Boosting Efficiency and Saving Costs: The Power of Outsourcing for Medical Companies in Phoenix

Seeking a partner to cost-effectively support your medical practice and handle back-end operations? A business process outsourcing (BPO) company in Phoenix with overseas operations can help.

BPO organizations operating in nearshore and offshore locations often charge affordable fees due to the lower living and labor costs overseas. However, that is not the only reason companies worldwide tap these vendors. They also boost efficiency while reducing costs.

This article discusses the benefits of offshore and onshore outsourcing for medical companies, their healthcare functions, and the steps to find the ideal service provider.

Keep reading to learn more.

Medical Services in Phoenix to Increase

The U.S. Census Bureau reported that Phoenix’s population rose from 4.2 million in 2010 to 4.8 million in 2020, with more individuals growing older. The share of people under 18 fell by nearly three points to 23.5%, while those 65 and over increased from 12.3% to 16.6%.

According to the Bureau, 10,000 to 20,000 more individuals resided in Phoenix between the ages of 55 and 78 compared to a decade ago. These numbers indicate that more local citizens are aging, requiring more medical treatment and services from healthcare institutions in the city.

Outsourcing can help you improve efficiency and reduce costs to meet this expected rise in demand.

Medical Services to Outsource

Let us talk about different outsourcing services first. As a healthcare practitioner, you can outsource the following back-end processes to offshore or nearshore providers:

• Accounting and bookkeeping. A third-party provider offers financial document handling services, including accounts receivable management, journal entry drafting, payable monitoring, payroll processing, and tax auditing.
• Data entry. The BPO provider processes a high volume of data for healthcare facilities, including insurance claims, medical billings, and patient files. Their employees input, verify, and update medical records and documents.
• Human resources (HR). The third-party vendor manages recruitment-associated functions for your medical practice. It oversees talent sourcing, screening, interviews, testing, onboarding, training, and payroll.
• Information technology (IT) systems. Service providers specializing in technical processes deliver outsourced services to medical companies. They manage IT activities that healthcare organizations are unfamiliar with, including computer system monitoring and maintenance, database management, data security, and desktop support.
• Medical billing. Offshore or nearshore medical services are attractive because BPO firms coordinate patient insurance. They facilitate the filing and delivery of claims to insurance companies. Additionally, their primary responsibility is to collect payments on schedule and in full.
• Medical coding. The BPO provider examines and processes patient health records by converting clinical procedures into accepted and approved medical codes. The International Classification of Diseases (ICD) and Current Procedural Terminology (CPT) are the widely used standards in medical coding systems.
• Medical transcription. Third-party specialists can translate audio reports from physicians, surgeons, and other medical experts into written text. They record sessions and reports so that healthcare professionals can focus on patient therapy, treatment, and care.
• Revenue cycle management (RCM). The BPO company supervises and tracks the healthcare provider’s income sources. The revenue cycle starts with a patient’s registration and ends with complete payment collection.

Eight Advantages of Outsourcing for Medical Companies

Improved efficiency and better cost-savings are the main advantages of outsourcing for medical companies. When your human and financial capabilities are scarce, subcontracting back-end functions to a healthcare business process outsourcing (BPO) company is more feasible than building competency in-house.

BPO companies employ qualified virtual medical specialists and assistants to support you with various tasks. They can deliver assigned healthcare BPO services in one of the following cost-effective ways:

• Offshoring. The third-party vendor’s operations are across the continent (e.g., Asia), far from your medical facility in Phoenix. For instance, your oncology center outsources administrative tasks to a BPO provider in the Philippines.
• Nearshoring. The service provider manages your outsourced tasks in a country near the Phoenix office. An example is outsourcing medical billing functions to a vendor in Mexico.

Check the eight advantages of delegating your medical processes. The first four benefits discuss how your healthcare organization in Phoenix can enhance efficiency and output, while the last four explain how you can reduce costs with outsourcing.

1. Excellent Compliance With Laws to Avoid Heavy Fines 

Medical organizations in Phoenix experience changes in federal laws and industry norms. You can risk penalties, lawsuits, and reputational harm if you violate the regulations.

One of the benefits of outsourcing is that BPO providers help medical companies adhere to the rules and keep their data secure.

Below are some industry guidelines a service provider monitors for your medical practice.

