Feb 29
2016
How BPO Has Exploded In The Healthcare Industry
Guest post by Jennifer Smith, director, Digital Documents, LLC.
Even with electronic decision-support technology and responsive, knowledge-based medical software built into modern electronic health care record (EHR) systems, it is critical for physicians and clinicians to recognize the primary focus is still treating the patient. In an effort to survive escalating costs of care and declining reimbursements, modern health care delivery models shifted from a patient-centric care model toward a financially motivated business model.
With the push toward value-based reimbursements and rigorous quality measurement reporting mandates, hospitals and medical organizations today must balance the need to remain financially solvent with improving patient outcomes and experiences throughout the health care journey.
Business Process Outsourcing: Revenue Cycle Management (RCM) and Value-Based Care
End-to-end RCM in the healthcare industry explores cost per transaction beyond salaries and benefit packages. Administrators examine productivity volumes, idle time, workforce utilization ratios and patient flow as key factors that directly influence revenue potential.
Business process outsourcing (BPO) has gained popularity in recent years as a way for hospitals and practices to control operating costs without compromising patient care or satisfaction levels. It is a win-win proposition for all stakeholders. The RCM software and services market, which includes BPO, now garners more than $12 million, annually. There are many reasons to consider BPO, including streamlining internal efficiency, expediting third-party payer reimbursements, and reducing data entry errors that stifle cash flow and frustrate consumers.
Analytics, Document Management and BPO
Improving document management is critical. Leading technology enables collecting vast amounts of data, data that can be used to improve patient outcomes, and financial performance. However, data is only valuable if it can be rapidly accessed, analyzed, organized and converted into actionable information. Digital Documents, which is a company that provides outsourced document management services, says document processing services essentially convert information to digital assets.
Those assets may translate into higher profit margins. One study showed hospitals that outsourced most of their RCM operations in 2014 saw an average revenue increase of 5 percent to slightly more than 6 percent. Revenue increases are expected to continue to grow over the next few years, especially in the health IT outsourcing area, which according to Reportstack should see an annual compounded growth rate of almost 9 percent through 2019.
A recent McKinsey & Company technology survey reported that the vast majority of corporate technology users don’t leverage technology to its fullest potential. Four out of 10 polled staff members admit they have trouble searching files efficiently. McKinsey also released research details that show searchable electronic files reduce ineffective searching time by 35 percent, saving medical organizations money while improving productivity volumes.
Adopting an Outsourcing Policy that Supports Outcome-Based Care
Outsourcing business processes is a cost-effective solution for many health care organizations. Hospitals partner with billing and coding specialists, imaging and text management services, customer service teams, and external marketing and research firms. BPO adoption is expanding rapidly in the United States; and patients and providers are reaping the benefits, which include: affordable, high-quality care and more accurate, easier to access health records 24/7.
Healthcare BPO is a process in which healthcare providers select the most suited third party vendor for some specific business process or back office process which allows them to spend their energy on patient care rather than doing the tedious paper work.
The introduction of IT in healthcare is going to produce massive data and with the data comes the challenge of storing and analyzing which again require highly skilled professionals and advanced tools, which ultimately compel healthcare providers to reach to third party. So there is a huge opportunity in Healthcare BPO.
Additionally, today in 2017, Global healthcare BPO market is about USD 191.68 Billion which was predicted to increase in 2022 about USD 312.43 Billion.
Business process outsourcing (BPO) has seen significant growth in the healthcare industry in recent years. This is due to various factors, including the increasing complexity of healthcare regulations, the need for more efficient and cost-effective operations, and the desire to improve the patient experience.
One of the main reasons BPO has exploded in the healthcare industry is the need to comply with a wide range of regulations and standards. The healthcare industry is heavily regulated, with laws and guidelines in place to protect patient privacy, ensure the quality of care, and manage the use of healthcare resources. BPO companies can help healthcare organizations navigate these regulations and standards by providing specialized expertise and resources.
Another reason for the growth of BPO in healthcare is the need to improve operational efficiency and reduce costs. Healthcare organizations are under constant pressure to do more with less, and BPO can help them achieve this by outsourcing non-core functions such as billing and coding, customer service, and human resources. Outsourcing allows healthcare organizations to focus on their core competencies and improve their overall performance.
Finally, BPO can help healthcare organizations improve the patient experience by providing better and more efficient services. For example, by outsourcing customer service, BPO companies can help healthcare organizations respond more quickly to patient inquiries and complaints and provide more personalized and effective care.
Overall, BPO has exploded in the healthcare industry due to the combination of regulatory compliance, cost reduction, and patient experience improvement, which are all significant concerns for the healthcare industry. The benefits offered by BPO providers, including scalability, specialized expertise and cost savings, are also key factors that made healthcare organizations adopt BPO services.