The Changing Landscape
With the shift to value-based care, healthcare providers are under increasing pressure to improve quality of care while dealing with declining reimbursement, higher risk, and tighter margins. Hospitals, health systems and physician practices of all sizes are being forced to reexamine their business strategies and design new rules of engagement with patients, staff, payers, and partners.
A 2015 survey of hospital CFOs shows 38 percent outsource all or part of their revenue cycle functions, and another 24 percent are considering it.1 According to a recent Black Book report, 83 percent of hospitals outsource at least some accounts receivable (AR) and collections, 58 percent of contract management, and 55 percent of denial management.2 The report also says 68 percent of physician groups with more than 10 practitioners outsource collections and/or claims management.3 These leaders see that partnering with an outside revenue cycle management expert can deliver benefits, such as higher reimbursement, better cash flow, improved margins, and increased patient satisfaction.
Potential Advantages of Outsourcing Revenue Cycle Management
- Higher reimbursement
- Better cash flow
- Improved margins
- Increased patient satisfaction