Revenue Cycle Management (RCM) drives the entire financial business of healthcare to deliver seamless patient billing, claims and revenue cycle management. Outsourcing RCM has become an efficient and cost-effective alternative for healthcare organizations in the present economic and operational landscape. Yet, despite the evidence-based benefits, RCM outsourcing is riddled with rumors and misconceptions that keep providers from taking this game-changing move.
In this blog, we’ll clear up some common misconceptions around RCM outsourcing and explain the facts for healthcare organizations.
Why Outsourcing RCM is Important in the Age of Healthcare?
Healthcare is constantly changing, and healthcare providers face shifting regulations, technologies, and patients’ needs. Streamlined Revenue Cycle Management is the key to financial stability and continual patient care. But RCM in-house is time-consuming and error-prone — especially for organizations that don’t have the staff or technology to process complex billing and reimbursement processes.
RCM Outsourcing enables doctors and nurses to use their expertise, tools, and workflow to better collect revenue and eliminate paperwork. When organizations are connected with well-respected vendors, they can stay focused on what they do best: provide high-quality patient care – while leaving their accounting side of things in good hands.
Myth 1: Outsourcing RCM Requires Giving Up Control Of Financial Functions.
Reality:
A number of clinicians worry that outsourcers will lose control of their finances. But that is not what is actually happening. When you contract RCM out to an experienced partner, you have complete control and visibility over all financial functions. Today’s RCM vendors have cutting edge technology platforms that provide live reports, dashboards and analytics, so you never miss a beat.
Outsourcing isn’t giving up the house – it allows providers to get on with quality patient care while their RCM partner takes care of the administrative hoops.
Myth 2: Outsourcing is Too High A Cost.
Reality:
Most people believe that RCM outsourcing is expensive. Actually, outsourcers may save you more than internal management of RCM. Healthcare companies can also avoid paying for recruiting, training and maintaining RCM employees through outsourcing. Outsourcing partners also use economies of scale and technology advances to simplify processes, mitigate errors, and accelerate revenue collection.
For most providers, outsourcing saves them tons of money on admin, claim rejection, and cash flow.
Myth 3: Outsourcing RCM Makes Patients Less Happy.
Reality:
There are even healthcare organizations that are concerned that the patient experience will suffer when RCM is outsourced. The reality is that good RCM vendors take care of the patient, and they do everything in their power to help you get paid and billed properly.
Some of the established outsourcing companies are patient-centric and therefore offer clear billing, payment options and customer service. It does not just make a patient experience better but builds trust and loyalty.
Myth 4: Outsourcing Makes Data Security Threats Bigger?
Reality:
As more companies worry about data breaches and privacy breaches, RCM is a service that many organizations are reluctant to outsource because of the risk to their security. But professional RCM suppliers are secure and they follow standards such as HIPAA (Health Insurance Portability and Accountability Act).
These vendors have high data security levels such as encryption, secured servers, periodic audits, and employee training to keep the patient and money records safe. Most of the times, third parties are more secure than your own teams.
Myth 5: Outsourcing Only Works for Big Medical Organizations.
Reality:
No one really thinks that RCM outsourcing is something that big hospitals or health care systems should outsource. Outsourcing can really be a boon to any business of any size – small clinics, primary care, specialty care centers, etc.
Smaller organizations may be too small to hire an RCM team or buy advanced technology. Outsourcing allows you to have access to expert experts and high-tech solutions, making the smaller players competitive by even playing field.
Myth 6: It’s Too Change-Inducing to Transition to an Outsourced Strategy.
Reality:
Providers also feel that they will lose their business if they move from an in-house RCM system to outsourcing. Transitioning is not an overnight process, but trusted RCM providers have made onboarding as smooth as possible.
These providers are in close collaboration with providers to map their workflow, bridge systems and educate employees on processes. The move can be a seamless and even helpful transition, as long as it is communicated and collaborated well.
Myth 7: Outsourcing RCM is a “One-Bit-Board” Approach To Manage RCM Services
Reality:
A second misconception is that when we outsource RCM it’s a blanket service that doesn’t provide exactly what a physician wants. In fact, outsourcers offer highly scalable solutions to the particular needs of each organization.
Outsourcing providers can tailor their services to meet your business requirements, be it specific functions such as claim processing or RCM services for an entire business. That flexibility makes sure that you have the help you want without giving up your operational values.
Myth 8: In-house Teams Are Definitely Better Than Outsourcing Always.
Reality:
In-house teams might know what is going on in the company but aren’t geared up or equipped to manage more and more RCM challenges. Vendors that outsource bring expertise, cutting edge technologies, and industry knowledge to the table, and can perform far more efficiently and accurately than in-house teams.
Outsourcing gives physicians access to industry-standard experts and frees up internal resources for more important clinical work.
Myth 9: Outsourcing Doesn’t Demand Internal Control — Again, a Myth!
Reality:
To outsource RCM isn’t to give up on housekeeping. Rather, it helps healthcare organizations to move from operational to operational oversight. Providers can keep track of performance, see frequent reports and hold their outsourcing vendor responsible for achieving predefined objectives.
This partnership makes sure financial operations are transparent and improved on a regular basis.
Myth 10: If I Outsource RCM, I Get Poorer Work.
Reality:
Quality risks are a common excuse for outsourced businesses. But the right RCM vendors are about precision and compliance, they have professional staff and the latest technologies to provide top-quality outcomes.
Outsourcing vendors are rewarded as well to deliver, since reputation and relationships are based on dependable performance. By outsourcing, doctors can get even better results than they could with the same limited internal staff.
The Benefits of Outsourcing RCM
With common myths busted, let’s recap the advantages of outsource RCM:
- Savings: Less administration time and revenue generation.
- Knowledge-base: Experts having deep industry experience.
- High Tech: High Tech Automation, Analytics, Reporting tools.
- Greater Efficiency: Reduction of process and claim time.
- Time to Care for Patients: More time and money to do clinical.
- Scalability: Scalable products that scale with your business.
- Better Compliance: Compliance with the laws and data security practices.
What To Look For In An RCM Outsourcing Service Provider?
The right partner is key when it comes to outsourcing RCM. So here are a few things to keep in mind when making the choice:
- Verify Their Background: Choose a vendor that has some experience in healthcare RCM.
2. Look at Compliances: Make sure they are HIPAA and regulatory-compliant.
3. Consider Technology Services: Choose a partner that has advanced technology and live reports.
4. Be Custom: Choose a vendor who customises solutions for you.
5. Ask for Referrals: Get some reviews from other clients to see how the vendor is performing and reliable.
Conclusion
Outsourcing Revenue Cycle Management is a smart move that will increase efficiency, cashflow and patient satisfaction. Healthcare providers can see the benefits of outsourcing in a more tangible way and make confident business decisions for their companies by erasing some of the myths.
Outsourcing might not be for all providers, but for some a solid RCM vendor can mean the difference. The right strategy and approach for outsourcing can help healthcare organizations get out of financial knots, stay competitive, and focus on quality patient care.