The Strategic Advantage of Outsourcing for Medical Companies in Phoenix

Strategic outsourcing has evolved beyond a cost-cutting measure into a crucial business strategy for medical companies in Phoenix. The change aligns with the city’s competitive healthcare industry, which is experiencing increased demand, technological advancements, and economic pressures.

By entrusting non-core processes to BPO companies in Phoenix, medical organizations benefit from enhanced efficiency, increased savings, and improved patient care. 

This article discusses strategic outsourcing, subcontracted services for Phoenix healthcare organizations, and the benefits of collaborating with a service provider. 

Read until the end to learn valuable tips on finding the right outsourcing partner.

What Is Strategic Outsourcing?

Strategic outsourcing is a carefully planned technique wherein organizations subcontract specified non-core operations to business process outsourcing (BPO) providers to focus on their core capabilities. Strategic outsourcing for medical companies in Phoenix involves various services, such as medical billing, accounting, customer service, and data entry. 

The healthcare business has seen a shift in how medical organizations handle outsourcing due to its specific issues and evolving regulatory settings. Instead of simply considering outsourcing as a cost-cutting technique, medical companies in Phoenix increasingly utilize the approach to achieve an edge in a competitive market.

Strategic Outsourcing and Phoenix’s Healthcare Landscape

Before delving into the specific advantages of outsourcing for medical companies in Phoenix, let us first explore the city’s economic and commercial backdrop. The Valley of the Sun is Arizona’s primary destination for healthcare services and activities. It has various hospitals, clinics, medical facilities, insurance firms, and pharmaceutical providers.

However, Phoenix is no different from other regions; it is also vulnerable to economic and business challenges and pressures. Rising healthcare costs, evolving regulations, and fast-paced technological innovation are among the issues medical organizations must deal with.  

As a significant economic driver, Phoenix’s healthcare industry is intensely competitive. Many medical providers vie for a share of the market. The need for patient care also rises as the population grows. A Phoenix Chamber survey states three out of every five locals are in healthcare, as the city employs over 60,000 people and generates $8 billion in revenue.

Against this backdrop, strategic outsourcing for medical companies in Phoenix is more crucial than ever. This approach can help improve efficiency and profitability for better financial security, cost-effective procedures, and top-notch patient treatment and care. All these outcomes keep medical providers in excellent shape in a saturated market.

Outsourced Processes for Medical Companies in Phoenix

Let us review some commonly outsourced services to better understand the benefits subcontracting provides for medical companies in Phoenix. The following functions can be delegated to third-party service providers:

• Information technology (IT) systems. BPO providers manage IT operations that healthcare companies are inexperienced with. This function includes computer system maintenance and monitoring, database administration, data security, and desktop assistance.
• Human resources (HR). A third-party provider oversees your medical practice’s recruitment-related tasks. It is responsible for candidate assessment and selection, interviews, onboarding, training, and payroll.
• Data entry. The outsourcing company processes a considerable volume of healthcare data, including insurance claims, medical billings, and patient files. Its staff enters, verifies, and updates medical records and paperwork. 
• Accounting and bookkeeping. A third-party source can manage accounts payable and receivable, write journal entries, process payroll, and conduct tax audits for the medical company.
• Revenue cycle management (RCM): The third-party vendor oversees and records the income streams of the healthcare provider. The revenue cycle begins with a patient’s registration and concludes with payment collection.
• Medical transcription. Third-party professionals convert audio reports from doctors, surgeons, and other medical experts into text. They document meetings and provide information so healthcare providers can concentrate on patient therapy, treatment, and care.
• Medical coding. This is when the service provider evaluates and processes patient health information by turning clinical procedures into acceptable and approved medical codes. The International Classification of Diseases (ICD) and Current Procedural Terminology (CPT) are the most extensively used codes.
• Medical billing. Third-party service providers specializing in healthcare can handle patient insurance. They make it easier to file and send claims to insurance carriers. Their primary job is also to collect payments on time and in full.

