Today’s healthcare organizations are grappling with a dual challenge: managing their finances efficiently while navigating a web of regulatory requirements. The rising tide of inflationary pressures and changing legislation have created a perfect storm for healthcare providers. As patient demands and industry standards rise, facilities must find a way to balance skyrocketing costs while maintaining quality service and comprehensive care.
To stay afloat in this increasingly complex landscape, outsourcing healthcare accounting has emerged as a powerful solution. It offers cost savings, access to expertise, and enhanced compliance. In this blog, we’ll explore why outsourcing has become the ‘new normal’ in healthcare accounting and how it drives efficiency and sustainability.
The Challenges Facing Healthcare Accounting
The financial and operational landscape of healthcare is fraught with challenges that demand specialized solutions. Medical facilities need dedicated accounting specialists to help them navigate rising operational costs, changing regulations, and worker shortages. To address these obstacles, many healthcare providers are turning to a cost-effective and flexible alternative—outsourcing. Here is an overview of the challenges faced by the healthcare accounting sector:
Rising Operational Costs Due to Administrative Inefficiencies
Over the past decades, U.S. healthcare spending has increased exponentially, growing from 6.9% of gross domestic product (GDP) in 1970 to 17.7% in 2019. During the COVID-19 crisis, healthcare spending ballooned even further, accounting for 19.7% of the United States GDP. In the post-pandemic world, operational costs in the medical sector continue to rise, prompting many industry experts to label health expenditures “unsustainable.”
According to estimates from industry professionals, administrative inefficiencies are one factor contributing to rising healthcare costs. These support functions, including accounting, medical billing and coding, insurance claims processing, documentation, and patient scheduling, are essential to the overall medical process, even though they do not directly involve clinical tasks. Research shows that administrative expenses account for 15% to 30% of healthcare spending.
By streamlining healthcare back-office tasks, including accounting and bookkeeping, facilities can reduce expenses and keep their budgets under control. This can give them a significant competitive edge in today’s volatile and disruption-prone healthcare landscape.
Navigating Complex, Ever-Changing Regulations
Healthcare has always been a heavily regulated industry because facilities deal with many life-or-death situations. With patients’ lives at stake, regulatory bodies constantly tweak, update, or overhaul policies to keep up with evolving circumstances, particularly in light of the COVID-19 pandemic.
In the post-COVID world, healthcare regulations continue to shift, becoming more complex and increasingly patient-centric. Today, facilities are encouraged to give patients improved access to their health records, provide top-notch and comprehensive care, accelerate digital transformation, and keep all data and information secure.
With the incoming new administration, healthcare companies anticipate further regulatory shifts, including reforms to the Affordable Care Act (ACA), Medicare, Medicaid, and more. To keep up with these changes, facilities must stay on top of the latest developments and understand how policy shifts affect their staff’s daily workload. They must invest in dedicated legal and compliance teams to review processes and guidelines, including updating documentation, to ensure adherence to evolving regulations both locally and internationally.
Shortage of Skilled Healthcare Accountants
Across the United States, the accounting sector struggles to attract new members into its workforce. According to the American Institute of Certified Public Accountants, the pool of students completing accounting degrees has decreased sharply in the past few years. As more veteran accountants reach retirement age, industry experts fear that there may not be enough new workers to fill the gaps in their operations.
Between 2021 to 2022, roughly 47,070 university students earned a bachelor’s degree in accounting, decreasing 7.8% from the previous year. With fewer accounting graduates entering the workforce, many firms are understaffed and overwhelmed with financial workloads. The same is true for healthcare accounting departments.
Since healthcare accounting may require specialized knowledge and expertise, many facilities have difficulty finding and retaining qualified workers to meet their operational needs. Small to mid-sized hospitals, in particular, experience delayed audits and financial reports due to understaffed accounting teams. This widespread labor shortage, combined with other pressing factors, is fueling the demand for outsourced healthcare accounting.
