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You have heard correct. Initially it was being done to save money - as obviously, Indian MTs can survive on a heck of a lot less than American MTs. But what has happened over the years is that the quality of work being produced out of India is less than satisfactory, hence needing American editors, which ultimately raises the cost of the transcription per line - eliminating the initial benefit. The quality of the work that comes out of India is horrid. They can't do it without help from American MTs.

There are some success stories -- there are a few Indian medical transcription companies that have managed to do well with associations with MT companies here in the US. The Indian government recently decided to keep medical transcription a nontaxable industry - which motivates Indian MT companies even more than before. Unlike the IT industry, however, MTs in the US are not losing their jobs to Indian MTs - yet. They don't help because they can and do come in and undercut US services, thusly keeping American MTs pay at the same rate it has been for years and years (can't blame all of that on overseas transcription) BUT - your medical records, along with your SS#, and other pertinent information could be going overseas - and unless they're being edited by American MTs -- there are probably a multitude of mistakes/errors in your medical records. The new HIPAA laws will not be able to enforced in India either.