Medical transcription in the Philippines is still a relatively young industry. There are presently more than 50 medical transcription firms operating in the country with most located in Metro Manila and a few in the other urban centers. The sector has attracted a number of start up companies over the past years as well as increased enrollment in the various MT training institutes.

NASSCOM India estimated the world market for medical transcription to be approximately US$30billion to US$33billion in 2005. The United States accounts for about two thirds of the global MT market and its requirements are expected to increase further in the near future as the US health care industry continues to digitize all medical records to comply with mandatory requirements. This situation, coupled with a shortage of medical transcriptionists in the US, has opened up opportunities for other countries to fill in the growing demand for MT services.

Although the US outsources only a small portion of its medical transcription needs to service providers in other countries, this market proportion represents around US$10 billion to US$16 billion worth of MT contracts. Much of this demand has been filled in by India which is estimated to have cornered around 80% of the US market for outsourced MT work. Apart from the US, the other promising markets are Canada, Great Britain and Australia where existing healthcare systems require similar services as in the US and where English is the main language.

Medical transcription in the Philippines experienced a phase of rapid growth a few years ago. The potential revenues from MT in the US market attracted a number of investors into setting up MT firms. Most of these are Filipino owned and are small in size. A few are larger in size in terms of number of seats. Some of these have foreign equity, mainly US based, and have managed to obtain regular MT work from US hospitals and health care services. At present, growth in the sector seemed to have stabilized. The focus has shifted from start up operations and concerns to developing more reliable markets, increasing the image of local MT firms abroad and establishing a base of qualified personnel.

Further development of the local MT sector depends on two key factors, more qualified workers and better recognition abroad. In the operations side, the industry has to accelerate the pace at which new recruits get the right skills and expertise to become productive in MT work. Normally, new recruits have to undergo training for 6 months before they can be productive in medical transcription work. Most MT companies prefer to conduct internal training rather than rely on graduates from MT training institutes. The industry needs to standardize MT training and get schools to adopt these standards in an effort to increase the number of qualified recruits, reduce the training time to productivity and thus reduce costs as well. Improved training will reduce the need for MT editors to review the work of transcriptionists, improve work accuracy and efficiency and reduce operating costs. With more qualified medical transcriptionists, the industry can also increase the rate by which the more seasoned workers are promoted to become MT editors and managers. This will help relieve current bottlenecks in operations and allow MT firms to take on more or bigger contracts.

The other key factor for the success of the Philippine MT industry concern gaining a better image and acceptance in key markets abroad. India presently gets a large slice of the US MT market due to its better recognition and reputation for IT and BPO work. Local MT firms have to develop a suitable marketing and promotional program to project the key competitive strengths of the industry to potential clients. Better price, accuracy of work, reliability or other related variables can be used to promote MT firms abroad.

The local MT industry also has to consider expanding its geographic market. It still remains heavily dependent on US based clients. While the US continues to be an easier target given its historical ties with the Philippines and the Philippine familiarity with American business, MT firms could consider expanding into other countries like the U.K., Australia and Canada.

Over the next few years, the local MT industry needs to work out a proper program for the sector’s continued development. The two major areas of concern presented in the preceding paragraphs can form part of the major components of this program. The period of rapid growth for the local MT industry may have already peaked and its now time for the sector to manage its structure and capabilities for its next phase of development.


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