The Benefits of Strategic Outsourcing for Medical Companies in Phoenix

Better output, efficiency, and cost savings are the primary advantages of outsourcing for medical companies in Phoenix. When human, technological, and financial resources are limited, assigning back-end or front-end processes to a healthcare BPO company can be more practical and less expensive than in-house operations.  

BPO organizations employ competent virtual specialists and assistants to support Phoenix medical companies’ activities. These providers offer delegated healthcare BPO services through offshoring (e.g., the Philippines) or nearshoring (e.g., Mexico).  

Consider the following gains when partnering with BPO providers for strategic outsourcing:

Knowledgeable in Customer Care Best Practices

The service provider’s execution of tried-and-true practices contributes to excellent patient satisfaction. These proven techniques also boost the performance of the third-party team, making outsourcing a widespread strategy across medical companies in Phoenix. 

Here are some examples of best practices:

• Provide personalized patient treatment. BPO staff undergo training to deliver empathetic and customized service, enhancing client relationships.
• Engage with patients or clients using their chosen channels. Third-party specialists tailor communication to each generation’s tastes. Baby boomers and Generation X are familiar with phones and email, while millennials and Generation Z prefer social media over traditional platforms.
• Leverage feedback. Third-party agents gather and analyze patient feedback to enhance service delivery based on their demands.

Adjustable Procedures to Maximize Cost-efficiency 

Scalability allows the BPO provider to swiftly adapt to the healthcare client’s changing needs, adjusting features or processes without disrupting current operations. This capability supports the medical practice’s growth without unnecessary expenses or wasted resources.

Examine the following outsourcing incentives for medical companies in Phoenix seeking to scale:

• Affordability. The medical company can hire third-party personnel to cut operating expenses and adjust staffing levels based on patient volume. The service provider can also help assess current tasks to optimize the budget.
• Quickness. The third-party vendor assists the healthcare practice in bracing for crises, reducing the impact on operations, particularly patient care and service. 
• Versatility. Outsourced processes empower organizations to adapt quickly to evolving patient, client, or organizational expectations. Offshore or nearshore outsourcing firms can enhance the flexibility and competitiveness of medical enterprises in Phoenix through customizable services.

Reduced Overhead for Superior Cost Oversight

One advantage of outsourcing for the Phoenix medical practice is lower recurring expenditures. Managing an in-house back-end or front-end operation can be hectic and costly. 

Explore how outsourcing can help save money on ongoing spending.

• Monetary and non-monetary charges. In-house medical professionals receive fixed wages. They also enjoy legally mandated overtime, taxes, and non-monetary benefits such as sick or vacation time, regardless of company circumstances.
• Physical and digital capital. Managing an internal back-office department requires investing in new hardware, software systems, equipment, maintenance, and updates. Expanding space for additional hires is also necessary.
• Upskilling. When outsourcing, the BPO partner manages retraining and skills development programs for third-party experts to address new challenges. Conducting these programs in-house can strain the budget.
• Staffing. Using BPO services for healthcare reduces payroll expenses. The BPO partner also covers the time-consuming and costly recruitment processes, including employment searches, candidate examinations, and new hire onboarding.

Minimal Medical Coding and Billing Errors for Painless Collections 

Outsourcing for medical companies in Phoenix provides access to skilled medical coders and billers who are consistently trained to handle intricate insurance claims efficiently. They focus on minimizing claim denials from insurers and guaranteeing swift collections.

Outsourcing efficiency results in the following: 

• Improved patient experience. Accurate billing encourages patients to accept service costs. Patient satisfaction improves efficiency and lowers nonpayment.

• Excellent employee morale. Swift collections result in more income and less burden on staff. Manageable workloads decrease the likelihood of employee resignations.
• Accelerated growth. Because of quick payment collections, enhancing facilities and improving patient care and service are more effortless.

