Outsourcing is the Future for Medical Practices

In business, outsourcing is when a third party performs a function that is not directly related to the core activity of your business. Customers benefit from outsourcing as it provides customized services that reduce operating costs. Generally, when we talk about outsourcing in healthcare, the main focus is on documentation, revenue cycle management, and other administrative tasks.

Outsourcing in the healthcare industry has become a fast-growing trend in recent years. According to a 2019 market report, the worldwide medical outsourcing market will reach $449.6 billion by 2023. Here we explore why medical organizations opt to leverage outsourcing.

Healthcare Outsourcing: A Look at Current Challenges

There's one big reason why physicians outsource their billing: U.S. health care billing regulations and rules make it very time-consuming to manage billing in-house.  With the implementation of the ICD-10-CM coding system, public and private insurance claims have taken an overwhelmingly long time to code correctly.

Secondly, a shortage of highly skilled billing experts is another reason for many practices to outsource. Most struggle to afford in-house billers. The demand for medical billing professionals is high, and you need to offer them competitive pay packages to keep them on your staff.

Furthermore, the size of the business makes it difficult or impossible to hire more staff or hire a specialized job on a full-time basis. Last but not least, budget constraints, no matter how large or small a firm is, affect capital investment strategies. With the myriad of challenges healthcare practices face, outsourcing makes sense.

Medical Practices Are Outsourcing for These Benefits

More and more hospitals and medical practices are opting to outsource their billing. Here's why.

Boosts Cash Flow and Apply Risk Management

For your practice to prosper, it is imperative to maintain a positive cash flow and high claim approval rate to maximize revenue. Outsourcing medical billing minimizes overhead costs while improving revenue collection.

In particular, when medical claims are filed promptly, there's a greater likelihood of reimbursement. An outsourced medical billing team can also give patients payment reminders and promptly communicate with payers about their past-due balances.

Because outsourcing is a specialized service, they plan for and mitigate risks as well. In this process, they look for the most likely cause of loss in advance to avoid potential issues, such as denial management.

Reduces or Eliminates Billing Errors

Processing and crediting the claim to your account will take time if there are denials and coding errors. Rejections and coding errors prolong the time it takes for a claim to be processed and credited to your account. Code errors can result in revenue loss as well. A medical billing company can ensure that your patients' insurance claims and billing statements will be accurate. Clean claims mean fewer cases of denials and requests for additional information. This leads to timely payouts.

Stay On Top of Industry Trends and Changes

There are a variety of industry changes and regulatory requirements which could affect your billing process. Compliance with all relevant rules and regulations is a must. Keep your medical practice up to date with key regulatory changes by partnering with a credible medical billing company. This way can save you tons of time and ensure your legal and financial safety.

Access to Expert and Talented Pool

Outsourcing can help health systems bridge the employment gap in finding highly skilled, niche staff. It allows healthcare providers to expand their staff or restructure entire departments on a short-term or permanent basis. New or bringing in expertise immediately without spending money and time on hiring and training.

Outsourcing Allows You to Focus on Patient Care

The process of medical billing eats up time and effort. In place of focusing heavily on medical billing, outsourcing allows providers to focus on other management concerns and provide a higher standard of care to their patients.

The staff can focus on patient satisfaction, too, when routine administrative tasks are no longer on their plates. It is also beneficial to doctors and other medical professionals who are susceptible to burnout due to overwork and fatigue. A happier workforce reduces turnover, translating into greater savings.

Physicians Can Save a Lot of Time

Keeping tabs on their revenue collection team while attending to their busy schedules can be a challenge for physicians. The higher-ups in the organization have to provide consistently strong support to make sure all claims and medical bills are filed and covered. Medical billing companies can therefore assist doctors in this area.

What Health Care Processes Can You Outsource?

Outsourcing in healthcare goes beyond a single task. You can leverage lots of different services to tackle a variety of cases or the whole process. Every company offers different services, so your choice will depend on your requirements, budget, and level of involvement in the processes. Here are some of the processes you can outsource:

• Full Revenue Cycle Management
• Medical Billing and Credentialing
• Medical Coding
• Claims Service
• Charge and Payments Posting
• Call Center
• Denial Management
• Healthcare Marketing

If you want to stay on top of your competitors and stand up to the high demands of the healthcare industry, it would be wise to outsource these tasks to professionals who are experts to meet these demands.

Partner with DrCatalyst

Outsourcing RCM can enhance productivity and efficiency in many ways. It allows you to delegate the hard work to experts to focus on what you do best. With knowledge of the benefits that healthcare outsourcing can deliver, don't get left behind. Call or schedule an appointment with Dr. Catalyst to get started!

Subscribe to our blog now!