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How Healthcare Outsourcing Helps Businesses Save Money

Opting for contracting out functions, tasks and solutions to business process outsourcing (BPO) companies have always been favoured by many industries, including the medical and healthcare sector. 

A great number of businesses were able to place and hold their positions on top due to it. However, with the rise of the current times’ technological boom, the world is now akin and linked in a more profound way than ever before. This has also enabled small and medium-sized healthcare institutions to take leverage of outsourcing, helping them cultivate in terms of profitability and sales. 

Offshoring to a BPO service provider renders a lot of benefits, and the most notable one is cost efficiency. It saves business revenue, helps handle tasks with more ease, and, most importantly, frees up resources and time to concentrate on developing new and innovative ideas for medical and healthcare facilities. 

In this blog post, we will go over the ways healthcare outsourcing do to save a business money. But before that, we will also tackle the substantial and necessary details related to healthcare outsourcing.

Without further ado, let’s get started! 

What is Healthcare Outsourcing?

Healthcare outsourcing is the practice of delegating non-clinical or non-urgent clinical functions to a healthcare business process outsourcing company or external service provider. By integrating healthcare outsourcing solutions into their business models, corporations can speed up task completion, streamline operations and minimise overhead costs. 

A Brief Background On Outsourcing Healthcare Services

Outsourcing is not really an entirely new concept in the healthcare industry. Most medical institutions employ third-party contractors to work on housekeeping, utility maintenance, janitorial service, and other tasks important for running a hospital system. 

But because of the ‘high touch’ and segmented nature of the sector, healthcare is the last industry to adopt outsourcing for business functions and client-facing services. 

The emergence of healthcare outsourcing started when clinics and hospitals began to store and handle patient records using technology such as tools and software. Since then, healthcare BPO services gradually became an accustomed strategy to improve service delivery and profitability. In fact, the U.S. healthcare outsourcing market reached $52 billion in 2020. By 2025, it is anticipated to grow up to $66 billion. 

The Biggest Driver of Healthcare Outsourcing and One of the Most Significant Functions Outsourced Today is Telehealth

Also coined as telemedicine, telehealth is the practice of performing numerous non-emergency healthcare services, such as diagnosis, triaging, and consultation, through various remote means. 

Some of the benefits of telehealth include:

  • Helps institutions conform to the safety guidelines established by regulating bodies 
  • Promotes safety and renders convenience to healthcare providers and patients
  • Expands patients’ ability to examine specialty and behavioural health services
  • Preserves scarce personal protective equipment and restricts the usage of hospital facilities to critical cases
  • Potentially minimises the cost of healthcare services
  • Boosts overall healthcare delivery 

Here are the frequent services delegated to a healthcare BPO company:

The following benefits you’ll obtain when you outsource your healthcare services to an external provider are:

  • Increase cost savings
  • Maximise staff productivity and efficiency
  • Save money and time from employing and training support staff
  • Well-managed mundane and routine administrative tasks
  • Provide access to industry experts and trained professionals at a lower cost
  • Render employees access to better benefits at a cheaper cost
  • Concentrate on providing quality care to patients
  • Improve patient care, outcomes and experiences
  • Scale resources based on specific needs
  • Protect patient data while complying with HIPAA regulations
  • Ensure compliance with all applicable laws
  • Drive error-free processes
  • Avoid critical and costly billing issues
  • Lessen the number of rejected and denied medical claims.

The Ways How Healthcare Outsourcing Helps Businesses Save Money

If you are seeking offshoring solutions, rest assured it will help your medical and healthcare facility attain a lot of positive results. The following are ways outsourcing can help you save your business monetary fund. 

Lowers risks

Outsourcing non-clinical functions, processes and tasks to a BPO provider minimises risks and cuts down business costs. However, some company owners are unaware of this truth. For instance, let’s have a look at payroll. When you outsource payroll services, this will save money that would otherwise be spent on liability insurance and the risk of being sued for mistakes.

Reduces initial expenses

One of the biggest reasons why healthcare facilities go for outsourcing is because it reduces the initial expenses of performing a non-core task. You will find the upfront expenses to be much less compared to recruiting staff to perform the same tasks. For instance, it will cost you less to employ a remote medical coder to do a 10-hour worth of work every week than to recruit an internal person to manage the same job.

Cut out hiring and training costs

Expenses on talent acquisition and onboarding

Instead of investing a lot of time and money in finding the right staff in-house, employing an offshored team from a BPO vendor makes it possible for you to get started immediately.

Expenses on training

Outsourced professionals have high expertise and years of experience catering to the non-clinical services of the healthcare industry. This lessens the time and resources you have to spend on training your outsourced team.

Save on infrastructural costs

Expenses on software pricing

To stay ahead of the curve, BPO outsourcing companies regularly update their software. This allows you to take advantage of cutting-edge tools and technology for telehealth and telemedicine services at a fraction of the expenses you’d incur if you invested in them yourself.

Expenses on office spaces and rentals

As your offshored team does not consist of in-house staff, you don’t need to worry about expanding office spaces, renting real estate or paying for utilities (internet connection, electricity, etc.). Your outsourcing arrangements take care of all these costs for your company. 

