Author: Nidhi Mishra
How about doing the work you are best at & outsourcing the rest?
That sounds different, right? But it has gained a lot of momentum and brought a revolution in the medical stream.
Before coming to medical outsourcing let us see the rise of the healthcare industry.
The Indian healthcare sector is one of the fastest growing sectors with high contributions in terms of revenue as well as in employment. This sector includes hospitals, health insurance, clinical trials, medical tourism, medical outsourcing and many more.
There are several factors that cause this sector to increase tremendously. Some of them are listed below –
The healthcare sector has been a focal point for last 24 months due to COVID-19. In this phase the research and development, insurance segments relatively had a boost of benefit but one of the most pressing problems was a shortage of medical infrastructure and trained manpower in the medical stream. This includes doctors, nurses and another service provider.
After COVID-19, the government and people are investing more in the healthcare sector due to its increased demand and necessity of it. The digital healthcare market in India is estimated to reach INR 485.43 billion by 2024, expanding at a compound annual growth rate of ~27.41% during the 2019-2024 period. It has been seen that 80% of healthcare systems are aiming to increase their investment in digital healthcare tools in the coming 5 years. Digital healthcare tools include mobile health apps, electronic health records, electronic medical records and many more. (Healthier India, n.d.)
In the Economic Survey of 2022, India’s public expenditure on healthcare increased to 2.1% of GDP in 2021-2022 which was 1.8% and 1.3% in 2020-21 & 2019-20 respectively.
Health expenditure allocation in 2021-22 showed a rise by 73%. (Ministry of Finance, n.d.) However, there are many countries that take healthcare a very important sector and spends the GDP ranging from 11 to 18%. Example – Japan, Switzerland, Germany, Canada, US. So, India has to do a lot more work and research in order to improve the healthcare system.
Apart from this, the Indian medical tourism market is expected to be valued US $ 7,417 million in 2022 and it is projected to surpass US $ 42,237.47 million by 2032 which was facing a dip due to the pandemic. (India Tourism Market Outlook (2022-2032), n.d.)
Since, we have discussed the healthcare sector, now will talk about the medical outsourcing as it is one of the emerging sectors in the healthcare.
First let us understand,
According to Wikipedia, Medical outsourcing is a business process used by organizations like hospitals, nursing homes, and healthcare provider practices to obtain physician, nursing, healthcare technician, or other services in a managed services model. (Medical outsourcing, n.d.)
Rather than doing the work by themselves hospitals hire, third-party firm to perform the work for them.
As we all know that apart from treating the patients, hospitals also have to deal with the billing services, insurance services, transcriptions, coding, pathological services, pharmaceutics such as medicine dispensing and many more.
In the retrospect, it was all done by a team of executives who were managing all the facilities and had complete control & accountability of the same. Plus, it was quite difficult (& expensive) for the team to handle everything while giving top-level facilities.
But today, we live in a world where highly skilled specialists can provide the different services in which they are best at with utmost professionalism. So, the hospitals which was like a closed box business started to open only to attract the firms which are confident enough to provide the various facilities. Due to this, hospitals started to focus more on the patients care rather than being worried about administrative work.
Let’s take an example,
As we all know everything is becoming digital and advance. So, in order to get along with that, hospitals also have to generate new ways for the administrative work such as keeping the patient’s record, admission systems, billing, registrations, transcriptions, health information management, ordering & receiving lab results, and specialist software for things like radiology or IV pumps. That’s where IT comes into the picture and the need of IT firms arises. Highly professional and skilled IT firm provides the above-mentioned services that increases workflow efficiency. Not only this outsourcing has extended its reach well beyond IT.
India emerged as the second largest destination after the US in the healthcare outsourcing sector. The particular reason for these circumstances is the large pool of well-trained medical professionals, latest technology solutions and the cost-effective services that India provides.
SSC- Shared services center]
and many more.
The global market of the medical devices sector is predicted to reach the US $400 billion this year. However, India will also play a major role in it. India is the 4th largest market for medical devices in Asia, among the top 20 markets for medical devices worldwide. The country’s medical devices market industry stood at the $11 billion. By 2030, the industry is projected to be worth the US $50 billion. This can be due to the country’s growing population, an increase in the number of hospitals, and a greater need for sophisticated medical devices and better healthcare. (Fostering innovation for improved health, n.d.)
The market for medical technology in India is still small, but rapidly expanding. It is highly fragmented with limited indigenous manufacturing – imports constitute over 75% of the estimated US $2.75 billion market. (Medical technology industry in India, n.d.)
So, as we have seen the medical outsourcing as emerging market, there are many companies who provide various facilities in India. Few of them are listed below-
These above-mentioned companies provide highly professional, well-trained medical servicers who do their job precisely.
To sum up everything that has been stated so far medical outsourcing is a booming sector in healthcare industry across the globe. In coming years, it is going to become even bigger market. It will also play a major role in changing the landscape of healthcare industry.
In India too, these major changes will also appear and outsourcing will play an important role in healthcare sector. For India outsourcing will going to be THE NEXT BIG THING!
About Diabetes Prevalence in India. (n.d.). Retrieved from https://www.healthline.com/health/diabetes/diabetes-in-india#by-the-numbers
Deloitte. (n.d.). 2021 Global Shared Services and Outsourcing Survey Report. Retrieved from https://www.deloitte.com/content/dam/assets-shared/legacy/docs/analysis/2022/gx-2021-global-shared-services-report.pdf
Fostering innovation for improved health. (n.d.). Retrieved from https://www.investindia.gov.in/sector/medical-devices
Healthier India. (n.d.). Retrieved from https://www.investindia.gov.in/sector/healthcare
India Medical Tourism Market. (n.d.). Retrieved from https://www.futuremarketinsights.com/reports/india-medical-tourism-market
India Tourism Market Outlook (2022-2032). (n.d.). Retrieved from https://www.futuremarketinsights.com/reports/india-medical-tourism-market
Medical Coding and Billing – Opportunities in India. (n.d.). Retrieved from https://www.pharmaknowledgecentre.com/medical-coding-and-billing-opportunities-in-india/#:~:text=India%20is%20emerging%20as%20the%20hub%20for%20healthcare,find%20a%20new%20avenue%20to%20polish%20their%20careers
Medical outsourcing. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Medical_outsourcing
Medical technology industry in India. (n.d.). Retrieved from https://www2.deloitte.com/in/en/pages/life-sciences-and-healthcare/articles/medical-technology-industry-in-india.html
Ministry of Finance. (n.d.). Retrieved from https://pib.gov.in/PressReleasePage.aspx?PRID=1793817
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