Onshore vs. Offshore: Why More Than Half of Hospitals Report That Onshore Outsourcing is the Way to Go

Onshore vs. Offshore: Why More Than Half of Hospitals Report That Onshore Outsourcing is the Way to Go

The strategies we choose to optimize hospital operations can mean the difference between success and failure. Healthcare organizations increasingly turn to onshore outsourcing (vs offshore) as a pivotal strategy to navigate the intricate world of medical coding, auditing, education, and consulting. A recent industry report shows that more than half of healthcare facilities outsource their revenue cycle and HIM needs, emphasizing the significant shift toward outsourcing solutions1.

Mari E. Cely, Director of Business Strategy and Client Services at YES HIM Consulting, sheds light on the driving forces behind this trend in a recent For the Record Magazine interview with Liz Goar. Cely notes, “The primary drivers behind the uptick in healthcare organizations switching HIM vendors include the need for specialized expertise, the challenge of keeping up with coding changes, the impact of coding updates on quality, and the desire to improve revenue cycle performance.”

Staying abreast of coding changes and ensuring quality is paramount in our rapidly evolving industry. Onshore outsourcing offers access to specialized expertise and a robust support system, paving the way for improved revenue cycle management.

Transitioning Away from Offshoring

onshore vs offshore outsourcing

In the complex equation of transitioning from offshore to onshore vendors, there are additional considerations that should weigh in. Cely advises healthcare organizations to gauge the performance and reliability of their current vendor. Moreover, an organization’s capacity to scale and support future growth should be a pivotal factor. Understanding the potential financial implications of switching vendors is equally vital.

To effectively navigate the transition to onshore outsourcing versus offshoring, Cely advocates a structured plan, commencing with a thorough assessment of the current situation and establishing measurable baselines. This should be followed by meticulous planning for data migration, training, and integration.

In line with this, Cely and the YES Team stress the importance of maintaining open communication throughout the transition and the subsequent partnership. The importance of careful planning cannot be overstated, as data loss and unexpected technical challenges are common pitfalls that can be avoided with diligent preparation and secure data backups.

While onshore outsourcing is gaining momentum, addressing the concerns associated with offshore or blended outsourcing models is essential. Hospital managers express apprehensions about managing offshore or blended domestic and offshore coding teams. YES’ holistic approach mitigates these concerns through a structured methodology, secure data practices, and a focus on effective communication.

As part of our commitment to facilitating informed decisions, YES offers prospective clients a comprehensive financial analysis that contrasts in-house coding with outsourcing. Cely asserts that factual data acts as a linchpin in helping both parties assess the viability of a partnership. Beyond the financial aspect, she emphasizes the significance of prospective partners’ expertise, reputation, and technological compatibility.

Benefits of Choosing Onshore vs Offshore Outsourcing

onshore vs offshore

Minimal to no time zone differences or delays. Opting for onshore outsourcing provides a distinct advantage in terms of minimal to no time differences or delays. When healthcare organizations collaborate with vendors located within their own country, they can expect seamless communication and real-time interactions. This eliminates the challenges posed by coordinating tasks across different time zones, leading to smoother project management, quicker issue resolution, and enhanced operational efficiency. Onshore outsourcing ensures that critical tasks are addressed promptly, contributing to streamlined workflows and maintaining a consistent pace of work.

Communication issues or language barriers are non-existent. The benefits of onshore outsourcing extend to overcoming communication issues and language barriers. Collaborating with professionals from the same linguistic and cultural background ensures a more coherent and effective exchange of information. This fosters a deeper understanding of project requirements, reduces the chances of misinterpretation, and enhances collaboration. Clear and concise communication is vital in the healthcare industry, where precision and accuracy are non-negotiable. Onshore outsourcing minimizes the risk of misunderstandings, promoting smoother workflows and a more productive partnership.

Higher coding quality and better productivity. One of the compelling advantages of onshore outsourcing is the potential for higher coding quality and improved productivity. Domestic-based professionals thoroughly understand the specific coding regulations and requirements applicable in the same country’s healthcare system. This familiarity translates into accurate and compliant coding practices. Moreover, onshore outsourcing allows easier access to training and resources that keep coders up-to-date with evolving industry standards. The close proximity of onshore vendors also enables quicker response times to queries, ensuring that tasks progress smoothly and deadlines are met.

Stricter privacy and security standards. Onshore outsourcing offers the benefit of aligning with more stringent privacy and security standards within the same regulatory framework. Healthcare organizations deal with sensitive patient information and must adhere to rigorous data protection protocols. By choosing onshore partners, these organizations ensure that their outsourced coding tasks are conducted in accordance with the same stringent regulations that apply to them internally. This approach minimizes the risk of data breaches, safeguards patient confidentiality, and upholds patients’ trust in their healthcare providers.

Expert coding consultants with specialized training. Opting for onshore outsourcing brings access to expert coding consultants with specialized training tailored to the local healthcare landscape. These professionals possess in-depth knowledge of the country’s coding intricacies, regulations, and compliance requirements. Their familiarity with the specific needs of the healthcare system enhances the accuracy and relevance of the coding work performed. Onshore vendors can offer customized solutions and insights based on their profound understanding of the local healthcare nuances, ensuring that coding practices are accurate and aligned with the broader healthcare objectives.

Frequently Asked Questions (FAQs) About Onshore Outsourcing

Is onshore outsourcing more expensive than offshoring or maintaining an in-house coding department?

By partnering with YES, hospitals experience substantial cost savings, estimated at hundreds of thousands of dollars, encompassing all in-house coding department expenses in a one-time fee. Our cost comparative analysis illustrates hospitals could reduce their costs by 15% when outsourcing their coding services instead of keeping an in-house team.

Additionally, a report from HFMA found that while offshore coding companies may offer lower costs, they often suffer from lower coding quality, lower productivity, higher denial rates, and slower turnaround time2.

Does onshore outsourcing involve a lot of hand-holding or tedious onboarding?

This is just one of many myths we’ve heard about outsourcing. YES consultants can quickly adapt to changes and deliver exceptional results for our clients. Our team is always ready to go and can provide support with coding, audits, education, data analysis, report building, and much more. Unlike some firms that only offer coding services, we have a dedicated team of experts who complete ongoing training to stay at the top of their field in several high-demand areas.

What are the benefits of onshore outsourcing?

Onshore outsourcing brings a multitude of benefits. As their external coding services partner, we excel in efficiency and flexibility, with immediate expert engagement upon contract signing and the ability to scale according to project needs.

Our certified coding experts are well-versed in the latest updates and guidelines, undergo continuous education, and hold all the necessary certifications. Coding accuracy is a top priority at our firm, with a coding quality standard maintained above 95% through rigorous internal audits, staff training, and error resolution. YES handles onboarding and training for new hires, ensuring adequate staffing.

Data security is paramount at YES, demonstrated through robust processes, HIPAA training, and regular security audits. We foster transparent communication, diminishing departmental silos and enhancing project coordination and outcomes.

View more pros of onshore outsourcing here.

YES is Ready to Be Your Onshore HIM Partner

As the landscape continues to evolve, the shift towards onshore outsourcing stands strong as the choice that more than half of hospitals are making for a promising future. In the words of Cely, “We recommend starting with a comprehensive assessment and establishing a measurable baseline.”

With this comprehensive approach, organizations can harness the expertise and resources needed to thrive in an ever-changing industry. If you’re ready to take the next step with onshore outsourcing, get in touch with our consultants here.

Sources:

  1. HealthLeaders, 2022.
  2. HFMA, 2018.

YES HIM Consulting

onshore vs offshore outsourcing

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