Why Offshoring is the Smart Choice for Healthcare Businesses in 2024 Economy?

A deep dive into healthcare & offshoring, powered by AffinityCore.

Exploring AI, M&A, and Outsourcing in the Healthcare Industry.

Consider this: large health systems spend a staggering $50 million on finance and accounting functions alone. Now, imagine if offshoring could slash these costs by half. That’s the kind of financial relief offshoring can bring to the healthcare industry in 2024.

Amidst the challenges of the global economy in 2024, healthcare businesses are not just struggling-they’re strategizing. To combat, offshoring emerges as a potent solution for weak operating margins and growing expenditures.

“Outsourcing is one of the leading trends to watch in the coming year (2024),” said Tina Wheeler, Deloitte’s healthcare sector leader, in an interview with Chief Healthcare Executive®.

Newsflash: we’re in 2024, and it’s already happening. Rising interest rates, high labor costs, and financial pressures have convinced Healthcare Executives to consider offshore healthcare operations. Until 2023, hospitals were less involved in offshoring than other industries. However, with new economic challenges and the dynamic global landscape shaping 2024 – Leading Healthcare Enterprises have rescued their declining operations with offshoring.

The transition should be smooth because healthcare executives can dilute most operations through offshoring. Everything can be outsourced from Clinical Administration to HR, Revenue Cycle, Billing, Finance, and Supply Chain, Either entirely or partially. Although offshoring operations come with challenges and organizations are hesitant to lose on-site control – The pros of healthcare offshoring outplay its cons any day. Healthcare Executives should start by analyzing their day-to-day operations and financial reports to pinpoint costly and time-consuming tasks that are easier to outsource. A simple approach like this enables healthcare systems to shed workload and cut back costs simultaneously.

Now, look at the top trends likely to shape the healthcare offshoring industry 2024.  

Mergers and Acquisitions (M&A)  

A new tech-savvy healthcare consumer, IT giants, offshoring, and M&As:

As healthcare systems step up to meet the needs of a new, tech-empowered consumer, several healthcare organizations have acquired, partnered with, or been acquired by IT giants and Telecom Companies. The growing need for convergence between healthcare businesses and advancing technology feeds such collaborations. For instance, Optum, a branch of UnitedHealth Group specializing in healthcare services, has purchased Amedisys, a home health and hospice care business. This move highlights a trend towards strategic acquisitions, i.e., companies aiming to obtain assets that offer access to innovative technologies or new capabilities.

So, where does healthcare offshoring come in?

Well, M&As fuel the offshore healthcare industry through an increasing demand for cost-effective solutions. Furthermore, integrating different business entities, more extensive databases, and strenuous resource allocation also calls for outsourcing to help reduce load. Therefore, offshore healthcare data management services are a savior for healthcare enterprises determined to make smart business choices.

Artificial Intelligence, Healthcare & Offshoring:  

A Triumphant Trio

Now, let’s explore how Gen AI and offshoring interconnect in the healthcare sector.

It is imminent that the global AI market, valued at $196 billion, would disrupt the healthcare and life sciences industry. Organizations are starting to realize that it is the right time to adopt artificial intelligence and take assistance from offshore solutions for swift integration. Healthcare operations that AI can leverage include predicting patients’ length of stay and mortality rates. Moreover, generative AI can also help address staff burnout and process claims. Now, as discussed earlier, businesses can easily outsource back-office functions like data management, tech support, and HR to facilitate such projects & relieve financial burden. Many countries offer labor costs less than a fraction of that in the US. Considering how expensive it can be for enterprises to acquire new technology, BPO is a powerful tool ready to be utilized. In short, it’s time businesses tap into offshore healthcare data services and lead the enterprise technology race.  

The Big Players – AI, Healthcare, and Offshoring

To conclude this brief yet insightful overview of the healthcare offshoring industry, let’s examine how some big players are using AI in healthcare.  

Nvidia’s AI platforms are widely utilized in radiology, pathology, and genomics. They assist healthcare providers by detecting anomalies in medical scans, analyzing tissue samples, and extracting insights from complex genomic data.  

IBM Watson Health leverages artificial intelligence to identify health risks, diagnose diseases, and match patients with suitable clinical trials. Their AI solutions are already implemented globally in numerous significant hospitals and health systems.  

Philips has developed AI-enabled devices and software for both hospital and home use, including an AI system that analyzes CT scans for COVID-19 detection and another that aids clinicians in monitoring ICU patients.  

Google’s DeepMind, in collaboration with the UK’s National Health Service, has created AI that can analyze CT and MRI scans to identify abnormalities and predict the risk of acute kidney failure.  

Microsoft collaborates with healthcare organizations to utilize AI for administrative tasks such as revenue cycle management and clinical applications like analyzing EKGs and identifying diabetic retinopathy.  

To sum up, key industry players and numerous start-ups are making significant strides in healthcare AI. Offshoring helps enterprises expedite their digital transformation reforms and avoid financial constraints brought forth by the 2024 economy. It enables smooth execution and cost-effective strategies, encouraging more healthcare businesses to make smart choices and opt for offshoring solutions.  

To learn more about healthcare offshoring, get in touch with us today.