Omega Healthcare: Bringing IT and Healthcare Closer
Date: Monday , November 01, 2010
The healthcare industry in the U.S. is arguably one of the best in the world but the administrative aspect of the industry by far is the most complex and difficult to comprehend systems and processes. The industry’s current contribution makes up about 12 percent of the U.S. GDP and is expected to reach close to 15 percent in less than a decade. The IT spend in the healthcare industry is estimated to be about 2 percent of revenues whereas the financial or banking industries spends about 8 - 10 percent. The major challenges for technology adoption in the healthcare industry are the ever changing regulatory complexities and the fragmentation of the industry. Less automation and continued demand for accurate data to be amassed from various sources combined with the complex reimbursement patterns of the insurance companies presents a unique opportunity for a company like Omega Healthcare. The company has about 2,700 employees out of which 900 are highly qualified medical coders.
Omega Healthcare has established itself as one of the premier offshore providers of medical coding, billing, accounts receivable management, and healthcare revenue management. Omega’s business model is rather unique in the industry whereby they have no channel conflicts with their clients. The focus on the quality of services they provide is attested by their client retention rate of 95 percent.
In 2009, Omega added six new clients, but they consider it to be a slower year compared to prior years. But they are back in the fast track in 2010 after the healthcare reform plans were announced and have added 16 new clients so far. “The future looks very bright with more and more companies evaluating and accepting use of offshore services as a key part of their growth strategy,” says Gopi Natarajan, CEO, Omega Healthcare Management Services.