Rising Healthcare Costs and Outsourcing

The price of health care in america continues to be steadily growing before several years, and according to some projections by consultancy companies, the tendency will continue. This has lead to growing endorsement of outsourcing all over the united states by different hospitals and health care providers. Medical coding outsourcing, medical transcription, medical billing, and information technology have been rising in response to the requirement to cut back price.

Health Care Prices On the Rise

About the 15th of September, New York based consultancy company, Towers Watson, projected an 8.2% increase in company health care costs for 2011. According to Ron Fontanetta, senior healthcare consultant with Towers Watson, “Workers now are fixing to historically lower-than-average merit pay increases, while in once facing higher health care contributions, copays and deductibles. This mix could adversely impact many workers and intensify the growing affordability crisis.”

Meanwhile, Chicago based firm, Hewitt Associates, estimates that it could be just as much as 9%. In Chicago, the projection is as high as 12.4%. The amount is the best it’s been in five years.

In a statement by Hewitt’s health care practice leader Ken Sperling said, “Companies continue to fight to balance the critical healthcare demands of an aging work force using the economic realities of a tough business environment.”

The report credits the increase to an aging work force, coupled with rising expenses of the health care reform act in addition to technology.

Price And Outsourcing

There is definitely without a doubt that the price of health care is rising and in response, hospitals and health care providers are fighting to maximize sales while minimizing expenses so that you can decrease the price on consumers.

One example is Hendrick Medical Center, who, on the 7th of September, signed a managed service and recruiting process outsourcing contract with AMN Healthcare Services. Ralph Henderson, AMN President for the Nursing and Allied offices, stated the contract would result in, “lower bill rates and operational costs, decreased liability and mitigated insurance hazards, and increased compliance with clinical standards.”

So that you can benefit from the chance outsourcers in the meantime are expanding to the health care space.

As MaryAnne Pace, cofounder of business, Health BluePrints said, “Health Care providers are seeking alternatives to boost net cash, reach sales cycle performance development, enhance operating efficiency, and improve overall patient and doctor satisfaction.” The business was recently obtained by NCO Group, who along using the acquisition also released a fresh end to end Healthcare Revenue Cycle Management (RCM) option on the 13th of September.

Another firm going to the healthcare space is Tricom Canada, who’s now getting US health care service provider GTESS Corporation. The news announced about the 14th of September came after Tricom India declared that it recently secured a five-year contract from a US-based health care company for $10 million. Conifer Health Solutions announced acquisition. The organization is getting MediHealth Outsourcing as a way to reinforce its status in the health care outsourcing space.

Health Care Amounts

As the tendency of increasing health care continues, hospitals and health care providers are trying to reduce prices, and only at that point among the options they have been turning to is outsourcing – an opportunity that outsourcers are gearing to take advantage of. Health Care, the same as another company, needs to be concerned about the amounts.