Global Medical Transcription market continues its growth till 2019 due to Cost Savings

According to Transparency Market Research Report, Medical Transcription market globally is expected to grow at a CAGR of 5.6% from 2013 to 2019, to reach an estimated value of USD 60.6 million in 2019, the market was valued at USD 41.4 million in 2012.  The report classified the medical transcription services based on service types into History and Physical Report (H&P), Discharge Summary (DS), Operative Note or Report (OP), Consultation Report (CONSULTS), Others (Pathology Report (PATH) & Radiology Report (X rays or radiographs)) market. CONSULT reports is largest among all the other reports in the medical transcription services market as these reports are repeatedly produced for single patients undergoing treatment each time the patient visits the specialist. It is expected that the global market fort CONSULT reports will reach USD 21.1 million with the market growing at a CAGR of 3.3% from 2013 to 2019. H&P reports share of overall medical transcription services market has increased as both inpatients as well as outpatients are being maintained both to reduce the risk of reimbursement issues. Outsourcing is the most preferred mode of service procurement in medical transcription as internationally operating healthcare organizations need to efficiently run the operations, reduce costs, maintain up-to-date patient health records, facilitate reimbursement and claims process, and also due to regulatory constraints.

Medical transcription jobs are outsourced to offshore companies and freelancers as the hospitals and healthcare organizations have savings in terms of overhead costs of setting up for in-house department for medical transcription and the staff costs are high compared to low cost countries like India and Philippines where the staff costs will be one third of the cost in United States. United States followed by United Kingdom and Canada outsource medical transcription jobs to low cost countries like India, Philippines, etc. Medical Transcription vendors can handle significant volumes efficiently and maintain the health and medical records without errors will allow the hospitals and Medical professionals to focus on improving the services to patients and also improve the healthcare. With significant changes in the United States Healthcare like Patient Protection and Affordable Healthcare Act, compulsory health insurance and aging populations the market is expected to continue its growth in the next five years. The North America medical transcription services market was worth more than USD 18 million and is expected to grow at a CAGR of over 5% in the forecast period. But Indian Medical transcription vendors are facing severe competition from Philippines, China and other countries as the vendors in these countries with support of government incentives are also bidding for the contracts. Moreover India is losing its labor arbitrage as the cost of living increases. Even the Healthcare payers and providers in the United States are also looking to cut costs due to increase in competition and government regulations.