Is your skill set translating into equivalent cash flow? Are you happy with the amount of money you’re making out your practice? Indeed, a question worth pondering over when everything seems alright on the face, but end results differ drastically.
Despite your best efforts, customers are paying outside terms. You have limited account receivable details and reel under constant pressure to improve cash flow. Do you realize that there are a host of factors creating friction in your path to optimum revenue generation? A challenging economic environment, radically altered health care reforms, Affordable Health Care Act in force and shift in payment paradigms, to name a few, have been playing catalysts in continual fall in your cash flow.
One of the options could be to downsize the scale of operations. But, is it an option worth considering? Of course, not. Alternate option could be to outsource a part or the whole of your revenue collection management.
Though, outsourcing your RCM process sounds viable, you risk losing a relatively close access over the process, which is indeed a legitimate concern. Another concern could be about the staff. Does the potential benefit of outsourcing mean that your well-trained staff lose their job? Of course, not. If your concerns match, target or partial outsourcing of RCM process can also be contemplated.
Generally speaking, about 80% of the outstanding balance at the end of provider’s office comprises of customers with small dues. Only 20% of the patients owe a large balance. Your internal trained staff can focus on the 20% of the prominent customers and you could outsource the rest to a reliable medical billing service. Outsourcing a part of your accounts receivables would ensure that customers with small outstanding due get the attention they demand to pay in full and on time.
Also, as per a reliable survey, the estimated denial claims have increased to 18% over the last ten years! Appealing denials are a part of the revenue cycle process. A medical billing service proactively helps to identify and resolve the causes of claim denials and thus excusing you from merely cribbing over the incidences.
According to Joy Hicks, a medical office expert, outsourcing medical billing helps provider’s offices save thousands of dollars in annual salaries and benefits; office supplies and furniture; and purchasing, upgrading, and maintaining billing software and computer equipment.
A physician can save thousands of dollars by not having to spend on office supplies, computer equipment and the upgrading and maintaining of software for billing.
Outsourcing lets you focus onyour practice. It ensures that you provide excellent patient care without worrying about the financial aspect. In fact, as per the Black Book Rankings Survey 2014, 42% of small physician practices with in-house medical billing staff are likely to outsource in the next 12 months.
Well-appointed with software and technology, trained, qualified and experienced staff of a medical billing services ensures streamlined medical claim preparation, shorter receivable cycles, cleaner medical claim submissions, and quicker dispute settlements, all contributing to increased cash flow. All your payments and denials are followed up diligently, plus miscoding does not cause claim rejections or delayed payments. In short, outsourcing to any extent most certainly may help in better cash flow.