Rapid Expansion of Healthcare Outsourcing Market to Reach $662 Billion by 2028, Driven by Workforce Shortages and Digital Transformation, Black Book Report
From Cost-Cutting to Core Strategy: "Managed Services" Becomes Healthcare's New Operating System
NEW YORK, April 14, 2025 (Newswire.com) - The U.S. healthcare outsourcing market is experiencing explosive growth, with total market value expected to surge from $366.6 billion in 2025 to $662 billion by 2028, according to the newly released Black Book Insights research report, The Rapid Expansion of Healthcare Outsourcing: Strategic Outlook 2025-2028. The full report, including the complete dataset, detailed segment analysis, and additional forecasts, is now available for download at the Black Book website for the spectrum of healthcare and medical managed services vendors.
The current report underscores how healthcare outsourcing is becoming a strategic necessity-driven by critical workforce shortages, accelerating digital transformation, payer complexity, and rising costs. The research evaluates outsourcing across core segments including revenue cycle management (RCM), IT services, clinical operations, pharmacy, imaging, emergency services, and remote monitoring.
Key Findings from the Report
Market Growth: U.S. healthcare outsourcing is projected to grow from $366.6 billion in 2025 to $662 billion by 2028, at a 21.3% compound annual growth rate (CAGR). The U.S. BPO (Business Process Outsourcing) segment alone is forecasted to reach $151.2 billion in 2025.
Growth Drivers: Workforce shortages, financial pressures, modernization of IT infrastructure, and a post-pandemic shift to virtual services are fueling adoption.
Fastest-Growing Segments: RCM, medical billing, healthcare IT outsourcing, and clinical documentation support are among the top expanding categories, with CAGRs ranging from 6.2% to 15.3%.
Strategic Insights for Providers, Payers, and Public Health Agencies
The report outlines how healthcare entities are leaning into outsourcing for both strategic advantage and operational continuity:
Healthcare Providers are increasingly outsourcing RCM, IT, virtual care, and patient access support-particularly mid-sized hospitals, rural systems, and specialty practices.
Health Plans and Payers are leveraging outsourcing for utilization management, analytics, and member engagement to enhance performance in value-based care models.
Government Agencies are modernizing infrastructure and reducing costs through outsourced solutions to meet growing public health demands.
Segment Highlights
Revenue Cycle Management (RCM): Market size projected to grow from $34.7 billion in 2025 to $51.8 billion by 2028 (14.3% CAGR), with providers aiming to improve collections and streamline reimbursement complexity. Black Book is publishing its annual "Black Book of Revenue Cycle Management Solutions" report next week in a separate one hundred page comprehensive resource.
Medical Billing Outsourcing: Expected to climb from $19.3 billion to $29.8 billion by 2028 (15.3% CAGR), driven by solo practices and specialty clinics adapting to increasing coding and billing complexity.
Healthcare IT Outsourcing: On track to reach $80.2 billion by 2028, with major investment areas in cloud services, cybersecurity, and data interoperability.
Healthcare Services Outsourcing: The largest and most rapidly growing segment, forecasted to expand from $152.5 billion in 2025 to $217.9 billion by 2028 (12.6% CAGR), encompassing clinical documentation, patient access, and virtual staffing solutions.
Recent Developments in Healthcare Outsourcing
Hospital Outsourcing Market Expansion: Hospitals globally are increasingly turning to external partners for non-core functions such as facilities management, medical billing, and IT to refocus resources on patient care.
Surge in Healthcare M&A Activity: The payer outsourcing market is undergoing significant transformation due to a spike in mergers and acquisitions (M&A) activity. This consolidation is reshaping competitive dynamics, enhancing scale and service breadth, and aligning outsourcing vendors more closely with payer strategic goals. M&A momentum is expected to intensify in 2025, particularly among vendors specializing in analytics, member services, and population health management.
The Future of Healthcare Outsourcing
According to Black Book's analysis, outsourcing is evolving from a cost-saving measure to a core operational and strategic pillar in healthcare. As the industry grapples with persistent labor shortages, inflationary pressure, and rising operational complexity, outsourcing partners are being redefined not only as vendors-but as essential infrastructure for scale, resilience, and digital-first patient engagement.
Download the full April 2025 report and access the expanded dataset now at:
https://blackbookmarketresearch.com/the-rapid-expansion-of-healthcare-industry-outsourcing
The list of top-rated Managed Services and Outsourcing Vendors is available at:
https://blackbookmarketresearch.com/outsourcing-and-managed-services
About Black Book Research
Black Book Research was founded by Doug Brown, author of the bestselling The Black Book of Outsourcing (Wiley, 2005, 2010), the first definitive guide to offshore and domestic outsourcing across industries such as business process management, financial services, legal, engineering, and IT. With decades of expertise in managed services strategy, Brown and his team have become trusted authorities in outsourcing innovation, extending their focus to the healthcare sector in 2011.
Since then, Black Book Research has become a leading market research and advisory firm specializing in healthcare business process outsourcing (BPO), technology modernization, and operational transformation. By leveraging deep expertise in workforce challenges, regulatory environments, and tech-enabled scale, the firm provides actionable insights to healthcare providers, payers, and public health agencies. Black Book empowers organizations to achieve sustainable growth, operational efficiency, and improved patient outcomes in a dynamic healthcare landscape.
www.blackbookmarketresearch.com
Source: Black Book Research
