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Why is the healthcare industry moving toward offshoring post-pandemic?

While we all know what makes a healthcare organization perform well are its doctors and medical assistants providing outstanding care to patients. Yes, they play a crucial role, but a lot is managed in the back-office of any healthcare center, which also plays a vital role in obtaining smooth and progressive business.

However, many healthcare organizations are turning to outsourcing service providers when dealing with challenges like a shortage of expertise or resources for back-office operations. And this is easy; you can simply outsource a business function you don’t have enough resources for, for example, medical accounting services.

The healthcare outsourcing market in the US valued at $52.9 billion in 2020 is expected to grow at a CAGR of 3.8% between 2020 and 2025, reaching $66.3 billion by 2025.

The growing compliance requirements and the need for precise management of medical records and structured processes are some factors driving the healthcare outsourcing market of the US.

Now to learn more about what’s actually happening, why businesses in the healthcare sector are increasingly moving to offshoring solutions, especially post-pandemic, let’s read experts’ responses to this question.

Expert opinions on the healthcare industry moving toward offshoring post-pandemic

Stephen, Owner of CocoSign

Healthcare industries got the most brutal hit due to the pandemic without gaining much notice. They dealt with the massive financial crisis while acclimated to the remote work needs and unforeseeable staff deficiencies. In this scenario, outsourcing offers a major shortcut between the healthcare system and their team’s requirements.

The outsourcing partners can quickly introduce top-notch cloud-based accounting systems, which ease the remote work. The new normal demands healthcare teams to be informed, nimble, and powerful. So, the outsourcing partners provide valuable details whenever required. However, I would still add, healthcare is a crucial sector that is related to the lives of people and creatures, so outsourcing requires roper audits and supervision throughout the process.

Cindy Corpis, CEO of SearchPeopleFree

Outsourcing is the practice of assigning specific activities, services, or product development to a third party outside of the company. The outsourcing provider takes care of the tasks that were previously handled by the company’s personnel in-house. We’ve observed an increase in the health industry as a result of the recent pandemic.

This can be used by healthcare organizations to limit rising service prices. Healthcare managers and personnel may be able to focus more efficiently on their organization’s main business by outsourcing tasks unrelated to its primary operations. When a healthcare organization outsources, an external contractor takes over the management of one or more of the organization’s business, clinical, or hospitality services. The contractor may be able to deliver a service more efficiently and at a lower cost than the healthcare organization because he or she specializes in providing a certain service and can attain economies of scale.

Name Missing Managing Director of Harley Street Hair Transplant Clinics

Outsourcing in the healthcare industry is mostly happening in the accounting department. This is because, during the pandemic, most healthcare facilities scrambled to find the most basic of resources. They were understaffed and overburdened. Outsourcing allows healthcare facilities to collaborate with highly skilled, technically sound professionals that use more efficient technology like cloud computing to do work faster and easier. The process is also cheaper than building an in-house team with the same capabilities.

Sally, Co-founder of

Impact of outsourcing in the healthcare industry Outsourcing is leading to unique unfolding, including:

-A increase in specialization

When doctors and nurses can concentrate on only a few tasks, they are able to become specialists at performing those tasks.

-Lower quality care due to lack of oversight and regulation. Outsourcing means that fewer people are watching the work being done by outsourced professionals resulting in lower-quality patient care!

-A decrease in wages and benefits for local workers. As healthcare companies continue to outsource their work, fewer jobs are available at hospitals and even clinics, leading to a lack of qualified applicants. This has caused many nurses to take on additional responsibilities so they can keep up with demand, but there are only so many hours in the day.

Fred Hoffman, Co-founder of Seniors Life Insurance Finder

COVID-19 has caused hospital systems to be overburdened with sick patients, the means used to heal and save lives was straining under strain, there was a scarcity of beds, healthcare experts, and various other issues. COVID-19 has shown us that once we’ve eradicated this health disaster, healthcare will enter a new era. We’ve already identified and noticed significant changes that will become part of the new normal. The rise of telemedicine and the changing regulations that impact billing are just a few examples. From enhanced hospital capacity to Medicare-specific policies to invoicing and other solutions, all of it is essential in determining how healthcare will be developed in the future.

The new normal will not just affect healthcare organizations and personnel. The firms that supply technology and services will be affected as well.

The COVID-19 had a significant impact on healthcare accounting departments. They had to deal with a financial catastrophe that exploded out of nowhere while also addressing sudden remote job needs and staff shortages. Outsourcing might help healthcare accounting teams fulfill their goals while also addressing what they already have. Even outsourcing partners provide better accountants than many organizations can hire on their own. Team members must be agile, informed, and resilient in order to survive the new normal. It’s considerably more expensive and time-consuming to develop those skills in-house. But not with outsourcing.

Katrina Zhao, Principal Dentist/Managing Director of Midas Dental

Outsourcing has become more and more prevalent in the healthcare industry, in dentistry in particular, as we have advanced into the new modern digital age of dental practice. This allows us to capture more information than we have ever done before and transfer it with greater accuracy and efficiency to all areas of the global network. With the advancement of 3D scanners and digital X-rays and photographs, we are now able to work as a team with dental laboratories all over the world to fabricate and manufacture dental appliances and outsource them to specialist companies who are able to manufacture medical devices to the highest standards.

Outsourcing the fabrication of these devices improves the efficient use of operator time and increases the productivity of the operator and dental chair. It has become the new normal to outsource work in the healthcare industry, and we can only stand to see more of this trend as technology improves.

Austin, CEO of Aimvein

Outsourcing can create costs savings in the short term, but organizations may actually see themselves sacrificing long-term effectiveness in the healthcare industry. While outsourcing has proven to be successful in most industries, this is not always the case in healthcare. For healthcare companies, particularly hospitals, maintaining an in-house staff of clinicians is often beneficial for both patient care and financial reasons.

I believe that for any organization, the decision to outsource is never an easy one. No matter how financially beneficial outsourcing can be, it carries significant risk, and this risk is only heightened in the healthcare industry. The stakes are high, especially when you consider that lives can be at stake if complications arise. It’s essential for hospitals to carefully assess their options before entering into any outsourcing agreement.


Considering the points shared above by experts, we can say that outsourcing seems an excellent business strategy for the healthcare industry. It allows medical healthcare businesses to get more time to focus on their core competencies, which are providing top-quality healthcare services, facilities. Another way outsourcing can be proven as beneficial is that it helps cut down back-office admin costs, increase capacity, efficiency, productivity, opening doors to progress.

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