Accounting Trends Driving the Rise of Outsourcing in the Healthcare Industry
Several macro trends have accelerated the adoption of outsourcing in healthcare accounting. From increased reliance on AI-driven accounting platforms to the expansion of telehealth and greater demand for value-based care, these trends underline why outsourcing isn’t just a temporary fix—it’s becoming integral to the industry’s future. Let’s break down the key developments fueling the rise of BPO solutions for healthcare outsourcing teams:
Increased Reliance on Technology, Such As AI-Driven Accounting Platforms
In the age of digital transformation, healthcare accounting teams are encouraged to invest in innovative technologies that can help streamline and optimize their operations. They see automation as a way to improve accounting processes while reducing costs and maintaining service quality.
According to a 2024 Black Book Market Research study, 87% of healthcare finance executives feel pressured to replace and upgrade their revenue cycle management (RCM) tools and systems. In the same survey, 96% of leaders agree that digital transformation is a core part of their 2025 business plan, but only 11% have fully implemented solutions that address their company’s changing needs.
A different study from McKinsey confirms these findings, with 89% of healthcare executives seeing digital transformation as a top priority. Still, only 3 in 4 say they have the resources necessary to implement it. These numbers show that healthcare accounting processes are becoming increasingly reliant on technology, but many organizations struggle to integrate these tools into their operations.
In these cases, working with an outsourced accounting provider can give healthcare facilities a significant advantage. These specialty BPOs have access to the latest cutting-edge accounting tools and technologies, including artificial intelligence (AI) and machine learning (ML) software. Having an outsourcing partner can enable healthcare accounting teams to utilize innovative technologies without the costs of setting up infrastructure, hiring IT specialists, and investing in maintenance and repairs.
Shift Towards Value-Based Care, Requiring Precise Financial Reporting
The growing shift towards value-based care is another factor driving demand for outsourced healthcare accounting. Value-based care refers to healthcare programs prioritizing patient experience through individualized treatments, comprehensive services, and exceptional provider and staff performance.
In this approach, medical providers recognize that each patient has unique needs and will benefit from customized, person-centered, and coordinated healthcare. Often, doctors and other healthcare staff work together to create a treatment plan based on the individual’s health goals and coordinate with other medical professionals to manage their health needs.
The problem with tailored and personalized care plans is that they can lead to more complex coding and billing processes. Instead of standardized treatments, some patients may undergo particular procedures, be prescribed a mix of medications, and be seen by providers with different specialties. Because of this, healthcare accounting teams must be vigilant in keeping a record of all transactions and procedures, ensuring accurate billing and financial reporting.
Globalization and the Ability To Outsource To Cost-Efficient Regions
Modern technology has eliminated many barriers to collaboration and communication, allowing companies to reach out to, work with, and cater to individuals from across the globe. This is particularly true for the healthcare industry. In the past, medical facilities could only employ staff within their area, but today, healthcare providers can access the expertise and capabilities of offshore and nearshore specialists.
Increasing globalization is one of the top factors driving the demand for outsourced healthcare accounting. Instead of struggling to hire and retain local accountants, healthcare facilities can tap into a broader talent pool of finance professionals. With this strategy, firms can not only access quality talent at cost-effective rates but also reap the many advantages of having a diverse workforce, including increased creativity and innovation.
Telehealth Expansion Requiring More Accurate Revenue Cycle Management
Before the COVID-19 outbreak, telehealth and telemedicine were seen as niche markets. However, the pandemic accelerated the demand for virtual care solutions, allowing patients to receive medical assistance from the comfort and convenience of their homes. This service was particularly beneficial for individuals with disabilities or those who live in remote areas.
In the post-COVID world, the demand for telehealth shows no signs of slowing down. In fact, industry experts foresee the global telemedicine market reaching $432.31 billion by 2032, growing at a compound annual growth rate (CAGR) of 19% from 2024 onwards.
