With uncertainty surrounding the healthcare industry. Medical practitioners need to ponder innovative ideas about digging their business out of the financial crisis. They seek out ways to expand their healthcare business to a great extent. And look for the big picture to disrupt a traditional healthcare industry.
However, pushing constant business growth is not possible without achieving financial stability. Because, without consistent revenue and optimized cash reserves, healthcare providers cannot survive for a long time period. They can’t meet their medical expenses as well.
So, here’s a question that arises, how can medical practitioners achieve their revenue goals? & lead their business out of the economic crisis? The answer is obvious. Healthcare providers should give proper attention to their non-medical obligations i.e medical billing services.
Because it is the process of filing and following up on the medical claims to get reimbursements for the healthcare services rendered. The more you manage the billing process efficiently, the more you become financially stable.
So, in order to become successful and stay at the competitive edge, healthcare providers should constantly focus on two things: improving patients’ lives and streamlining the healthcare revenue cycle management.
As in-house management of the RCM process is extremely challenging for practitioners. They are steping towards outsourcing medical billing services to a trusted third party.
Furthermore, here are the following reasons that how can outsourcing be the best decision for your healthcare business?
1. Control Capital Costs
Are you looking for proven ways to elevate your profit margins without investing in operational costs? Then you must collaborate with a top-notch medical billing company. Because cost-saving is considered as one of the major benefits of outsourcing RCM services.
Before diving into further discussions. Let’s make a quick comparison of the costs related to the in-house and outsource medical billing and coding services.
Just think about the expenditures related to the hiring and training of the professional medical billers and coders. It has been estimated that the average salary of a well-experienced biller is approximately $45,000 per year. Besides this, you have to spend a considerable amount of money on the other incentives (paid, holidays, health insurance etc).
In addition, managing office workspace, installation of the software/hardware can result in a quick add up in your budget. Healthcare providers have to spend a major portion of their collected revenue on costs overhead. That ultimately increases their financial burden.
On the other hand, by acquiring the services of outsourced medical billing experts, you get rid of the above-mentioned expenses. Because outsourcing converts all these fixed costs into variable costs.
You just have to pay a fixed amount. And in return, highly trained billing and coding experts will take care of your finances. They boost the revenue collections for your business at lower costs.
2. Efficient Claims Management
As we have already discussed that clean medical claims are crucial to get maximum reimbursements.
But in this modern era, the healthcare industry witnesses constant evolutions. Such as: insurance policies, state laws, medical coding and billing guidelines. In order to make the billing system efficient, it is crucial for healthcare providers to stay at the top of these changes.
But it’s very challenging for physicians to keep pace with the ever-evolving medical industry. Because they have to stay engaged in providing standard medical aid to their patients.
Due to insufficient time and increasing healthcare responsibilities, medical practitioners prefer to join hands with industry experts. They find outsourcing as the best solution to support their struggling practice and stay financially fit.
Off-shore billing agencies first analyse the inefficiencies in your revenue cycle management. Then they provide the services of medical billers possessing unique expertise and skills related to your medical speciality.
As outsourced billing and coding experts are legally bound to collect the maximum revenue on your behalf. For this purpose, they make sure that medical claims must meet the following criteria:
Avoid Upcoding:
Coding errors such as: use of more expensive medical services than actually performed, hold insurance companies back from payments. And if your medical practice is deliberately or unintentionally involved in such malpractice for a long time period. Then you may have to face critical financial as well as legal challenges. Because such coding errors are considered as billing frauds.
However, outsourced medical coders have in-depth industry knowledge about the ICD-10 and CPT codes. They undergo constant training to stay up-to-date with the new, modified or deleted medical codes.
In order to prevent claim denials. They ensure the accurate translation of particular illness, diagnosis and treatments into standard medical codes. Which results in maximum reimbursements.
3. Optimize Revenue Collections
Hence by ensuring the timely submission of clean medical claims, off-shore billing experts prevent the claim denials.
Moreover, their role doesn’t end with the submission of claims. They consistently follow up with the payers to stay updated about the status of the submitted claims, either paid or unpaid. They are trained enough to ensure the acceptance of claims in the first place, Which leads to consistent cash flow.
In addition to this, outsourced billing teams also improve the medical accounts receivable collections. They review the denied claims, listed on the aging reports.
Then they closely analyse the reimbursable claims and make in-depth root cause analyses. As a result, they become able to appeal the claims after proper rectification. They resubmit the denied claims as quickly as possible to make sure that healthcare providers get faster reimbursements.
Thus by outsourcing medical billing services, you can get maximum revenue in your pocket. And dig your business out of bad bad debts without administrative burden and frustration associated with claims management.
So, while keeping in mind all these factors, healthcare providers prefer to collaborate with professional billing service providers.
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