Feature Story

Onshore to Offshore: Why Blended Medical Coding Models Have Become the New Standard

By Sabrina Yousfi, MBA, RHIA, CCS, CDIP

Nearly 80% of health system finance leaders state they will use some form of outsourcing within the health care revenue cycle in 2026. Outsourcing is increasingly being used to cope with staff shortages, mitigate rising payer denial rates, and build stability amid uncertain reimbursement forecasts. Revenue cycle outsourcing has also emerged as a strategic lever for operational resilience.

One of the areas within revenue cycle that is ripe for outsourcing is medical coding. Whether outsourced “as needed” or fully contracted out, coding services companies have been serving health care provider organizations for several decades. Outsourced segments account for 64.8% of the US medical coding market revenue, as providers increasingly move away from purely in-house models to reduce administrative overhead and help combat the 12% talent gap in the domestic medical coding workforce. What’s evolved is the location of the outsourced staff. Read more »


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39%

Up to this percentage of out-of-network claims submitted to the federal independent dispute resolution process in 2024 were ineligible, according to a report by AHIP and the Blue Cross Blue Shield Association.

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