The State of Healthcare Call Centers: 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their critical role in patient-provider communication, these centers are often constrained by budget limitations, outdated technology, and labor inefficiencies.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 an average of 43% of their annual operating budgets 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. This stark disparity underscores the urgent need to rethink budget priorities — labor-related issues such as burnout, turnover, and workforce shortages 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. As automation technologies mature, 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.

Patient Satisfaction and Service Gaps

Only 51% of respondents indicated their patients are satisfied with their call center's service. Long hold times averaging 4.4 minutes — far exceeding the HFMA's goal of 50 seconds — contribute to dissatisfaction. Additionally, 16% of calls end in abandonment, and nearly 50% of patients must call more than once to resolve their issues.

Metrics That Demand Attention

• Average Handle Time (AHT): Healthcare call centers report an average AHT of 6.6 minutes. 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. Automating 34% of calls with AI could save as much as $43,702 daily for a call center with 350 agents.
• Abandonment Rate: An average abandonment rate of 16% reflects significant patient dissatisfaction and missed opportunities.
• 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.

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. By taking action today, healthcare organizations can transform their call centers from cost centers into profit generators.