How Outsourcing Hospital Revenue Cycle Management Can Help You?

 Hospitals are facing challenges that are becoming more complex when it comes to managing their revenue cycle, especially since it involves patient data. As such, it is only natural for back-office staff to become overwhelmed with the task in front of them. Even a small error can result in claim rejections or denials which will directly impact the hospital’s financial health.  

Suffice to say, most hospitals and health systems do not have enough qualified staff to handle the hospital revenue cycle management with utmost efficiency. Therefore, many organizations today are considering bringing on an outsourcing partner who can help them address their revenue cycle challenges. 

In this article, we will help you understand why it is wiser to simply step away from your in-house responsibilities and outsource your hospital revenue cycle management.

Key Reasons to Outsource Hospital Revenue Cycle Management

 1 – Accomplishing Efficiency with Billing and Collections

The primary reason behind outsourcing hospital revenue cycle management is to ensure the billing and collections process is vastly improved. Medical billing companies possess the insight, a team of billing experts, and the necessary resources needed to make sure the billing cycle is optimized and collections are received on time. This means error-free claims are filed in a timely manner, so you receive accurate and quick reimbursements. 

2 – Reducing Burden on Staff

A Hospital staff is usually burdened with multiple responsibilities pertaining to the day-to-day operations of the institution. Add to that, managing important patient data can prove unfathomable for an already overwhelmed staff.  Medical billing companies have enough resources to handle each revenue cycle function efficiently. With revenue cycle management becoming the primary responsibility of your billing partners, you can work to reduce man-hours or provide them with the reprieve needed to focus on other core areas.

3 – Remaining in Compliance

Regulatory changes are constant in the healthcare industry. This makes staying updated with the necessary guidelines and regulations to stay compliant extremely challenging. Your hospital staff may not be regularly trained on these changing guidelines which are necessary from a compliance standpoint, but medical billing companies have to stay up-to-date. It is their job to render efficient medical billing services to their clients, devoid of claim rejections and errors. Therefore, you can be assured that a reputed medical billing company will be up-to-speed on the constantly changing regulations. 

4 – Cost Efficiency

People often have a misconception that outsourcing would result in skyrocketing expenses for their business. However, the contrary is true. Outsourcing can help businesses cut over 40% in operational cost alone. With outsourcing, you no longer hire additional staff on fixed salaries and benefits, invest on furniture and computer devices, or spend on education and training programs. Medical billing companies cover you in almost all of the above aspects. Additionally, as medical billing companies greatly reduce the risk of errors in billing, cost incurred on claim resubmissions is also reduced drastically. 

5 – Time Effective

One of the key responsibilities of medical billing companies is to make sure that accurate claims are submitted within the timely filing limit. You don’t run the risk of not meeting a deadline, which delays claim submission, and as a result, delays payment to the hospital. Like we mentioned before, there are fewer errors as well, which saves not only a significant amount of money, but also time that would have otherwise been invested in the corrections and resubmission process. 

6 – More Transparency

Another misconstrued notion one might have about outsourcing is the fear of letting go of control over your business to a billing partner. This cannot be any further from the truth. Medical billing companies provide full transparency on their processes to their clients when offering their services. So, clients are constantly aware of the progress being made and the techniques being used to ensure efficient management of their revenue cycle.

The Bottom Line

Outsourcing hospital revenue cycle management to a reliable medical billing company is a guaranteed way to enhance the financial health of your organization. It is the perfect way to ensure all of the crucial aspects related to your hospital billing services are executed in an efficient and effective manner. 

3Gen Consulting provides robust solutions to tackle all the challenges your hospital may face while managing your revenue cycle. We have the knowledge, resources and a team of highly qualified professionals to accelerate the financial growth of your healthcare organization.