The cost of healthcare in the US has been steadily increasing in the past few years, and according to some projections by consultancy firms, the trend will continue. This has lead to increasing acceptance of outsourcing by different hospitals and healthcare providers across the country. Information technology, medical transcription, medical billing, and medical coding outsourcing have been increasing in response to the need to reduce cost.
Healthcare Costs On the Rise
On the 15th of September, New York based consultancy firm, Towers Watson (NYSE:TW), projected an 8.2% increase in employer health care costs for 2011. According to Ron Fontanetta, senior health care consultant with Towers Watson, “Employees today are adjusting to historically lower-than-average merit pay increases, while at the same time facing higher health care contributions, copays and deductibles. This combination could adversely affect many employees and intensify the growing affordability crisis.”
Meanwhile, Chicago based company, Hewitt Associates (NYSE:HEW), estimates that it may be as much as 9%. In Chicago, the projection is as high as 12.4%. The figure is the highest it’s been in five years.
In a statement by Hewitt’s health care practice leader Ken Sperling said, “Employers continue to struggle to balance the significant health care needs of an aging workforce with the economic realities of a difficult business environment.”
The report attributes the increase to an aging workforce, coupled with increasing costs of technology as well as the health care reform act.
Cost And Outsourcing
There’s certainly no doubt that the cost of healthcare is increasing and in response, healthcare providers and hospitals are struggling to maximize revenue while minimizing expenses in order to reduce the cost on consumers.
One example is Hendrick Medical Center, who, on the 7th of September, signed a managed service and recruitment process outsourcing contract with AMN Healthcare Services (NYSE:AHS). Ralph Henderson, AMN President for the Nursing and Allied divisions, said that the contract would result in, “lower bill rates and operational costs, reduced liability and mitigated insurance risks, and increased compliance with clinical standards.”
Outsourcers in the meantime are expanding into the healthcare space in order to take advantage of the opportunity.
As MaryAnne Pace, co-founder of company, Health BluePrints stated, “Healthcare providers are looking for solutions to increase net cash, achieve revenue cycle performance improvement, enhance operational efficiency, and improve overall patient and physician satisfaction.” The company was recently acquired by NCO Group, who along with the acquisition also released a new end-to-end Healthcare Revenue Cycle Management (RCM) solution on the 13th of September.
Another company moving into the healthcare space is Tricom India (NSE:TRICOM), who is currently acquiring US healthcare service provider GTESS Corporation. The news announced on the 14th of September came after Tricom India announced that it recently secured a five-year contract from a US-based healthcare firm for $10 million. Meanwhile, Conifer Health Solutions also announced an acquisition on the 28th of September. The company is acquiring MediHealth Outsourcing in order to strengthen its position in the healthcare outsourcing space.
Healthcare Numbers
As the trend of rising healthcare continues, healthcare providers and hospitals are looking to reduce costs, and at this point one of the solutions they are turning to is outsourcing – an opportunity that outsourcers are gearing to take advantage of. Healthcare, just like any other business, has to worry about the numbers.
Speech language pathologists (SLP) are high in high demand in the US healthcare industry. A highly rewarding career awaits qualified and skilled professionals in hospitals, nursing facilities, acute care hospitals, physician practices, home healthcare units and rehabilitation centers across the country.
Speech Language Pathologists – Nature of Work
The main function of the SLPs is to evaluate and diagnose disorders related to speech, language, cognitive-communication and swallowing. They also have to formulate personalized treatment plans and execute them successfully. As a speech language pathologist, you would have to work with people of all ages. Investigating behavioral patterns, developing new treatment methods and devices, supervising clinical programs and conducting researches on human communication processes are all part of the job. Generally, a masters degree in speech language pathology is the standard requirement for securing a SLP job.
Get Placed in Reputable Healthcare Firms
Whether you are a fresh graduate or an experienced professional looking for better career options, there are numerous job openings in healthcare facilities in the US, including temporary (traveling) and permanent positions. An established recruitment service can help you secure employment in prestigious health care facilities. If you are a foreign-trained professional, the agency takes care of immigration procedures, licensing, credentialing and other related paper work. Apart from a lucrative career, recruitment through a professional firm offers several benefits in terms of travel expenses, completion bonuses, paid housing, tax sheltered benefits, healthcare insurance, professional liability insurance and short-term disability insurance.
To get started with your career as a speech language pathologist in the US, register online with a reliable staffing company, access its jobs listings and apply online for a job to suit your personal and professional goals. The websites of established recruiters also offers information about the kind of work, employer practices, working hours, and mandatory qualifications.
Healthcare costs are rising every year. In 2007, the basic costs associated with healthcare increased by 6.9 percent which is double the rate of inflation in United States. On average, a US citizen would spend around $7500 per year on medical expenses. These expenditures coupled with inefficient administration of healthcare facilities around the nation has resulted in the US government spending 16 percent of its budget on healthcare related issues.
Most experts agree that unlike the developed counties in Europe and Canada the US healthcare system is fraught with poor administration, lack of management and subsequent fraudulent transactions. Such inefficiencies directly affect the related health costs that have to come on the expense of general public. That’s not it! The total expenditures and the associated costs are expected to claim one fifth of the 2008 GDP budget. This is a whopping 20 percent increase from 2007. In numerical figures this increase represents 4.2 Trillion dollars from the tax payer’s pocket.
Comparison with other developed nations
If the numbers doesn’t look staggering than consider the fact that recent healthcare spending is four times the defense expenditures of the nation. Such an anomaly looks more daunting when we consider the equation that Uncle Sam is spending an entire arsenal on war on terror. Still, the healthcare costs far exceed any other public sector spending. For those who still debate that healthcare situation has been inflated by the media, they should realize that nearly 47 million Americans are still uninsured. What would happen if America had to cover their expenses, too? Compare this with other developed countries that provide free healthcare for their entire population. According to the Organization of Economic development the healthcare costs in similar economies like France, Germany, Canada and Switzerland is less than 10 percent of the GDP. Such figures clearly dictate that Congress has to drastic measures in order to get out of the recent healthcare crisis.