• Current Procedural Terminology (CPT) is a system of codes in alphanumeric or numeric characters. A CPT code is designated for each medical service, treatment, or procedure. Insurance providers use them to compute the amount to pay your clinic or insured patients.
• The Healthcare Common Procedure Coding System (HCPCS) is a collection of medical codes that detail all of the services, supplies, and items that insurance companies can obtain.
• The Diagnosis Related Group (DRG) influences the cost of a patient’s hospitalization. Medicaid and Medicare use DRG to determine an individual’s hospital treatment costs.

2. Advanced Cybersecurity Tools for Data Protection 

You may invest in the latest healthcare IT systems to improve patient care. However, cybersecurity can be challenging since it deals with information systems management.

One advantage of outsourcing for your medical company is that the third-party provider protects critical medical data from illegal access using the following measures:

• 24-hour data security network. Online attacks can occur at any time. To protect against threats, BPO providers execute cybersecurity measures around the clock.
• Collaboration with the in-house IT team. Third-party IT experts frequently resolve data theft, breaches, hacks, and scams. The in-house technical support team can work with the outsourcing team to learn new cybersecurity strategies.

3. Fewer Medical Coding and Billing Errors for Efficient Collections

Another perk of outsourcing is that your medical company has access to a team of qualified medical coders and billers. These specialists are regularly trained to handle complex and time-consuming insurance claims.

Third-party professionals can manage and deliver claims accurately and promptly. They attempt to minimize insurer claim denials so you can obtain the collection as soon as possible.

Efficiency due to outsourcing leads to the following:

• Stronger staff morale. The quick collection results in more substantial funds (and more incentives) and less workload for your employees. Reasonable workloads lower the risk of employee resignation.
• Faster growth. You have less trouble developing your facilities and improving patient care and service since you have a better cash stream.
• Better patient experience. Accurate billing pleases patients and makes them more inclined to accept service prices. Increased patient satisfaction reduces inefficiencies and non-payment.

4. Adept in Customer Care Best Practices for Outstanding Patient Experience 

The service provider’s practical application of proven techniques helps provide exceptional patient satisfaction. These tried-and-tested methods also improve the performance of the third-party team and drive the adoption of outsourcing among medical companies in Phoenix.

Below are examples of best practices:

• Interact with patients or clients via their preferred channels. Third-party professionals adapt to the communication preferences of every generation. Baby boomers and Generation X are familiar with phones and email services. Millennials and Gen Z are more comfortable with social media than other channels.
• Leverage feedback. Outsourced agents gather patient opinions and recommendations for your organization. This information is evaluated to better understand the needs of the patients and provide enhanced service.
• Deliver individualized patient care. BPO workers are instructed, trained, and advised to offer empathetic and personalized service, helping strengthen customer relationships.

5. Reduced Operating Expenses for Better Cost Management 

Minimized ongoing costs are one advantage of outsourcing for your Phoenix medical company. Handling an in-house back-end unit can be tedious and expensive.

Check how outsourcing can reduce your operating expenses:

• Office area, equipment, and supplies. Organizing and running an internal back-office department necessitates investing in new hardware, software systems, and other equipment (plus maintaining and upgrading them). You must also expand your premises to accommodate new hires.
• Hiring. Acquiring BPO services for healthcare lowers payroll costs. The BPO partner also pays for the tedious and expensive recruitment activities, such as job placements, applicant screening, and fresh hire orientation and training.
• Monetary and non-monetary costs. Regular in-house medical staff receive fixed salaries, overtime compensations, and tax payments regardless of business situation. You must also legally shoulder non-monetary benefits, such as sick or holiday leaves.
• Upskilling. With outsourcing, your BPO partner covers retraining and skills development programs. Third-party professionals need to upgrade their competencies to deal with new challenges. Doing them in-house is expensive.

6. Scalable Operations to Optimize Costs

Scalability allows the BPO provider to swiftly adapt or alter the third-party team size, range of features, or quantity of processes to match your requirements without disrupting current operations. It allows your medical practice to expand without overpaying or wasting too many resources.

