| | | Offshoring Revenue Cycle Management Services: India set to takeoff! Revenue cycle management (RCM) offshoring is a relatively young industry in India. While medical transcription was one of the earliest elements of the RCM services to be offshored, vendors are now gearing up to offer the entire gamut of services. This is one of the key findings in the report "US Healthcare Revenue Cycle Management: Offshoring of Medical Coding and Billing Services" released by ValueNotes this week. What does RCM involve? The US Healthcare industry can be divided into two major groups: - Healthcare providers' market (comprising of Physicians, Hospitals, Clinics and other healthcare institutions)
- Healthcare payers market (comprising of Healthcare insurance companies and Third party administrators)
While the provider segment offers services to the patient, the payer segment handles the patients' insurance and payment transactions. The provider segment handles all the transactions starting from the time a patient is admitted to a hospital to post discharge. The exhibit below lists various processes in the healthcare provider segment. At every stage there are several process that are required to be performed by US medical establishments: 
Indian vendor landscape ValueNotes research shows that there are over 70 to 80 vendors in India providing various revenue cycle management services to US clients. We have classified the Indian vendor landscape as four-tiered based on the different sizes, focus areas and capabilities of vendors. The industry consists of leading vendors like Zavata, Perot, Apollo Health Street and Ajuba (tier I) having over 800 employees, co-existing with small, home run outfits (tier 4) having as few as 5 to 10 employees. Most vendors currently offer a mix of medical billing, coding and transcription services. While some of the Tier 1 players do offer end-to-end RCM services, others are rapidly building capabilities to do the same. This trend is set to further accelerate in the next 2-3 years. Going forward… The size of the US healthcare industry is approximately $2 trillion and the potential for revenue cycle management outsourcing is estimated to be $8 to 10 billion in 2006. The primary drivers for offshoring are an aging population, ever-increasing documentation workload and inadequate workforce within the US. Further, with an increasing level of maturity amongst Indian vendors, offshoring is set to gain huge momentum in the next 2-3 years. As vendors get ready for more action, we estimate that Indian offshore revenues from Revenue Cycle Management services will to grow to USD 410 million by 2011, from USD 125 million in 2006. | | | | | | | Weekly News Highlights: | | | | » | Philip Morris awards outsourcing contract to TechTeam Global | | | Philip Morris International (PMI), Switzerland-based tobacco company, has signed a five-year outsourcing contract with TechTeam Global to provide corporate IT help-desk support in five languages to over 9,000 users in Europe. Services will be delivered from PMI's Krakow, Poland based shared services center. | | | | | » | Essar Global acquires Global Vantedge for $22.60 mn | | Essar Global has acquired Global Vantedge for $22.60 million from Chrys Capital, thus making its fourth acquisition in one year. The company aims to generate over $25 million in additional revenues for Essar's BPO business. With over 1400 employees, Global Vantedge operates in banking, telecom and automobile verticals. | | | | | » | Satyam's BPO unit to expand overseas | | | Nipuna Services, the BPO arm of Satyam Computer Services, is planning Indian and overseas expansions. The company expects to hire over 5,000 people, up from the current 3,000 by March 2008. | | | | | » | Gameshastra launches new facility in Hyderabad | | | Gameshastra, a video game QA outsourcing firm, has launched a 25,000 square feet facility in Hyderabad to provide the full range of game development, game art/animation and QA services for multiple platforms. The overall headcount is expected to be over 1000 by mid 2008. | | | | | » | Integreon acquires CBF Group Inc. | | | Integreon Managed Solutions, provider of legal and document services, has acquired CBF Group Inc., a US-based company providing 24/7 administrative services to lawyers, for an undisclosed amount. Integreon has 2,000 employees, with 1,200 in India. Ayala Corp., Integreon's majority shareholder based in the Philippines has financed the acquisition. | | |
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