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A Comprehensive Guide to Healthcare IT Outsourcing

Max Babych

Max Babych

CEO

9 min

According to Deloitte’s 2022 Global Health Care Outlook, the healthcare IT outsourcing market is predicted to reach $390.7 billion by the end of 2024.

The market is growing rapidly, with 75-80% of global healthcare facilities choosing to outsource their IT needs.

This trend is driven mainly by the technology advancements.

As medical centers upgrade their systems, they aim to develop more complex solutions.

Managing this digitization and creating effective technological solutions is challenging with only internal resources. Especially at the needed speed and quality.

This is when outsourcing companies come into play.

Delegating IT operations to third-party vendors helps healthcare organizations manage complex patient data, track healthcare resources, optimize operations, and stay competitive while meeting regulatory requirements.

In this guide, we explore healthcare IT outsourcing, covering its benefits and implications to help you decide if outsourcing is right for your IT needs.

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6 Reasons for Outsourcing Healthcare IT Tasks

Outsourcing can be a game-changer for many organizations when it comes to healthcare IT.

According to Maximize Market Research, North America holds the largest market share, followed by regions like Asia-Pacific and Europe.

Key applications include Provider HCIT Outsourcing and Electronic Health Records, while types include Healthcare Provider Systems and Pharmaceuticals.

The market’s expansion is driven by the need for advanced healthcare IT solutions and services across different regions and applications.

Let’s explore some other reasons and key benefits of IT outsourcing in healthcare.

IT Outsourcing Market State

Saving Time and Improving Company Focus on Core Activities

Outsourcing healthcare IT tasks allows your team to concentrate on their primary responsibilities, such as patient care, operational management, and controlling operating costs.

This way, you can streamline processes and improve the overall productivity of the healthcare workers.

Create Custom Functionalities

You can develop tailored solutions that meet your unique requirements when partnering with specialized IT providers.

These customized functionalities can enhance patient experience, streamline workflows, and improve data management.

Increase Efficiency

Outsourcing can lead to more efficient operations.

Expert IT service providers have the latest tools and technologies. For example, we use technologies like Laravel, JS, React, Vue JS, and others to ensure that your systems are up-to-date and running smoothly.

This efficiency translates to better service delivery and improved patient outcomes.

Reduce Costs

Hiring and training in-house IT staff can be expensive.

According to Business News Daily, the average cost to hire an employee in 2024 is about $3,500, with additional expenses for external recruiters and job postings.

Training and operating costs average around $1,252 per employee and include about 57 hours of preparation.

Moreover, it typically takes a new hire around 12 months to reach full productivity, adding to the overall costs.

High turnover rates further escalate expenses, costing hospitals millions annually to replace staff.

Outsourcing eliminates the need for extensive recruitment and training, allowing you to allocate resources more effectively.

Additionally, outsourcing partners often provide services at a lower cost due to economies of scale.

A Comprehensive Guide to Healthcare IT Outsourcing

Access Top-Tier Global Talent

Collaborating with external vendors opens the door to a global market of IT talent.

You can collaborate with experts who have a deep understanding of health information technology and can offer innovative solutions.

This access ensures you get the best possible support for your IT needs.

Scale Your Team

Outsourcing provides the flexibility to scale your IT team up or down based on your current needs.

Whether you’re expanding your services or facing a temporary increase in workload, we offer a scalable solution that can adapt to your changing requirements.

Delegating healthcare IT tasks like system development outsourcing or medical HR software development not only optimizes your operations. It also enhances your ability to deliver exceptional patient care.

What Types of IT Services Healthcare Organizations Can Outsource?

Every year, 80% of medical bills contain errors, leading to a $125 billion loss.

These errors can result from incorrect patient information, outdated software, and non-corresponding treatment and diagnosis codes, among other factors.

All these issues can be reduced by outsourcing IT tasks to healthcare software development companies.

Here are some key areas where outsourcing can make a difference.

Electronic Health Records (EHR) Management

Outsourcing the management of EHR systems ensures that patient data is accurately recorded, securely stored, and easily accessible.

IT service providers can offer regular updates, system maintenance, and support to keep the EHR system running smoothly.

IT Infrastructure Management

Managing IT infrastructure, including servers, networks, and data centers, can be complex and resource-intensive.

Outsourcing these tasks ensures that your IT infrastructure is robust, secure, and efficiently managed by experts.

Cybersecurity Services

Protecting sensitive patient data is paramount in the healthcare industry.

If you delegate cybersecurity services to specialized firms, it can help safeguard your organization against cyber threats. You will also ensure regulatory compliance and protect patient privacy.

