Healthcare IT Outsourcing: The Ultimate Guide

The era we’re in is defined by rapid technological advancement and demand for effective and patient-centric healthcare services. Thus, it’s no wonder that the utilization of IT services in healthcare has become integral. Outsourcing IT operations helps healthcare organizations manage complex patient data, optimize their operations, and stay ahead of the competition and regulatory requirements. In this guide, we will dive into the world of healthcare IT outsourcing, analyzing its benefits, challenges, and implications, helping you decide whether to outsource your IT operations or not. 

Understanding Healthcare IT Outsourcing

Healthcare IT outsourcing is the process of hiring a third-party vendor to help an organization with a part of its business tasks and IT processes. This collaboration allows healthcare institutions to delegate specific IT functions, services, or projects to specialized experts, thereby enabling them to focus more on their core healthcare services and patient care. 

This year, the healthcare IT outsourcing market is expected to reach $61.2 billion, according to recent research. 

The outsourcing arrangement can encompass a wide range of IT services, including software development, data management, network maintenance, cybersecurity, infrastructure management, and more. 

By leveraging the expertise of external partners, outsourcing healthcare IT operations aims to enhance operational efficiency, reduce costs, improve technology implementation, and ultimately contribute to the overall enhancement of patient care and services within the healthcare industry.

Technologies a Healthcare Provider Can Outsource

Healthcare providers can outsource a wide range of technologies to external vendors.

These include implementing and managing Electronic Health Record (EHR) systems, utilizing specialized medical billing and coding software, setting up telemedicine and remote patient monitoring solutions, managing IT infrastructure (servers, networks, etc.), and securing their data through cybersecurity and data protection services.

Let’s talk in detail about these services:

1. Electronic Health Record (EHR) Systems

Outsourcing the implementation and management of Electronic Health Record (EHR) systems allows healthcare providers to efficiently digitize and centralize patient medical records. External experts can handle the customization, integration, maintenance, and updates of EHR platforms. For instance, a healthcare provider might collaborate with a specialized EHR vendor to optimize patient data management and streamline clinical workflows.

2. Medical Billing and Coding Software

Healthcare organizations can outsource medical billing and coding processes to third-party vendors who specialize in accurate and efficient claims processing. This helps in reducing billing errors and ensuring timely reimbursement. Some companies offer cloud-based medical billing services that automate billing procedures and enhance revenue cycle management.

3. Telemedicine and Remote Patient Monitoring Solutions

Outsourcing telemedicine and remote patient monitoring solutions enable healthcare providers to offer virtual consultations and monitor patients remotely. This technology is especially valuable for managing chronic conditions and providing access to care in remote areas. For example, Philips offers telehealth solutions that facilitate virtual appointments and real-time patient monitoring through connected devices.

4. IT Infrastructure Management 

Healthcare providers can outsource the management of their IT infrastructure, including servers, networks, and hardware, to ensure seamless operations and data accessibility. Partnering with companies like Dell Technologies or Cisco can provide expertise in designing, deploying, and maintaining robust IT infrastructure for healthcare facilities.

5. Cybersecurity and Data Protection Services

Outsourcing cybersecurity and data protection services are crucial for safeguarding sensitive patient information and complying with regulatory standards like HIPAA. Specialized cybersecurity firms can provide advanced threat detection, encryption, and security audits to mitigate risks and maintain data confidentiality in healthcare environments.

Enhancing Healthcare IT Operations Through Outsourcing

IT outsourcing for healthcare industry is one of the most effective ways to enhance IT operations in your healthcare institution. It helps revolutionize patient care, data management, and operational efficiency. As healthcare organizations strive to navigate the complexities of this digital transformation, the strategic practice of healthcare IT outsourcing has emerged as a potent solution.

Let’s explore the ways in which outsourcing helps enhance healthcare IT operations. 

• Streamlining Processes and Workflows:

By working with experienced experts, healthcare organizations can make their tasks smoother and more efficient. They can improve how things are done and avoid doing the same things multiple times. This helps them work better overall. Whether it’s making new software or taking care of the computer systems, getting help from outside professionals lets healthcare workers concentrate on taking great care of patients without getting bogged down by complicated technical stuff.

• Elevating Data Security and Compliance:

In our modern world, where there are concerns about data breaches and privacy issues, safeguarding sensitive patient information is extremely important. Outsourcing healthcare IT services allows organizations to strengthen their data security and compliance measures. Skilled partners who understand healthcare rules, like the Health Insurance Portability and Accountability Act (HIPAA), use strong cybersecurity methods. This proactive approach not only protects patient data from vulnerabilities but also builds a sense of trust and confidence among patients and stakeholders.

