Medical Billing Statistics


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Medical Billing Statistics 2023: Facts about Medical Billing outlines the context of what’s happening in the tech world.

LLCBuddy editorial team did hours of research, collected all important statistics on Medical Billing, and shared those on this page. Our editorial team proofread these to make the data as accurate as possible. We believe you don’t need to check any other resources on the web for the same. You should get everything here only 🙂

Are you planning to form an LLC? Maybe for educational purposes, business research, or personal curiosity, whatever the reason is – it’s always a good idea to gather more information about tech topics like this.

How much of an impact will Medical Billing Statistics have on your day-to-day? or the day-to-day of your LLC Business? How much does it matter directly or indirectly? You should get answers to all your questions here.

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Top Medical Billing Statistics 2023

☰ Use “CTRL+F” to quickly find statistics. There are total 72 Medical Billing Statistics on this page 🙂

Medical Billing “Latest” Statistics

  • By converting what Equifax discovered into a rough ratio, it is assumed that 13% of all medical bills are inaccurate.[1]
  • In emergency departments across the country, 18% of visits result in at least 1 surprise bill, but rates vary by state.[2]
  • Around 75% of health systems said in the poll that they intended to transition to automation technologies to deal with the evolving dynamics of the RCM medical billing business.[3]
  • More than 50% of the health systems already use any such tools for RCM medical billing felt that more such cutting edge technologies created particularly to solve the existing RCM pain points would be beneficial.[3]
  • For the revenue cycle operations, more than 66% of hospitals and healthcare institutions now employ automation systems.[3]
  • Using automation technologies was well received by more than 80% of health institutions with more than $10 billion in revenue.[3]
  • 38.5% of healthcare companies reported working with a single vendor that oversees all facets of the RCM medical billing process.[3]
  • Over 25% of the provider organizations are working towards building remote working technologies for any future purpose though they are not in favor of going completely remote as of now.[3]
  • More than 60% of the firms want to introduce new technologies by the end of 2021, compared to 30% who did not employ automation in their normal RCM medical billing activities.[3]
  • The National Heath Care Anti-Fraud Association estimates conservatively that health care fraud costs the nation about $68 billion annually — about 3% of the nation’s $2.26 trillion in health care spending.[4]
  • 41% of working-age Americans are either experiencing medical bill issues or are paying medical debt, up from 34% in 2005.[5]
  • In 2016, 68% of patients with up to $500 in medical bills didn’t pay off the full balance, a 19 percentage point increase from 2014.[5]
  • According to InstaMed, 39% of healthcare professionals claim that billing and collections have little impact on patient satisfaction.[6]
  • In 2021, according to 49% of medical practices, the number of days spent on Accounts Receivable grew.[6]
  • According to InstaMed, 71% of consumers expect telehealth to be an option at least some of the time, and nearly half want it whenever possible.[6]
  • Medical offices have modified their operations in response to shortages, with 76% of practices seeing personnel as their main pandemic concern.[6]
  • In order to have a better experience with payments, 74% of millennials and only 27% of baby boomers would switch healthcare providers.[6]
  • 83% of hospitals failed to abide with at least one significant CMS pricing transparency regulation requirement.[6]
  • A smartphone app for paying medical expenses would be downloaded and used by 85% of millennials.[6]
  • Already existing automated administrative procedures save providers an estimated $166 billion yearly.[6]
  • Consumer out-of-pocket healthcare costs are estimated to reach $491.6 billion (roughly $1,650 per person) by 2025.[6]
  • 48% of families paid for healthcare in the previous year, and 17% paid $1,500 or more.[6]
  • By completely implementing electronic transactions, the healthcare industry may save $20 billion, or 48% of current annual spending.[6]
  • 9% of customers who get medical bills in the mail wish to pay them using paper checks, even though 70% of consumers do.[6]
  • 25% of customers have abandoned a medical bill transaction because they were unable to pay with a credit or debit card.[6]
  • According to Hayes Management, In the first 10 months of 2021, 40% of all coronavirus-related claims were rejected.[6]
  • 3% of customers have actually registered in electronic healthcare statements, despite 73% of consumers saying they would.[6]
  • According to InstaMed, 87% of customers prefer to pay for all of their medical expenses in one location.[6]
  • The anticipated employment outlook for medical coding and billing is 8%, which is substantially quicker than the national average.[6]
  • Only 10% of providers and 1% of payers, respectively, chose paper checks for payment and electronic funds transfers with fees.[6]
  • According to a Harvard Medical Practice research, 70% of mistakes that result in adverse consequences are thought to be the product of neglect, and more than 90% are seen to be avoidable.[7]
  • Even though 63% of those claims were receivable, it still cost $118 per claim or up to $8.6 billion in administrative expenditures associated with appeals.[7]
