Revenue Cycle Management Outsourcing in the Healthcare Industry

Revenue Cycle Management Outsourcing in the Healthcare Industry

Outsourced solutions for revenue cycle management are a great cost saving and revenue boosting option.

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The healthcare industry is paper oriented with a number of documents to manage including medical history, patient data, insurance records and so on. Entities in this sector are constantly looking for new ways to improve services to provide better service and also to reduce cost and optimize resources. An important consideration in this regard is digitization or converting paper documents into electronic ones with the support of reliable document scanning services. The health records that are converted and stored require proper management to ensure quality and consistency, along with strict compliance to HIPAA. Outsourcing document scanning to a professional vendor helps healthcare professionals to focus on more core activities in their organization. The scanned documents can be easily located by typing specific keywords and expressions in order to automatically extract information and index them for easy retrieval. This helps the staffs in a hospital to find patients’ medical records quickly and provide quality service in a timely manner. This improves the efficiency of every healthcare provider in the hospital. Similarly to cut down on costs, the healthcare industry is outsourcing their revenue cycle management also.

To improve revenue cycles and financial performance hospitals are outsourcing their entire revenue cycle. According to a recent analysis from the firm Crowe, around 1000 hospitals across 45 states are outsourcing their entire revenue cycle management and reported that they have higher claim denial rates and longer patient collection times than their counterparts who handled revenue cycle internally.

The decision to outsource any core function must be done with great caution, as it includes several management disciplines like finance, human resources, information technology, clinical operations and managed care. The key is to be precise and transparent, which helps businesses to progress towards organizational goals.

Revenue Cycle Management Outsourcing Is Expected to Rise The global

healthcare

revenue

cycle

management

outsourcing

market

will see

significant growth in the future. The market is expected to escalate from $11.7 billion to $23 billion by 2023. 80 percent of hospitals in Black Book survey said that they were vetting or considering full revenue cycle management outsourcing by 2019. Out of 700 hospital leaders, 18 percent said that they are fully outsourcing their revenue cycle management functions. Most respondents said that they are looking to outsource more functions to minimize cost and focus on value-based activities. Today, outsourcing is considered as a reasonable solution that would enable physicians to focus on their core tasks and it also helps healthcare organizations to improve key performance indicators.

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Revenue management analytics is gaining importance in the healthcare industry for its ability

to align

the activities

and documentation

of front end

physicians

practice

managers and administrators and back end central billing office. According to The Market Report, the key players are Conifer health Solution, Optum 360, McKesson, Relay Health, MedAssist, MedData etc.

The global healthcare revenue cycle management is fragmented and there is greater consolidation expected in the future. The healthcare industry is always innovative with frequent acquisitions and strategic alliances as it is a key strategy by the players to increase their industry presence.

The healthcare revenue cycle management market has already

shown symptoms of the acquisition bug.

Notably, Navicure and ZirMed announced their

intentions to merge in September 2017. R1RCM, a revenue cycle management company, announced in February 2018 that it will acquire Intermedix Corp in a $460 million deal.

Intermedix Corp provides cycle management, practice management and analytics solutions to physicians and emergency medical service.

This shows that the healthcare organizations are considering outsourcing more revenue cycle management functions to access data analytics through third party vendors. Similarly they can outsource to document scanning company that provides accurate digitization of medical records that can be stored and retrieved easily.

www.managedoutsource.com

(800) 670 2809