• Leveraging Patient Engagement and Experience:

The combination of healthcare and technology offers an exciting chance to improve how patients get involved and their experiences. Outsourcing lets healthcare providers use advanced technologies, like virtual doctor visits, keeping track of patients from a distance, and personal health apps. With the help of specialized partners, healthcare organizations can create new and useful ways for patients to be a big part of their health journey. This brings patients closer to their healthcare providers and encourages them to take control of their health.

Factors Driving the High Demand for Healthcare IT Outsourcing

• Technological Complexity: 

The healthcare industry has witnessed rapid advancement in digital technologies, leading to increasingly complex IT infrastructures and systems. Managing these sophisticated systems requires specialized skills and knowledge that many healthcare organizations may not have in-house. Thus, they turn to healthcare IT outsourcing companies to leverage their expertise and navigate the complexities of modern healthcare IT.

• Cost Optimization: 

Healthcare providers face constant pressure to reduce operational costs while maintaining high-quality patient care. Outsourcing IT functions can lead to significant cost savings by eliminating the need for extensive in-house IT departments, hardware, and software investments. External IT vendors can often offer services at a lower cost due to economies of scale and shared resources.

• Focus on Core Competencies: 

Healthcare organizations prioritize delivering excellent patient care and improving medical outcomes. By outsourcing IT tasks to dedicated service providers, healthcare professionals can concentrate on their core competencies without getting bogged down by IT management and support responsibilities.

• Access to Specialized Skills: 

IT outsourcing companies employ teams of skilled professionals with expertise in various areas of healthcare IT. These professionals stay up-to-date with the latest technologies, regulations, and industry best practices. By partnering with such vendors, healthcare providers gain access to this specialized talent pool, enabling them to deploy advanced technologies and solutions that improve operational efficiency.

• Flexibility and Scalability: 

Healthcare organizations often experience fluctuations in IT demands based on factors such as patient volume, seasonal variations, or technological advancements. Health IT outsourcing offers scalability, allowing providers to quickly adjust their IT resources based on changing needs. This flexibility ensures that healthcare organizations can efficiently adapt to dynamic market conditions and emerging challenges.

• Regulatory Compliance: 

Healthcare is one of the most heavily regulated industries globally, with strict data protection laws like HIPAA (Health Insurance Portability and Accountability Act) and GDPR (General Data Protection Regulation). IT outsourcing companies well-versed in healthcare regulations can help organizations maintain compliance and security standards, reducing the risk of legal and financial penalties.

• Rapid Technological Advancements: 

The healthcare IT landscape constantly evolves with the emergence of innovative technologies such as artificial intelligence, telemedicine, and blockchain. IT outsourcing enables healthcare providers to leverage these advancements without the burden of continuous technology upgrades and skill development, ensuring they remain competitive and deliver cutting-edge care.

• Enhanced Data Security: 

Protecting sensitive patient data is paramount in healthcare. Many IT outsourcing companies specialize in cybersecurity and data protection. By entrusting these critical tasks to experienced vendors, healthcare organizations can enhance their data security measures, safeguarding patient information from potential breaches and cyber threats.

Advantages of Healthcare IT Outsourcing for Hospitals

Healthcare IT outsourcing offers healthcare organizations numerous advantages, equipping them to navigate the evolving landscape of modern healthcare with agility and precision. Here are the main benefits of healthcare IT outsourcing for hospitals:

1. Cost Savings through Reduced IT Expenses: Outsourcing empowers hospitals to efficiently manage their IT budget by avoiding the substantial costs associated with in-house infrastructure and personnel. By entrusting IT tasks to specialized partners, hospitals can redirect resources toward core healthcare functions while enjoying significant financial savings.

2. Access to Specialized IT Expertise and Knowledge: External IT partners bring a wealth of specialized knowledge and expertise, enabling hospitals to tap into the latest technological advancements and best practices. This collaborative approach enhances the quality of IT solutions and services, driving innovation and sustainable growth.

3. Scalability of IT Resources Based on Changing Needs: The flexibility of outsourcing allows hospitals to dynamically scale their IT resources up or down in response to changing demands. This adaptability ensures that IT capabilities align seamlessly with evolving patient care requirements without overburdening internal teams.

4. Enhanced Data Security and Privacy Measures: Outsourcing facilitates the implementation of robust data security protocols, protecting sensitive patient information from breaches and unauthorized access. Expert partners versed in regulatory standards like HIPAA contribute to maintaining patient trust and regulatory compliance.

5. Improved Efficiency and Streamlined IT Operations: Hospitals can streamline their IT operations by delegating IT functions to external experts, reducing redundancies, and enhancing overall efficiency. This efficiency optimization allows hospital staff to dedicate more time and energy to patient-centric activities.

6. Focus on Core Healthcare Functions and Patient Care: Outsourcing liberates hospital staff from the complexities of IT management, enabling them to prioritize core healthcare functions and deliver exceptional patient care. This concentration on patient well-being fosters a more impactful healthcare environment.

