Outsourcing some activities of the Revenue Cycle can help you in obtaining payments while reducing overhead costs of maintaining in-house billing teams, expenses on technology, office equipment and compliance related issues. This increases your Revenue, reduces your costs and capital expenditures. In fact, 83% of hospitals currently outsource at least some collections and account receivables.
Let us look at how RCM service providers assist in optimizing your Revenue Cycle:
More efficient collections
Billing companies have experienced professionals and uses data-driven analysis to evaluate your financial performance by considering multiple factors like the AR days and aged AR days, collection rates, denial rates and reimbursement rates for your claims. These professional billing agents will also ensure timely reimbursements. This significantly improves your collection.
Reduced denials through technology driven RCM processing
The outsourcing vendors also use advanced software tools to process data and procure detailed reports. Manual error contributes to 60% of the denied claims. By eliminating this through cutting-edge automation tools, chances of denied claims are significantly decreased.
Improved compliance
Due to the nature of their business, RCM service providers must stay updated with changing regulatory requirements and are experienced in handling a range of insurance panels and denied claims. As a result, you won’t be burdened with managing unique rules of different insurance groups and denials.
Expert advice on specific issues
Some vendors also provide consulting services in specific RCM domains. They can help by identifying bottlenecks and provide a comprehensive road map for targeting each problem with a specific solution. This in turn will improve your company’s performance and streamline your operations.
Resolution of infrastructural and resource related constraints
Outsourcing vendors ensure that the transaction data is processed and stored securely using Industry standard techniques. This means you neither need to pay a hefty amount for building industry standard infrastructure nor would you need a lot of internal resources for efficient data processing. You can also depend on the vendors to manage the varying data volume without any concerns for scaling up your internal systems.
RevCycle Intelligence states,
“Successful healthcare revenue cycle management strategies focus on front-end tasks to help claims move along. Many errors occur in the first stages of a patient’s account, and these issues can carry through the revenue cycle to disrupt claims reimbursement.”
By outsourcing the RCM services, you can optimize the various functions tied to claims processing, payment and revenue generation.
Healthtek provides end to end solutions for all your RCM woes. To know more about our services and products built using state-of-the-art AI/ML technologies, please contact us at [email protected]
Reference:
- https://www.meddata.com/blog/2017/10/26/medical-billing-statistics/
- https://www.advancedmd.com/blog/rcm-steps-can-outsource-improve-total-collections/
- https://www.prnewswire.com/news-releases/97b-outsourced-revenue-cycle-management-market-grows-at-cagr-of-265-black-book-tracks-trend-through-2018-300149717.html
