The State of Healthcare Call Centers: A Look into Challenges, Costs, and the Role of Technology
The role of healthcare call centers is evolving as patient expectations rise and operational challenges mount. Despite their critical role in patient-provider communication, these centers are often constrained by budget limitations, outdated technology, and labor inefficiencies. Insights from Hyro’s “The State of Healthcare Call Centers 2023” industry report shed light on these issues and offer a roadmap for improvement.
Labor Costs Dominate Budgets but Technology Investment Falls Short
Most healthcare call centers allocate a significant portion of their annual operating budgets–an average of 43%–to labor costs, including hiring, training, salaries, and benefits. Surprisingly, only 0.6% of these budgets are spent on technology aimed at preventing burnout and turnover among call center agents. This stark disparity underscores the urgent need to rethink budget priorities to address the primary drivers of inefficiency: labor-related issues such as burnout, turnover, and workforce shortages, which were cited by 39% of respondents.
The Growing Role of AI and Automation
While 46% of healthcare call centers are evaluating, deploying, or have already deployed large language models (LLMs), the impact of this technology is yet to be fully realized. This signals a vote of confidence in automation and AI, even though their integration into day-to-day call center operations remains limited. As automation technologies matures, they offer significant potential to alleviate inefficiencies and improve service delivery.
Proving ROI Remains a Challenge
A striking 67% of survey respondents admitted they find it difficult to provide their call center’s return on investment (ROI). Furthermore, 74% reported facing pressure from executive management to demonstrate the call center’s ability to generate profit rather than being perceived as a cost center. These challenges highlight the important of integrating robust metrics and technologies to capture the true value of call center operations.
Patient Satisfaction and Service Gaps
Only 51% of respondents indicated their patients are satisfied with their call center’s service. Long hold times, average 4.4 minutes–far exceeding the Healthcare Financial Management Association’s (HFMA) goal of 50 seconds–and inefficient workflows contribute to dissatisfaction. Additionally, 16% of calls end in abandonment, and nearly 50% of patients must call more than once to resolve their issues, further highlight the need for improved first-call resolution (FCR).
Outdated Technology and Inefficient Workflows
Despite advancements in AI and automation, many healthcare call centers continue to rely heavily on outdated technologies such as interactive voice response (IVR) systems (84%) and automatic call distribution (ACD) systems (82%). Alarmingly, 49% of respondents’ agents manually track, categorize, and report call drivers, often using periodic surveys. These methods are prone to human error and misinterpretation, leading to unreliable insights and hindered decision-making.
Metrics That Demand Attention
- Average Handle Time (AHT): Healthcare call centers report an average AHT of 6.6 minutes, consistent with industry standards. However, increasing staff size alone does not significantly reduce AHT, emphasizing the need for innovative solutions.
- Cost Per Call (CPC): The average CPC is $4.90, with some centers incurring costs as high as $10-$15 per call. For a call center with 350 agents handling 26,250 calls daily, this equates to $128,625 in daily expenses. Automating 34% of calls with technology, including AI, could save as much as $43,702 daily while maintaining service quality.
- Abandonment Rate: An average abandonment rate of 16% reflects significant patient dissatisfaction and missed opportunities for engagement.
- After-Hours Calls: Analysis of 300,000 patient calls revealed that 11% were made during off-hours or weekends, indicating a need for extended service hours or alternative solutions.
Key Questions for Reflection
- What does your healthcare call center really cost?
- What’s the real cost of call center attrition?
- Is your call center’s outdated technology costing you money?
The Path Forward
Addressing these challenges requires a shift in mindset. Investing in advanced technologies and AI solutions can reduce inefficiencies, enhance patient satisfaction, and improve ROI. Healthcare call centers must prioritize patient-centric innovations and leverage data-driven insights to remain competitive in an increasingly demanding landscape.
By taking action today, healthcare organizations can transform their call centers from cost centers into profit generators, ensuring they meet patient expectations and operational goals effectively. As Hyro’s report reveals, the future of healthcare call centers lies in embracing change and innovation.
The full Hyro report can be found here: Hyro – The State of Healthcare Call Centers 2023 Report.pdf