What Is the Difference Between a Medical BPO and a Medical Answering Service?

Over the last decade, medical practices have undergone significant changes. From the widespread use of Electronic Health Records to the adoption of digital technologies and the consolidation of smaller practices, it has been a whirlwind for those in the midst of these dramatic shifts.

Add rising costs, complex regulations, staffing shortages, and the increasing challenges in practice management, and it becomes clear why many healthcare providers are turning to third-party solutions to help support their practice.

When looking for support, you’ve undoubtedly come across two terms: medical BPO vs medical answering service. While these two services possess some similarities, they are used for distinct purposes and applications.

A medical BPO (Business Process Outsourcing) offers a broader range of services than a virtual answering service. They may take on specific tasks or entire departments. Comparatively, a medical answering service focuses on inbound and outbound patient communications.

Here, we’ll explore a medical BPO vs. medical answering service and which solution would best meet your needs, support your staff, and create a better patient experience.

Medical BPO: A Broader Approach to Business Operations

A medical BPO offers a comprehensive outsourcing solution. Many fulfill both front office and back office functions, from medical billing to claims processing and data entry. They act as a comprehensive solution for medical practices seeking diverse support, including financial operations like accounts receivable, IT functions such as infrastructure management, and human resource procedures.

By delegating repetitive or administrative tasks to these firms, you free up your staff to focus on core clinical functions and in-house patients. On the flip side are vendor management challenges and overseeing outsourced tasks to ensure they align with your practice’s procedures and values.

Another common reason for hesitating to integrate a BPO into medical practices is concern over data privacy and security. According to The HIPAA Journal and a report from Security Scorecard, in 2024, over 35% of data breaches originated from third-party compromises.

Medical Answering Service: Specialized Communication Support

A medical answering service focuses specifically on patient communication and support. These organizations may support healthcare providers by answering calls 24/7, including holidays and weekends. This round-the-clock availability gives patients peace of mind, knowing they can always reach someone, regardless of the time of day.

They schedule appointments, remind patients of upcoming appointments, and direct urgent calls to the appropriate on-call provider. They also answer questions within their scope and take messages when warranted. When these services integrate with your existing platforms, such as Electronic Health Record (EHR) systems and provider schedules, you ensure a streamlined patient experience, efficient message management, and HIPAA compliance and security.

Additional support a medical answering service may provide includes nurse triage services, secure messaging, and automated solutions. Virtual nurse triage services are particularly valuable to medical practitioners who may need time off, but want to ensure their patients can access support and information if required. These registered nurses assess a patient’s symptoms, then guide them on their next steps and the appropriate level of care needed.

Medical BPO vs Medical Answering Service Key Differences at a Glance

Choosing the right solution for your practice boils down to your specific needs and how much outsourcing you want to integrate into your practice. The following offers a glance at the different services found when exploring medical BPO vs medical answering service.

• Scope: A medical answering service focuses on incoming and, if they provide patient outreach, outgoing patient communication.

A medical BPO provides comprehensive administrative and financial tasks.

• Services: A medical answering service may answer calls after-hours, during peak periods, and when an employee is absent. They schedule appointments, route urgent calls, take messages, and answer questions. They may also provide patient outreach, ensuring patients remember their appointments and are following treatment guidelines. These services may also include nurse triage and automated communication solutions.

A medical BPO may perform medical billing, medical coding, data entry, claims processing, medical transcription, IT support, human resource management, customer service, and support with financial operations.

• Purpose: A medical answering service ensures all patients’ calls are handled professionally and promptly, instead of going to voicemail or being placed on hold. They provide after-hours and peak-period support for around-the-clock coverage.

A medical BPO supports practices across a variety of functions, increasing efficiency and taking pressure off employees who may be overburdened by their administrative roles.

• Cost: A medical answering service commonly charges a monthly fee or by the number of calls. 

The costs of a medical BPO are more complex and dependent on the services provided.

• Experience: Virtual receptionists provided by a medical answering service are trained in communication protocols, medical terminology, HIPAA compliance, and EHR/EMR systems.

Providers from a medical BPO specialize in specific fields, such as billing or transcription.

How Technology Is Changing Both Solutions

Artificial intelligence (AI) and automation have significantly impacted both medical practice solutions. Automated systems offer advanced call routing, providing a far superior patient experience compared to previous systems. Cloud-based solutions facilitate real-time communication and improved efficiency.

Medical practices also receive the benefits of better patient data management through effortless integration with EHR/EMR systems. As technology advances, more administrative tasks are being automated, streamlining processes such as billing and scheduling.

Choosing the Right Solution for Your Medical Practice

When deciding between a medical BPO vs medical answering service, the essential question is what services would support your team, practice, and patients the most? Both provide significant benefits, including cost savings and scalability.

If you’re looking for an enhanced patient experience, ensuring an empathetic and knowledgeable person is there to answer your phones 24/7, a medical answering service may be the best solution.

If you’re looking for administrative support, including billing or claims processing, a medical BPO may provide the services you need.

At notifyMD®, we support medical practices through comprehensive solutions that include medical answering services, healthcare appointment scheduling, nurse triage services, secure messaging, patient outreach, and automated solutions. As the first answering service to earn HITRUST certification, you can count on our virtual assistants and registered nurses to keep your patients’ ePHI protected and secured.

To learn more about the support we provide you, your staff, and patients, contact notifyMD® today.