5 Pros and Cons of Outsourcing Your Revenue Cycle Management
When it comes to deciding whether or not to outsource your Recycle Cycle Management efforts, there are pros and cons to consider.
Pro #1: Outsourcing Revenue Cycle Management allows you to focus more on your patients.
By outsourcing your RCM efforts, you won’t have to detail any of your staff to taking care of Revenue Cycle Management. This means you will have all hands on deck for patient care.
Pro #2: Outsourcing Revenue Cycle Management will enhance your patients’ experiences at your healthcare facility.
Believe it or not, RCM plays a huge role on your patients’ experiences at your healthcare facility, especially when it comes to coding and billing. Improper coding can lead to a claim denial and incorrect billing. Hiring RCM experts ensures that your coding and billing efforts are correct and that claims are submitted properly the first time, which will keep your patients happy.
Pro #3: Outsourcing your RCM efforts will increase your revenue.
Outsourcing your RCM means your claims and billing are taken care of like clockwork. This will increase your cash flow and ultimately, your revenue.
Pro #4: Outsourcing Revenue Cycle Management saves your health care facility money.
In addition to increasing your revenue, your health care facility will also save money by outsourcing your RCM Efforts. You won’t have to hire any new staff for these types of positions, which means you’ll save on the following:
- Annual salaries
- Office supplies
- Computer software.
Pro #5: You are leaving your RCM to the experts.
RCM experts are just that, experts. They live and breathe Revenue Cycle Management. They are always aware of best practices as well as any new regulations or medical industry changes. They will take care of your RCM and let you focus on your patients.
Con #1: You may have to worry about security breaches and HIPAA violations.
Sadly, in our world, security breaches can and do happen. And, when it comes to health care, you have another added worry, HIPAA violations. And, according to Very Well Health, “Although violations of HIPAA privacy and security can occur with in-house billing, it can present an even greater risk when medical billing is outsourced.”
At the end of the day, the more people that have access to confidential patient information, the more your health care facility is at risk for a breach.
Con #2: Getting money from claims and patients’ bills can take a long time.
According to a 2018 study conducted by public accounting, technology and consulting firm Crowe, while hospitals that outsourced their Revenue Cycle Management collected more patient balance payments, sometimes getting the money took much longer than using in-house staff to bill.
Con #3: It’s another expense.
While you will be saving money by not having to hire additional staff members to take on your RCM efforts, you will have to pay the consulting firm, which is another expense for your health care facility.
Con #4: You might be charged hidden fees.
Consulting firms, even RCM ones, are notorious for charging hidden fees. Be sure to read your contract’s fine print for any hidden costs, like fees for:
- Generating reports
- Printing statements
- Setting up services
- Cancelling services.
Con #5: You will be giving up control.
Hiring a company to come in and manage your RCM efforts means handing over important responsibilities to someone else. It means giving up control of your RCM to another company.
Find The Right Person Today!
If you decide you want to outsource your Revenue Cycle Management efforts, the Nearterm team can help. We have a talented pool of RCM experts that can take care of your Revenue Cycle Management needs, so you can focus on what matters the most, your patients. To learn more about Nearterm and the RCM services we offer, just give us a call at (281) 646-1330.