Lexology July 1, 2025
Unlike other sectors, US healthcare businesses must reconcile cost-saving strategies with stringent compliance obligations, especially when patient data crosses national borders or is accessed overseas.
In Depth
As healthcare companies in the United States seek sustainable strategies to reduce administrative costs, offshoring administrative, non-clinical functions has emerged as an increasingly attractive option. Global labour markets offer access to skilled professionals at wages that may be lower than in the US, which enables cost efficiencies for US providers and health plans.
However, because of patient data privacy concerns, healthcare offshoring presents a unique legal and regulatory challenge. Companies must navigate the web of US state restrictions on the access or storage of patient data outside the US.
HIPAA’s Extraterritorial Flexibility
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