The Evolution of Medical Transcription in the us
Themedical transcriptionindustry is increasingly using foreign labor to fill the medical documentation needs of a growing, aging population. Reliance on this foreign labor force may be affecting domestic medical transcription opportunities and is changing the nature of domestic medical transcription work.
It is difficult to say how much of U.S. generated medical transcription work is outsourced to India, Pakistan, thePhilippinesand other countries. The AHDI (American Health Data Institute) claims that only a small percentage of domestic MT (medical transcriptionist) work is outsourced overseas. According to the AHDI, "The offshoring of medical transcription exists because of the shortage of qualified MTs in the United States, as well as rapidly escalating healthcare costs. However, only a very small percentage of the healthcare dictation generated in the U.S. is being sent offshore."
However, industry analysts and government organizations report a significantly large population of foreign medical transcriptionists employed or compensated by the American market. It has been reported by industry analysts that outsourcing to India generated revenues of up to $195 million USD in 2006, employing approximately 18,000 medical transcriptionists. It has been reported by the National Statistical Coordination Board of the Philippines that outsourcing to the Philippines generated $85 million dollars USD in 2005, employing approximately 2,000 medical transcriptionists. Combined, that is approximately 20,000 medical transcriptionists in India and the Philippines alone. According to the U.S.Department of Labor Statistics, in 2006 there were only 86,790 medical transcriptionists employed in the United States. If these reporting agencies are to be believed, at least 19% of the medical transcriptionists filling American medical transcription needs are located overseas.
Does an increasing population of foreign MTs affect the job market for domestic MTs? According to the U.S. Department of Labor, which predicts a 14% growth rate in the employment of MTs from 2006 to 2016, "Contracting out transcription work overseas and advancements in speech recognition technology are not expected to significantly reduce the need for well-trained medical transcriptionists. Outsourcing transcription work abroad to countries such as India, Pakistan, Philippines, and the Caribbean has grown more popular as transmitting confidential health information over the Internet has become more secure; however, the demand for overseas transcription services is expected only to supplement the demand for well-trained domestic medical transcriptionists."
However, in direct contradiction to this projection, the U.S. Department of Labor also reports that employment of MTs has been dropping. From 2000 to 2006, in correlation with the rapid growth of the MT population in India and the Philippines, employment of MTs in the United States dropped by 10,540 people.
A general consensus in the industry seems to be that the role of the medical transcriptionist is rapidly changing. Voice recognition technology and overseas competitors are expected to provide basic levels of medical transcription efficiently and cheaply. Skilled medical transcriptionists in the Unites States will be needed to review and assure the quality of work thus produced. According to ADHI, "A medical transcriptionist is truly a medical language specialist who must be aware of standards and requirements that apply to the health record, as well as the legal significance of medical transcripts."
A salary survey performed by Advance, a trade industry periodical, may help explain how increased volume of medical documentation in the United States can result in decreased employment for American MTs. Advance reports that in 2004, average MT salaries began a drop to an all-time low in 2006 of approximately $25,000 annually. At the same time, average salaries for MTs holding industry certifications have been increasing, and in 2007 averaged approximately $38,000 annually. Why are MTs with basic skills no longer in demand, while MTs with critical editing skills are increasingly needed? Contrary to the predictions of the U.S. Labor Department, it seems that offshore outsourcing and voice recognition technology are indeed meeting the needs of the medical establishment, and the real need now is for an increasing number of medical transcription editors.
