Many business models span cycles and the medical sector isn’t an exception. However, no one wants to lose in the healthcare industry. It is for this reason that the outsourced revenue cycle management system exists. Revenue Cycle Management (RCM) is the process of finding, collecting, and managing payments from patients or insurance companies for a medical practice, hospital, or clinic.
To put it another way, it's where the cash comes from! And if you don't have a good system in place to collect all of the money you owe, you're going to be in a lot of trouble pretty quickly. Healthcare Revenue Cycle Management is more crucial than ever in the healthcare industry. With high expenses, an aging population with limited income, and the employment upheaval produced by the COVID-19 epidemic, not to mention uninsured patients suffering from it.
Here’s everything you need to know before outsourcing to a medical billing company for securing maximum medical billing leads.
Table of Contents
- First, Let's Talk About Some Facts!
- Denial Rates
- Cash on Hand Days
- Accounts Receivables Days
- Blended Encounter Rates
- Benefits of Outsourced Revenue Cycle Management
- Keep Costs Under Control
- The Operational Controls Management
- Devote More Time to Your Patients
- Risk Assessment
- Importance of Clarity and Stability
- How it Reduces the Billing Errors
- Enjoy a Higher Percentage of Claims that are Clean
First, Let's Talk About Some Facts!
The way you manage your revenue cycle has a big impact on your bottom line. If you don't do it well, you may find it difficult to stay in business. Outsourcing revenue cycle management is a great way for many practices to improve their bottom line.
Each practice must take into account its own unique circumstances, such as specialty, overall financial health, and experienced billing personnel. Determine whether in-house or outsourced revenue cycle management is the best option for them based on these variables.
The top advantages (statistics-wise) of outsourcing healthcare revenue cycle management are listed below.
When administered by a medical billing services provider, the average denial rate can reduce by 3% to 3.5 percent.
Cash on Hand Days
The average number of days that cash has on hand can rise by 30 to 40 days.
Accounts Receivables Days
The average number of days for net patient accounts receivable (A/R) can decrease by 25 to 35 days.
Blended Encounter Rates
Blended encounter rates for third-party payers can improve by 20% over a year.
Benefits of Outsourced Revenue Cycle Management
Medical billing is a tough and time-consuming procedure for doctors' offices. The majority of physicians and practice managers choose to outsource their RCM to a professional medical billing leads company. Here’s why:
Keep Costs Under Control
In medical practice, hospital staff and physicians are more concerned with patient care; they have no knowledge of coding, billing, or settlement.
To ensure that these tasks go properly, a group of specialized people is frequently enlisted. As a result, there are more important expenses and more actual charges.
Outsourced revenue cycle management for a medical billing company, on the other hand, tends to reduce costs because the facility charges based on the number of cases it handles.
The Operational Controls Management
The use of professional agencies to fill certain tasks aids in the department's smooth operation. These organizations are experts in their field, allowing them to collaborate with third-party settlement bodies. This reduces time and enhances revenue production.
Devote More Time to Your Patients
Every provider's ultimate goal is to focus on their patients and deliver the best care possible. When you outsource your RCM, you can devote all of your attention to what you do best—providing patient care.
Having a professional handle your RCM improves the entire patient experience. Patients frequently complain about billing issues, and eliminating billing errors and claim denials improve the patient experience and increase patient engagement.
Taking the administrative burden off your employees frees up time for them (and you) to focus on patient care.
You can delegate some obligations to outsourced dealers by outsourced revenue cycle management for a medical billing company. Because outsourced suppliers are experts, they can plan for and manage problematic situations.
They strive to anticipate the most likely source of loss and to avoid circumstances that may emerge in the future, such as dealing with denial.
Importance of Clarity and Stability
When you outsource your RCM, you may expect detailed performance reports and dashboards from your partner. Without the need for micromanagement, these statistics allow you to keep track of your billing operations and performance.
Coding, scrubbing, claims administration, denials, appeals, prompt follow-up, and patient statements are all tasks that the outsourced company excels at. When you outsource these jobs, you can expect consistent outcomes.
How it Reduces the Billing Errors
Medical billers having experience and proper expertise can ensure that all of your claims are submitted properly and at the right time. The main objective of any medical billing company is to provide medical billing services. It is their job to make sure that the billers they choose to hire receive extensive training and have knowledge about how to submit medical claims correctly.
This will not only reduce the number of claims denied or rejected owing to billing problems, but it will also give information to help maximize reimbursements on future claims.
Enjoy a Higher Percentage of Claims that are Clean
Clean claims are those that are error-free and do not require any additional information or adjustments. These claims have no prospect of being turned down. If you want to increase your practice's earnings, make sure your clean claims rate is higher.
Outsourced revenue cycle management for a medical billing company to well-trained, qualified specialists who understand the importance of submitting clean claims every time is advantageous. You'll see fewer instances of human error, a higher rate of clean claims, and a jump in practice revenue as a result.
Outsourced revenue cycle management for a medical billing company is becoming increasingly popular as a result of its numerous benefits. Trusting and involving a third party is a good option. It ensures confidence and assists you in managing your business with its experience and quick service. Hence, outsourced revenue cycle management has resulted in considerable financial performance improvements and a high level of satisfaction among health institutions.
Improved revenue cycle management can give you the financial stability you need to focus on other critical parts of health center operations and management. For finding a suitable company visit Topspot 101.