Anyone running a healthcare practice is going to have to juggle many tasks. Perhaps as important, or at worst second, to patient care is revenue cycle management. It’s a vital part of the day-to-day processes that can’t go ignored. While some may try to handle revenue cycle management on their own, getting help from a third-party company can do wonders. Here are some pros and cons of using revenue cycle management services.
Pro: Lower Cost
Regardless of whether you run a small or a large practice, there is constant work in sending claims, posting EOBs, appealing denied claims and managing accounts receivable. Many practices have no backup for the billing department. What happens when a biller is on vacation or out sick? If you hire someone to handle your revenue cycle in-house you have the stress of training them and you are responsible for how that employee performs. Training your staff members can cost you a great deal of time and money, and if they ever quit, you must start over, which only increases your expenses. Outsourcing to a company solely focused on revenue cycle management lifts the burden off your shoulders. Outsourcing can also help reduce operating expenses as practices won’t need to carry extra salary and only pay based on a percentage of revenue collected, which is often higher through the best revenue cycle companies.
Pro: Financial Visibility
An effective revenue cycle management company should provide the ability to generate comprehensive revenue cycle management and A/R reports at any given time. Offering providers an in-depth view of their financial situation they may not currently have and without requiring the valuable time of any employees.
Con: Less Ownership
You must relinquish a little control when outsourcing revenue cycle management services. The people who work with you also may not have the same branded presence as an in-house trainee. They might handle things differently than how you may like so it is important to properly vet any potential revenue cycle management partners.
Con: Contract Demands
When outsourcing revenue cycle management be sure to read all contracts carefully. Watch out for long term commitments with no easy outs and cancellation fees. Also, watch out for hidden fees such as, for printing statements, sending claims, generating reports, and startup fees.
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