The global healthcare outsourcing market is seeing a healthy growth and now more and more health care services are being outsourced. The global health care outsourcing market is growing at a CAGR of 21.4%. In the health care outsourcing segment, pharmaceutical outsourcing has got a lion’s share of 64.3%, followed by health care provider outsourcing which is pegged at 31.9% from 2011 to 2016. The health care payer segment outsourcing is expected to growth at 30% during this period.
The healthcare sector in US is plagued by less availability of manpower and rising costs of healthcare. The BPO companies located in countries like Indian and Philippines, the hot destinations for outsourcing, are also trying to move to vertical focus from horizontal focus and all these factors put together is driving growth in the health care outsourcing market.
One of the core functions of health care services increasingly getting outsourced is the medical billing services. The medical billing outsourcing companies help the healthcare practise companies to reduce their focus on non core activities like managing the books and instead concentrate fully on their patients. This approach helps them basically to increase productivity and profitability.
There are many advantages of hiring a medical services outsourcing company. They are:
1) The hospitals need to just concentrate on their patients and the rest of the non core activities like financial planning and managing of books of accounts will be done by the service provider.
2) The clients can focus more on growing their business and thereby improving the bottom line.
3) The clients need not worry about compliance of various laws and missing of deadlines like filing of insurance claims.
4) The service companies do extensive follow up of claims and thereby reducing the receivables.
5) The daily tasks will become easier by engaging medical services outsourcing companies.
It is said that once the billing work is outsourced, there will be considerable cost savings for the client companies. The cost can be saved as there will be
- No payroll cost as no salaries need to be paid in-house
- No employee benefits need to be paid
- No issues in recruitment, staffing, performance appraisal etc.
- No expenses on patient billing
- No billing software needed
- No annual maintenance cost etc.
By outsourcing medical services the client companies can reduce their overall labour cost and the existing staff can work more productively in other areas. They can move away from the routine paper work and concentrate more on processes which increase their productivity. The BPO industry world over is going to witness growth in the medical billing outsourcing segment and more and more companies will join the bandwagon slowly including companies like Omega Healthcare, Covance, PPD, DSM Pharma, ICON, Inventive etc. It is said that US and Europe are the largest markets of medical outsourcing and outsourcing in health care segment is expected to go up also because healthcare reforms which were introduced by Obama Government in US.