With this continued expansion of telehealth services, healthcare accounting teams need more accurate revenue cycle management to keep pace with the speedy growth. Working with financial process outsourcing specialists can help facilities address rising demand without overworking existing accounting staff.
Outsourcing Firms Leveraging Advanced Analytics for Decision-Making
In the constantly changing healthcare landscape, advanced analytics has become critical for financial decision-making. Harnessing the power of data can empower medical facilities to make more informed and effective strategies for managing finances, budgets, assets, and other resources. However, not all healthcare companies have the in-house capabilities and expertise to leverage data analytics.
In these cases, working with outsourced healthcare accounting firms can be advantageous. These offshore specialists use advanced analytics to give providers a deeper understanding of their cost structures, operational performance, and revenue streams, allowing them to make decisions that align with their long-term goals and targets.
For example, outsourced data analytics specialists can identify the medical services and treatments in high demand in the facility’s location and among their target demographics. Knowing this, healthcare firms can adjust their offerings and services to meet patient needs, enabling them to maximize their workforce and resources while minimizing unnecessary expenses. This proactive approach to financial decision-making can help medical facilities embrace market opportunities and mitigate operational risks.
How Outsourcing in Healthcare Accounting Addresses Industry Challenges
Having discussed the trends fueling the rise in demand for outsourced healthcare accounting, let’s talk about how strategic BPO solutions can address the industry’s most pressing challenges. Amid constant change and disruption, outsourcing offers healthcare providers a lifeline to effectively navigate financial and regulatory complexities. Here’s how:
Ensuring Compliance With Healthcare Accounting Standards and Regulations
In the healthcare industry, providers must adhere to laws, regulations, and standards that ensure the proper handling of all financial transactions. This includes accurate medical billing and coding, comprehensive financial reporting, robust data privacy and security, and complete documentation. Complying with these industry regulations is essential for maintaining patient trust, upholding safety and security, and avoiding hefty penalties and fines.
Thankfully, when you choose to outsource to call centers in the Philippines, many specialty BPO firms specialize in healthcare accounting compliance. They design processes and workflows that adhere to local and international standards. By working with these offshore specialists, healthcare firms can maintain proper regulatory compliance and avoid severe penalties, fines, and reputational damage.
Access to a Global Pool of Skilled Accountants
As mentioned previously, the accounting sector is facing widespread worker shortages. According to data from the Bureau of Labor Statistics, there are 340,000 fewer accountants in 2024 than only five years ago. The severe accountant shortage is driven by a smaller pool of accounting graduates and a large population of retiring workers.
Many healthcare finance teams have directly witnessed the effects of this accounting shortage, with some firms struggling to file accurate financial and tax reports on time. Industry experts foresee the sector-wide labor crisis continuing in 2025, prompting leaders to review industry practices to improve the hiring and retention of skilled accountants.
While industry-wide changes can solve the long-term problem, they can’t address the pressing demand that many healthcare facilities have today. This is where outsourcing healthcare accountants can come in handy. Instead of concentrating on a shrinking pool of local finance professionals, outsourcing can expand your search beyond your borders, getting you in touch with offshore accounting specialists who meet your urgent operational needs.
Cost Savings Through Reduced In-House Overheads
Another advantage of working with a financial service outsourcing firm is that it allows healthcare facilities to expand capabilities while reducing overhead costs. Research has found that outsourcing can help reduce costs by up to 60%, allowing companies to minimize expenses while boosting operational efficiency, profitability, and growth. With these cost savings, healthcare providers can allocate assets and resources to more essential areas, such as expanding medical services and improving patient care.
Improved Audit Readiness and Accuracy
Many healthcare accounting departments may have difficulty preparing for audits because they’re severely understaffed. Working with a BPO partner can help improve audit readiness by allowing offshore specialists to handle non-core tasks like documentation, data entry, and compliance management. These financial service outsourcing teams can also help review and verify financial records and transactions, reducing errors and maintaining proper organization and accuracy.
