Outsourcing Benefits

Many leading insurance and healthcare businesses routinely perform significant portions of their administrative and RCM work offshore. According to a study by NASSCOM, approximately 80% of healthcare organizations in the United States outsource some portion of their administrative work to offshore locations.

And it’s not just hospitals, practices, or service providers who use offshore teams– Medicare contractors and nearly all major payers (United Healthcare, Aetna, BCBS, etc.) use offshore teams. Chances are that your patient’s PHI has already been handled by an offshore team at some point.

This widespread adoption underscores the industry’s trust in the capabilities and reliability of offshore teams.

One of the primary reasons for the success of offshore RCM operations is the availability of a highly educated workforce. India, in particular, boasts a large pool of professionals with advanced degrees and specialized training in healthcare administration, medical billing, and coding. Over 1.5 million graduates enter the Indian workforce annually, with a significant portion possessing qualifications relevant to the healthcare industry. This ensures that offshore teams are not only competent but also bring a high level of expertise to their roles.

One of the most compelling reasons for offshore outsourcing is the significant cost savings. Labor costs in countries like India are substantially lower than in the United States, allowing healthcare organizations to reduce operational expenses without compromising on quality. These savings can then be redirected towards improving patient care and investing in advanced technologies.

Moreover, offshore RCM providers often operate 24/7, thanks to the time zone differences, ensuring that tasks are completed more quickly and efficiently. This around-the-clock operation helps in reducing turnaround times and enhancing overall productivity.

It is noteworthy that there are currently more people employed in the US healthcare administrative industry offshore than within the United States. According to industry reports, over 500,000 healthcare administrative jobs are based offshore, compared to approximately, 450,000 similar roles within the US. This statistic not only highlights the reliance on offshore resources but also underscores the critical role they play in the functioning of the US healthcare system.

Offshore outsourcing of healthcare RCM is a well-established and beneficial practice within the industry. The high level of education and expertise of the offshore workforce, stringent security measures, cost-effectiveness, and efficiency gains make it a viable and often preferable option for many healthcare organizations. The prevalence of offshore employment in the healthcare administrative sector further solidifies its importance and effectiveness. Embracing this global approach allows healthcare providers to focus more on their core mission of delivering high-quality patient care, assured that their administrative functions are in capable hands.

Contact us today if you’re ready to take control of your revenue cycle.

• NASSCOM, “Outsourcing in Healthcare: An Overview,” 2022.
• ISO, “ISO 27001 Information Security Management,” accessed June 2024.
• HIPAA Journal, “HIPAA Compliance for Offshore Providers,” 2023.
• Bureau of Labor Statistics, “Healthcare Occupations,” 2024.