Are you constantly battling insurance denials and facing a heap of reimbursement issues?
We see many of you nodding yes. Why’s that? Well, get this: a recent report shows that a whopping 67% of healthcare providers have seen a rise in claim denials over the past year.
It’s no wonder 2023 was the year many of you started seeing more gray hairs.
One of our new clients summed it up perfectly: handling the financial side and revenue cycle of small to medium-sized practices is as tricky as trying to explain the internet to your grandma. And honestly, they couldn’t be more right.
What do you think? Should you keep your RCM in-house, or is outsourcing the game-changer you’ve been looking for?
Let’s find out!
But first, what is revenue cycle management?
Before we dive into the comparison of in-house billing vs outsourcing, it’s crucial to first understand what RCM entails.
RCM, Revenue Cycle Management is the financial process used by healthcare facilities to track patient care episodes, from registration and appointment scheduling to the final payment of a balance.
This process encompasses various steps, including charge capture, claim submission, coding, patient collections, and third-party follow-up.
It wouldn’t be an exaggeration to say that RCM is the heartbeat of your practice’s financial health. Nail it, and you’re swimming in calm waters; miss the mark, and it’s like navigating a canoe in a hurricane.
From the moment a patient books an appointment to the final payment of their bill, RCM keeps your financial health in check.
In-House Revenue Cycle Management
When we talk about in-house RCM, we’re looking at a scenario where a healthcare provider handles every aspect of the revenue cycle right under their roof.
This approach comes with its own set of perks and pitfalls.
Pros of In-House RCM
Control and Oversight: You’re the captain of your ship. You get to oversee all processes and make changes as you see fit.
Customization: Every healthcare facility is unique. In-house RCM lets you tailor processes to fit your specific needs.
Patient Relationships: Your in-house team knows your patients like the back of their hands, which can boost patient satisfaction and loyalty.
Cons of In-House RCM
High Costs: Running an in-house RCM team isn’t cheap. You’ve got salaries, benefits, training, and tech investments to think about.
Resource Intensive: It’s a big job managing an effective RCM process. You need to keep up with the latest billing rules and codes, and that’s no small feat.
Risk of Inefficiency: Without top-notch expertise, in-house RCM can lead to mistakes and inefficiencies, which can hit your bottom line hard.
Outsourced Revenue Cycle Management
On the flip side, outsourcing RCM means you’re bringing in a third-party revenue cycle management company to take the wheel.
This approach has been gaining traction for quite a few reasons.
Pros of Outsourced RCM
Expertise and Efficiency: Outsourced RCM providers are the pros. They bring in expertise and streamlined processes.
Cost-Effective: It can save you money in the long run, cutting out the need for an in-house team and all the overhead that comes with it.
Scalability: With outsourcing, you can scale your operations up or down without being tied down by in-house resource limits.
Cons of Outsourced RCM
Less Control: Sure, you’re handing over some control, but it’s like having a co-pilot.
Potential for Misaligned Goals: Their goals might not always be a 100% match with yours, but it’s all about finding the right partner.
Communication Challenges: There might be a few bumps in the communication road, but nothing that can’t be smoothed out.
In the grand scheme of things, outsourcing revenue cycle management has proven to be a golden ticket for many healthcare providers.
While outsourcing RCM does come with a few hiccups, the advantages – such as expert virtual staff, cost savings, and scalability – significantly tip the scales in its favor.
For many of your mates (you might be surprised who), outsourcing was a more practical option than managing their revenue cycle in-house.
What about you?
Comparing Success Rates of In-House vs Outsourced RCM
Alright, let’s have some real talk about success rates.
When we’re digging into this, there are a bunch of factors to consider.
Think about collection rates, how often insurance companies are giving you the thumbs down on claims, and the time it takes to process these claims.
In-House RCM Success
Success in in-house Revenue Cycle Management is often tied to the size and resources of the healthcare provider.
Larger organizations with more resources can often manage an efficient and successful in-house RCM process. However, smaller practices might struggle due to limited resources and expertise.
Outsourced RCM Success
Outsourced RCM providers, specializing in this field, often boast higher success rates in terms of collections and reduced denial rates.
They bring in best practices and advanced technologies that can significantly improve the revenue cycle process. However, the success also depends on the quality of the service provider chosen.
According to our survey, outsourced RCM has a 20-30% higher success rate in collections compared to in-house RCM.
Case Study: Dr. Pexy’s Urgent Care in Oklahoma
In the heart of Oklahoma, Dr. Pexy’s Urgent Care faced a daunting challenge.
With declining revenues and increasing administrative burdens, Dr. Pexy was on the verge of shutting down her practice.
The root of the problem? An overwhelmed in-house billing system struggling to keep up with complex coding, frequent regulation changes, and mounting paperwork.
After a friend suggested Dr. Pexy gave her fate another try and hired a medical billing company, She partnered up with GreenSense Billing.
The results were out in just a month and were nothing short of miraculous for her.
Within the first six months, her clinic witnessed a 25% increase in collections and a significant reduction in billing errors.
