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New York, New York – Providing quality service on healthcare and keeping the costs low is no easy task. For this very reason, the outsourcing healthcare industry has taken a very big turn in the last decade and the process is still growing. Initially, outsourcing was limited to data entry and medical transcription, but now it has expanded to medical billing, clinical research and information management system among other jobs. Over the past few years, hospital billing and the collection policies have come under strict scrutiny for the benefit of uninsured and underinsured patients.

The hospital business runs by maintaining the best quality of service they can provide to patient, but the results may vary from hospital to hospital for a variety of reasons. One common issue each of the hospitals face is billing related issues. It may happen before or after the treatment. Most of the hospitals have an older policy to take care of these issues which results in issues between the hospital and patients.


Billing errors: The estimation says that almost 80% of bills contain errors. Insurance companies are very rigid on corrected bills and a small error can cause them reject a claim.

Keeping up with the billing rules and regulations: It is tough for administrations and physicians to spend time and money on updating themselves on changing rules which are a very regular occurrence.

The whole scenario can be summarized in 6 possible reasons why the healthcare industry has been outsourcing their operations-not related to medical operations.

1) Saving money: Without any doubt, the biggest advantage of outsourcing is the reduction of costs in operations. This practice helps save huge amounts of money in terms of low-cost manpower and infrastructure. The savings vary from 30-60%, which is huge. Having an outsourcing partner reduces the excess amount of administrative costs which directly benefits the savings.

2) Increases productivity: Outsourcing gives the hospitals enough time to focus on the patients; the quality of service becomes better with less tedious administrative work. This allows them to provide a good experience to the patients and the trust grows stronger.

3) Access to experts: As soon as the outsourcing partners are signed up for the job, they will hire professionals to accomplish the tasks needed. The hospitals don’t need to be concerned with finding professionals who are trained in the healthcare process.

4) Manage contact details and follow-ups: A third party can effectively track down the patients whose information is wrong or half-filled. That makes the job easier as the bill can be sent effectively to the right address of the patients. This can be easily done by the outsourced company.

5) Store old documents effectively: It becomes difficult at times when previous patients come asking for an old statement. It becomes very hard for the hospital to pull out the old data. Having all the documents stored digitally by a third party saves a lot of time for the staff and the patient gets what they want in no time.

6) Offer multiple ways of payments: The flexibility of payments is always preferred by the patients. It is important that hospitals have all options of payment: pay at the time of service, over the phone, online payment or any other way they prefer. Managing all these methods in loops can be tedious for the hospital staffs, so outsourcing can increase the productivity of the staff as the outsourcing company takes care of the billing.