7. Access to Advanced Technologies and Innovations: Collaboration with external IT partners grants hospitals access to cutting-edge technologies, positioning them at the forefront of medical innovation. This access drives the integration of innovative solutions, ultimately enhancing patient outcomes and experiences.

8. Mitigation of Risks and Regulatory Compliance Support: Expert IT partners possess a comprehensive understanding of industry regulations and compliance standards. Their involvement mitigates risks, ensuring hospitals adhere to stringent regulatory requirements and maintaining a secure and ethical IT environment.

Choosing the Ideal IT Outsourcing Company for Your Organization

There’s a huge talent pool of outsourced experts who can help you take your healthcare organization to the next level. 

Thus, now to get overwhelmed by the number of vendors, you need to approach the choice wisely and consider factors like your business needs and requirements, vendor’s experience, location, pricing, etc. Selecting the right IT outsourcing provider is crucial for a successful partnership. 

Consider the following key factors to ensure a harmonious partnership that aligns with your unique needs and goals:

1. Expertise and Experience: Evaluate the IT outsourcing company’s track record and expertise in the healthcare sector. A company with a proven history of delivering successful healthcare IT solutions demonstrates a deeper understanding of industry nuances and regulatory requirements.

2. Compatibility and Culture: Examine the cultural compatibility between your organization and the outsourcing company. A shared commitment to patient care, innovation, and collaboration can foster a more synergistic and productive working relationship.

3. Scalability and Flexibility: Assess the outsourcing company’s ability to accommodate your organization’s evolving IT needs. A partner capable of providing scalable solutions ensures that your technology infrastructure can grow in tandem with your healthcare services.

4. Security and Compliance: Prioritize data security and compliance expertise. An outsourcing company well-versed in healthcare regulations, such as HIPAA, can safeguard patient information and uphold confidentiality, reducing risks and maintaining trust.

5. Technological Proficiency: Evaluate the outsourcing company’s proficiency with relevant technologies, such as EHR systems, telemedicine platforms, and cybersecurity measures. A tech-savvy partner can help implement and manage advanced solutions tailored to healthcare settings.

6. Communication and Support: Assess the outsourcing company’s communication channels and support mechanisms. Clear and responsive communication ensures effective collaboration and prompt issue resolution, which is critical for uninterrupted healthcare services.

7. Cost-effectiveness: Consider the financial implications of outsourcing. A transparent pricing model and a comprehensive understanding of costs help avoid surprises and align outsourcing expenses with your budgetary constraints.

8. References and Recommendations: Seek references and recommendations from other healthcare organizations that have partnered with the outsourcing company. Insights from peers can provide valuable perspectives on the company’s performance and reliability.

How can SoftFormance help?

SoftFormance has years of experience working in the healthcare sector, helping clients streamline their operations, optimize workflow, and develop software tailored to their needs. Let’s explore some of the cases we worked on: 

• ChooseHelp.com

ChooseHelp.com is one of the leading Drug Rehab and Addiction Treatment online resources in the US. The website effectively connects those that need help with experts, consultants, and therapists. The main part of the project is the catalog of free, paid, and premium rehab listings. We developed an online place where therapists can serve patients with free and paid advice. With the Ask Experts section, we enabled therapists to advertise their services and help even more people.  

• Myome (Oren)

Myome is committed to providing patients with comprehensive and complete information about genetic factors that influence their health and disease predispositions at a level that is unique in the industry. It examines the entire genome, rather than just parts of it, and we screen not only for rare heritable diseases but also for common conditions, such as heart disease, diabetes, cancer, and autoimmune conditions that affect so many of our families. The web application allows tracking and management full patient cycle from initial request to medicine toolkit acceptance and up to providing full genome reports online.

• LifeChemicals

It is software for the accounting and management of a chemical company. LifeChemicals is a fully integrated platform for early drug discovery, providing a complete range of contract research and manufacturing services. The platform instantly provides its users with accurate search results and offers them an excellent lab journal. As a result, it helps a chemical business automate its clinical trial processes and manage data more efficiently.

• Cerium Labs

We created a laboratory management platform (LIMS) that allows its users to streamline daily lab processes and samples. This product helps lab managers assign and monitor jobs. It also provides advanced functionality for storing and searching for lab samples and lab test results. The main part of the system was about the module to effectively manage samples and associated data. We added workflow automation and the possibility to integrate external instruments. Also, our team performed data migration from the legacy system.

Conclusion

Outsourcing has become a trend in multiple industries as it allows businesses to save costs, work with top talent, and focus on their core business tasks while a third-party team works on other tasks. In the healthcare industry, outsourcing IT processes allows organizations to scale up easily, enhance data security and privacy measures, and focus on core healthcare functions and patient care. If you have been looking for a team to outsource your software development to, SoftFormance is here to help; just contact us.