US firms seen venturing into medical transcription

American companies are expected to invest $1.4 million in the medical transcription industry in the next few years.

The deals were sealed during the country’s participation in the American Health Information Management Association (AHIMA) exhibition and conference in Philadelphia.

A consortium composed of small and medium medical transcription service organizations (MTSOs) will handle the investment.

“The reason that we decided for a consortium is to show large companies based in the US that the Philippines has the ability to handle their accounts, and has enough headroom for future requirements,” said Raoul Sia, president of Rapid Data and a member of the consortium.

The companies who signified their participation in the consortium are now on the testing stage. It is estimated that the alliance with the US-based companies will be on its full operation in the next few months.

According to Sia, the industry will expand to 20 million lines, translating to $1.2 million, and medical coding in 130,000 charts, amounting to $175,500 yearly.

The Center for International Trade Expositions and Missions (CITEM), in cooperation with the Medical Transcription Industry Association of the Philippines, Inc. (MTIAPI) brought four companies in this year’s participation dubbed as e-Services Philippines Goes to AHIMA.

The companies who joined are ELink Transcription Academy Inc., E-Transcribe Global Transcription Services and Training Inc., GlobalQuest BPO Specialists, Inc., and Rapid Data Services LLC.

AHIMA is seen to create opportunities for Philippine MTSOs to meet new clients, potential partners, and providers, as well as a venue to sustain the country’s promotional effort as a preferred global sourcing destination for health information management services.

It is also where the Philippine MTSOs may undertake focused market study on global sourcing trends, best practices and outsourcing niches and opportunities.

The increase in demand for medical transcriptionists is a result of the increase in US healthcare spending because of its aging population.

Also the growing demand for health maintenance organizations and medical insurance, coupled with the Health Insurance Portability and Accountability Act (HIPAA) directive require healthcare providers with loads of complex documentation requirements contribute to the industry growth.