Over the past years, healthcare outsourcing has been discussed by different groups of people mainly because of the changes in the healthcare policies in the United States. The healthcare outsourcing industry may seem small as compared to the other branches of outsourcing, such as the call center outsourcing industry. The market for healthcare outsourcing is quite small and restricted to a particular type of companies and organizations, which is why it is advisable for healthcare outsourcing providers to offer a different set of services to offer the market, while maintaining their expertise in the healthcare field. But despite it being at the smaller end of the spectrum, the industry focused on providing solutions such as medical billing outsourcing and medical coding is actually having its own share of growth also.
According to a press release issued by MarketsandMarkets during the latter part of last week, the global healthcare business process outsourcing market is growing at a CAGR of 21.4%. Pharmaceutical outsourcing takes up the largest share of 64.3%, but its growth will slow down within the next 5 years. Whereas on the other hand, the healthcare provider outsourcing has the highest forecast for growth rate of 31.9% between the years 2011 and 2016. However, as the market becomes saturated, the sector’s growth has a tendency to slow down in the future. In this particular analysis, claims processing is the dominating service that has the highest share in the market, taking up 59%. Next in line after claims processing is the member services/customer care services. With the growth that is expected from the healthcare outsourcing industry, it is quite possible for companies to dig deeper into this particular branch of outsourcing now before the market gets saturated.
Recently, a statement has been released by ExlService Holdings Inc. (NASDAQ:EXLS) that it has decided to expand its global reach through establishing an outsourcing facility in the Philippines. Together with this expansion is its aim to deliver complex solutions in the field of insurance and healthcare, as well as customer service, finance and accounting and legal support services. The Chief Strategy Officer and Executive Sponsor of ExlService Holdings Inc. says that the Philippines has “established itself as a center of excellence for unscripted voice work, clinical management, customer service, legal services and finance & accounting,” and this could be the very main reason for their strategic decision to put up a facility in the Philippines. Their new facility’s manpower is targeted to attract manpower of 1,000, an added headcount to their existing 1,500-employee count in its existing facility in the country.
Late last year, around the month of October, the Healthcare Information Management Outsourcing Association of the Philippines (HIMOAP) points out that the association is looking to promote the country as the top outsourcing destination for healthcare solutions. The Philippine government is fully supportive of this endeavor as they regard the IT industry, which includes healthcare information management, as “one of the key big industry winners”.
With the growing market for the healthcare sector in the outsourcing sphere, solutions providers are confident that they will be able to tap the prolific market of healthcare, especially that the outsourcing destinations’ governments are very vocal of their support to the rise of this particular branch in the BPO industry.