When it comes to running a private medical practice, handling all of your own Revenue Cycle Management (RCM) in-house can take up more time than you have to spare.
Because of this, many practice owners depend on outsourcing a third-party Revenue Cycle Management company to help give them back some of their time to spend seeing patients.
Today we’ll take a look at how to determine if outsourcing RCM services is the right choice for your practice.
Though outsourcing services for your medical practice is a big decision, there can be plenty of benefits to doing so. Here are a few of the pros that come with hiring a third-party to handle your Revenue Cycle Management Services.
More Time for Patient Visits
Possibly the biggest concern among practice owners debating whether or not to outsource is that they wish they had more time to spend seeing patients, as well as to dedicate less time to administrative tasks.
By eliminating time spent on RCM, you’re opening your work day up and allowing yourself more time for patient visits.
Improved Patient Experience
Though it might not seem like it at first glance, patient experience can be significantly affected by how your practice handles Revenue Cycle Management.
In terms of billing and coding, claims handled improperly can be denied or billed incorrectly, so having an RCM Expert who is responsible for these tasks will help keep patients satisfied.
Saving Money/Increasing Revenue
When you outsource your Revenue Cycle Management Services, you are very likely to start seeing increased revenue as a result of the claims processes moving along faster and smoother.
Additionally, beyond making more money, hiring an RCM Expert will save your practice money too by eliminating the need to hire employees for that position. This saves you from having to spend money on another person’s salary, benefits, and resources they’ll need to do their job.
While there are many benefits to outsourcing for Revenue Cycle Management, there are also some factors that may not be the best option for some practices. Here are a few things to consider when making this decision.
Security and Compliance Issues
Any time you outsource a service for your practice, you are increasing the risk of security breaches or HIPAA violations.
Unfortunately, the nature of giving more people more access to the information within your practice is inherently opening yourself up to greater risk of a breach.
Lengthy Wait Times
Despite the constant workforce behind RCM keeping your claims circulating consistently, it can sometimes take much longer for the practice to receive their money than anticipated.
Though practices that outsource tend to be able to collect more payments, they take significantly longer to see them come in.
As with any third-party services a business may hire to assist them, outsourcing for Revenue Cycle Management costs money, and there is no getting around that.
When making this decision, it is important to consider whether or not the cost of the service will be offset enough by the money saved to warrant hiring the help.
Finding the Right Fit
When it comes down to it, deciding whether or not to outsource Revenue Cycle Management services is a choice your team should think through and make based on your circumstances.
Every practice is different, but there are always options to consider if you think there are areas where you could use some extra help.
For more information on various Practice Management Services, check out the 99MGMT Blog!