Why Do You Need Data Management In Healthcare?

Why Do You Need Data Management In Healthcare?

data management in healthcare

data management in healthcare



The healthcare industry is essential in our society, especially amid the COVID-19 pandemic. At its core, however, healthcare is still a business industry, and data is a valuable asset in every business. Moreover, data management in healthcare is, perhaps, even more, important than in any other industry.


What is data management?

Data management is the process of gathering, storing, and organizing data that is relevant to a business. An effective data management system ensures that all the organization’s database only contains high-quality information. This means that none of the records are duplicated, outdated, erroneous, or inaccurate. In turn, this data influences business decisions, plans, and strategies.

The data management process consists of different types of operations. It involves tasks, such as data entry, data processing, data mining, data verification, and data cleansing. Data management can be performed by employees within an organization, or outsourced to a third-party service provider.

Data management in healthcare is the handling of information in a healthcare business or organization. Healthcare professionals directly deal with the lives of people. They also receive a constant and voluminous influx of information, such as patients’ records, treatments, and medications. To cope with this, healthcare organizations need to handle information efficiently and accurately.

Healthcare data management is concerned with keeping health information correct, organized, and accurate. The information can be pulled from a wide variety of sources. The healthcare data management process will then store, protect, and analyze that data for the benefit of the organization.


Why Does Healthcare Need Data Management?

Data management is especially important in the healthcare industry. It is necessary in creating a comprehensive database containing all relevant information about the organization and its patients.

Healthcare data management helps your system to develop a clearer view of patients. Overall, an efficient healthcare data management system improves your services and patient relations. It paves the way for better communication, personalized treatments, and enhanced health outcomes.


What are the benefits of healthcare data management?

Data management has plenty of benefits for businesses of all natures. Good data management in healthcare businesses, in particular, provides the following benefits:

  • Develop a well-rounded perspective of patients, consumers, and households to create personalized and effective interactions.
  • Integrate and organize relevant information from all sources for better accessibility.
  • Keep up with current health trends, and predict upcoming trends.
  • Access data insights that positively inform your business decisions.
  • Understand the activities of healthcare providers, so you can align them with organizational goals.
  • Protect your system from data damage or losses.

These are only some of the benefits of employing effective data management in healthcare. More benefits can be added to those listed above, depending on whether you choose to outsource data management or do it in-house.


Is outsourcing better than in-house healthcare data management?

Just like in any business process, outsourcing and in-house data management have its pros and cons. You need to choose wisely between these two processes, so you can make the most of healthcare data management.



In-house healthcare data management means that the management of your database happens within your organization. Data management tasks can be delegated to your current staff, or you can hire new employees for the job.



  • Full control of the data management system.
  • Close monitoring of the data management process.
  • No need to share sensitive information with a third party.



  • Additional tasks for current employees will reduce their focus on their primary roles.
  • Hiring new employees entails spending on recruitment and mandatory premiums.
  • Data management training requires time, effort, and money.
  • You need to acquire data management tools and equipment.
  • Additional infrastructure to accommodate new employees and equipment may be necessary.
  • A general increase in the organization’s workload.



Here, you will be entrusting your data management process to a third-party service provider. You can outsource the entire data management system, or you can outsource certain data management tasks only.



  • Cost-effective workforce expansion. You do not need to spend a lot on recruitment, training, and additional tools and infrastructure.
  • Access to expert talents in data management.
  • Easy development and access to database backup.
  • Reduced in-house workload, allowing you to focus on core activities.
  • Cut labor costs by up to 70%.
  • An ideal strategy during challenging economic times, such as the pandemic and recession.



  • Little control and monitoring of the data management process.
  • Sharing sensitive information to a third party, which can lead to security risks.


inhouse vs outsourcing healthcare data management


You also need to consider your organization’s size and structure. For in-house data management, you would need to have a sizable system with plenty of resources to spare. On the other hand, outsourcing is the better choice for smaller organizations.

It is also worth noting that the risks of outsourcing can be addressed by choosing a trustworthy outsourcing partner.


How do you choose a reliable data management service provider?

There are plenty of data management outsourcing companies in the business process outsourcing (BPO) industry. However, not all of them are a good fit for your organization. Some of them may handle your data badly, as well. To guide you in selecting a reliable service provider, here are some points to consider:


  • Extensive experience: a service provider that has more years of experience in the industry is often the better choice. They would have more knowledge of the ins and outs of data management and know-how to overcome challenges effectively.
  • Employee training: your service provider’s staff will handle your data, so you should ensure that they are properly trained and equipped. 
  • Meets industry standards: see if the company adheres to industry standards. ISO and HIPAA certifications are a great guarantee that your data is safe with them.
  • Value for money: choose a service provider that offers flexible rates without tuning down the quality of their service.



A healthcare data management partner you can trust

Magellan Solutions is a BPO company based in the Philippines. We have been in the industry for over 15 years, providing healthcare systems with secure and high-quality services. We offer healthcare data management services, as well as data mining, data cleansing, data processing, data verification, and data entry.

Our data management staff are highly trained and well equipped to handle healthcare databases. Our company is ISO and HIPAA certified, so we can guarantee that your information is safe with us. With Magellan Solutions, you can get high-quality services at flexible and competitive rates.

Would you like to learn more about our healthcare data management service? Contact us today!



Contact us today for more information.