[242 Pages Report] The global computer-assisted coding market is valued at USD 2.76 billion in 2017 and is expected to register a CAGR of 11.5% to reach to USD 4.75 billion by 2022. The growth of the market can be attributed to the transition to ICD-10 coding standards from ICD-9 in North America, the growing demand for CAC solutions, the growing need within the global healthcare system to curtail increasing healthcare costs, improve coding accuracy, and streamline the revenue cycle management procedures. The computer-assisted coding market is expanding with the emergence of new products and applications. These computer assisted coding solutions being used in many applications such as automated computer-assisted encoding, management reporting & analytics, and clinical coding auditing. The base year considered for the study is 2016, and the forecast has been provided for the period between 2017 and 2022.

Market Dynamics

Drivers

Growing adoption of CAC solutions in North America due to the implementation of ICD-10 standards

Increasing implementation of EHR systems

Increasing utilization of CAC solutions to curtail the rising healthcare costs

Growing regulatory requirements for patient data management

Growing focus on physician computer-assisted coding in outpatient settings

Restraints

High implementation and maintenance costs

Lack of on-site CAC support and in-house CAC domain knowledge

Opportunities

Untapped emerging markets

Natural language processing-enabled CAC solutions

Growing adoption of cloud-based solutions

Challenge

Reluctance to adopt CAC solutions among healthcare providers in emerging markets

Implementation of ICD-10 Drive the Global Computer Assisted Coding Market

Many hospitals, especially in North America, are adopting CAC systems to manage the increasing load of coding resulting from the adoption of ICD-10 standards. Major health plans like Medicare have reported a smooth transition to ICD-10 due to rigorous testing for over six years. The ICD-10 coding system requires the use of 72,000 procedure codes and 68,000 CM codes, as opposed to the 4,000 and 14,000 codes, respectively, in the ICD-9 system. The requirement of managing a high volume of codes in the ICD-10 system is in turn driving the demand for automation.

The US is expected to dominate the global CAC market due to the mandated switchover to ICD-10 coding standards in October 2015. This transition may result in a decline in coders� productivity, thereby resulting in lower profitability for hospitals. The implementation of CAC systems can resolve this issue as they enable healthcare organizations to work more efficiently while complying with procedural coding standards as per ICD-10 guidelines. This trend is expected to provide a strong stimulus to the growth of the CAC market in North America in the coming years.

Increasing Consolidations in the Market - Opening New Avenues for Growth in Computer-Assisted Coding Market

Over the last three years, leading players have focused on expanding their presence by acquiring small, regional/local players. For instance, in 2014, 3M HIS (US) acquired Treo Solutions (US) to expand its real-time data analytics and payment redesign businesses. This acquisition helped 3M in broadening its end-user base for its 360 Encompass System. Product portfolio expansion, product integration, and geographic expansion are some of the key objectives behind such acquisitions. The acquisition of smaller players in the high-growth Asian and Central & Eastern European markets is also a key area of focus for market players. This is because having a direct presence in these countries will prove to be considerably beneficial once developed markets become saturated.

Apart from acquisitions, leading market players are pursuing the strategy of partnerships with small and medium-sized companies in order to offer innovative and comprehensive solutions to their customers. The growing focus on improving the interoperability of CAC solutions is a key factor driving partnerships in this market.

The following are the major objectives of the study.

To define, describe, and forecast the global computer-assisted coding market on the basis of product and service, mode of delivery, application, end user, and region.

To provide detailed information regarding the major factors influencing the growth of the market (drivers, restraints, opportunities, challenges, and trends)

To analyze micromarkets with respect to individual growth trends, prospects, and contributions to the overall market

To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market players

To forecast the size of the computer-assisted coding market, in five main regions, namely, North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa

To profile key players in the global computer-assisted coding market and comprehensively analyze their core competencies and market shares

To track and analyze competitive developments such as expansions, partnerships, and alliances; mergers and acquisitions; new product/technology developments; and research and development activities of the leading players in the market

During this research study, major players operating in the computer assisted coding market in various regions have been identified, and their offerings, regional presence, and distribution channels have been analyzed through in-depth discussions. Top-down and bottom-up approaches have been used to determine the overall market size. Sizes of the other individual markets have been estimated using the percentage splits obtained through secondary sources such as Hoovers, Bloomberg BusinessWeek, and Factiva, along with primary respondents. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews with industry experts such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of the primaries on the basis of the company type, designation, and region considered during the research study.

To know about the assumptions considered for the study, download the pdf brochure

The computer assisted coding market comprises a network of players involved in the research and product development; raw material supply; component manufacturing; distribution and sale; and post-sales services. Key players considered in the analysis of the computer assisted coding market are 3M Health Information Systems (US), Optum (US), McKesson Corporation (US), Nuance Communications (US), Cerner Corporation (US), Dolbey Systems (US), Precyse Solutions (nThrive) (US), Craneware (UK), Artificial Medical Intelligence (US), and TruCode (US). Other players include Quest Diagnostics (US), Streamline Health Solutions (US), M-scribe Technologies (US), eZDI Inc. (US), Alpha II LLC. (US), ID GmbH & Co. KGaA (Germany), ZyDoc (US), Coding Strategies (US), Patient Code Software (US), and Flash Code (US) among others.

Major Market Developments

3M Company (US) launched the 3M 360 Encompass System � Professional computer assisted coding software in 2016.

3M Company (US) acquired Semfinder (Switzerland), a medical coding technology company, provided 3M with important new coding technology to help accelerate the availability of the 3M 360 Encompass System in countries adopting electronic medical records in 2016.

In 2016, Optum (US) collaborated with Quest Diagnostics (US), a provider of diagnostic information services, to deliver improved health systems solutions to all segments of the healthcare marketplace.

