US healthcare provider UnityPoint Health is outsourcing key information technology and revenue cycle functions to global vendors, in a move that underscores growing demand for offshore services in markets such as the Philippines.
The West Des Moines-based nonprofit said it will cut 207 IT roles and make additional reductions in its revenue cycle department as part of a transition to third-party providers, citing sustained financial pressures across the US healthcare system.
UnityPoint has tapped Accenture for its IT operations and Omega Healthcare for revenue cycle services. Both firms operate delivery centers in the Philippines, a major global hub for healthcare outsourcing.
The company said the restructuring aims to leverage advanced technologies, reduce costs and improve user experience, while maintaining oversight of outsourced functions. Some affected employees may be offered roles with vendors as the transition progresses.
“Like many health systems across the country, we are navigating a period of sustained financial pressure,” UnityPoint CEO Scott Kizer said, citing rising labor, supply and drug costs, as well as lower reimbursement rates.
Healthcare providers in the United States are increasingly turning to outsourcing firms to manage non-clinical functions such as billing, coding and IT, allowing them to focus resources on patient care. Revenue cycle management, in particular, has become a fast-growing segment for business process outsourcing providers.
The shift is expected to benefit offshore delivery hubs including the Philippines, where firms support global healthcare clients with back-office services, analytics and digital operations.
The move follows similar restructuring efforts across the US healthcare sector, as providers seek to improve efficiency and maintain margins amid ongoing cost pressures.
Outsourcing News Philippines