico Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
9.3.2. Mexico Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
9.4. Rest of Latin America
9.4.1. Rest of Latin America Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
CHAPTER 10. Middle East & Africa Hospital Outsourcing Market By Country
10.1. Middle East & Africa Hospital Outsourcing Market Overview
10.2. Saudi Arabia
10.2.1. Saudi Arabia Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
10.2.2. Saudi Arabia Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
10.3. UAE
10.3.1. UAE Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
10.3.2. UAE Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
10.4. Rest of Middle East & Africa
10.4.1. Rest of Middle East & Africa Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Type, 2016 - 2027
10.4.2. Rest of Middle East & Africa Hospital Outsourcing Market Revenue (US$ Mn) and Forecast By Service, 2016 - 2027
CHAPTER 11. PLAYER ANALYSIS OF STROKE MANAGEMENT
11.1. Hospital Outsourcing Market Company Share Analysis
11.2. Competition Matrix
11.2.1. Competitive Benchmarking of key players by price, presence, market share, and R&D investment
11.2.2. New Product Launches and Product Enhancements
11.2.3. Mergers And Acquisition In Global Hospital Outsourcing Market
11.2.4. Partnership, Joint Ventures and Strategic Alliances/ Sales Agreements
CHAPTER 12. COMPANY PROFILE
12.1. Sodexo
12.1.1. Company Snapshot
12.1.2. Business Overview
12.1.3. Financial Overview
12.1.3.1. Revenue (US$ Mn), 2019
12.1.3.2. Sodexo 2019 Hospital Outsourcing Business Regional Distribution
12.1.4. Product/ Service and Specification
12.1.5. Recent Developments & Business Strategy
12.1.6. Manufacturing Plant Footprint Analysis
12.2. Cerner Corporation
12.3. The Allure Group
12.4. Allscripts
12.5. Integrated Medical Transport
12.6. LogistiCare Solutions, LLC
12.7. Flatworld Solutions
12.8. Aramark Corporation
12.9. Alere, Inc.
12.10. ABM Industries Inc.
12.11. Others