Superior Conformance With Legal Requirements to Escape Severe Fines

Federal regulations and industry changes can expose Phoenix medical organizations to penalties, litigation, and reputational harm for noncompliance. Outsourcing is advantageous as BPO providers assist in regulatory adherence and data security, reducing potential risks.

The following are some healthcare rules a service provider monitors for medical practice:

• The General Data Protection Regulation (GDPR) is the European Union’s stringent data policy for businesses operating in the region, mandating the security of client information for up to five years.
• The Health Insurance Portability and Accountability Act of 1996 (HIPAA) safeguards patient data by preventing unauthorized disclosures in healthcare. It ensures individuals’ rights to control the sharing of their personal information. Phoenix has witnessed instances of HIPAA infractions.

Proficient Virtual Teams for Peak Performance

Remote work eliminates long commutes, allowing remote professionals to serve end users efficiently without reporting to the office daily. Letting staff work from home ensures data protection since they use private systems for remote access. The benefits of outsourcing include increased remote productivity and faster service delivery. 

Factors contributing to a highly effective remote team include the following:

• Well-arranged work structure for enhanced employee behavior, workflow, and collaboration.
• Well-organized virtual crew equipped with essential tools for efficient task execution.
• Scheduled virtual discussions using dependable communication tools to track work status and progress

Cutting-edge Cybersecurity Solutions for Data Security 

Phoenix firms might be keen to spend on advanced healthcare IT solutions to improve patient care and service. However, cybersecurity is not their strong suit because it deals with information systems management. 

One benefit of outsourcing for a medical organization is that the third-party vendor secures essential medical data from unauthorized access by providing the following:

• Greater competence than in-house IT. Third-party IT specialists manage issues, including data theft, breaches, hacks, and scams. In-house technical support collaborates with them to grasp new cybersecurity tactics.
• Continuous security network. Online assaults can happen anytime. BPO companies use cybersecurity procedures around the clock to guard against attacks. 

Finding the Right Outsourcing Firm for Medical Companies in Phoenix

Selecting the proper BPO organization is essential for the success of long-term outsourcing initiatives. Consider the following outsourcing tips when seeking a reliable BPO partner for medical companies in Phoenix:

• Industry expertise. Look for a BPO partner with a proven track record in the healthcare industry. Specialized knowledge and experience in medical processes ensure that the outsourcing partner understands the nuances and specific requirements of medical companies in Phoenix.
• Quality assurance. Ensure the BPO partner has robust processes, certifications, and industry-recognized standards for accurate and reliable services. Partner with reputable BPO companies known for excellence in quality assurance.
• Data security and compliance: The BPO partner should adhere to stringent data security measures and comply with industry-specific regulations such as HIPAA. Phoenix medical companies must thoroughly assess the BPO partner’s data security protocols so that patient information is handled with the utmost confidentiality.
• Technology infrastructure. A technologically advanced partner with state-of-the-art systems and cybersecurity measures is better equipped to handle the demands of healthcare outsourcing. Compatibility with the medical company’s existing technology is crucial for smooth integration and minimal service disruptions.
• Client references. Insights from other medical companies partnered with the BPO firm can provide valuable information about its reliability, efficiency, and performance. Client testimonials and case studies offer firsthand accounts of the outsourcing partner’s ability to meet the unique needs of medical companies in Phoenix.
• Communication and transparency. Choose a BPO partner that values transparency and maintains open lines of communication. Regular updates, progress reports, and collaboration keep medical companies in Phoenix informed about the status of outsourced tasks so they can promptly address any challenges.

The Bottom Line

Strategic outsourcing is vital for Phoenix medical companies, providing an advantage beyond cost-cutting in a competitive healthcare market. The robust healthcare industry faces challenges such as rising costs and technological advancements. 

Strategic outsourcing can boost efficiency and profitability. It brings benefits such as cost savings, flexibility, and improved patient care. Carefully selecting BPO partners with the necessary expertise and transparent communication can sustain success in Phoenix healthcare.

Let’s connect if you want to learn more about the strategic advantage of outsourcing for medical companies in Phoenix!