Author Archives: 88Gravity

As the challenges in the U.S. healthcare landscape continue to become more complex, healthcare revenue cycle leaders across hospitals, health systems, and physician groups will benefit from looking at new ways to outsource medical coding. From the long-term impacts of new federal legislation, to workforce shortages and the rise of AI-enabled payers, U.S. healthcare providers can no longer look at medical coding outsourcing as an option – it’s a strategic necessity. 

Instead, it should be leveraged as an opportunity to tap into skills, resources, and services that aren’t available internally. This perspective will be critical as competition for specialized skills increases and the tech arms race progresses. Outsourcing medical coding services should be a foundational pillar for building the kind of multidimensional sourcing ecosystem that this survey from Deloitte addresses [1].

To help you and your team better understand the role that medical coding outsourcing can play at your organization, we’ve put together the highlights from the survey for your review.  By prioritizing the benefits and strategies addressed below, you can transform your medical coding operations from a cost center into a strategic asset. 

Maturing Your Approach to Medical Coding Outsourcing

For U.S. hospitals, health systems, and physician groups, outsourced medical coding services are becoming a cornerstone of revenue cycle strategy. Delivery models are becoming more sophisticated and beginning to emphasize relationships based on value over simple cost savings. 

While some respondents to the survey reported beefing up internal operations, investments in external partnerships were also featured heavily, with only a few respondents planning a decrease. Back-office functions continue to be outsourced at higher rates, but organizations are increasingly focused on creating greater value from core competencies. For revenue cycle leaders considering medical coding outsourcing, this trend is worth paying attention to. It highlights the fact that a strategic approach to medical coding outsourcing can be a decisive factor in achieving operational agility and securing skilled talent, and more than just a cost cutting measure.

The Deloitte survey highlights this shift away from a focus on cost savings in outsourcing.  This evolving perspective redefines the value proposition of outsourced services – moving the focus from sourcing inexpensive labor to acquiring high-value capabilities, like specialization in the healthcare revenue cycle. 

Revenue cycle leaders should now prioritize improved access to talent, enhanced service quality, and greater agility, in addition to spend optimization. While cost reduction will remain a consideration in medical coding outsourcing, the strategic priority must be on discovering continuous opportunities for creating incremental value. This means working with your revenue cycle vendor to access talent, integrate advanced technology, and enhance core capabilities.

Access the Distinct Value of Back-Office Outsourcing

The survey reveals that back-office outsourcing remains a foundational component for many organizations. These functions are being outsourced at elevated rates, allowing businesses to concentrate on their primary competencies while benefiting from a provider’s specialized knowledge to continue driving operational efficiency. By focusing on back-office outsourcing, U.S. healthcare revenue cycle departments can access benefits including:

• Enhanced access to medical coding talent
• Improved quality and performance
• Ability to gain access to new capabilities

Medical coding services, a critical back-office function, are prime candidates for this model. Revenue cycle departments should adopt a comprehensive sourcing strategy and integrate outsourced medical coding services as an integral component of their overall operating model. This approach moves beyond a piecemeal solution, positioning the department to capture the full benefits of a strategic partnership.

Prioritizing Value-Based Relationships and Addressing Challenges in Your Revenue Cycle Outsourcing Strategy

To maximize the impact of your investment in a medical coding outsourcing partner, focus on vendors who are experienced in healthcare and who can provide a relationship based on value. 

Deloitte recommends collaborating with your service provider to explore new areas of creating this value. 

Keep in mind, many organizations encounter challenges in their outsourcing programs, many of which stem from internal management capabilities. The survey points out key internal obstacles to success, including: 

• An inadequate approach to organizational change management
• Poor integration of vendor services
• An inability to track and report on realized benefits
• Insufficient financial oversight

To get ahead of these challenges, revenue cycle leaders need to bolster their internal management capabilities and apply them directly to outsourced services. This includes areas of competency including: 

• Value management
• Performance oversight
• Effective vendor relations

To maximize value from an outsourcing program, your leadership should reach out to embrace strategic measures in their outsourcing program. This includes defining a comprehensive sourcing strategy and integrating outsourcing as a fundamental part of your global operating model. In the world of outsourcing medical coding, this translates into a need for a well-defined strategy that considers the impact on the entire revenue cycle function.

Future-Readiness Hinges on Talent Sourcing

To prepare for the future, revenue cycle departments must leverage external partnerships to manage complexity and deliver results. The possibilities of the modern talent pool are expanding, and organizations are adjusting their sourcing approach to gain flexibility, efficiency, and access to specialized skills.

No executive from the Deloitte survey reported relying exclusively on internal employees for their talent requirements. For a provider considering a medical coding outsourcing partner, this means looking for a vendor with a sophisticated approach to talent management, beyond simple staff augmentation. Providers should look for opportunities to collaborate across internal departments, developing new competencies, and potentially recruiting personnel with a broad experience of managing diverse talent models. A well-executed medical coding outsourcing program can be a key part of this overall talent strategy.

Supercharge Your Medical Coding Outsourcing Strategy With AI

The Deloitte survey highlights the importance of a fresh strategic perspective on your outsourcing practices. This type of strategic partnership can help your organization access a deeper pool of skilled medical coders, enabling improved accuracy and reduced claim denials.

These benefits are greatly enhanced when working with a partner that leverages AI solutions on top of their deep experience in healthcare. At 3Gen Consulting, our AI coding platform, CodeGen-i, combines the speed and efficiency of AI-assisted coding with the assurance of certified coder review. Every chart is validated by an experienced coding professional, so clients gain both productivity and a higher level of accuracy. To learn more about how we can partner as a part of your future-ready outsourcing strategy, contact us today.

References

[1] Deloitte, “Global Outsourcing Survey 2024,” 5 February 2025. Available: https://www.deloitte.com/content/dam/assets-zone3/us/en/docs/services/consulting/2024/us-global-outsourcing-survey-2024-report.pdf.