News and Updates >> Client Update

Updated January 30, 2008
PhyLogic and Offshore Outsourcing Do Not Mix


The phone calls and emails come on an almost daily basis. “Attention Billing Companies: Save money by outsourcing functions overseas”, read one email sent to me the other day. The truth is that many healthcare billing and revenue cycle management companies are turning to overseas services to provide critical back office functions.

PhyLogic Healthcare’s policy on this matter is quite simple – PhyLogic does not, and will not, outsource any work offshore or elsewhere.

Companies operating in countries such as India claim they can slash back office expenses through cost savings realized by the significantly lower wages paid to their workers. In our opinion, there are significant trade-offs for such potential savings, which either negate the savings or even lead to reduced net revenues for the medical practice.

A few of the reasons behind PhyLogic’s policy of not outsourcing offshore are as follows:

  • With offshore outsourcing there is an inability to directly review and supervise offshore operations, such as charge entry, patient data entry, payment posting, account follow-up, etc. This supervisory gap leads to decreased accuracy and efficacy, as well as the resultant possibility of decreased reimbursement.


  • Having offshore workers does not integrate well with PhyLogic’s customer-centric service initiatives in which PhyLogic Reimbursement Specialists (the individuals who actually perform the work) maintain direct working relationships with our clients.


  • Offshore workers, while less expensive, are far less likely to be well-trained in the intricacies of medical revenue cycle management and are therefore more likely to make costly errors.


  • In offshore paradigms, there are too many layers insulating the providers from the actual workers performing the billing work. Additional communication issues such as language barriers and time zones compound the problem.


  • Offshore outsourcing raises HIPAA, confidentiality, OIG and legal concerns. If the worst happens, would you need to use foreign courts? Quite possibly yes.


  • Offshore workers are less likely to have incentives or hold a personal stake in the financial success or failure of your medical practice. They may therefore be much less likely to put in the extra effort needed in areas such as researching issues, workflow solutions and claim follow-up.

Some competitors which utilize offshore outsourcing may state that they will not incur increased errors due to the high levels of automated claim scrubbing (such as on-line CCI edits) or other similar technologies. At PhyLogic, we value and utilize such technologies, but believe they work best only when utilized in conjunction with knowledgeable Reimbursement Specialists, who have a real working relationship with our providers and who know the intricacies and billing habits of each.

It is well known that PhyLogic Healthcare’s main goal is to maximize reimbursement for our physicians with the highest levels of customer service. Offshore outsourcing does not achieve this goal, and therefore has no place at PhyLogic.

We, at PhyLogic, value our clients above all else. In utilizing our services, our clients entrust us with immense responsibility. We will never pass along this trust elsewhere. Our clients deserve more – they deserve one-on-one personal service, access to employees at every level, and ensured confidentiality – and that is precisely what PhyLogic will continue to provide.