Flexibility To Scale Services As Needed
Demand for healthcare accounting services is constantly fluctuating. Medical facilities may see sudden spikes in patient demand during certain seasons or following unexpected events like the global pandemic. During these times, healthcare finance teams must be ready to record all transactions and ensure proper billing and invoicing.
No matter the circumstances, healthcare accounting teams must always be ready to scale their operations to meet patients’ needs. Thankfully, working with an outsourcing provider can enable them to improve flexibility and scalability, adjusting operations and capabilities depending on fluctuations in demand.
The Role of Technology in Healthcare Business Process Outsourcing and Accounting
Technology is a cornerstone of modern outsourced healthcare accounting solutions. Offshore financial services specialists leverage innovative tools and software to speed up processes, ensure accuracy and productivity, prevent fraud, and maintain regulatory compliance. From cloud-based accounting to AI-driven predictive analytics, these technological advancements further strengthen the case for outsourcing as a strategic initiative.
Cloud-Based Accounting Tools for Real-Time Data Access
One innovative technology used by outsourcing providers is cloud-based accounting tools. These tools use web-based software to enable healthcare finance teams to access key data across different locations, allowing for seamless collaboration and faster turnaround times for financial reports.
Since cloud-based accounting applications are stored in the cloud, the facility does not have to set up dedicated desktops to access the data. Each authorized member can use their own devices to check, update, and manage financial records. With real-time access, everyone can stay on the same page, avoiding conflict and miscommunication due to outdated data.
At the same time, cloud accounting tools offer robust data security to safeguard healthcare finance departments’ sensitive information. In case of emergencies, such as technical problems with a company computer, cloud-based accounting software includes data backup and recovery options to prevent the loss of essential files and documents.
Integration of AI for Predictive Analytics and Error Detection
In addition to leveraging cloud-based accounting tools, outsourcing specialists utilize artificial intelligence (AI) for predictive analytics and error detection. AI-driven automation can allow healthcare finance teams to streamline repetitive yet vital tasks like data entry, invoice processing, and bookkeeping, reducing human error and freeing up time for other revenue-generating activities.
Using data collected from historical financial records, healthcare accountants can use AI’s predictive analytics capabilities to make financial forecasts, predictions, and risk assessments. These offshore professionals can also use AI in financial modeling to identify patterns and trends that will help them identify emerging trends and opportunities in the market, allowing for more competitive financial strategies and plans.
Blockchain Applications for Secure and Transparent Financial Transactions
Beyond cloud-based and AI tools, many healthcare accounting BPOs are also realizing the advantages of blockchain technology for more secure and transparent transactions. This decentralized ledger can record various data, including patient details, healthcare records, payment information, and transaction history.
Unlike traditional ledgers, blockchain technology is not owned and controlled by a single entity, instead existing across multiple computers. As such, healthcare finance teams can enhance transparency, making verifying information easier for other accountants and auditors. Since records stored on the blockchain cannot be erased or tampered with, healthcare finance teams can reduce the risk of fraudulent transactions, avoid errors, and enable accountability for all stakeholders.
Compliance Automation for Evolving Regulations
Another innovative technology used by outsourced healthcare accounting firms is compliance automation software. Since the medical industry is highly regulated, facilities must follow strict regulatory requirements to uphold patient safety, prevent reputational damage, and avoid legal penalties and fines.
Healthcare finance teams use AI-powered technology to continually check networks, systems, and applications to maintain compliance with industry requirements. Compliance management software can also be used to keep a comprehensive record of all processes, workflows, and transactions so teams can proactively monitor whether regulatory standards are being upheld.
Outsourcing in Healthcare Services: Addressing Risks and Challenges
While outsourcing offers numerous benefits, addressing potential risks and how to mitigate them is crucial. A successful BPO partnership requires careful planning and meticulous vendor vetting to reduce risks. Some recommended steps include secure data-sharing protocols, regular audits, and transparent communication. Healthcare accounting teams implementing robust risk management strategies can enjoy seamless collaboration and optimized operations.
