The medical industry faces a tremendous number of challenges in the modern world. Medical technologies and treatment options continue to advance, spurring providers into consistently reinvesting in new treatment capabilities for their practices. It’s also essential for providers to continue to secure new patients to keep their operations profitable. One of the most important parts of running any kind of medical practice is revenue cycle management (RCM). RCM refers to the process of earning money by providing patient care and then responsibly cycling that earned income back through the business, covering employee payroll and benefits as well as operating costs and capital for future growth.
Many medical providers across the country are turning to RCM billing companies to help them offset their growing lists of responsibilities and maintain reliably consistent billing practices. Medical billing continues to grow ever more complicated, and it can be extremely challenging for smaller medical practices to keep up with their billing responsibilities as regulations shift and evolve. Coordinating with an RCM service can help medical practices manage their cash flow more effectively, even in the face of constantly changing industry regulations.
What Can RCM Billing Companies Offer?
An RCM billing service will require you to pay a subscription fee or a percentage of all your collections, but the price of admission is generally worth it. Many smaller medical practices prefer to keep billing in-house to keep costs low and maintain full control over their billing operations. However, this requires a significant investment of time, money, and talent. An in-house medical billing team will need an experienced medical coder to code, submit, and follow up on claims. The team will also need to learn new software applications and adjust to new technologies as the medical billing industry evolves over time.
RCM companies can alleviate the strain an in-house medical billing team would feel from new upheavals in the medical billing industry, allowing medical providers to expand with greater confidence. They can also streamline collections with meticulous claim coding and submission processes, reducing the number of contested or rejected claims and can also generate reports to provide in-depth analysis of a practice’s entire accounts receivable department.
Why Are Medical Practices Turning to RCM Billing Services?
The simplest answer to why many medical practices are turning to RCM billing companies for their accounts receivable is to offset the strain of growing regulations and evolving technologies. It may seem more expensive for a smaller practice to invest in an RCM service rather than maintain an in-house billing department, but over time this investment can pay off tremendously. Even an experienced in-house billing team could potentially make serious mistakes that lead to massive financial losses or worse, HIPAA violations.
An experienced professional RCM billing service like Med USA can help medical providers handle growing billing requirements, allowing them to attract new patients and grow their treatment staff with greater confidence. RCM billing services can also scale with practice as the practice grows. Adjusting from a 100-patient practice into a 300-patient practice over a few years may entail far less expense than it would to escalate an in-house billing department’s capability at the same time.
Med USA has nearly 40 years of experience working in the United States medical billing industry and has cultivated a client base spanning 48 states. This tremendous growth and strong reputation are due to the ability of the Med USA team to help medical providers increase their revenue by streamlining their accounts receivable processes. RCM services essentially place your practice’s entire revenue stream into capable hands, allowing your team to focus on delivering the best possible patient experiences with a minimum of billing-related issues.
What to Look for in an RCM Billing Service
If you are considering whether it would be worth investing in an RCM billing service, take a look at your past billing habits and see if you notice any trends pertaining to coding or submission errors. If these things tend to happen regularly, they are costing your practice money whether you realize it or not. It’s vital to invest in experienced and talented medical coders who can submit patient claims accurately and in a timely fashion. It is also vital to have coders and accounts receivable staff who know how to follow up on claims to ensure a steady revenue stream.
After reviewing your in-house billing department and past billing practices, you may see room for improvement. Think carefully about whether you are prepared to consistently invest in improving and expanding your in-house billing department over time. The medical billing industry is constantly evolving. Your team needs to be ready to meet new regulatory demands while consistently delivering solid patient experiences. Weigh your projected costs of tackling these new challenges against the cost of subscribing to an RCM service.
Things to Remember When Working With RCM Companies
Remember, even though you are essentially handing the keys to your revenue stream to a partner, you cannot undervalue the relationships between your in-house front office staff and your patients. If you want a steadier revenue stream primed for growth, you need to remember that your revenue stream is not entirely your new biller’s responsibility. Patients are typically responsible for large chunks of their billing, so front-office interactions are going to inevitably overlap with billing cycles.
Even if your in-house team’s only responsibilities pertaining to billing are collecting patient payments, they must do so accurately and securely every time to ensure effective billing operations. Ultimately, it’s vital to establish strong communication between the RCM service you hire, your practice’s leadership, and your in-house teams handling billing and front office interactions with patients.
If you decide to pursue hiring RCM companies to handle your revenue stream, you must choose a reliable and experienced partner with a solid track record of success. The RCM billing service you choose should be able to deliver accounts receivable reports on demand, so you have a consistent idea of your current patient billing atmosphere. Med USA provides clients with a solid range of customization options intended to deliver actionable insights so providers can make more informed decisions about the directions they take their practices in the future.