Many transcription service companies are getting smaller. Is it because the competition is smaller than it used to be?
A recent presentation made by Bill Jacket, VP of Global Services Group of KPO Company says there are many reasons competition is decreasing. In general, he says the work is more profitable, as there are fewer competitors, many more competitors now compete for the same projects, there are numerous technologies available to do it, and they’re outsourcing more.
Expenditure on salaries, and all the expenses for health insurance, training, overhead, management, and the other ‘expenses’ of a transcription service are also dropping. With fewer employees and fewer projects competing for a small pool of work out there, in recent years companies have seen it reduce the price they spend on labor.
Not all transcription services are affected negatively by this change however. I will talk more about that soon.
Where does it leave the small transcription services?
If they’re not competing in the same market place, and they’re losing talent and lots of contracts, it may be a problem. But center of sizing CPRWare, executions, correspondence are the ease of running a business as opposed to a big transcription company. Taking that bigger technology just makes too much other suffering, if it didn’t, what would you do?
The main reason transcription companies are subcontracting is that subcontracting shifts the corporate responsibility for transcription/coding, to an entity that subcontains every aspect of the transcription software set. They are the software provider that allows the IT department of a transcription company to bid and deliver the final results.
So, you might ask, “How does this create pain for the smaller transcription services?”
Consider this: When you start finding a major transcription company, their PMS, and associated software gets 100% of your money. So you have no additional cost to them. I completely understand, but language is language.
So, when another company in the same market (or a separate market) is doing the same project, they have to lower their prices and the standards they use. They then have to hire people, with the same wages and salaries as the giant do, not to mention the relationships they have with transcription staffing.
And that (I propose) is where it is a problem. Now, people in nursing are stressed out. And your higher paying transcription providers often don’t have the experience in accounting, or team management. And even if they have done something similar, (i.e. they are a college intern or a realtor), will they be able to do the job at the same level, and settle in for multiple years, if the stay is part time? They have other projects in the pipeline and won’t want to lose time, or have to get help shift.
You have to ask yourself: Am I creating a lot of stress where I have to skinny down and bring in replacement funding or am I paying a price that I know needs to be done?
So what do I recommend to clients? Well, I found a company in the same market, and similar capabilities that is still reaching the top of the market. It is a corporation run by a gentleman that has done a lot of career development sitting in a class room. He is a wonderful company, if you talk to him he can do the project for $20K but he can also pull in $60K for the turnaround.
Feel free to contact him direct at ensigntranscription.com. He can do everything you tell him. All you have to do is set up a timeline and let him worry about that $20KNon textile costs extra, as in rent, utilities, Power. Food supplies. Marketing. And security for his family.