Why Outsourced Billing Might be the
Best Choice for Your Practice
If you try to manage billing on an in-house basis, chances are you run up against most of these obstacles on a daily basis:
- It takes a good deal of time and effort to train someone to handle the billing tasks properly. When your billing clerk finally seems to have a handle on the process, you are shocked to find out that he or she wants to leave and take these strategic skills to another practice.
- Many claims are rejected on the first attempt at submission. Paperwork that is incomplete or incorrect is returned for additional processing, resulting in increased office costs and unnecessary delays in reimbursement.
- Claims are not fully paid, resulting in additional time and expense in collection efforts.
An efficient way to take this chore off your hand, improve billing results and increase profits along the way is to outsource the billing process for your medical practice.
What is Revenue Cycle Management?
In the medical world Revenue Cycle Management, or RCM, is the process used to track revenue through the entire patient cycle. It begins at the time of an initial appointment and concludes when the final balance due for services is remitted. Short RCM is optimal, while long cycles indicate that there is a problem somewhere in the billing, processing or collection functions.
Inappropriate or ineffective RCM can lead to delayed or even denied payments. Proper RCM works to shorten billing time, eliminate billing errors, increase insurance reimbursements, and improve revenue receipts from patients.
Key components of RCM success include:
- Point-of-provider collections
- Daily billing
- Proper time management
- Submission changes
- Denial follow-ups
To Outsource or Not to Outsource?
In July of 2017, Medical Economics reported that outsourcing can be implemented to cut internal costs, focus employee time on crucial care delivery, and free up time for patient care management.
The key benefits of outsourcing billing services versus handling them in-house include:
- Lower in-house operating costs
- Faster claims processing leads to improved cash flow
- Rely on industry specialists
- Lower per-patient costs
- Financial control
- Increased profits
- Patient satisfaction
- Less stress for you