Why is Outsourcing RCM cost Effective and Sustainable?

One of the ways to ensure that your healthcare team is not overworked is by adding manpower to your organization such as administrative support with revenue cycle management (RCM), billing compliance, and other back-end functions. A 2020 Black Book reports that approximately 90% of hospitals have already outsourced or are planning to outsource their RCM functions to reduce overhead costs.

But aside from being a great back up to overcome high volume of workload, employing your own team of RCM excerpts are beneficial for keeping your business up and running with any business climate and economical situation.

Why is Outsourcing RCM cost effective and sustainable?

Cost-effective

First and foremost, a pool of outsourced healthcare and RCM professionals takes away the expenses and the added work of acquiring and training people – all without sacrificing the quality of patient care. It can allow you to save up to 70% not just on overhead cost but also general operating costs. Moreover, outsourcing is cost-efficient in terms of being scalable depending on your company’s needs and giving you the access to the latest technology relevant to the industry without spending a fortune.

And one of the benefits of unloading too much administrative duties on your core healthcare staff to enable them to focus more on the needs of their patients, this results in patient satisfaction which also improves your income and cash flow in the long run.

Reduced operational errors (i.e. billing)

Outsourced teams of competent and trained medical billers from RCM can help your company prevent incurring high costs due to billing errors. They are to reduce the number of denied and rejected medical claims to the best of their abilities. All in all, this maximizes feedback assistance on reimbursements and future assets.

And with the outsourcing partner, they can help with compliance to the ever-changing requirements and regulations in the healthcare industry (i.e. KPIs of 95% coding, billing and documentation accuracy & 90% increase in revenue) , assuring that your company meets all guidelines to avoid possible conflicts along the way.

Quality Skills and Talents

Dealing with one trusted company enhances overall efficiency and accuracy. Good providers also insist on building a dedicated team of highly-experienced healthcare professionals who can deliver quality results. Having RCM talents with the skill and experience necessary to adapt the current technology you are using and be able to continuously improve on it. Usually, a great partner has A+ recruitment team and process who has access to world-class talent despite the competitive talent pool.

Choose a partner with High Net Promoter Score (>60)

An outsourcing partner with a proof of positive track record of industry & domain expertise, number of years offering healthcare support services, and client partnership tenure and company reputation & success rates such as Net Promoter Score (NPS) is a sure win in terms of getting hold of business stability for your company. With their industry experience they have the right expertise and knowledge when it comes to the general healthcare industry and the unique needs of your company to provide and render services effectively.

With their experience and expertise this usually results in a high Net Promoter Score (>60). NPS represents the primary way customers survey their experience because it means that their clients are happy which results in customer loyalty and retention, making this a critical trait a BPO company should have. When used correctly, NPS can tell you how well the BPO is performing, how often they resolve issues, and if their clients are satisfied with their experience. Having happy patients equates to more stable business operations and sustainable healthcare services being offered with your company.

Other gains of outsourcing with the right partner are: