Healthcare BPO Predicted to Greatly Increase in Coming Years

Business process outsourcing (BPO) for the medical industry helps healthcare companies become more cost- efficient. BPO in the healthcare sector is growing and predicted to prosper. In spite of the COVID- 19 pandemic, reports show upward trends.

Medical costs are continuously rising. As a result, providers are always searching for ways to reduce these costs. Therefore, they turn to outsourcing several business processes to third- party providers as an affordable solution.

Typical Healthcare BPO Services

Outsourcing in the medical field can include a variety of different services. To begin, there is medical billing and coding. Many organizations, such as clinics and hospitals, work with numerous medical records each day. Coding and billing also consists of many scientific codes. Therefore, companies need trained employees to appropriately handle these tasks.

Next, there is claims processing. Claims processing includes obtaining correct patient claims for insurance companies. This is a crucial and quite difficult task as a great deal of claims must be handled daily. Luckily, many outsourcing companies contain the staff and the tools in order to manage these claims.

Lastly, there is data entry. This is defined as handling and sustaining great amounts of medical data. For instance, this medical data can include prescriptions, drug lists, records, reports, and details on insurance. Although medical data entry can be complex, it might be the safest route of medical outsourcing employment. This is because it is quite direct and straightforward.

The three services above are very typical examples of healthcare BPO. However, these are not the only available services. Others involve: IT, finance, accounting, training, and human resources. None the less, each and every service aids in lowering healthcare costs and allows for more focus to be placed on other things such as research and patient care.

Advantages and Disadvantages of Healthcare BPO

There are many advantages of healthcare outsourcing. To start, one huge pro is not needing to hire additional workers. This is because the external providers act as contractors. They will obtain the employees, thus reducing the medical company’s cost on training, benefits, etc. Also, outsourcing permits for a wider variety of employees from all over the world. Meaning, there is a higher number of qualified and skilled workers, or a larger talent pool, to choose from. Lastly, and most importantly, it is cost efficient. Outsourcing employees is a promising way to lower healthcare costs.

Although there are many advantages to BPO, there are also disadvantages. One con consists of losing a bit of control. In order for outsourcing to take place, companies have to relinquish some control to these external providers, which is not always desired. To continue, given outsourced employees may come from other parts of the world, there can be issues with communication. These issues consist of different means of communication, internet connections, and time zones.

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Healthcare Weekly (2021, November 21). Healthcare BPO will Hit Nearly $500 Billion by 2026. Retrieved from: