Outsourcing your RCM services and it's benefits.

As the healthcare industry undergoes continuous evolution, healthcare leaders are confronted with a multitude of challenges that demand their attention. Among these challenges, effectively managing medical billing and revenue cycle management (RCM) processes stands out as one of the most significant. In recent years, a growing number of healthcare leaders have found a solution to these problems by turning to outsourced medical billing and RCM services. Research indicates that as much as 80% of healthcare leaders are considering outsourcing these services in the coming years. This shift towards outsourcing is driven by various factors, including escalating costs, changes in regulations, and a scarcity of skilled personnel. In this article, we will delve into the reasons why healthcare providers are embracing outsourced medical billing and RCM services, the transformation this trend brings to the industry, and the crucial factors to consider when selecting a dependable outsourcing partner. Whether you are a healthcare leader seeking to streamline financial operations or an inquisitive reader exploring the latest healthcare industry trends, this article is tailored to address your interests.

First Challenge - Staffing Shortages.😰👨 ⚕️👩 ⚕️📈

Staffing shortages have significantly impacted medical practices, particularly in the recruitment and retention of proficient billing and RCM personnel. This scarcity of skilled staff can lead to prolonged processing times, increased errors, and a backlog of claims. Outsourcing medical billing and RCM functions can provide a solution to these staffing shortages by granting access to a team of experts well-versed in the latest billing and RCM best practices. These third-party companies can offer faster processing times, reduced errors, and overall process efficiency.

Second Challenge - Inflation. 💸📈

Medical practices have been affected by inflation in various ways, including elevated costs for supplies, equipment, and staffing. Handling billing and RCM in-house may prove challenging for medical practices to cope with these mounting costs and maintain profitability. Outsourcing these functions to third-party companies can enable medical practices to control expenses and enhance their revenue cycle management. Studies indicate that medical practices that outsource their billing can experience a substantial increase in revenue, which can help offset the impact of inflation.

Benefits of Outsourcing Medical Billing and RCM.

1. Increased Revenue.💰📈

 Outsourcing medical billing and RCM can lead to heightened revenue for medical practices. Research has shown that practices that outsource their billing witness a notable increase in revenue. Studies by the Medical Group Management Association (MGMA) revealed that practices that outsourced their billing observed an average increase in revenue of 11.6%, while other research from Black Book Market Research reported an average increase in collections of 6.8%. This substantial increase in revenue can exceed the outsourcing cost by 2 - 3 times, yielding an instant return on investment (ROI).

2. Decreased Costs. 💰📉

 Outsourcing medical billing and RCM can also result in reduced costs for medical practices. When managing billing in-house, practices must hire experienced staff and invest in expensive software and equipment. Outsourcing eliminates the need for these expenditures. According to the MGMA study, practices that outsourced their billing saw a 16.9% decrease in billing-related costs.

3. Increased Efficiency. ⏩💰🔄

 Outsourcing medical billing and RCM lead to increased efficiency. Third-party companies specialize in these functions and have well-optimized processes and systems to handle tasks efficiently. This can result in faster payments and fewer denied claims, thus improving cash flow for the practice. Moreover, outsourcing frees up time and resources for medical practices to focus on patient care and other crucial aspects of their business.

4. Improved Compliance. ✅📜

 Outsourcing medical billing and RCM can also lead to enhanced compliance. Revenue cycle management is complex and continuously evolving. Third-party companies maintain teams of experts trained to stay updated with the latest regulations and compliance requirements. This helps prevent errors and reduces the risk of audits and penalties.

5. Access to New Technology. 📱💻🌐

 Outsourcing medical billing and RCM functions allows medical practices to stay up-to-date with the latest technology and industry trends. Third-party companies usually invest in the latest software and technology to enhance their services, providing benefits to medical practices that may lack the resources to do so themselves.

6. Access to Expertise. 👥💼🏥💡

 Outsourcing medical billing and RCM functions to third-party companies offers medical practices access to a diverse team of medical business experts, seasoned billing and RCM specialists, certified medical coders, industry thought leaders, and EHR (Electronic Health Record) expertise. These companies focus on these functions and maintain streamlined processes and systems to handle tasks efficiently, resulting in faster payments and fewer denied claims.

Selecting a Third-Party Company with EHR Expertise. 🔍🏥💼💻

When outsourcing medical billing and RCM functions, it's vital to choose a company with extensive experience and expertise in the specific EHR platform used by the medical practice. For instance, JKS Outsourcing is uniquely qualified to provide medical billing and RCM services. With years of experience in medical billing services, JKS Outsourcing offers a streamlined and efficient billing process tailored to the platform's features. This includes the ability to navigate the platform's reporting features, providing medical practices with valuable insights into their revenue cycle management. These insights can identify areas for improvement and offer actionable data to optimize revenue.

Future Trends and Conclusion. 🔮📈👩 ⚕️🏥

Recent surveys have indicated that more healthcare leaders plan to outsource medical billing and RCM services in the future, particularly due to inflation and staffing shortages. According to Black Book Market Research, 80% of hospital and health system leaders intend to outsource more revenue cycle management functions in the next year. This highlights the significance and benefits of outsourcing medical billing and RCM functions.

In conclusion, outsourcing medical billing and RCM functions can help medical practices overcome the challenges of rising costs and staffing shortages while enhancing revenue and efficiency. When selecting a third-party company, considering their expertise with the practice's specific EHR platform, is crucial to ensure a seamless and efficient billing process. JKS Outsourcing expertise and extensive experience in optimizing the platform for RCM and medical providers make it an excellent choice for medical practices seeking to outsource their RCM functions.

By outsourcing to a company like JKS Outsourcing, medical practices can experience increased revenue, decreased costs, improved efficiency, compliance adherence, and a greater focus on patient care. With surveys suggesting that more healthcare leaders plan to outsource their RCM functions in the future, outsourcing medical billing and RCM is becoming an increasingly popular and beneficial solution for medical practices.

Looking to outsource your RCM services?🏥

We can help you make an informed decision! Connect with us at info@jensenkobain.com