Revenue cycle management (RCM) is an essential process in a practice where business and clinical aspects intersect. Outsourcing revenue cycle management tasks to a company such as Health Information Alliance can help maximize profitability and reduce inefficiencies, but the risks and benefits should be weighed to see what best suits your practice.
The number one benefit to outsourcing your revenue cycle management is that you will be able to focus more on the care of your patients rather than be tied up dealing with administrative duties. It also provides a much better patient experience in that it greatly reduces, if not eliminates, the number of denied claims. Fewer denied claims also mean that there is more revenue. Also, increasing the bottom line is a potential cost-saving because RCM outsourcing companies hire dedicated staff who specialize in revenue cycle management and ensure they are up to date on the latest ICD and CPT codes, thereby eliminating your need to do so. Overhead costs of salaries, training, supplies, and equipment are eliminated. Outsourcing your RCM can significantly reduce the likelihood of a costly mistake.
There are drawbacks to outsourcing revenue cycle management. In giving up these duties, you give up control of your overall process. Choosing the right partner would be imperative to ensure that your practice is kept informed. Cost is also another consideration. Would this expense be more cost-effective than hiring your own staff? Make sure you know the fee schedule as well to avoid any surprises. Data breaches are also a real possibility when transferring information to a third party; choosing a reputable company like Health Information Alliance would provide an added layer of protection from such incidents. There could also be some delay in receiving payment since the funds must travel a little further before they get to you.
If you feel that your revenue cycle management needs improvement, then considering whether or not outsourcing is right for you may be worth considering. Freeing up valuable time to work with patients while increasing the bottom line is a compelling argument for making the move. However, giving up control of the process could prove to be more difficult than anticipated. Ultimately there is a sweet spot where patients are most satisfied, and a practice is at peak operating standards. Talking to a revenue cycle management specialist may provide the insight that you need to find that spot.
