Omega plans new unit in Philippines to serve US clients

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Healthcare outsourcing services provider Omega Healthcare is setting up a facility in Philippines to offer patient interactive services to its clients in the US. It is also getting nurses to manage case management services outsourced out of the US at the new facility. In India, the company plans to double its headcount in next three to four years.

Omega’s new 250-seater facility in Manila is opening in the first week of January. The company will be offering patient interactive services from the new facility. It will initially employ graduates for patient interactive services and later nurses for services, including case management, utilisation management and referral and authorisation processes.

In three to four years, the company will expand the facility to accommodate over 2,000 graduates and around 1,200 nurses.

“Patient interactive services in the US are largely outsourced within the country. There is a $10 to $15 million outsourcing opportunity in this segment. But the Indian workforce does not have required communication skills and socio-interactive skills needed for the job, while Philippines with its proximity to American culture is apt for the particular service. Moreover, there is a large pool of trained nurses in Philippines who can handle voice-based services much better than their Indian counterparts,” said Gopi Natarajan, CEO of Omega Healthcare.

Omega is increasing its headcount within India as well. With a current strength of 5,100 people across three locations- Chennai, Bangalore and Trichy- the company will be almost doubling the count to around 10,000 people in three to four years. Omega is optimistic about the business opportunities that Obamacare in the US will bring into India.

Focused on offering revenue cycle management services, Omega partners with around 90 revenue cycle management companies in the US. They sub-contract outsourcing work of both physicians and hospitals.

“The US market for revenue cycle management services is valued around $18 billion. India has 15 per cent share of the business and it is growing by around 35 per cent year-on-year. Currently only 20 per cent of the business of Indian companies comes from hospitals and I see this growing to 40 per cent in a few years as the US hospitals are getting aware of the benefits of off-shoring,” he said.

The company also expects its revenue to double to over $85 million in three to four years with the new opportunities arising out of the shift towards ICD10 coding system and Obamacare in the US.

The company is investing around $25 million on setting up new facilities, expanding the existing ones and increasing headcount. This will be funded through internal accruals in a period of three to four years.

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