6 Reasons To Outsource Your Revenue Cycle Management
Over the course of the past five years, a growing number of hospitals and health systems have decided to outsource their revenue cycle management. One survey conducted by Becker’s Hospital CFO Report found that:
- 54% of healthcare CFOs believe outsourcing revenue cycle management will increase efficiency and improve their organization’s financial health.
- 83% of hospitals now outsource at least some accounts receivable and collections
- 79% of CFOs surveyed said they need to eliminate financial coding and technology vendors that unable to produce a return on investment.
Due to the widespread economic effects of the COVID-19 pandemic, efficient revenue cycle management is more important than ever. Hospitals and clinics were already operating on razor-thin budgets, and the fallout from lockdowns in the spring, combined with a ban on many elective procedures, only made things worse.
While the thought of outsourcing your revenue cycle management needs may sound scary, it actually presents a variety of benefits. Let’s take a closer look at how outsourcing your RCM needs can have a positive impact on your medical facility as a whole.
The Benefits of Outsourced Revenue Cycle Management
1.) Makes Time for Improved Patient Care
RCM is a time-consuming and intensive job. One missed code or medical billing error can lead to hundreds if not thousands of dollars in lost income. Not to mention hours of back-and-forth with insurance and collections companies. As a medical professional, your top priority should be your patients. Stop spending hours each week filling out paperwork. When you outsource your RCM services, you can focus on the aspect of your job that matters most –– those who are in your care.
2.) Makes Reimbursements Timely
Healthcare reimbursement often takes months. If you’re trying to operate on a profit, this can make it incredibly difficult to stay afloat. When you have a dedicated partner handling your RCM you don’t have to worry about all of the paperwork and meticulous monitoring that revenue cycle management involves. We handle all aspects of your financial processes, including interactions with insurance companies, billing reviews and medical coding. This focus and precision ensure your facility maintains its income stream without leaving any money on the table.
3.) Improves Regulatory Compliance
Federal, state and local governments establish and monitor industry regulations, payer policies and compliance. If you’re tasked with juggling every aspect of your medical facility, something is bound to fall through the cracks. Unfortunately, if you fail to comply with rules and regulations, you could lose your medical license or end up paying a huge settlement. The fact that rules and regulations are constantly changing makes compliance even more important. A qualified RCM provider can help you remain nimble. Laws may not stay the same, but if you’re abreast of changes, it’s easy to adapt and adjust.
4.) Reduces Costs
When you handle all of your RCM needs in-house, you need to hire full-time staff. Coding, billing and communicating with insurance companies is time-consuming and tedious. Full-time coding and billing professionals can make the process smoother, but if you add staff, there are additional expenses to consider, including retirement benefits, vacation hours and more. If you outsource your RCM needs, there’s a lot less to worry about. You pay a flat rate each month and receive high-quality billing services. If you want to upgrade or downgrade service at any time, you have that option, too. Plus, you can make it without having to lay off or furlough anyone.
5.) Increases Monthly Cash Flow
We’ve all heard the saying “cash is king,” and it’s especially true in the health care industry. In order to make a profit, you need to maintain your RCM operations throughout the year, no matter the season. If your RCM staff is in-house, though, there are certain times when people will be on vacation or attending events. This is part of operating a business, but it can also slow things down and create a billing backlog. If most of your RCM staff take off at the same time, there are bills just sitting there. By partnering with an RCM company, you never need to worry about a delay.
6.) Decreases Stress
Operating a hospital, clinic, urgent care center, skilled nursing facility, health system or medical laboratory is a lot of work. There are customers to connect with, hires to make, day-to-day operations to manage and more. At the end of the day, this leaves very little time for one of the most important aspects of your business — finances. Partnering with an RCM vendor takes some of the weight off your shoulders. It also puts the number crunching and tallying into the hands of trained and qualified professionals, allowing you to avoid costly coding or billing mistakes.
At Med USA, we have more than 40 years of experience providing cloud-based RCM services to medical providers all over the U.S. Our dedicated team of billing specialists and billing managers are here to help. With a first pass claims rate of 98% and an EHR same-day encounter close rate of 88%, you can count on us to streamline your operations significantly. Call us today at (801) 352-9500 to learn more.
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