What is Medical Business Process Outsourcing?

What is Medical Business Process Outsourcing?

(The term outsourcing and BPO (bpo) are considered to be synonymous for the length of this article)

In the past two decades, the outsourcing industry saw a massive development. Most of the developed nations started outsourcing their major work to the emerging economies giving their growth a boost. The BPO industry which stood at generating the revenue of $7 billion until 2006, is now making a total of more than $120 billion today.  Which has successfully made some of the underdeveloped nations like India, Pakistan and Bangladesh, become members of the league of developing nations in the world.

These nations some 10-20 years back were far behind in technology, but as the business started to arrive in these states, a big chunk of the population in these countries chose to make professions out of technology, recognizing the potential in it. It cannot be said that the only reason for people choosing technology studies is because of the continuously rising demand for the need for skilled labor, rather, the growing need for technologically trained individuals.

Despite the challenges, the reason for the success of the bpo industry in the developing nations is the availability of a large English-speaking population there. Many big names like Google have outsourced their work and keep their support centers housed in India. The reasons for India, Pakistan and Bangladesh becoming the highly-sought after destinations are their large burgeoning class of dynamic educated individuals, the advantageous time zone of these regions and also the location. This happens to be the cause of big companies based in the UK, US, and Australia coming to these countries to outsource their businesses.

In the growing demand for BPOs, there is a special category of outsourcing that plays a vital role in the development of health sector and that’s Medical Business Process Outsourcing (MBPO). MBPO is a very common practice in the healthcare sector now, organizations are outsourcing to the outside vendors. Taking services from MBPOs can help health organizations to focus on patient care and not worry about the secondary issues.

The business of MBPOs began in the 1980s, with vendors offering the services of human resource management, employee training, finance and accounting services and also information technology along with Customer Relationship management.

How does the MBPO work

A healthcare organization doesn’t need to outsource everything at once, it can use the option anyway it deems fit. The most basic uses where outsourcing comes into play is the removal of the need for a resource to handle the IT support and data entry fields. Outsourcing also deals with coding, documentation, and allowing outsourcing to also register patient interactions. Alongside these, it can manage call centers, customer service tasks, and even billing. This reduced the load of work from the healthcare companies by almost 50%, giving them benefit in the total operating cost.

In the beginning, the insurance companies raised the concerns about the privacy of the patient’s medical history. They believed that the sensitive information of patients is their trust secured with the organizations, and the vendor company can breach the privacy by giving away critical information to be used against the patient. Hordes of people are now subscribing for health services, plans from insurance companies, while the companies find it hard to keep all the work done by themselves. In these circumstances, MBPO plays a vital role in bringing business, minimizing the operational cost, and introducing feasible plans at a minimal price. The basic MBPO services include the development of the product, care management, business acquisition and also claims management.

Solutions the MBPO offers.


The mbpo eliminate the need for multiple manual entries in many places to credential the providers on health plan panels.

GRS, Guided Response System

This enables a different kind of control in defining and managing customer interactions.

Robotic Process Automation.

MBPOs know how to handle technology alongside the regular operations, conversion of repetitive manual tasks are made easy by the use of Robotic Process Automation for the health organization.

Denial Management Processing

The end to end circle of management of identity, monitoring and preventing any monetary damage is enabled by these business process outsourcing organizations.

Revenue Cycle Management Solution

Many BPOs offer the revenue cycle process that include examining patient eligibility to collecting the co-pay for coding claims.

Outsourcing Healthcare BPO – Rewards

Though primary driver of outsourcing is significant cost reduction, it is important to note that there is a lot more what healthcare outsourcing brings to the table.

Let’s take a closer look at the key benefits of healthcare outsourcing:

Advantages of the Healthcare BPO.

The main cause of healthcare organizations availing themselves of the MBPO services is the cost effectiveness, there are other multiple factors that help these organizations to rely on the MBPOs for their business growth. Some of the benefits are listed below.

Increased Profitability.

The biggest incentive that the bpo(s) provide healthcare organizations is the level of amount that is being saved when taken the services from some other company. There is an estimated cut of almost 30% to 60% on the cost that is otherwise spent on the hired resource. Through contracts with the bpo(s), companies can reach out to low cost labor and work in the infrastructure not possible in the regular circumstances. These contracts with BPOs give way to saving a huge chunk of money and invest in rebuilding the overall infrastructure of healthcare institutions/ clinics/ hospitals and also increase the rate of profit.

Access to Skilled Labor.

The greatest advantage that the BPO industry gives to any company looking for outsourcing business is a cut in their expenditure. The availability of skilled manpower that is prepared to handle any complicated or difficult task that comes their way. This has massively helped the skilled labor of emerging economies in finding employment in the form of bpo(s) and to become these places an eternal destination for outsourcing businesses. with the growing demand for medical outsourcing, a huge number of medically trained individuals, apart from their jobs are working part-time and full time in the bpo sector, delivering services to people living in a different time zone. These bpos also satisfy their clients by ensuring that all the administrative work has been taken care of.

Focus on Patient Care.

When a company allows outsourcing, it also buys for itself the time to focus on its niche, the work it does the best. Outsourcing lets the employees related to medicine make the best use of their time and not get involved in the hassle of administrative tasks. This lets medical practitioners keep their focus centered on the patient care and not divert from their primary goals.

Reduced cost of Staff Acquisition and Training.

The training cost and recruitment of employees go down to a greater degree because these affairs are taken care of by the bpo. Some of the bpo’s hold the talent acquisition department with them as well, they find the appropriate employee for the work that the company does.

Enhanced Patient service.

Healthcare outsourcing helps medical organizations to remain focused on the core area that they hold their expertise in. this way they concentrate on giving medical services to the customers that are treating them and giving them the best medical facilities, averting the tension from their administrative and IT issues. This gives a boost to the reputation of the hospital or the organization for their services.

Expand Practice Offerings.

Outsourcing makes one more competitive and enhances the business operations. A hospital or clinic can make an addition of specialized doctors and medical technicians in the same amount that was going to be invested in other non-core areas.

Final Word.

The mbpo is still an emerging industry, but has great prospects of growth in it. The field of medical is one of the most important fields in the world, that can see an immense growth by just outsourcing the administrative or non-core areas to bpo companies. This enables them to strengthen their niche that is the enhancement of medical services to people and not worry about other affairs.

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