Handling Data Security Concerns, Particularly With HIPAA Compliance
According to industry experts, the healthcare sector generates around 30% of all data worldwide. By 2025, this figure is expected to grow even further, rising at a CAGR of 36%. With the explosion of healthcare data, cybersecurity has become critical to protecting patient safety and maintaining regulatory compliance.
In line with this, it has also become vital for healthcare accounting teams to vet their outsourcing partners to ensure proper data security and management. To address this risk, facilities can ask for their BPO vendor’s ISO certification, cybersecurity protocols, and internal data protection policies so they can decide whether the provider meets their needs.
Ensuring Outsourcing Providers Stay Updated With Healthcare-Specific Regulations
In addition to navigating data security concerns, healthcare facilities should consider another factor when choosing an outsourcing partner: their familiarity with industry-specific standards and regulations. Since healthcare laws are constantly being updated and adjusted, healthcare accounting professionals must stay updated on new developments and adapt their workflows and practices accordingly.
Challenges in Managing Partnerships and Maintaining Clear Communication
Aside from data security and regulatory compliance, healthcare accounting teams must also navigate communication challenges when working with an outsourcing partner. Since offshore specialists will work remotely, facilities must consider time zone differences and communication channels when setting tasks and scheduling meetings. Investing in digital platforms like virtual conferencing software and instant messaging apps can help healthcare providers easily collaborate with their offshore teams.
Why Turn to Outsourcing Companies in the Philippines for Healthcare Accounting
With risks under control, let’s explore how medical facilities can find their ideal BPO location. With its exceptional track record, the Philippines continues to lead as a preferred outsourcing destination for healthcare accounting and beyond.
The Philippines has become a global hub for specialty BPO services due to its unique blend of talent, infrastructure, and cost-effectiveness. With a strong cultural affinity for service-oriented industries, Filipino professionals are highly adaptable to client needs, all while offering competitive labor costs that significantly reduce healthcare organizations’ operational expenses.
Many US-based healthcare facilities outsource financial reporting to BPOs in the Philippines, helping them achieve a 35% reduction in costs while maintaining 100% compliance with regulatory standards. Here’s why companies turn to the Southeast Asian nation for specialty BPO solutions:
Expert Talent Pool
The Philippines boasts a large pool of skilled accountants with specialized knowledge in healthcare finance. To increase global competitiveness, many Filipino accountants hold Certified Public Accountant (CPA) certifications and have experience navigating U.S. healthcare compliance standards, such as the Health Insurance Portability and Accountability Act (HIPAA) and Medicare.
English Proficiency
Another reason the Philippines is a top outsourcing destination is its massive population of English-speaking professionals. Ranked among the highest in Asia for English fluency, Filipino workers can adapt to international standards and communicate with global clients easily.
Proven Industry Expertise
As one of the pioneers of global BPO solutions, the Philippines has a long history of success in outsourcing, particularly in healthcare-related services. Medical facilities that turn to offshore specialists in this country can expect top-notch service and increased efficiency and productivity.
Government Support
Finally, another advantage of outsourcing to the Philippines is its extensive government support and favorable business environment for foreign investors. The national government recognizes the crucial role of BPOs in the local economy, so they offer financial incentives, tax benefits, and industry-focused training programs to nurture the sector’s continued growth and success.
Turn to SuperStaff for Comprehensive Healthcare Accounting Solutions
Outsourcing healthcare accounting is no longer just a cost-saving measure; it’s a strategic solution to meet today’s most pressing industry challenges. Working with a specialty BPO partner can help healthcare companies address operational costs, navigate labor shortages, leverage technology for efficiency, and ensure compliance with evolving regulations.
Ready to transform your healthcare accounting processes? Partner with SuperStaff today to access tailored solutions that drive efficiency and compliance. Contact us for a quick consultation and find out what our offshore team can do for you!