Gets you greater skills at a lower expenditure

No matter how accomplished your workforce is, every staff has a unique set of strengths and weaknesses. Especially in the healthcare industry, if you are on the watch for specific skills that your team is not proficient and adept at, you can simply outsource tasks, for instance, medical billing and data entry, to an expert who can perform them easily. This way, you can get access to resources and top talents with greater skills, and that too at a lower expense than trying to finish the task in-house. You can also consider outsourcing repetitive tasks as it is a cheaper alternative than spending money and time on training your employee.

Paying only for rendered services

When you onboard in-house talents, you provide all sorts of benefits in addition to the base pay. However, when you outsource a function and tasks, you only pay for the services offered. 

When the task is finished, you pay a particular amount for the job performed. For example, if you choose to contract out medical claims processing, you will pay the external provider just for this task. You will not be looking after the outsourcing provider’s agents, and neither will you be liable to entertain their needs outside the job. 

Allows focus on core business functions

As your healthcare facility starts to expand, you will notice a substantial acceleration in the workload. As such, you will need energy, time and more staff to handle this workload and meet targets.

Given this scenario, outsourcing non-core services is the best option you can count on. After all, this will not just only save you costs but will also allow you and your local staff to concentrate on your fundamental processes, tasks and future business strategy for your medical institution.

Boosts productivity and efficiency

Medical corporations that run their operations effectively save on their spending. On the contrary, the same cannot be concluded for those healthcare facilities that are unable to have seamless work processes. BPO outsourcing providers value productivity and efficiency and really concentrate and give their best on workforce management to prevent any errors and hiccups, saving you from investing expenditures on fixing mistakes.

What qualities should the right healthcare outsourcing partner have?

  • Displays high ethical standards.
  • Has access to highly capable professionals with a solid background in healthcare.
  • Has long years of experience supporting prominent pharmaceutical, healthcare, insurance, and other health service corporations.
  • Capable of establishing a diverse team of data scientists to avoid biases in AI training and data collection.
  • Leverages advanced data security software and processes.
  • Fosters transparency and implements open communication.
  • Has in-depth expertise in the ins and outs of biopharma, medical, and other industries related to healthcare.
  • Renders value-added solutions, particularly customer support, IT, accounting and management. 
  •  Must be able to process and act as an onshore member of your institution.

What to look for in a healthcare outsourcing provider?

Service Guarantee

Outsourcing companies’ healthcare services garner years of expertise and experience in rendering them to their clients. Medical institutions usually look for a third-party provider with years of high-quality service to make sure that their functions are well taken care of.

Customer Reviews

Healthcare corporations must not simply depend on their preferred external provider to ensure their guaranteed service. It is a must to ask for a trial run in performing their operations or check for customer reviews regarding the outsourcing company.

Customer reviews can be a helpful guide for organisations in determining the reliability and quality of their preferred BPO partner. A smooth lookup on Google search or review sites such as Clutch can help in determining what their clients say about their performance and service. 


Healthcare facilities must ensure that their BPO service providers are 100% HIPAA compliant. Medical-related functions require the utmost data and privacy security to protect their company and patients’ data. Being HIPAA-compliant means their BPO partner undergoes strict security measures in protecting their information to prevent data breaches and compromises in the future.

Better Cost-Effectiveness

Through healthcare BPO outsourcing, a better form of cost-effectiveness is possible to attain. Select a third party that provides healthcare outsourcing services at an appropriate cost budget with the better technologies and tools available to them.

Pool of Experts

Always opt for a BPO firm that comprises a large number of talented professionals to carry out the outsourced healthcare services. Their experience in rendering the right service to clinics and hospitals is also crucial. Ask them to showcase solid references about their former works and then proceed to make a decision.

Updated With Constant Changes

Various changes are included in the medical billing industry. So, being updated with constant changes is highly imperative. Likewise, this is time-consuming for hospitals and clinics, so they outsource medical billing. While they select the healthcare BPO company, choose them accordingly by looking into whether they are updated with the changes.

Performance Monitoring

Offshoring healthcare services do not just simply end in delegating all functions and metrics to a remote team. Medical facilities should also oversee and measure their team’s progress and performance to ensure it fits with their standards. Both the client and provider can agree with the online collaboration and staff monitoring tools to utilise in their operations. 

Better Quality Output

While considering a BPO partner for offshored healthcare services, check whether they offer better infrastructure and your desired quality output through their custom-made services. Also, look into whether they adapt the better technologies and trends for its implementation.

Focus on the Outcome

While outsourcing the non-core healthcare functions, hospitals and clinics are no longer controlling the operations involved in it. So, while being in collaboration with the external provider, check whether their organisation’s values match yours. Moreover, also check whether they are concentrating on satisfying your objectives and goals. 


In hindsight, outsourcing in the healthcare industry has truly become an essential reality. This clearly entails that more and more medical institutions now realise the power and significance of outsourcing. It is undeniable that outsourcing brings many great advantages to the table. The biggest of all is its minimised cost-per-call effectiveness. Thank you for reading! 

Outsource to an excellent marketplace, The Lead Enquiry. We can connect you with the ideal healthcare BPO of choice, adept at giving cost-effective business-enhancing solutions that will future-proof your place at the top of the healthcare field! Contact us today. 



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