Our team’s proficiency in handling claims and proactive approach to denials management turned the tide. We checked her denied claims, fixed errors, and had the insurance pay them.
Two years into this partnership, Dr. Pexy’s practice is not only surviving but thriving.
Patient satisfaction has soared, and the staff is focusing solely on healthcare rather than financial management.
Dr. Pexy, once contemplating closure, is now exploring expansion opportunities.
This turnaround story is a testament to the transformative power of outsourcing revenue cycle management.
Benefits of Outsourcing Medical Billing and RCM
Enhanced Expertise and Efficiency
Outsourcing RCM means entrusting your billing and collections to specialists whose sole focus is managing healthcare revenue cycles.
These experts are adept at navigating the complexities of billing codes, compliance regulations, and insurance requirements.
We bring a level of expertise and efficiency that can be challenging to replicate in-house, especially if RCM is not your core competency.
Maintaining an in-house RCM team is more expensive than anticipated. Mic drop!
It’s not just about salaries; it’s also about ongoing training, software updates, and infrastructure costs.
Outsourcing eliminates these overheads, converting fixed costs into variable costs that can scale with your practice.
This shift can lead to significant cost savings, allowing you to allocate resources to areas that directly enhance patient care.
Focus on Patient Care
By outsourcing RCM, healthcare providers can refocus their energies on what they do best – patient care.
Relieving your staff’s administrative burdens can lead to improved patient experiences and outcomes and your team can concentrate better on clinical work without being sidetracked by billing and collections issues.
Keeping Pace with Change
The healthcare industry is constantly evolving, with frequent changes in regulations, billing practices, and compliance requirements.
RCM companies stay abreast of these changes. We ensure that your billing processes are always compliant and up to date. This adaptability is crucial for minimizing denied claims and maximizing revenue.
Access to Advanced Technology
Managed medical billing and RCM companies invest in the latest technology and software to ensure efficient and accurate billing.
By leveraging our technological resources, your practice can benefit from sophisticated analytics and reporting tools that provide deeper insights into your financial performance, without the hefty investment in software and training.
As your practice grows, your revenue cycle needs will evolve. Outsourcing offers scalability that can be challenging to achieve in-house.
An outsourced RCM provider can easily adjust to the changing volume of your practice, ensuring that your billing process is always aligned with your current needs.
Reducing Errors and Improving Collections
Billing errors can be costly, leading to claim rejections and delays in payments.
RCM companies have the expertise to ensure that claims are accurately processed the first time, improving your collection rates and reducing the time between service delivery and payment.
How to find the best medical billing company?
The decision between in-house and outsourced RCM should be based on several factors:
Size and Resources of the Healthcare Provider: Larger organizations might benefit more from in-house RCM, while smaller and medium-sized practices may find outsourcing more beneficial.
Cost Considerations: Analyze the cost-benefit ratio of both options.
Control and Customization Needs: If having direct control and customization is crucial, in-house might be the better option.
Expertise and Efficiency: For practices lacking in RCM expertise, outsourcing can bring in the needed proficiency.
GreenSense Billing: A Complete Medical Billing and RCM Service Provider
At GreenSense Billing, we get it: you’re up to your ears in patient care, and then there’s the entire revenue cycle to manage.
That’s where we come in.
We’re here to smooth out the medical billing and revenue management process, ensuring you get paid on time and without a hitch.
Our crew takes care of everything from scheduling patient appointments to handling denials and sorting out balances. Think of us as your financial wingman, taking the money matters off your plate, so you can focus on what you’re great at – caring for your patients.
And hey, why not dip your toes in the water with a free billing audit?
No setup fees, and no strings attached – just useful insights.
We’ll comb through your denied claims, spot the slip-ups, and offer solutions. If you like what you see and want to take things further, just give our rep a call, and we’ll get back to you.
We’re here to make your medical billing and RCM smooth sailing.
As our clients say, we are nerds who eat, sleep, and breathe bills, stealthily increasing their collections.
Ultimately, the choice between in-house or outsourced RCM boils down to what best aligns with your practice’s financial rhythm.
Remember, a robust RCM isn’t just about numbers; it’s about nurturing your practice’s overall health and growth. Outsourcing offers a path to not just survive but thrive in the healthcare world.
It’s an opportunity to turn financial management from a chore into a catalyst for growth and success.
So, take a leap, explore outsourcing, and watch your practice flourish while you do what you love – caring for patients.
Is outsourcing more expensive than in-house?
Not always. Factor in staff costs, training, software, and the potential for increased collections.
Will I lose control over my billing if I outsource?
It’s a partnership. You’re still the captain; you just have a skilled crew.
How do I choose a reliable RCM provider?
Do your homework, ask for references, and consider a trial period.
Can outsourcing handle large practices?
Yes, they’re like the elastic waistband of the billing world – flexible and accommodating.
Will they be able to handle my specialty-based specific RCM challenges?
Absolutely, Outsourcing thrives on customization. We tailor our services to fit your specific needs.