Health Care Outsourcing

Market leading health industry clients are responding to the rapid pace of change by outsourcing vital, but non-core IT functions which require highly technical expertise and are extremely resource intensive to on shore, off-shore and near shore third party service providers. The revolution in IT makes it cost prohibitive for many health industry clients to keep up with technological advances using in-house resources and staff. Outsourcing companies can deploy their size and expertise to assist health industry clients and eliminate their need to create technological or process infrastructures and hire or assign staff to perform these functions. Outsourcing companies are able to ensure access to state of the art IT technologies, minimize the disruption of upgrades or changes in systems, work behind the scenes 24/7 with always ready staff, provide security, backups and emergency and contingency systems in the event of emergencies or unforeseen events. Outsourcing may help industry clients become more flexible by transforming fixed into variable costs. A variable cost structure helps a company responding to changes in required capacity and does not requisite a company in investing in assets and hereby making the company more flexible. Outsourcing may provide a firm with increased flexibility in its resource management and reduce response times to major environmental changes. Butzel Long attorneys use their knowledge and expertise to help clients create effective business partnerships with outsourcing companies. Outsourcing companies provide a cost effective and high quality alternative to performing administrative functions in-house. Health industry clients can benefit from outsourcing business process functions such as e-billing, collections, human resources, general counsel, supply chain, risk management, security, property maintenance, employee benefits management, and customer service functions to strategic third parties who are able to perform these services better and at a lower cost, allowing them to focus on core business and core competencies. Health industry clients also use outsourcing for clinical services through teleradiology, e-health and virtual ICU relationships. Butzel Long attorneys can assist clients in managing the risks of outsourcing, including loss of independence, failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges. Outsourcing requires the expertise of attorneys who are knowledgeable about the health industry, the systems and needs of particular provider and supplier types, and who have practical, hands on experience in technological operations and computer engineering to carve out IT and business processes. We work with in-house teams and technical advisors to help clients meet their business objectives in keeping with the health industry

  • Represented payer in outsourcing of print and mail operations associated with policies
  • Represented payer in outsourcing of both information technology and business processes in connection with health care exchange under Affordable Care Act
  • Represented pharmaceutical company in outsourcing of application maintenance and development associated with critical research
  • Represented payer in shared services transaction for data centers
  • Represented both payers and pharmaceutical companies in outsourcing of information technology services
  • Represented services provider in establishing claims processing operations for hospitals and health care providers