The Transcription Conundrum is a newsletter for MTSO managers who want more from their business. We'll show you how to approach difficult industry issues and turn them into competitive advantages that will help you grow your business. If you have suggestions for future topics or if you have any questions please email us at info@intrascript.com.

There are several potentially devastating issues facing today's transcription industry:

•Downward price pressure
•Electronic medical records
•Voice to text, or speech recognition
•Rising costs of production

Subsequent newsletters will show you how each of these phenomena can become competitive leverage to grow your business. Then we'll tackle some of the business issues that deal with business management. And if you're still around, then we'll get into marketing. But if the suspense is killing you and you just can't stand the wait you can go to our website (www.transcriptiondigital.com) and read up ahead of schedule.
 
Let's tackle the big elephant in the room first. Outsourcing to companies in countries where direct transcription costs are dramatically lower than in the US has created downward pressure on transcription prices.  Hospitals and clinics are constantly on the lookout for cost saving opportunities and thus the threat. So how do you compete on price and survive? Or do you compete on price at all?

In reality you don't have a choice if you want to stay in business. If you choose to compete on price you might soon be insolvent because our direct transcription costs are so much higher in the US than those in competing economies. In economic terminology, price warriors are choosing to treat transcription as a commodity. By definition a commodity is a product for which there is no difference in value from one item to the next. Transcription is transcription is transcription. Or, transcription by any other name is still transcription.

That said we all know that most clinics and hospitals want more than just transcription and that there is much more to providing a transcription service than delivering a typed document. Quality of transcription, TAT, online review and editing capabilities, automatic printing and file delivery in multiple clinics, convenient variety of delivery methods, the ability to integrate with back office systems and EMR, forwarding to referring physicians, accessibility to clinic staff and a plethora of other services combine to make transcription a professional, value added service… not a commodity.  The reality is that very few, if any, companies that sell transcription on price alone can sustain high end services at a discounted rate even with the direct wage disparities. 
 So why do your clients want to focus on price? Because they rarely know enough about the value you bring to the table to consider anything else. People revert to price when they don’t know any better. They look at price because they THINK they understand it, even though in most cases they don't.

So how do you turn the price/value conundrum into an advantage? The answer is simple. Educate your prospects and your clients on what you really do. And do it in detail so there is no danger of them using price as a measuring stick when there are so many other variables to consider. Make them understand that you are much more than a secretary and that you provide a complete service. And be sure you tell them on a regular basis before the next contract comes up. Talk to your clients, understand their needs, frustrations and concerns, and explain to them how you will help them solve their problems and make headaches disappear. That way when the next price warrior comes around cutting your price by thirty percent he will most likely be shown the door. Most likely they'll pick you even though the "price" is higher.
info@intrascript.com

Sincerely,
The IntraScript Team