  • Paper checks delivered through email continue to be used for 37% of medical claim payments.[7]
  • Compared to six years before, health systems and hospitals wrote off 90% more claim rejections as uncollectible in 2017.[7]
  • By 2020, patient responsibility is anticipated to increase to 50% of healthcare expenses. Hospitals have provided more than $538 billion in uncompensated care.[8]
  • By 2021, 95% of patients are anticipated to fall short of paying off their remaining medical debt.[8]
  • Partition insights medical billing outsourcing was led by the outsourced category, which had the highest revenue share (52.5%).[9]
  • Healthcare providers or companies often spend 30 to 40% of their revenue on the billing process, and it is anticipated that around 20% of doctors’ income would be lost owing to health billing problems.[9]
  • In terms of revenue, North America accounted for 47.5% of the market for medical billing outsourcing in 2021.[9]
  • With a revenue share of 38.9% in 2021, the frontend services sector led the medical billing outsourcing market.[9]
  • From 2022 to 2030, the market for medical billing outsourcing is projected to expand at a compound yearly growth rate of 12.03% , reaching $30.2 billion.[9]
  • The size of the worldwide market for medical billing outsourcing was predicted to be $11.1 billion in 2021 and 12.2 billion in 2022.[9]
  • With a revenue share of 47.1% in 2021, the hospital sector led the market for medical billing outsourcing.[9]
  • 91% of providers still receive paper checks from one or more payers, yet 82% of providers prefer electronic funds transfer from payer.[10]
  • 56% of customers would be unable to afford a medical charge that was greater than $10.[10]
  • Consumers are perplexed by communications from their insurance providers, with 71% of respondents reporting that their Explanation of Benefits is perplexing.[10]
  • 69% of healthcare professionals said that patient responsibility rose in 2018 compared to 2017.[10]
  • 77% of service providers claim that it takes more than a month to get any money.[10]
  • Industry income has expanded over the previous five years at an annualized rate of 12.2% to $49 billion, with an expected growth of 5.7% in 2021 alone.[11]
  • Over the 5 years to 2021, the Medical Billing Services industry has experienced a surge of growth due to heightened downstream demand for industry services.[11]
  • Approximately 18.3% of respondents to the AAPC’s 2016 wage survey work for a big health system, and 13.2% work for large group practices.[12]
  • The BLS predicts that between 2016 and 2026, there will be a 20% increase in the number of jobs available for managers of medical and health services.[12]
  • The Bureau of Labor Statistics predicts that between 2016 and 2026, there will be a 13% growth in the number of jobs for medical records and health information technologists, which includes medical billers and coders.[12]
  • Physician services accounted for the majority of expenses among survey respondents who said they had previously been startled by medical bills (53%), closely followed by laboratory testing (51%).[13]
  • According to a new AmeriSpeak survey from NORC at the University of Chicago, 57% of American adults have been startled by a medical cost that they believed would be covered by insurance.[13]
  • Due to the expense, 21% of persons between the ages of 18 and 64 have not sought a recommended medical test or treatment.[14]
  • According to American Journal of Medicine (2009), 48% of those who filed for bankruptcy due to medical expenses cited hospital costs as their major outlay.[14]
  • Medical expenses or lost wages as a result of illness or caring for others were cited by 62.1% of those who filed for bankruptcy as the cause for their bankruptcy.[14]
  • According to a 2016 Kaiser Family Foundation and New York Times survey, more than 1 in 4 Americans had trouble paying a recent medical bill.[14]
  • According to the California Health Care Foundation (2019), 28% of all U.S health spending is covered by the federal government.[14]
  • According to the American Journal of Medicine, in 2009, 15.1% of those who had medical bankruptcy cited medical costs as their major expenditure.[14]
  • 53% of Americans with unpaid medical bills claim to have negotiated a payment plan with their provider.[14]
  • Doctor visits accounted for 65% of the reported services that caused issues with medical bills.[14]
  • Among those with medical bill problems, 29% say problems with medical debt started causing problems with paying other, non-medical bills.[14]
  • Among those with medical bill problems, 44% say those problems had a major impact on their family.[14]
  • 23% of the total amount spent on private health insurance is covered by the government (mostly, as contributions to employer-sponsored health plans).[14]
  • According to California Health Care Foundation (2019), the U.S spends 33% of its health budget on hospital treatment.[14]
  • The 2019 California Health Care Foundation projects that by 2027, health expenditure will account for 19.4% of GDP.[14]
  • Medicaid spending accounts for 9.5% of the U.S. federal budget. (California Health Care Foundation, 2019).[14]
  • According to Consumer Financial Protection Bureau (2014), 54% of consumers with medical debt have no other debts listed on their credit reports.[14]
  • Medical billers and coders make up 66% of the population and have an average age of 40.[15]
  • The most common ethnicity among medical biller coders is White, which makes up 65.7% of all medical biller coders.[15]

