A community of 30,000 US Transcriptionist serving Medical Transcription Industry
Higher utilization of offshore production and ASR leads to lower costs for us, which permits us to offer better pricing to our customers while at the same time contributing to margin growth. We have successfully migrated a significant portion of our volume offshore and we will continue these efforts.
As technological advances and increased use of offshore resources have driven down industry costs, the average price per character has also declined as healthcare providers have sought to participate in the economic gains. We intend to monitor and adjust our pricing accordingly to remain competitive as these industry trends continue.
Operating Improvements
Cost of revenues on a per unit basis has declined compared to the prior year period due to the increased percentage of volume produced offshore and the increased utilization of ASR technology, as well as a shift in other staffing offshore in order to further reduce operating costs. We increased our offshore production volumes from 41% for the three months ended March 31, 2011 to 48% for the three months ended March 31, 2012. We also increased our use of ASR technology from 72% for the three months ended March 31, 2011 to 75% for the three months ended March 31, 2012. As we continue to increase the use of ASR technology and move volume offshore, we expect to continue to reduce costs.