Healthcare Offshoring: A Rising Strategic Shift

We examine the compelling reasons behind firms' decision to offshore vital services in the healthcare industry as well as the dynamic forces driving this change.

Delegating certain healthcare functions is not a new concept to most organizations. But with the recent pressure of an uncertain economic future, combined with low inpatient volume and soaring labor cost, more healthcare companies are now following the lead of other industries by expanding their operations offshore.

Having an offshoring partner helps remove some of the pressure by allocating non-core but crucial everyday operation, and helps hospital continue their productivity and focus on their patients. Here is a look at a few more reasons for offshoring:


Lower Labor Cost

A compelling example of why healthcare organizations turn to offshoring is the fact that with the combined margin challenges and talent issues, running finance and accounting functions across an entire organization for a large health system could result in an annual cost of $50 million. However, offshoring functions in human resources or supply chain, for example, can potentially reduce this expenditure by half through offshoring where labor is cheaper and work schedules are more flexible like Vietnam, Malaysia, and the Philippines.


Access to Talent

Certain processes like medical coding and billing can be a complex task that requires staff with specialized training.  With offshoring, you gain access to a diverse talent pool that contains specialists with a wealth of experience and insights to match your needs.

The nature of offshoring to locations with a different time zone also lends itself to the advantage of enabling a 24/7 service for certain tasks like telehealth services.



Organizations can quickly and reliably increase their operations in response to demand by enlisting the aid of an offshoring partner. Growing your offshore team is quicker than doing it in-house, and as the offshore volume increases, there’s greater potential for cost reduction. When combined with the significant cost savings from offshoring different systems and procedures, healthcare organizations can expand their primary responsibilities, improving their capacity to provide patients with higher-quality treatment.


Healthcare Functions You Can Offshore:


Clinical Administration

Clinical Administration is a non-core task that can be successfully offshored to help hospital staff working with other tasks. This not only makes things easier for the people in charge. It also frees up the in-house hospital staff to focus on providing excellent professional services. By sending tasks like making appointments, keeping records, and other administrative work to other countries, healthcare organizations can become more efficient, increasing overall patient satisfaction.


Data Entry

Healthcare companies grapple with the essential yet labor-intensive task of processing and updating a substantial volume of medical data crucial for providing insights and guiding business decisions. Offshoring emerges as a solution to free up resources, allowing a more dedicated focus on core healthcare functions.


Medical Coding and Billing

Medical Coding and Billing is an intricate process demanding specialized skills. An offshoring provider plays a crucial role in sourcing staff with the precise skillset and experience aligned with the organization’s requirements. This not only expedites the recruitment process but also saves valuable time and resources that would otherwise be spent on finding and training suitable candidates.


Claims Processing

Providing an accurate medical claim is essential for patients dealing with insurance companies. Offshoring this task can handle large volumes of medical claims, and managing the transactional process, ensuring accuracy and timeliness of the claims.


Telehealth Services

It has become a commonplace for healthcare companies to embrace digital communication and telecommunication technology to connect with and serve patients. Offshoring telehealth services to a country with a different time zone or a more flexible schedule offers hospitals a 24/7 service, enabling patients to access assistance at any time.


Finding a reliable offshoring partner is essential for getting a qualified team that can help hospital facilities run smoothly every day.

Despite the substantial benefits, it’s essential to acknowledge and address potential challenges. Offshoring means giving up some control over decisions, processes, and quality control, which can come with risks. Misaligned goals and communication problems are also issues that are likely to arise without establishing a proper communication strategy at the beginning of the partnership. This shows how important it is to find the right offshoring partner to help you deal with these problems and provide smooth hospital operations, addressing potential challenges, and ensuring a successful collaboration in healthcare offshoring.