(PharmaNewsWire.Com, December 15, 2020 ) 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 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 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.
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.
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.
Region Covered in CAC Market
North America dominated the global computer-assisted coding market. Increasing government support for improving healthcare infrastructure, growing need for reducing healthcare costs, and advancements in healthcare facilities are driving the growth of the computer-assisted coding market in this region.
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