In-House vs. Outsourced Revenue Cycle Management: Which Is Better?

Aug 08, 2023

For years, the traditional method of hiring in-house revenue cycle management experts has been an effective model for building a healthcare business and managing your bottom line.

However, following the explosion of remote work technologies like webcams, widespread high-speed internet access, and collaboration software, outsourcing team members has become a practical alternative. All of a sudden, highly affordable revenue cycle management experts based in different counties, countries, or continents no longer seem so far away or hard to work with.

This new paradigm raises the question: which strategy is right for you? We’ll take you through all the pros and cons of hiring in-house vs. outsourced revenue cycle management teams to determine the best option for healthcare providers in 2023.

Outsourced revenue cycle management expert helping their client.

In-House Revenue Cycle Management

Hiring RCM teams in-house has worked well for many practices. If you’re one of them, it’s fair to take an ‘if it ain’t broke, don’t fix it’ approach. And perhaps rightly so—in-house billers offer some advantages over remote providers.

Nevertheless, in-house RCM comes with a litany of drawbacks that make it far less appealing than it was just 10 or 20 years ago. Be sure to weigh the pros and cons before deciding.

Pros of Hiring In-House RCM Teams

Immediate Access/Availability

No matter how advanced Zoom meetings get, there is something about face-to-face communication that virtual interactions cannot replicate. With in-house revenue cycle management, your team members are never more than a short distance away, which some practice owners may prefer—particularly those from older generations.

The advancement of modern tech, however, alleviates this concern. You may not be able to experience remote workers as if they’re there with you in person, but you can certainly get close!

Stronger Social Bonds

Humans are social creatures, so it’s essential to recognize the relationships and bonds we form among coworkers, including those on your revenue cycle management staff. For those who crave deeper personal connections with people they work with, in-house RCM may be the right option. As much as you’d love to grab lunch with a remote biller or invite them to your Christmas party, it’s probably not going to happen.

More Control

If you’re the type of employer who likes to have complete control over every aspect of their workplace, in-house RCM is the way to go. When you partner with a remote RCM provider, you inherently sacrifice some control. That means you must be comfortable letting others operate autonomously for outsourced RCM to work.

Fortunately, that could be for the best. Too much control often leads to ‘micro-managing,’ which is widely understood to be a counter-productive practice. Be sure to assess your leadership style before self-sabotaging your outsourced RCM team’s effectiveness with incompatible management.

Cons of Hiring In-House RCM Teams

Expensive

Compared to outsourced employees, in-house RCM workers are costly. Not only are in-house teams competing against currency differences—your dollar goes much farther in other parts of the country/world—but they are likely expecting larger benefits expenses, like health insurance premiums, which you wouldn’t have to cover otherwise.

Training Upkeep

Keeping your in-house team trained and up to the task is a challenge. With medical field rules and regulations in constant flux, you’ll have to spend time and money regularly just to make sure in-house RCM teams can perform the job.

Unnecessary

At the end of the day, in-house revenue cycle management isn’t necessary. While there are some advantages, a remote RCM team can do the same job, often at a cheaper price. New Paragraph

A remote revenue cycle management expert taking a phone call.m

Outsourced Revenue Cycle Management

Just because you’re used to in-house RCM workers doesn’t mean outsourcing is a poor decision. Hiring remote revenue cycle management teams can be a great way to cut costs, increase productivity, reduce burnout, and eliminate bottlenecks in your workflows.

Pros of Outsourced RCM

Affordable

A wise man once observed that not only is there no such thing as a free lunch, but “in healthcare, there isn’t even an inexpensive lunch.” Outsourcing your revenue cycle management won’t drop your costs to zero—there’s simply too much work to be done—but at least it won’t break the bank.

You’d be surprised at how much your practice can save each year by switching to an outsourced RCM team, and at how much better they can deliver impressive results. In as little as six months, you could see a 20% decrease in outstanding A/R, save $15,000 annually, and grow 15-30% year over year.

Already Trained

Outsourcing your RCM is like getting a dog that’s already housebroken and knows how to roll over. No matter your specialty, there’s a remote revenue cycle management service out there that knows all the ins and outs of your field and can deliver exceptional results without taking time-intensive, expensive training.

Not only that, but a remote RCM will learn new tricks all on its own. Unlike in-house billers, when the regulatory environment in your industry changes, they’ll already be prepared to make adjustments and keep your practice compliant without you having to lift a finger or make additional investments.

Scalable

It’s amazing how customizable remote revenue cycle management services can be. Whether you need to augment your team with particular tasks or require front-to-back RCM support, outsourcing your RCM can improve your business without tacking extra fees and unnecessary services. And if you want to expand in the future, you will always have that option.

Cons of Outsourced RCM

Distance

If there’s one compromise of note, it’s that your outsourced RCM team won’t be available for you to talk to in the office across the hall. While remote revenue cycle management services are highly responsive and transparent, expect your chain of communication and rapport to develop over time, which can take some getting used to.

Selection

Before settling on an outsourced revenue cycle management service, you’ll likely face some degree of choice paralysis. It can be difficult to differentiate one provider from another or assess one’s capabilities before signing a contract. When dealing with in-person team members, you may find it easier to judge their character.

In-House vs. Remote RCM: What’s Better?

Outsourcing your revenue cycle management to an experienced team is a great option for almost any practice. Outsourced RCM experts are more affordable, highly skilled, and can provide everything your office needs for a fraction of the cost of in-house billers. While there are a few downsides, the benefits vastly outweigh the drawbacks.

In-house RCM workers should only be considered for practices whose work demands having people on-site, or for practices with incredible pre-existing relationships. However, if your practice doesn’t require RCM team members to work on-site and you have nothing holding you back, there’s no reason to keep your RCM in-house when superior options exist.

Outsource Your Revenue Cycle Management With DrCatalyst

A team of happy healthcare providers using outsourced RCM.

Interested in upgrading your practice with a revenue cycle management service? DrCatalyst is here to help. We can provide all the services you need to drive income and decrease rejections, including claims scrubbing, charge posting, A/R management, and more.

Contact the DrCatalyst team now and create a customizable RCM solution that’s perfect for your practice.

< Older Post

Newer Post >

Learn More