For casual observers, the healthcare sector is a community service. Feeling under the weather? Visit a GP. Need an X-ray? Head to a radiologist. Struggling to breathe? Phone an ambulance and rush to the emergency ward. Each day millions of people feel the relief that comes from knowing hospitals and healthcare practices are waiting to provide them with the care they need to manage short-term pain and hopefully make long-term gains.
Amid the feel-good stories though, there is another side to the healthcare sector that is not so romantic. Patient care may be the top priority but administrators face a daily struggle to balance the books in an industry where margins are low and ‘customer’ expectations are high. Hospitals and healthcare practices are also businesses and face the same pressures in managing costs as any organization that deals with income and expenditure.
Revenue in the healthcare segment is projected to reach $60.72 billion in 2023, with further growth set to boost that figure to $92 billion by 20271. Those are huge numbers in anyone’s book but the rapidly changing nature of the healthcare industry means hospitals and practices are facing growing challenges to manage budgets. From the fallout of the COVID-19 pandemic and changes to payment and reimbursement models to labor shortages, increasing competition and the need to adopt new technologies, health executives are facing a perfect fiscal storm.
Given such pressures, it is no surprise an increasing number of healthcare providers are turning to outsourcing as a resourcing strategy. A study of more than 500 hospitals and inpatient organizations found 90% of health executives are exploring cost savings by teaming with third-party vendors2, while the healthcare outsourcing market is tipped to reach $312 billion by 20253.
Such numbers cannot be ignored and reinforce why so many players in the sector will appreciate the chance to delve into this ‘Complete Guide to Healthcare Outsourcing’ and learn how partnering with a quality provider can play a positive role in reducing costs, increasing efficiencies and improving patient care.
Healthcare outsourcing is the process of delegating activities or tasks within a hospital or practice to external individuals or teams. It is particularly valuable for managing time-consuming and repetitive tasks such as medical coding, billing and transcription, which allows organizations to dedicate greater resources and focus on patient care.
The healthcare outsourcing sector has boomed in recent years as more executives and managers aim to access the many benefits on offer.
Improved patient care
Few decisions get made in healthcare without consideration of the most important factor in any clinical conversation – the patient. Outsourcing has been shown to improve patient outcomes and deliver higher quality care by reducing the burden of mundane and routine administrative tasks on medical practitioners. Along with improving staff morale, it allows them to concentrate more on caring for their patients and less on the administration of care.
58% of businesses that rely on outsourcing do so to save money4 and, to paraphrase comedian Jerry Seinfeld, there is nothing wrong with that. In a world where hospitals and healthcare providers are under increasing financial pressure5, the savings made by investing in outsourcing can be redirected to frontline services and bring greater stability to daily operations. Partnering with providers in outsourcing destinations such as the Philippines can reduce labor costs by up to 70%, which will be music to the ears of executives faced with soaring wage bills.
The number of healthcare roles and tasks that can be outsourced are abundant including:
The Philippines has earned an enviable reputation as an outsourcing destination and that is doubly so when it comes to the healthcare sector.
Hospitals and healthcare practices should consider several factors before partnering with a provider.
Be it the Philippines or other destinations, offshoring is one of the best ways for hospitals and healthcare practices to reduce costs and increase efficiencies in an ever-competitive market. Partnering with a quality partner will not only save up to 70% on labor costs but help create an environment where clinical and administration staff can spend more time focused on tasks and outcomes that truly benefit patients.
Imagine needing to manage 400% employee growth in just two years while meeting the demands of servicing more than 600 healthcare organizations. Discover how one company used outsourcing to do just that and save 63% in administration costs at the same time.
 Health Care - Worldwide | Statista Market Forecast
 Pressures of Value-Based Care Reforms Trigger Sharp Increase in Clinical Outsourcing Partnerships
 5+ Interesting Healthcare Outsourcing Statistics - FGC (fgcplus.com)
 40+ Vital Outsourcing Statistics : How Many Jobs Lost To Outsourcing? - Zippia
 Outrage as federal government 'cuts' billions of dollars from public hospitals in budget - ABC News
 The Cost Of Medical Billing Mistakes – Medical Billing Company – Boston, MA (medicalhealthcaresolutions.com)
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