{"id":14368,"date":"2021-10-04T14:47:39","date_gmt":"2021-10-04T14:47:39","guid":{"rendered":"https:\/\/www.medicalbillersandcoders.com\/blog\/?p=14368"},"modified":"2024-11-06T05:33:01","modified_gmt":"2024-11-06T05:33:01","slug":"3-signs-that-show-need-of-outsourcing-revenue-cycle-functions","status":"publish","type":"post","link":"https:\/\/www.medicalbillersandcoders.com\/blog\/3-signs-that-show-need-of-outsourcing-revenue-cycle-functions\/","title":{"rendered":"3 Signs that Show Need of Outsourcing Revenue Cycle Functions"},"content":{"rendered":"

Healthcare providers are under increasing pressure as more and more patients are shifting to value-based care. Providers are already under pressure as they have to deal with declining reimbursements, higher risks, and tighter margins while improving patient care.\u00a0<\/span>Due to this, hospitals and physician practices of all sizes are being forced to re-examine their revenue cycle strategies and are in need of designing new rules of engagement with patients, staff, and payers. <\/span><\/p>\n

Some of the providers and healthcare institutes handle this pressure by outsourcing their revenue cycle activities to the medical billing companies. In this blog, we pointed out three prime signs that show the need for outsourcing revenue cycle functions for your practice or healthcare institutes.\u00a0<\/span><\/p>\n

As per a recent Black Book survey report, 83% of hospitals outsource a portion of their accounts receivable (AR) and collections, 58% of their contract management, and 55% of denial management, while 68% of physician groups with 10-plus providers outsource collections and\/or claims management. <\/span><\/p>\n

Another survey of hospital CFOs shows 38% outsource all or part of their revenue cycle functions, and another 24% are considering it. These decision-makers in healthcare institutes see that partnering with a medical billing company<\/a> can deliver benefits, such as higher reimbursement, better cash flow, improved margins, and increased patient satisfaction.<\/span><\/p>\n

3 Signs that Show Need of Outsourcing Revenue Cycle Functions<\/span><\/h2>\n

There are many signs that suggest the need for outsourcing revenue cycle functions, some are clear-cut; others may be less obvious. This article highlights three signs healthcare executives should notice to protect and improve their organizations\u2019 financial outcomes and patient satisfaction rankings.<\/span><\/p>\n

1. Inefficiencies in Revenue Cycle Functions<\/span><\/h3>\n

Inefficiencies in revenue cycle functions include missing charges, inability to distinguish between billable and non-billable procedures, wrong patient demographics and insurance information, wrong use of procedure codes and modifiers, unable to interpret EOBs and ERAs, unable to categorize denied claims as per denial reasons, and many others. <\/span><\/p>\n

All these inefficiencies are introduced due to lack of skilled billing, coding, accounts receivable, and denial experts; insufficient training, and lack of internal and external audits. As physicians<\/a> are busy and not able to dedicate much time for revenue cycle functions, a lack of communication between physicians and medical billing staff could be the prime reason for such inefficiencies in revenue cycle functions.\u00a0<\/span><\/p>\n

2. In-House Staffing Challenges<\/span><\/h3>\n

The revenue cycle functions require medical specialty expertise staff who are well trained and possess data analytics capabilities. Find such experts remains a problem for hospitals and physician practices. A recent report shows that nearly 31% of hospitals and physician practices accepted that they can\u2019t find enough candidates to fill open positions. <\/span><\/p>\n

Outsourcing removes recruiting, training, onboarding, and other people-related costs from your balance sheet. If you outsource, medical billing company can hire and train representatives to improve your patients’ experience, optimize your revenue opportunities, and free your organization to focus on what it does best: delivering quality patient care.<\/span><\/p>\n

3. Patient Collections are Lagging<\/span><\/h3>\n

As discussed earlier, shifting more patients towards value-based care leads to more patient responsibility i.e., high deductible health plans and high co-payments<\/a>. Collecting these payments from patients can be costlier and more time-consuming, than obtaining payer reimbursements. A recent study reveals that the percentage of collections from patient accounts with balances greater than $5,000 are four times lower than collections from low deductible health plans. <\/span><\/p>\n

Overall, the study found average self-pay after insurance payment made up 10.9% of all inpatient AR and 18.2% of all outpatient AR. In such cases, you need assistance in eligibility and benefits verification where the medical billing company will share patient eligibility and insurance benefits reports in the prior appointment and if required, complete prior authorizations.\u00a0<\/span><\/p>\n

If you have witnessed these three signs then be sure that your healthcare institute is in need of outsourcing. MedicalBillersandCoders (MBC) can streamline your revenue cycle functions and bring more efficiency. <\/span><\/p>\n

Our team of expert medical billers and coders can help to streamline your billing and coding processes like eligibility and benefits verification, prior authorizations, charge entry, claim submissions, payment posting, denial handling, accounts receivable management, medical coding, and provider credentialing<\/a>. <\/span><\/p>\n

To learn more about our commitment to excellence and performance for medical practices and healthcare providers, contact us at info@medicalbillersandcoders.com<\/a>\/ 888-357-3226<\/strong><\/a><\/span><\/p>\n

FAQs<\/h2>\n

1. What are the benefits of outsourcing revenue cycle functions?<\/h3>\n

Outsourcing revenue cycle functions helps improve cash flow, increase reimbursement rates, and reduce administrative costs. It also boosts patient satisfaction by improving billing accuracy and reducing delays.<\/p>\n

2. How do inefficiencies in the revenue cycle affect healthcare organizations?<\/h3>\n

Inefficiencies like missed charges, incorrect billing codes, and denied claims can result in lost revenue and increased operational costs. These issues often arise from a lack of trained staff and poor communication between physicians and billing teams.<\/p>\n

3. Why are staffing challenges a sign that outsourcing is needed?<\/h3>\n

Many healthcare organizations struggle to hire and retain skilled staff for revenue cycle tasks, such as medical coding and billing. Outsourcing allows healthcare providers to bypass recruiting and training costs while accessing specialized expertise.<\/p>\n

4. How does patient collections impact revenue cycle management?<\/h3>\n

With more patients on high-deductible plans, collecting payments from patients has become more time-consuming and costly. Outsourcing to medical billing experts can streamline patient collections by verifying eligibility and handling prior authorizations before appointments.<\/p>\n

5. How can outsourcing improve patient satisfaction in healthcare?<\/h3>\n

Outsourcing revenue cycle functions ensures more accurate billing, faster claims processing, and improved communication with patients about their financial responsibilities. This leads to fewer billing errors and better patient experiences overall.<\/p>\n","protected":false},"excerpt":{"rendered":"

Healthcare providers are under increasing pressure as more and more patients are shifting to value-based care. Providers are already under pressure as they have to deal with declining reimbursements, higher risks, and tighter margins while improving patient care.\u00a0Due to this, hospitals and physician practices of all sizes are being forced to re-examine their revenue cycle […]<\/p>\n","protected":false},"author":2,"featured_media":14369,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-14368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-revenue-cycle-management"],"yoast_head":"\r\n3 Signs that Show Need of Outsourcing Revenue Cycle Functions<\/title>\r\n<meta name=\"description\" content=\"Learn the 3 signs of Outsourcing Revenue Cycle functions you should look for to improve your healthcare organization's financial outcomes.\" \/>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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