Common Myths about Outsourcing Revenue Cycle Management

Outsourcing has had a long-standing, negative connotation. Over the years, though, for small and large businesses alike, outsourcing has become a strategy to gain an edge over the competition.
For just about any business function, there’s an opportunity to outsource part or all of it. Think about accounting, legal, taxes, billing, marketing, IT – or Revenue Cycle Management. There are companies that specialize in each piece of practice management that offer solutions that will help you become more successful, profitable and efficient.

Why do so many practices opt for outsourcing the medical billing process?

Handling the process of medical billing is as important as treating patients, even if it seems to be a daunting task. Managing insurance claims is the single most important source of revenue for the practice. Most common mistakes occur when a beginner is handling this responsibility relating to medical billings, where there is a demand for a concrete solution to augment your practice by improving the revenue cycle. Various leading medical practitioners have trusted 24/7 Medical Billing Services, where we have proved to be exceptionally beneficial. But still, there are some myths that some practices have, regarding outsourcing their medical billing.
More than anything, the biggest myth about medical billing outsourcing is its limitations and scope. Practitioners judge this process based on the myths they have heard from other people or read on a few untrusted sources. These myths can make or break decisions to outsource, and misled decision makers at practices might lose the benefits they can get from outsourcing.

In-house is better than Outsourcing

A company should focus on increasing revenue rather than taking risk through wrong in-house medical coding and billing. It only takes one incorrect coding, billing and collection representative for reducing revenue. It is time consuming and cumbersome to manage quality in-house. One can not stand every day over their staff to ensure everything as per the instructions.
Opting for in-house coder may seem cost effective initially but for long term implications it is completely opposite. Your new staff will require a set amount of time and cost of training and supervising are high. Your In-house employees are ought to provide with salary, space, vacation etc. without considering the success of your practice.

RCM is Way Too Expensive

The right outsourcing provider will lead to minimum errors and maximum reimbursement. Certified coders of the company assure that all the aspects of revenue cycle are correctly completed which helps in saving your money. To have a better bottom line a company needs to possess employees who are experienced and expert in billing and coding. The decision to outsourcing will provide you with the following benefits:

1. With greater efficiency revenue increases while the cost decreases.
2. You no longer have to wait for getting reimbursements from patients and insurance companies.
3. No issues of payroll, insurance and benefits. Issues of human resources gets disappear.
4. More time to treat patients and building your practice.

Outsourcing RCM is Time Consuming

Outsourcing RCM will give the command to certified coders which will ensure that the coding is done correctly. Incorrect coding will result in claim denials which will further delay the process of reimbursement. The company will have to determine the problems and submit the claims again.
The cash flow speeds up with increased accuracy and follow through making a successful collection. The efficiency of work compensates for the time spent in coordinating the revenue cycle management to the outsourcing company.

Billing and Coding Data Isn’t Important

Although many medical practices have data on their processes and operations, many of them do not use this information to their advantage. This is unfortunate as there are so many valuable insights to be gained from analyzing operational data. Here at Billing Savi, we have our own data analytics platform known as Savi Sense, that makes it possible for practitioners to use their data to improve outcomes.

Outsourcing decreases work quality and process visibility.

One of the top misconceptions about offshoring your revenue cycle is that “it brings down the work quality or overall accuracy.” Studies show if the engagement is set up and implemented correctly, offshore revenue cycle companies perform ~15-20% better than in-house central billing offices. Often, offshore organizations are more organized, data-driven, and follow six-sigma methodologies to monitor day-to-day operations, process improvements, and workflows. Such a focused approach ultimately reflects in overall productivity and work quality improvement.

Considerations when Outsourcing to an Offshore Provider

1. If you are considering outsourcing part or all of your revenue cycle management functions, here are a few recommendations to ensure you have a successful partnership.
2. Be open and honest about your key pain points and current results with the offshore partner and positive/negative experience(s) with other vendors.
3. Ask your potential partner to share reporting packages for similar engagements, which can help you understand what to expect from them.
4. Clearly define scope, expectations, roles, and responsibilities at the onset. If possible, take the PMO approach to keep it organized. This will help to monitor progress and identify potential issues ahead of time.
5. Expect your partner to dedicate a customer success liaison as a primary point of contact. This person will offer strategic and operational guidance.