1.

Today we will be discussing Healthcare BPOs

2. Healthcare BPO Market in 2013 – $113.2 bn; 2018 – $180 bn;

3. 2020 – $212 Bn; 2025 – $338 bn

4. US Healthcare – 70-75% of the global Healthcare BPO Market. In 2013 – 73.8%

5. Pharma Outsourcing is the largest segment – 65%

6. Healthcare Services – Payer & Provider – remaining 35% (Slide 7) – $65-70 bn

7. Why Healthcare Services Outsourcing makes sense –

 Decreasing margins of hospitals and healthcare system – forcing them to focus

on revenue growth and cost efficiencies (if not for concentration in tech-enabled

solutions ~60% of hospitals in US could have negative margins by 2025)

 Revenue sources shifting from commercial healthcare plans to more government

based (Medicare/Medicaid) – need efficient systems to collect from payers

 Shift in towards value / performance-based pay – need for an integrated system

across different stakeholders. (Value-based healthcare is a healthcare delivery

model in which providers, including hospitals and physicians, are paid based on

patient health outcomes)

8. India and Philippines major offshore outsourcing destinations

9. Healthcare service outsourcing key segments (Slide 18) – 85% by following

a. Revenue Cycle Management – Process used to track revenue from patients

starting from initial appointment to final payment

b. Health Information Management

c. Population Health Management

d. Patient Engagement

10. Key Risks – Technology [If not keeping up -> Clients would move out]

11.