Midsized hospitals to fuel boom in revenue cycle management outsourcing in India
As hospitals grow and their workload increases, rising costs have prompted hospitals in the US to use the outsourcing option to handle revenue cycle management efficiently. Until now, the market has been dominated by large hospitals who have taken the first-mover advantage with regard to outsourcing. But mid-sized hospitals in the US in the <500-beds space have now started the outsourcing trend to retain their competitive edge. Currently the mid-sized hospital segment presents a major opportunity for business growth for offshore providers of healthcare revenue cycle services in India.
Revenue Cycle Management or RCM refers to a range of services covering the cycle from patient admission to post-discharge. These services include medical billing and coding, charge entry, medical claims processing, cash posting, accounts receivable and patient follow-up. A process-driven, customer-centric business model with a streamlined transition process ensures outsourcing success. Indian offshore service providers are capable of providing stand-alone services within the process as well as turnkey revenue cycle management services.
Medical billing and coding outsourcing revenues
set to triple by 2011
The healthcare market in the US is comprised of three segments – payers (insurers), providers (physicians and hospitals) and patients (insured).
Focusing on the hospital segment will yield good returns for offshore vendors as 20% of the total medical billing and coding link to work outsourced to Indian vendors comes from hospitals today. Medical billing and medical coding are two of the core processes in offshore revenue cycle management.
While the total revenue from RCM earned by Indian offshore players in 2006 accounted for just $125 million, this is set to triple - to reach USD 410 million by 2011, according to ValueNotes, a leading provider of business intelligence and research in international markets. ValueNotes estimates that the number of employees engaged in billing and coding will increase to 17,500, creating a large human resource pool for hospitals to tap.
End-to-end RCM a winner
Investment capability is a factor that outsourcers are watching for in offshore vendors of RCM. This translates into:
-the ability to add on capacity and ramp up swiftly
-greater automation capability
-expanding the range of services to provide end-to-end RCM
The competitive edge
With the advantages of actually adding on revenues of 15-20% in their healthcare practice, and trimming costs by 40%, outsourcing revenue cycle management is not just an attractive option but a business necessity, helping hospitals survive and thrive in today’s highly competitive environment. While large hospitals are already reaping the benefits, recent RCM outsourcing trends in India indicate that mid-sized hospitals will not be left behind in the race to stay ahead.
Revenue Cycle Management or RCM refers to a range of services covering the cycle from patient admission to post-discharge. These services include medical billing and coding, charge entry, medical claims processing, cash posting, accounts receivable and patient follow-up. A process-driven, customer-centric business model with a streamlined transition process ensures outsourcing success. Indian offshore service providers are capable of providing stand-alone services within the process as well as turnkey revenue cycle management services.
Medical billing and coding outsourcing revenues
set to triple by 2011
The healthcare market in the US is comprised of three segments – payers (insurers), providers (physicians and hospitals) and patients (insured).
Focusing on the hospital segment will yield good returns for offshore vendors as 20% of the total medical billing and coding link to work outsourced to Indian vendors comes from hospitals today. Medical billing and medical coding are two of the core processes in offshore revenue cycle management.
While the total revenue from RCM earned by Indian offshore players in 2006 accounted for just $125 million, this is set to triple - to reach USD 410 million by 2011, according to ValueNotes, a leading provider of business intelligence and research in international markets. ValueNotes estimates that the number of employees engaged in billing and coding will increase to 17,500, creating a large human resource pool for hospitals to tap.
End-to-end RCM a winner
Investment capability is a factor that outsourcers are watching for in offshore vendors of RCM. This translates into:
-the ability to add on capacity and ramp up swiftly
-greater automation capability
-expanding the range of services to provide end-to-end RCM
The competitive edge
With the advantages of actually adding on revenues of 15-20% in their healthcare practice, and trimming costs by 40%, outsourcing revenue cycle management is not just an attractive option but a business necessity, helping hospitals survive and thrive in today’s highly competitive environment. While large hospitals are already reaping the benefits, recent RCM outsourcing trends in India indicate that mid-sized hospitals will not be left behind in the race to stay ahead.
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