According to a Black Book Market Research report, the outsourced Revenue Cycle Management (RCM) market is growing at a rate of almost 27%, as healthcare executive’s continue to focus on talent and technology that addresses new reimbursement models.
“As hospitals and physician practices grapple with intense pressure to optimize revenue cycle management processes, outsourcing has emerged as a powerful solution to the challenges of a rapidly changing healthcare model,” said Doug Brown, managing partner of BlackBook, in a statement announcing results.
The last few years have been challenging for healthcare centers across the country. Substantial pressure has been put on physicians and their staff due to increasing regulatory burdens, escalating costs, and declining reimbursements.
Should your practice outsource its revenue cycle management?
Here are three reasons to outsource medical billing:
- Improve Profitability
Denial management is a common weak spot for many practices during the RCM steps, from claims submission to payer collections. According to the Medical Group Management Association (MGMA), 50-65% of denials go unfinished. Practices are missing out on revenue and possibly preventing future occurrences. The average cost to redo a claim is $25.
- Reduce Administrative Workload
About 26% of self-employed doctors and 35% of those employed spend 10+ hours per week on paperwork and administration. Healthcare professionals want to care for patients, not manage paperwork and try to keep up with the latest changes in medical billing.
- Reduce Disruption from Industry Change
Today, practices have to deal with changing healthcare challenges, from adhering to Meaningful Use, to adapting to new patient care models, and making the switch to ICD-10. Outsourcing RCM to a reliable partner can help make ICD-10 more manageable for your practice, including higher volume of denials.
RCM has become one of the most popular functions for healthcare providers to outsource, due to its critical importance and significant challenges associated with managing internal functionalities of hospitals and clinics, in an efficient and cost-effective manner.