Healthcare should be able to strictly focus on their specialization – offering medical care to patients. Any responsibility other than that takes away the focus from the core task of providing healthcare. What’s more, healthcare employees lack the knowledge and experience of providing billing services. As a result, they have to be trained. On the other hand, outsourced RCM services already have the technical expertise and, hence, are cost-effective.
In this blog, we will talk about the factors that influence the cost of healthcare RCM services in 2021 and how costs can be managed to optimize ROI.
Factors that Influence The Cost of Healthcare RCM Services in 2021
Let’s discuss the factors that affect the cost of healthcare RCM services:
- Inaccurate or incomplete details regarding patients
Healthcare billing starts right from the time a health provider meets a patient. Health providers must eke out all necessary information about patients from the beginning to simplify the process for Revenue Cycle Management services professionals. Collecting all details accurately eliminates the chances of delays and redundancies in claims reimbursement. If such information is not gathered correctly, it takes healthcare providers a long time to correct such inaccuracies.
- The increased financial burden of patients
It is often observed that the financial burden of patients increased by a significant 11% in 2017 due to inaccurate or insufficient information gathered during the billing procedure. Lack of transparency in the billing process gives rise to unexpected costs, preventing patients from clearing the payment in full on time. Hence, both healthcare providers and patients must cooperate during the medical billing process to keep it simple and smooth.
- Entering information manually
Revenue Cycle Management services is more than what meets the eye, which implies that it is more complex than what it might appear. As a result, manual record-keeping of information should be sincerely discouraged. To err is human and manual record-keeping mostly leads to mistakes that do not occur when the process is automated. Automation streamlines medical billing processes, integrating efficiency into the system.
- Incorrect medical coding
Medical coding is as complex as manual record-keeping and is one of the most frequently made errors of healthcare providers. Yet it is one of the most crucial processes in the healthcare industry because medical documentation and coding are essential for quality patient care. Inaccurate coding can lead to claim denials, mistreatment of patients, and more. It is suggested that the medical coding process be outsourced to a coding company to prevent errors since it is often more than what a healthcare provider can manage on its own.
Global Healthcare RCM Market Costs and Maximizing the ROI
As we just discussed, there are innumerable tasks that take away the attention of healthcare providers from their core responsibilities. In such cases, it is often recommended that these tasks be outsourced to specialized companies for making the billing process seamless. The cost consideration comes to mind when mentioning outsourcing certain tasks. It is essential to factor in the costs of outsourced RCM services and be mentally prepared for it. But outsourcing does not imply you will make losses. It simply means that healthcare organizations should outsource those services for which they lack expertise and technical know-how. It is a suitable way to get the job done more efficiently while generating higher ROI in the long run.
Here are some factors to consider while deciding whether the right outsourced services is the best solution for maximizing ROI:
Does Outsourcing RCM Services Save Time and Effort?
One of the primary reasons why several health providers consider outsourcing medical billing is that they want to give undivided attention to their core tasks. Their core tasks imply providing quality healthcare services to their patients. Outsourcing enables healthcare organizations to focus solely on that rather than waste time and energy on billing and other secondary responsibilities.
There are 8 billing chores that demand the attention of healthcare providers. A specialized team will be more adept at handling these billing chores than your team, along with not wasting time on them. These chores include keeping a record of patient demographics, verifying insurance, submitting claims, following up regarding claims payments, managing denials, among others.
Imagine the number of your employees who are preoccupied with the billing process to know whether a patient is insured. Similarly, valuable time also has to be devoted by healthcare workers to keep a track of unpaid bills. Some may require reminder notices for paying their medical bills. Such responsibilities eat up into their time, effort, and core area of expertise.
Will Outsourcing Cause Prices to Shoot Up?
The fear of the unknown may discourage you from outsourcing your healthcare billing solutions. In contrast to popular perceptions that outsourcing is expensive, it is not only cheaper but more efficient than inhouse billing over some time. With internal billing, you are paying your employees not only for healthcare services but also paying for their training related to billing. This may compromise the quality of billing services. Switching from internal billing to an outsourced company can raise the revenue by a whopping $201,600.
How much of the internal losses are you ready to let go?
According to Medical Billing Service Review, doctors lose an average of $125 billion annually due to the denial of billing claims by providers. Losses also occur due to patients missing due dates or human errors in coding. In contrast, outsourced RCM businesses will have a dedicated workforce who are trained with billing solutions and have the necessary knowledge. Hence, they will also have a lesser employee turnover than healthcare providers with in-house billing services.
Choose Flatworld Solutions for Efficient Revenue Cycle Management Services
Flatworld Solutions has been a pioneer in providing the best quality revenue cycle management services and a series of other healthcare BPO services to global clients. We have some of the most experienced and skilled revenue cycle management experts on board who can cater to all your needs with ease. We leverage the latest tools and technologies while delivering top-notch services to clients.
If you are looking for a reliable and cost-effective revenue cycle management service provider, then you have come to the right place. Get in touch with us today!
Interested to know more?
- A Quick Guide on Healthcare BPO Services
- Why is HIPAA Compliance Necessary for Healthcare Data Security?
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