Also Read

How Useful is Medical Billing

One of the primary benefits of medical billing is its ability to streamline the billing process, reducing the administrative burden on healthcare providers. By outsourcing medical billing to specialized billing companies, healthcare providers can focus on what they do best – providing care to patients. This not only helps to expedite the billing process but also ensures that healthcare providers are paid in a timely manner for the services they provide.

In addition to providing support to healthcare providers, medical billing also benefits patients by making healthcare services more accessible and affordable. Medical billing ensures that healthcare providers are adequately compensated for the services they provide, helping to keep healthcare facilities operational and accessible to all patients, regardless of their financial situation. This, in turn, helps to ensure that patients can continue to receive the care they need when they need it most.

Moreover, medical billing plays a crucial role in maintaining regulatory compliance within the healthcare industry. Billing regulations are constantly changing and evolving, requiring healthcare providers to stay up-to-date with the latest developments in order to avoid potential penalties and fines. Medical billing companies specialize in navigating the complex landscape of billing regulations, ensuring that healthcare providers remain compliant with all relevant laws and regulations. This not only helps to protect healthcare providers from legal repercussions but also ensures that patients receive the highest quality of care possible.

Medical billing also helps to facilitate communication between healthcare providers and insurance companies, ensuring that both parties are on the same page when it comes to billing and payments. By working closely with insurance companies, medical billing companies help to resolve any billing discrepancies or issues that may arise, ultimately leading to a more efficient and effective billing process for both healthcare providers and patients.

In conclusion, medical billing is a vital component of the healthcare system that plays a crucial role in ensuring the financial stability of healthcare providers, the accessibility of healthcare services for patients, and the compliance of healthcare facilities with regulatory standards. While it may not be the most glamorous aspect of healthcare, medical billing is an essential function that helps to keep the healthcare system running smoothly and efficiently. Without medical billing, the healthcare system would undoubtedly struggle to function effectively, ultimately leading to decreased access to care for patients and increased financial instability for healthcare providers.

Reference

  1. etactics – https://etactics.com/blog/medical-billing-error-statistics
  2. jamanetwork – https://jamanetwork.com/journals/jama/fullarticle/2760721
  3. qwayhealthcare – https://qwayhealthcare.com/blog/top-statistics-rcm-medical-billing-2021/
  4. bcbsm – https://www.bcbsm.com/health-care-fraud/fraud-statistics.html
  5. beckersasc – https://www.beckersasc.com/asc-coding-billing-and-collections/3-statistics-on-medical-billing-patient-payments.html
  6. collaboratemd – https://www.collaboratemd.com/blog/medical-billing-statistics-and-trends/
  7. drcatalyst – https://www.drcatalyst.com/medical-claim-denials-appeals-statistics-that-you-want-know
  8. financesysteminc – https://www.financesysteminc.com/10-patient-pay-statistics-you-should-know/
  9. grandviewresearch – https://www.grandviewresearch.com/industry-analysis/medical-billing-outsourcing-market
  10. healthleadersmedia – https://www.healthleadersmedia.com/finance/77-providers-say-collecting-any-payment-takes-more-month
  11. ibisworld – https://www.ibisworld.com/united-states/market-research-reports/medical-billing-services-industry/
  12. medicalbillingandcoding – https://www.medicalbillingandcoding.org/qnas/the-coder-is-in-demand-medical-billers-coders/
  13. norc – https://www.norc.org/NewsEventsPublications/PressReleases/Pages/new-survey-reveals-57-percent-of-americans-have-been-surprised-by-a-medical-bill.aspx
  14. singlecare – https://www.singlecare.com/blog/medical-debt-statistics/
  15. zippia – https://www.zippia.com/medical-biller-coder-jobs/demographics/

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