The Chicken Or Egg Game In Medical Transcription By: Myla Rose Mundo-Reyes Managing Director, Total Transcription Solutions, Inc. March 19, 2008 Amidst the busy streets of the MT world where new MT companies and MT training centers mushroom probably almost every other day, the chicken or egg issue continues to perturb business owners and educators despite indicators of bright prospects for this business. The Challenges Ahead The market of medical transcription in the United States is estimated to be at $25 billion and increasing at a rate of 15% to 20% annually. India is the top offshore provider at this time. Europe, Canada and Australia are the other potential markets for the Philippines. While this industry shows significant potential for economic growth, the country needs to strengthen its positioning as far as international visibility and establishing a track record for producing quality medical transcription services. At the end of the spectrum, we are also faced with the shortage of qualified manpower since medical transcription requires longer training and a higher level skill set, so the pace of supply is almost stagnating while more and more small and medium MT businesses burgeon in the country. Quality Means Survival Clients in medical transcription are very demanding in terms of health record accuracy. Accuracy of patient transcript is non-negotiable and should always be almost perfect as this is a documentation of the medical management done, and the basis of future patient care. As always, this is one of the major considerations in winning clients, and sadly, losing them. The Philippines brands itself as The Global Choice for Quality Medical Transcription Services. Quality has its price, and the country should not position itself as a destination of cheap rates, but high-quality services – a value proposition that is difficult to beat even if competitor countries sell their services at bargain rates. Serious clients are more educated now and have realized that paying a few more cents makes more business sense. Which came first – Chicken or Egg? Industry association, private sectors and government agencies have identified medical transcription as one the country’s priority growth sectors. As a result, many career advocacy programs have been developed to promote the growth of this industry in the country. However, several concerns are being raised by different players entering this arena: How do I set up my MT business? How do I market my services? Where do I get qualified medical transcriptionists? How do I set up my school for MTs? What happens to my graduates if there are no MT companies in our location? Should we wait first until there are locators in our region before starting training? Should I hire first, set up my business or market first? How do I avoid losses during start-up phase? Most often, entrepreneurs are faced with issues on how to set up their business, minimizing the losses, meeting the ROIs and the eagerness to get clients right away. There comes the question on how and where to market, and the hesitation in investing to train a core team that would necessitate intake of operating expenses in the absence of streaming revenues. Educational institutions are being asked to respond to the needs of the industry. There are advocacies for regional development and move to decentralize the Metropolis, to provide work and revenue opportunities to IT-ready regions, or the so-called cyber corridors. While the IT infrastructure is in place in some regions, most of the MT companies are located in the NCR and this brings up the challenge of where to place their graduates for employment. All these new players acknowledge the potentials of the Philippines’ bright prospects in medical transcription. All concerns are valid, and should not be taken for granted. As said, medical transcription is a sunrise industry. The country is in the take-off phase and these are all part of the growth pains. Reward potentials are great, but instant gratification is not possible. Penetrating this business entails careful planning, education on the risks involved, and understanding that there is an investment period like any other business. The need for quality people, quality training partner, adherence to ethical business practice, establishment of respectable network system and a good deal of appetite for risks, are some of the important components of success. At this stage of take-off, there will always be an issue of chicken or egg situation. I always say, it is a matter of positioning. Yes, you can either take the back seat, wait until the market is ripe, or you can choose to position yourself as a trailblazer who will reap the benefits once opportunities start pouring in.