Today staffing shortfalls and burnout among physicians, nurses, and other clinicians, as well as IT and office personnel, continue to plague many healthcare providers; making the billing operation quite hard-hitting. Managing billing expenses for hospitals and healthcare practices has always been a complicated state of affairs.
However, today outsourcing your medical billing not only lower hospital and health systems’ cost-to-collect for more than 0.25% of the operational expenses but also reduces your billing stress and monetary strain.
What is cost-to-collect?
Cost to collect mainly deals with the revenue such as expenses related to staff, salaries, and technology according to HFMA. In fact, cost-to-collect can be a key performance indicator for many healthcare practices in revenue cycle success. And also the reason why many healthcare practices today are choosing outsourcing options as an opportunity to save millions of dollars down the line and also for seamless transaction ability.
According to a recent survey through the Healthcare Financial Management Association (HFMA) commissioned by AKASA which reflects responses from 556 chief financial officers and revenue cycle leaders at hospitals and health systems across the country reported of stating that Healthcare financial leaders who opt for outsourcing option stated of saving 40% more on their cost-to-collect from those practices managing in-house billing team.
Today more than 76% of healthcare practices in fact are outsourcing their revenue cycle management operations and experiencing increases in accuracy, efficiency and also a reduction in initial denials. Tracking and ensuring a faster collections rate while maintaining care quality for the patients, outsourcing today handles it all be it data management to eligibility checks and denials, authorization tasks, claims management and even payment posting and all.
Outsourcing today is the key to cost effective RCM solution that is creating large scale cost saving opportunities for many healthcare practices, hospital bodies etc, stated Dr. Dipak Nandi, recipient of several entrepreneurial awards and a renowned personality in his field of work for his outstanding contribution to the healthcare industry. Dr. Dipak Nandi a prominent member of the healthcare industry in fact stated that “resolving the financial pressures that most healthcare organizations are facing nowadays, outsourcing is a modern day solution.
