Hospitals Now Outsourcing Medical Transcription Work

Within the last decade, conventional hospitals have come under competitive attack by more efficiently managed care organizations. In an effort to not get left behind, quite a few hospitals have turned to outsourcing as a means of cutting costs. Many of the processes that were formerly performed internally are now being given out to 3rd parties. Medical transcription is no exception. Allowing professional service companies to do their medical transcription work relieves hospitals of the headaches and overhead costs connected with internal production.

There is substantial evidence which shows that contracting out work to transcription service organizations is a much less costly alternative to producing reports internally. Most savvy healthcare providers comprehend this and are responding accordingly. The significant cost-cutting pressures which are driving this industry in the direction of consolidation, managed care, and capitation, almost guarantee that the current outsourcing movement will not only continue but will accelerate in coming years.

This abundance of outsourcing contracts has given rise to a generation of small medical transcription businesses intent on carving out a piece of the pie. What's fascinating is that, notwithstanding its rapid expansion, this industry is, even now, thought of as a cottage industry. While there are a few truly national medical transcription service providers, small local companies make up the great majority of this industry.

In truth, the Web has totally changed the way business is conducted in the medical transcription industry. It's no longer required for service providers to place themselves next to their health care clients. Nor is it crucial that the individual medical transcriptionists who work for the service provider be positioned close to their employer. High speed internet connections are utterly obliterating geographic barricades. Increasingly, medical transcription labor is completed remotely and transmitted over email. The normal flow of work is for a medical transcriptionist working at her house to email her completed work to an employer - generally a medical transcription service provider. Subsequently, after conducting quality control, final editing, and formatting processes, the company then electronically sends the completed files on to their hospital. In this context, actual physical interaction and travel time is kept at the smallest amount possible and production is enhanced dramatically reducing costs and raising wages.

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About the Author: Chris Dunn loves writing articles about medical transcription training. Check out About-Medical-Transcription.com as well.
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