Target Audience

Computer-assisted coding software vendors

Computer-assisted coding service providers

Healthcare IT solution providers

Hospitals and clinics

Academic medical centers

Nursing homes

Assisted living facilities

Healthcare insurance providers

Market research and consulting firms

Venture capitalists and investors

Computer Assisted Coding Market Report Scope

Global Computer-assisted Coding Market, by Product & Service

Computer-assisted coding solutions Standalone computer-assisted coding software Integrated computer-assisted coding software

Computer-assisted coding services Support & maintenance services Education & training Services



Global Computer-assisted Coding Market, by Mode Of Delivery

Web-based

Cloud-based

On Premises

Global Computer-assisted Coding Market, by Application

Automated computer-assisted encoding

Management reporting & analytics

Clinical code auditing

Global Computer-assisted Coding Market, by End User

Payers

Providers Hospitals Physicians/Clinics Clinical laboratories & diagnostic centers Academic medical centers Other healthcare institutions*



*Other Healthcare Institutions (Nursing Homes, Rehabilitation Centers, and Clinical Research Organizations)

Global Computer-assisted Coding Market, by Region

North America US Canada

Europe France Germany UK Spain Italy Rest of Europe

Asia-Pacific China Japan Australia Rest of Asia-Pacific

Rest of the world Latin America Middle East and Africa



Critical questions which the report answers

What are new application areas which the computer assisted coding companies are exploring?

Which are the key players in the market and how intense is the competition?

Available Customizations

Based on the given market data, MarketsandMarkets offers customizations in the reports as per the client�s specific requirements. The available customization options are as follows:

Geographic Analysis

Further country-wise breakdown of the market in Rest of APAC, Latin America, and Middle East and Africa based on product

Company Information

Detailed analysis and profiling of additional market players (Up to 5)

The global computer-assisted coding market is projected to reach USD 4.75 billion by 2022 at a CAGR of 11.5% during the forecast period. The growth of the market can be attributed to the transition to ICD-10 coding standards from ICD-9 in North America, the rising demand for CAC solutions, the growing need within the global healthcare system to curtail increasing healthcare costs, improve coding accuracy, and streamline the revenue cycle management procedures. However, high implementation and maintenance expenses for computer-assisted coding and lack of on-site CAC support and in-house CAC domain knowledge are likely to hinder the growth of the computer-assisted coding market to some extent.

Computer assisted coding software are used to improve maximize the revenue of organisation by reducing coding errors and maximizing claims reimbursement cycle. Some commonly used computer assisted coding software includes standalone and integrated software. Standalone software is used only for encoding and integrated software is integrated with EHR/EMR, encoder system, voice/text/speech recognition software, CDI, transcription system, and other HIM applications.

The computer assisted coding market has been segmented, on the basis of software and service. The software segment is subsegmented into standalone software and integrated software. The market for integrated computer-assisted coding software segment is expected to grow at the highest CAGR between 2017 and 2022. The growing need for optimized computer-assisted coding software for seamless workflow and successful Data Integration within healthcare provider systems contribute to the rapid growth of the market.

The computer assisted coding market in APAC is expected to grow at the highest CAGR during the forecast period. The growth of this region is primarily driven by the escalating demand to reduce the burden of the healthcare systems, curtail healthcare delivery costs, increasing implementation of Healthcare IT solutions, and the various government initiatives for enabling efficient, affordable, and on-time delivery of quality care. As a result, APAC holds a significant share of the overall computer assisted coding market.

Applications such as automated computer-assisted encoding, management reporting & analytics, and clinical coding auditing drive the growth of computer assisted coding market

Automated Computer-assisted Encoding

Automated computer-assisted encoding is one of those applications enables compliance with regulatory standards for clinical coding, thus ensuring that the information exchanged between different healthcare organizations is consistent, comparable, and meaningful.

Management Reporting & Analytics

The healthcare IT industry is facing challenges to make data accessible, sharable, and actionable. The management reporting and analytics modules of computer-assisted coding are designed to enable coding and revenue managers to monitor and track coding processes throughout the workflow. These tools help in tracking the various stages of coding procedures such as case assignment, recording the point and time of modifications to original coding, and the duration for which the chart was open. With analytics tools, coding data can be examined and used more efficiently in making critical decisions.

Clinical Coding Auditing

Clinical coding auditing reduces regulatory compliance risks by identifying potential patterns for fraud and enables healthcare organizations to maximize reimbursement by improving coding accuracy. Clinical coding audits include a statistical audit, subset audit, percentage audit, and a complete audit. They are aimed at providing a more comprehensive overview of the areas of concern using a more extensive data set. The complete clinical code audit uses all relevant data available to ensure a thorough audit. However, there are a number of solutions in the market that provide customizable auditing options, enabling users to define specific parameters for the information to be used. Such solutions help accelerate the auditing process.

Critical questions the report answers:

Where will all these developments take the industry in the mid to long term?

What are the upcoming industry applications for computer assisted coding software?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst

The high implementation and maintenance costs and lack of on-site CAC support and in-house CAC domain knowledge are major factor restraining the growth of the market. The American Health Information Management Association (AHIMA) states that the cost of the hardware, initial licensing fees, ongoing maintenance fees, and the requisite IT support for CAC systems can cross USD 500,000 a year for a small health system (1,000 beds). Even though smaller hospitals generally pay less in licensing fees for the software, the per-chart coding cost is usually higher. Also, services and maintenance, which include software upgradation as per changing user requirements, represent a recurring expenditure for healthcare organizations. This has adversely affecting the affordability of various computer assisted coding solutions for organisations.