Post by BlueGrid Team 
October 9, 2023 | 
Business process outsourcing has been rapidly gaining popularity in the last few years and decades. Even if it’s most popular in the IT niche and back-office, you will probably be able to find it in any modern business model. In this blog, we will cover everything you need to know about business process outsourcing in the Healthcare Industry.
What is Healthcare Outsourcing?
Healthcare outsourcing or Medical Outsourcing is the practice of assigning specific tasks or operations to a third-party provider or vendor, usually located in another country. The companies that provide this kind of service are called business process outsourcing (BPO) providers.
So, the job of healthcare providers is to provide high-quality treatments while keeping costs as low as possible – especially in today’s fast-paced society. This is the opportunity for healthcare companies to streamline tasks and concentrate on their core operations. A process like this could be a huge game-changer if it is used in the right way.
Significance of Outsourcing in the Healthcare Industry
As we already mentioned, outsourcing in this industry has great significance for providers as it allows them to shift their focus from non-core tasks to more critical ones. For example, if you own a private clinic, you can outsource back-office and some administrative tasks. This way, your staff can focus on more important things like taking care of patients.
This is often the case when you do require someone professional that will cover some tasks, but you don’t need them for a full-time or even part-time job. This could be an ideal solution because you will have a specialist for your assignments, but you won’t have to pay them a full salary.
Also, those people are not there just to save you time. They’re often much more efficient at their job, more than anyone who isn’t primarily educated for something like that.
You can read more about these benefits in our blog post Advantages of Outsourcing.
There is something much more important you need to understand before even considering business process outsourcing as an option…
Outsourcing Models in Healthcare Outsourcing
You need to understand the key terminology of outsourcing before diving into the world of this business process. Outsourcing models will help you identify what you need and where to look for the solution. Let’s cover them quickly.
Business Process Outsourcing (BPO) in the Healthcare industry
Healthcare BPO means you’re outsourcing certain tasks that are typically not related to the core business process. This involves duties like medical billing, and claims processing, among others. Healthcare BPO allows you to focus on core functions such as patient care.
Knowledge Process Outsourcing (KPO) in the Healthcare industry
While BPO is mostly there for non-core tasks, KPO refers to outsourcing highly skilled individuals. KPO usually involves outsourcing knowledge-intensive processes such as research and analysis, data management, and clinical research, among others.
Long story short – BPO helps you reduce your cost, while KPO helps you improve your expertise by connecting you with professionals. This could improve your expertise even if you don’t have a specialist in-house.
Information Technology Outsourcing (ITO) in the Healthcare industry
Where do you keep your medical and legal documentation? If your answer is not “On my computer”, you really need to consider getting someone in-house or outsourcing.
That’s basically what ITO is. This process involves outsourcing IT functions such as network management, data analytics, or even software development. Throughout this process, you can also improve data protection and secure private information (yours and your patients).
Best Practices for Healthcare Outsourcing
You have no idea where to start or what to search to get the best result for your company? That’s alright, we got you! To find the best outsourcing company, concentrate on these three main areas: strategic planning and goal setting, vendor selection and management, and risk management and mitigation.
Don’t worry, we will cover every single one now.
Strategic Planning and Goal Setting
“What is my goal?
“What is my expectation?”
“Is outsourcing perfect for my business or am I still considering that option?”
These are just some of the questions you wanna ask yourself. Strategic planning is like drawing a map that outlines how you will get to your destination. The good news is, if you have a clear goal set up, you’re already halfway there.
Outsourcing is just another milestone on the road.
For example, a hospital may choose to outsource its IT services to a third-party vendor to improve operational efficiency, reduce costs, and improve service quality.
Identifying the Right Outsourcing Model
Identifying the right outsourcing model for medical outsourcing doesn’t only mean defining what you want, but also how you want it. Should your partner be in the same time zone as you? How experienced is that person? How will you two set an agreement?
Each model has its strengths and weaknesses, so it is important to choose one that aligns with your organization’s goals and objectives.
Clearly Defining Expectations
Do you expect that your business will grow dramatically overnight if you outsource? If yes, think again because as much as outsourcing is a great model, it won’t make some crazy changes.
But if you expect that outsourcing will help you build your expertise, save you money or open doors to new opportunities, congratulations. You’re on a good path.
Clearly defining your expectations with your healthcare outsourcing provider will help you avoid any misunderstandings and ensure that everyone is on the same page. This applies to expectations of your goals, quality of deliverables, deadlines and other.
Aligning Objectives with Business Goals
The question you need to ask yourself is what is your goal? Like a real goal. Why are you doing the thing you’re doing right now and can you make a clear path to that goal? Maybe even create some milestones on the way here or little checkpoints?
Healthcare outsourcing is just a tool, like a map. It will maybe show you how to get to your goal or maybe just how to get to your next milestone. And BPO should be viewed as a means to achieve your business goals, not just a way to cut costs.
So if your answer was “I want to expand my business and earn (or save) more money”, think again.
By aligning your outsourcing objectives with your business goals, you can ensure that outsourcing contributes to the growth and success of your organization.
Vendor Selection and Management
You know what you want, and you know how you want it. That’s great. Now, your next step is finding the right outsourcing company aka outsourcing provider/vendor.
Vendor Due Diligence
Firstly, conduct thorough vendor due diligence. Check for their references, their website, portfolio, LinkedIn, their competition, their clients, ask their mom if she suggests them (JK, don’t). But the more you know about your vendor, the better equipped you’ll be to make an informed decision.
After all, this will be your new partner.
Establishing Cultural Compatibility
We already talked a lot about this in our blog post “Steps to Determine Compatibility Between BPO Company and Client”. You can check that blog for more information on this topic. In short…
- Inspect everything – From a geographic perspective to simply creating a workflow. Everything matters.
- Text, emails, daily meetings, or video calls? What does your hospital or clinic need?
- The Omnichannel approach is the best-proven strategy for communication
Contract and SLA Negotiation
SLA stands for service level agreement. It is a contract between a service provider and a customer that specifies the level of service that the provider is expected to deliver. Basically, this is an agreement that keeps you and your partner safe from any unexpected situations.
For example, The SLA may say that the transcription provider has to finish all the medical documents within a day of receiving them and at least 98% of the notes must be accurate. This agreement may also set up a process for checking how well the provider is doing and what happens if they don’t meet the standards that were agreed upon. This can include penalties or other consequences for the provider.
Risk Management and Mitigation
Privacy is something that makes people feel safe. And you want them to be safe, especially in places like hospitals and clinics. So it’s not a secret that your medical records, lab results, imaging studies, and other data points should be something you keep a secret.
Not that complicated, but still a huge thing, check that with your outsourcing company as soon as possible.
Final Word
And Congratulations! You’re ready to take the first step into healthcare outsourcing. Check out our other blog posts on this topic to get a real insight into the drawbacks and advantages of the outsourcing process.
