Effective revenue cycle management (RCM) is critical to the financial success of a medical organization and outsourcing to experts makes the process both more accurate and efficient. Many people do not realize that RCM is much more than book-keeping and cost cutting. Everything related to how a practice gets paid, from getting insurance approval when patients are scheduled to bill collection is part of the process, and the good news for medical professionals is that all of it can be outsourced.
Outsourcing Is Becoming the Norm
Outsourcing RCM has become a common practice worldwide because so many medical institutions have found it to be an indispensable service for maximizing income. The field has experienced tremendous growth, and became a $23.6 billion industry in 2016, with predictions that it will continue to grow steadily. What that means for medical offices is that this is not a shady, fly-by-night business, but a well-established service that is helping medical practices comply with regulations and maximize the payments received for services provided to patients.
The transition from ICD-9 to ICD-10 medical coding has proven to be time-consuming and stressful for many medical offices. The codes continue to change every year plus payers change their policies and coverages, making it impossible for office staff to stay on top of it all. A medical billing company that specializes only in billing and coding, however, can stay on top of the changes and make sure that the latest updates are incorporated in your billing.
The services provided by a medical billing company can be extensive and detailing them all in one place would make for a very long read, but here are five of the biggest benefits of outsourcing revenue cycle management.
1 – Increased Revenue
While outsourcing medical billing may sound like an expense you’d rather not take on, the fact is that working with the right medical billing company will increase your revenue rather than costing you money. By working with certified and experienced coders and billers, you will have fewer rejected and denied claims, and when they happen, resolution will be swift.
2 – Keep Pace with the Evolving Industry
Keeping up with changes to the medical codes in addition to the policy changes made by insurers takes a lot of time and effort. On top of that, there are regulations and government incentives and programs to keep up with. Because that’s what medical billing organizations specialize in, they can do a much better job of it than a busy medical office staff can.
3 – Accurate and Timely Billing
Outsourcing to dedicated billing professionals results in fewer coding errors because not only are the coders certified in the field, but also trained in the specializations they serve. Experienced medical billers are also adept at catching issues before claims are submitted and handling rejections and denials swiftly. Payers usually have a time limit for submittals, so being able to quickly figure out the problem and get it corrected can make the difference between a resolution and lost revenue.
4 – Increased Focus on Patient Care
When RCM is outsourced, your medical staff has much less paperwork and worry about dealing with payers so can devote their attention to caring for patients. Billing and coding can be stressful in a busy practice, so outsourcing it also results in reduced stress and a happier staff.
Physicians in private practice are not usually able to maintain a team of billing and coding specialists, and a lone coder will not have the support they need to avoid issues with more complex procedures.
Medical labs can also benefit from RCM outsourcing, reaping the same benefits as other medical facilities do. Labs frequently deal with a multitude of insurers and each has different requirements. Having billers and coders who are experienced with lab billing and referral procedures helps to avoid denied services and the resulting loss of revenue.
5 – Cash Flow Improvement
When medical billing is done in-house, there is often only one person who handles each aspect, which means that an unexpected absence due to illness, accident or family concerns may back up billing for the entire office. Missed deadlines result in lost revenue.
By outsourcing to a specialized medical billing organization, your billing is handled by an experienced team, so there is always someone available to handle your claims and keep the schedule on track, which helps to assure a steady cash flow.
Medcare MSO is a medical billing organization with years of experience providing complete RCM solutions for healthcare organizations such as clinics, hospitals, laboratories, and imaging centers. Our innovative practices and proprietary software make the process so efficient that our clients report income improvements that outweigh the cost of our services. Another important aspect of working with Medcare MSO is that all our services are customized to meet the needs of each client, so you aren’t obligated to anything that doesn’t benefit your particular business.
We provide billing services to medical and healthcare organizations of all sizes throughout the U.S. Give us a call at 1-800-640-6409 or request a free demo today to find out how we can take care of your billing and coding needs.