From Cost Savings to Revenue Growth: How Outsourcing RCM Benefits Providers?

 


Prompt payment to healthcare providers for their services is crucial for a detailed discussion on managing macro costs, quality, and equity. Without it, addressing the issue of rising healthcare costs becomes challenging.

Healthcare providers are well aware that getting paid is not an easy task. A quick search for revenue cycle management (RCM) reveals 16-step pie charts, highlighting the complexity of this $140 billion market in the United States, which employs 188,000 medical records specialists. Successfully managing revenue cycles, which involves capturing fair payment with minimal effort, is a specialized business function. The complexity and labor-intensive nature of RCM make it difficult for a typical healthcare practice to master.

If you find yourself spending too much on RCM staff and processes or if your claims denial rate is higher than the industry average, outsourcing your medical billing may be a solution to your problems. By allowing experts to handle payment collection, you can focus on providing care, receiving payment, and improving your key performance indicators.

Outsourcing RCM: A Sensible Choice for Providers

More and more health care providers are turning to outsourcing their revenue cycle management (RCM) tasks, with up to 61% planning to do so in the future. Kaufman Hall’s 2022 State of Healthcare Performance Improvement report found that 63% of hospital and health system leaders have already pursued at least one outsourcing solution, with revenue cycle functions being the most popular at 27%.

The global RCM outsourcing market is expected to grow by 17% annually, from US$23.7 billion in 2022 to US$62.4 billion by 2028. As in-house RCM becomes more challenging due to new regulations, financial pressures, and market changes such as mergers and acquisitions, outsourcing RCM has become an increasingly attractive option for healthcare providers seeking more efficient cash flow.

Breaking Down the Benefits of RCM Outsourcing

Outsourcing your RCM (Revenue Cycle Management) offers numerous benefits for healthcare providers. Here are eight compelling reasons why it’s a smart choice:

Scarce Healthcare Talent:

Rather than diverting resources to recruit and retain administrative staff, healthcare providers should focus on maintaining a full staff of clinicians. Outsourcing RCM to specialized companies allows healthcare experts to hire healthcare professionals while RCM companies efficiently handle payments and claims management, utilizing their expertise to find and vet skilled employees.

https://www.allzonems.com/how-outsourcing-rcm-benefits-providers/

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