Telemedicine Solutions

Remote consultations were growing even before COVID-19, but the pandemic made telehealth a standard practice.

A McKinsey & Company study found that 40% of consumers plan to continue using telehealth, up from 11% before the pandemic.

The global telehealth market, valued at $83.5 billion in 2022, is expected to grow at a compound annual growth rate of 24% from 2023 to 2030.

Running an efficient telehealth operation is costly, leading many healthcare providers to outsource the setup and maintenance of these platforms. This trend is likely to continue as providers look for ways to streamline support for telehealth services.

With the rise of telemedicine, outsourcing the development and maintenance of telemedicine platforms can ensure that you offer reliable and user-friendly services to patients.

These providers can handle everything from video conferencing solutions to online appointment scheduling and patient portals.

Application Development and Maintenance

Custom healthcare applications can streamline operations and improve patient care.

Outsourcing the development and maintenance of these applications allows healthcare organizations to leverage the latest technologies and expertise without the burden of in-house development.

Help Desk and IT Support

Providing round-the-clock IT support can be challenging.

That’s why many companies outsource these tasks to ensure their staff and patients receive timely assistance with IT issues.

This way, you can improve overall satisfaction with your services and minimize downtime.

Data Analytics and Reporting

Outsourcing data analytics can help healthcare organizations make better use of their data.

Expert data analysts can provide insights into patient care, operational efficiency, and revenue cycle management, aiding in informed decision-making.

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Advances in health information technology (HIT) systems have made it possible to store an entire oncology practice on just a few hard drives.

Using computers for filing data has become incredibly fast, efficient, and comprehensive. As a result, internet usage is at an all-time high, both in terms of hours spent online and the number of users.

Cloud Services

Migrating to and managing cloud services can be complex.

Outsourcing these services allows healthcare companies to benefit from the scalability, flexibility, and cost-efficiency of the cloud, with experts handling the technical details.

IT Services Outsourced by Healthcare Organizations

Steps to Outsource Healthcare IT Services

Outsourcing healthcare IT services can be a strategic move for many organizations.

Here are the key steps to ensure a successful collaboration.

Define Project Scope and Requirements

Start by clearly defining what you need.

Outline the specific IT services you want to outsource, the goals you aim to achieve, and the criteria for success.

This helps in setting clear expectations and ensures that both parties are aligned from the beginning.

Research and Evaluate Outsourcing Partners

Look for potential outsourcing partners with expertise in healthcare resources and projects.

Evaluate them based on their experience, reputation, case studies, and client reviews.

It’s crucial to choose a partner who understands the unique challenges of the healthcare industry.

Steps to Outsource Healthcare IT Services

Define Delivery Schedule, Milestones, and Budget

Once you’ve selected an outsourcing partner, work together to create a detailed plan.

Define the delivery schedule, key milestones, and budget. Make sure there are clear timelines and that both parties agree on the financial aspects.

Even after the launch, continuous support is essential.

Ensure that your outsourcing partner provides ongoing support and maintenance. Address any issues promptly and keep improving the services based on feedback and performance data.

Key Skills to Consider When Choosing a Tech Partner in an Outsourcing Market

Selecting the right tech partner for outsourcing is crucial to the success of your project.

Here’s a checklist of key skills to look for:

Technical Expertise

  • Programming Languages: Ensure the partner is proficient in the relevant programming languages (e.g., Java, Python, C#, JavaScript).
  • Frameworks and Tools: Knowledge of frameworks and tools such as React, Angular, Node.js, .NET, and others specific to your project.
  • Database Management: Experience with SQL and NoSQL databases, data modeling, and data warehousing.
  • Cloud Services: Familiarity with cloud platforms like AWS, Azure, or Google Cloud, including services like storage, computing, and machine learning.

Industry Experience

  • Healthcare IT: Specific experience in healthcare IT, understanding of healthcare regulations (e.g., HIPAA), and knowledge of Electronic Health Records (EHR) systems.
  • Case Studies: Proven track record demonstrated through case studies or past projects in your industry.

Quality Assurance and Testing

  • Automated Testing: Skills in automated testing tools like Selenium, JUnit, or TestNG.
  • Manual Testing: Ability to conduct thorough manual testing to identify and fix bugs.
  • Continuous Integration: Familiarity with CI/CD tools like Jenkins, Travis CI, or CircleCI for seamless integration and delivery.