Consider the outsourcing incentives for medical companies to become scalable:

• Cost-effectiveness. Your organization can hire the correct number of outsourced professionals to manage operating costs. You can reduce the staff size when there are fewer patients and increase it during peak times. The service provider also aids in determining the extent of current activities necessary to maximize your budget.
• Agility. The third-party vendor helps you prepare for emergencies, minimizing the impact on your operations, especially patient care and service.
• Adaptability. Outsourced procedures can quickly respond to shifting patient, client, or organizational expectations and scenarios. Due to their adaptable services, offshore or nearshore outsourcing firms can be valuable for medical companies in Phoenix. They make outsourced clients more flexible and competitive.

7. Economical, Dependable Virtual Workers for Improved Bottom Line 

With healthcare process outsourcing, offshore companies from the Philippines and nearshore vendors from Mexico can provide you with competent, productive, and affordable work-from-home (WFH) talent. These remote professionals have the formal training, personality traits, and technical skills to deliver outsourced services for your medical company in Phoenix.

To illustrate the significant cost savings from offshore or nearshore outsourcing, a comparison of medical assistant wages in the Philippines, Mexico, and Phoenix (Arizona, U.S.) is listed below.

Salary Explorer supplied data for the Philippines, while Economic Research Institute and Indeed gave statistics for Mexico and Phoenix, Arizona (U.S.), respectively.

Note: Figures from Salary Explorer are in local currencies and were converted from Philippine pesos (PHP) and Mexican pesos (MXN) to U.S. dollars ($) for consistent comparison. 

Compare the Philippine salary with Phoenix’s. Per the data above, outsourcing a medical assistant from the Philippines can save your medical company $2,854.83 ($3,272 less $417.17) monthly. Note that the amounts and calculations above are estimates. For exact costs and fees, contact a BPO company.

8. Ample Supply of Skilled Workforce to Offer First-rate Services 

Millions of Filipinos and Mexicans are ready to work. Specifically, the Philippine labor force participation rate is 61.1% (see table below). This means six of 10 able Filipino workers are eager to be employed. Each nation generates thousands of well-trained, determined, and motivated graduates to work.

Source: Trading Economics

When outsourcing processes, an extensive pool of accessible workers is favorable for medical companies in Phoenix. An abundant labor supply translates to affordable wage costs. Salaries remain generally stable when the BPO market has sufficient workers. In contrast, labor scarcity increases wages and service rates, raising operating costs.

How to Get the Ideal Outsourcing Partner for Medical Companies

At this point, you might be wondering how to hire the right BPO partner to help your healthcare organization in Phoenix enhance efficiency and reduce costs simultaneously.

Consider these six factors when teaming up with an offshore or nearshore outsourcing provider for your medical company:

• Sterling performance. An outstanding record reflects a BPO provider’s dependability and stability. Choose one with a long list of satisfied clients. No matter the size or type of your operations, the potential partner must be client-focused. It must put your requirements first while delivering quick and accurate services.
• Medical processing capacities. Select a service provider familiar with medical coding systems, including CPT and ICD. Medical billing mistakes must be minimized or eliminated. To optimize RCM procedures, ensure the prospective partner has the latest coding and billing software.
• Complete service fees. Hire a BPO provider that directly discloses all of its service rates. Transparency in business fosters trust. Request cost structures from each prospect and establish your most cost-effective pricing strategy.
• Guaranteed results. Before making a long-term business commitment to a service partner, try out a brief project. Examine how it performs against your expectations and objectives. Quantitatively (with key performance indicators) and qualitatively (with soft skills and knowledge evaluation) measure the provider’s output and service quality.
• Stringent security procedures. Work with a third-party vendor that provides the latest cybersecurity solutions against data breaches. Cyberattacks pose challenges to many organizations worldwide. Your Phoenix medical facilities might regularly process sensitive data, such as patient and financial details.
• Efficient management control. Transferring processes to a third-party provider entails handing over operations to get the desired results. Pick a BPO provider willing to apply your internal procedures to maintain some degree of control.

The Bottom Line

Healthcare processes in BPO allow your medical practice to concentrate on core competencies. Transferring services to a service provider can help you focus on patient care and service.

Third-party professionals work on non-core processes, blending effortlessly into the clinical procedures while you hone quality care and services. Partnering with the right BPO provider can improve revenue, productivity, and performance, enabling your practice to grow faster.

Let’s connect if you want to learn more about how outsourcing can boost efficiency and save costs for Phoenix-based medical companies!