As regulations become more confusing and payers' requirements become more complex, revenue cycle management also becomes more challenging for medical service providers, practices and clinics. Smaller practices and clinics often can be better served by outsourcing this vital process than attempting to maintain this function internally.
The conversion to ICD-10 diagnostic and treatment codes, along with the more severe monetary penalties for PHI (Patient Health Information) data breaches required by the HIPAA Omnibus Rule, further enhances the benefits of outsourcing revenue cycle management functions. The proven benefits of outsourcing this function to top firms, such as M-Scribe Technologies, help smaller practices and clinics maximize the size and timing of their revenue.
Revenue Cycle Management Outsourcing Benefits
Smaller practices and clinics can measure the benefits of outsourcing all revenue cycle management necessities, which is a valuable benefit by itself. Fortunately, that is only the tip of the beneficial iceberg that outsourcing represents. Among the additional benefits to clinics, the following are but a meaningful representative sample.
- Fills knowledge, education and experience gaps. Clinics often face challenges finding knowledgeable and experienced talent to produce and/or manage revenue cycle management techniques. Outsourcing the function to proven firms ensures effective revenue cycle management performance.
- Eliminates concerns about inefficient or unproductive personnel. All full-time staff is seldom 100 percent productive in any industry. Inefficient staff presents even more costly challenges to medical service providers. Delayed or rejected reimbursement claims, billing and coding errors and revenue gaps can be devastating to the financial stability of clinics. Outsourcing this responsibility usually eliminates this concern.
- Reduces the risk of inappropriate technology and techniques. Clinics sometimes make questionable technology choices because of inexperience or cost. Outsourcing greatly reduces this risk as proven firms employ the most up-to-date technology and procedures.
- Minimizes HR errors resulting from organization deficiencies, such as outdated policies and procedures. Understaffed clinic HR departments typically face over full plates of duties and responsibilities every workday. Lacking sufficient time to complete required tasks, human errors occur. Maintaining and updating organizational necessities, such as modifying staff policies and procedures as soon as necessary, must often become "back burner" needs. However, delaying policy and procedure changes, resulting from new regulations and payer reimbursement requirements,can be more costly than lower revenue.
- More cost-efficient than recruiting, compensating and keeping talented full-time staff. Outsourcing revenue cycle management functions are more cost-efficient for clinics that recruiting, paying and retaining full-time experienced talent. Outsourcing translates to clinics only paying for the services they need, without recruiting, salary and benefit costs of full-time talented staff.
- Addresses financial performance problems many clinics face. Most smaller medical practices and clinics offer necessary services to their communities. Unfortunately, at times, based on the economic demographics of their service areas, they constantly face financial performance issues. Outsourcing the revenue cycle management function keeps cash flow strong and typically improves overall financial performance, giving them more needed stability.
These are but some of the more important benefits of revenue cycle management for clinics. Most clinics discover additional features and benefits they receive by choosing this option to manage and maximize their cash flow and revenue. Smaller practices and clinics should explore this option to learn if it is the best choice for their operations.