Project Management

  • Agile and Scrum: Proficiency in Agile methodologies and frameworks like Scrum for iterative development and delivery.
  • Communication Skills: Strong communication skills for clear and effective collaboration.
  • Time Management: Ability to manage timelines and deliverables efficiently.

Security and Compliance

  • Data Security: Expertise in implementing robust security measures to protect sensitive data.
  • Compliance: Knowledge of industry-specific compliance standards and regulations.

Support and Maintenance

  • Post-Launch Support: Commitment to providing ongoing support and maintenance after project completion.
  • Troubleshooting: Ability to troubleshoot and resolve issues promptly.

Ensuring your tech partner possesses these key skills can enhance the likelihood of a successful outsourcing partnership for your healthcare organization.

Healthcare IT Outsourcing Rates

When considering outsourcing healthcare IT services, it’s important to understand both the standard rates and potential hidden costs.

There are several factors that will affect the pricing of outsourcing healthcare services.

  1. Type of healthcare solution.
  2. Complexity of the application.
  3. Development team location.
  4. Tech stack.
  5. Maintenance and support.

Understanding these factors will help you budget more accurately and select the right partner for your needs.

1. Type of Healthcare Solution

The specific type of healthcare solution you require can greatly influence costs. Common types include Electronic Health Records (EHR) systems, telemedicine platforms, patient management systems, and custom healthcare applications. Each has its own complexity and pricing structure:

  • EHR Systems typically range from $50,000 to $100,000 for implementation and customization.
  • Telemedicine Platforms can cost between $30,000 and $150,000, depending on features like video conferencing, patient portals, and integration with existing systems.
  • Patient Management Systems often fall in the range of $20,000 to $80,000.
  • Custom Healthcare Applications vary widely based on the specific requirements but generally start at $25,000 and can go up to $200,000.

2. Complexity of the Application

The complexity of the application affects both development time and cost.

More complex applications require advanced features, integration with other systems, and higher security standards:

  • Basic Applications with limited features can cost around $20,000 to $40,000.
  • Moderate Complexity applications with more features, such as patient portals or basic data analytics, typically range from $40,000 to $100,000.
  • High Complexity applications with advanced features like AI-driven diagnostics, comprehensive data analytics, and extensive integrations can cost $100,000 to $300,000 or more.

3. Development Team Location

The geographical location of your outsourcing partner can significantly impact costs due to differences in labor rates. Here’s a general comparison:

LocationRates
US and Canada$100 – $150 per hour
Western Europe$70 – $120 per hour
Eastern Europe$30 – $80 per hour
Asia$20 – $50 per hour

4. Tech Stack

The technology stack used for development can also influence costs.

Some technologies may require more specialized skills, which can be more expensive:

  • Front-End Technologies HTML, CSS, and JavaScript frameworks like React or Angular – typically $30 to $100 per hour.
  • Back-End Technologies Node.js, Python, Ruby on Rails, .NET – around $40 to $120 per hour.
  • Mobile DevelopmentS wift for iOS, Kotlin for Android – $50 to $150 per hour.
  • Database Technologies SQL, NoSQL databases like MongoDB – $30 to $100 per hour.
  • Cloud Services AWS, Azure, and Google Cloud pricing vary widely based on the services used, often ranging from $50 to $200 per hour for setup and management.

5. Maintenance and Support

Post-launch maintenance and support are crucial for the long-term success of healthcare IT solutions. Costs can include regular updates, bug fixes, security patches, and user support:

  • Basic Support covers updates and basic bug fixes, costing around $500 to $1,500 per month.
  • Advanced Support includes 24/7 support, security monitoring, and regular enhancements, and it costs $2,000 to $5,000 per month.

Why Healthcare Providers Should Outsource IT Services to SpdLoad?

Outsourcing healthcare IT services can provide healthcare organizations with the right mix of security, scalability, reliability, and flexibility for innovation.

You want to make sure to work with a single technology partner rather than multiple vendors with limited skills.

Choosing several specialized vendors can restrict you to basic services without the benefits of synergy.

A comprehensive partner can offer various services, from creating a detailed product blueprint to providing ongoing maintenance and support.

If you are looking for such a partner, we are here to provide top-notch outsourcing services for your company.

We comply with HIPAA guidelines and have strict data security protocols to protect your medical documents.

Our technology-driven approach uses analytics and automation to streamline processes and enhance your facility’s efficiency while staying within budget.

The SpdLoad team comprises top industry professionals ready to bring expertise to your project. Our recruitment process involves screening, interviewing, hiring, and training to ensure the quality and success of our collaboration.

Contact us today to learn more about our healthcare IT services.

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