Home Other How Outsourcing Medical Data Entry Services Increases Productivity

How Outsourcing Medical Data Entry Services Increases Productivity


The healthcare industry comprises a vast network of numerous facilities like hospitals, clinics, pharmacies, pharmaceutical manufacturers, and various vital medical items suppliers. Each facility relies on data to spearhead its productivity, as numerous important activities co-occur. Errors during data entry can result in many avoidable issues that hamper productivity and have worse effects.

A safety net exists to prevent this situation from occurring in the form of outsourcing. An example of this is medical data entry being handled by outside experts and relieving a medical center’s staff of the burden so that they can focus on their core tasks better. There are many more such advantages to be had by outsourcing to increase healthcare productivity. They are mentioned below.

1. Coding errors are less common

In 1985, a study of 20,260 medical data items was conducted in five Veterans Administration hospitals, and 4360 (or 22%) of those items were found to be inaccurate. Coding errors caused 65% of these troublesome medical data items. Healthcare data entry outsourcing companies are needed to rectify the situation of high error rates.

The likelihood of medical coding errors has not decreased despite the modern era’s introduction of digital coding techniques and better-organized coding procedures. This results from the increased pressure and stress placed on medical workers to treat patients and accurately record medical operations simultaneously.

However, the overwhelming pressure and stress that healthcare professionals experience can be resolved with the employment of specialized coding personnel. While the medical professionals attending to the patient can concentrate on their main duties, the coder concentrates on accurately recording the operation data. The medical data entry outsourcing specialist will evaluate the existing documents and correct any errors that might have crept in.

As a result, a trustworthy medical code document is created that guarantees the patient will receive appropriate and sufficient care both now and in the future and that people providing the patient’s care will know exactly what to do.

2. Fewer Billing Errors

Medical insurance is a vast industry with many stipulations regarding what conditions are treated where, how much copay is required, and other similar details. Therefore, for simple, rapid, and hassle-free claim processing, healthcare facilities like hospitals and clinics rely on accurate billing facts while submitting claims

The reality, however, is far from this ideal, with billing errors harming patient care and healthcare facility management. The number of inaccurate medical bills is astounding: according to a 2012 USA Today story, between 30% and 40% of all medical bills being inaccurate. This startling statistic shows the inevitable need for healthcare facilities to outsource medical data entry tasks to dedicated agencies.

They will use their extensive experience to prevent billing issues from happening in the first place and fix any that unintentionally happened via their careful reviews. They keep themselves informed about legal requirements and the terms of various insurance companies. This enables them to finish the task swiftly without introducing relevant document-related problems.

As a result, the billing specialist from your medical data entry outsourcing company reduces the negative effects of incorrect invoicing. This increases the efficiency of the facility and the number of accepted claims.

3. Improved Compliance

The healthcare sector is one of if not the most regulated industries around. And medical personnel across the board are expected to follow these rules without fail. There’s HIPAA, for starters, which is accompanied by regional and international standards like ICD-10 that provide the necessary framework. Data entry for medical billing under these regulations and the constraints of staff work leaves a lot of room for errors. The result is the lack of delivery of quality healthcare that should be the industry standard.

Outsourcing the data entry process eliminates the issues that come with compliance. The agency’s staff is kept up to date on the most recent changes in the field of medical regulation. As a result, they can immediately apply these rules to their job. Additionally, they might serve as support personnel for internal and external compliance audits.

They can design coding and billing frameworks that are compliance-ready so that there are fewer opportunities for compliance violations when medical staff enters coding and billing information. The agency specialist can assist in double-checking insurance companies’ provisions and inform those concerned if any of them are illegal or fraudulent.

4. Litigation Prevention

You can consider a lawsuit inevitable if you’re in the healthcare sector due to the complexity and breadth of work involved. Lawsuits could come from patients, medical staff, or regulatory authorities. And the culprit causing these lawsuits could be the data you have concerning them.

Without frequent and major coding mistakes, patient care won’t suffer, and the hospital won’t end up in court. You won’t fall victim to insurance fraud which might result in you having to face the law. You won’t need to go to court for violations of contract conditions relating to building safety requirements, data security standards, etc., because data entry service professionals will be reviewing your compliance with building and external service providers.

As a result, medical data entry outsourcing prevents medical institutions from wasting money and time on court costs while preserving the facility’s reputation.

5. Better Financial Management

Healthcare doesn’t come cheap, be it with billing or payment to staff and suppliers. The use of exotic materials like radioactive substances comes at great costs to the healthcare facility. All of this money exchange means there’s a need for heavily-scrutinized financial management to maintain the seamless functioning of medical facilities.

A medical data entry outsourcing company can remove the burden of micromanaging a facility’s financial documentation. The outsourcing company’s staff can work with the hired auditors to carefully note important financial information in well-managed and appropriate files/forms. This accuracy ensures that productivity doesn’t halt due to financial errors, whether in a hospital or a medical item manufacturer.

6. Improved Database Handling

In 2018, the healthcare sector produced 30% of the world’s data; by 2025, that percentage is predicted to rise to 36%. Since medical coding and billing require meticulous documentation of every detail, they account for a large portion of the healthcare data pool. The only way to stay on top of all that data management is to outsource healthcare data input. Thus, the expertise of the outsourcing agency’s professionals is essential for efficient data management operations.

The reduced data error rate reduces the need for elaborate data cleansing. Data validation also becomes easy since there is a lack of ambiguity and improved reliability. Concerned staff will know which data segment to archive and which to eliminate, removing duplicates from their end. This improved database management gives the thrust that improvement in productivity needs.

7. Lower Attrition

Healthcare is one sector that can burn out its participants easily. Important medical staff like doctors and nurses are constantly stressed to perform at their best, even beyond their allotted shifts. Therefore, the executives managing the staff and facilities share that demand for high-productivity levels. If the management of such stressed personnel goes awry, it leads to high attrition rates and decreased productivity. Same with the employees working in medical items manufacturing.

Improper personnel data management could be the culprit behind this situation. And it takes accurate data entry to remedy this situation. When outsourced, the correct data entered by the agency’s experts ensure that all staff management activities occur with full awareness of personnel performance. This helps manage them and their stress levels better, thus leaving them with little reason to leave their post. This keeps productivity from getting affected due to attrition.

8. Reduced Costs

Data entry outsourcing agencies employ experts to prevent disrupting their workflow. This also reduces the costs per-project basis due to economies of scale. Also, one in a developing country provides cost reductions from currency exchange values.

Accurate data entry also keeps litigation and mishap correction payments from occurring, thereby reducing expenses further. These and other cost reduction measures made possible due to the accurate data allow more budgetary breadth for activities like scaling and hiring better core staff. Thus, productivity is improved while keeping costs in check.


The healthcare industry is disrupted for many reasons, like automation and new treatments. It also faces the challenge of increasing patient flow from newer conditions like lifestyle diseases. Data accuracy, particularly in billing and coding, remains key to successfully adapting to these changes and improving productivity. With a dedicated agency offering you medical data entry outsourcing services, your facility gets the accuracy needed for enhancing productivity.


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