Healthcare providers and clinicians need to focus on patient care rather than concentrating on administrative and financial tasks which include billing services for patients. It is important to streamline financial procedures to improve patient satisfaction and retention. Many hospitals deploy a Healthcare Revenue Cycle Management (RCM) software system to automate and streamline difficult financial tasks so providers can give undivided attention to their patients. Another option for medical practices is to outsource medical billing.
What is an RCM Software?
A Revenue Cycle Management software is a powerful system that allows for timely claims and seamless payment processes. A top-ranked RCM software solution has the features of claims management, ICD-10 compliance, insurance information, appointment scheduling, and secure payment processing.
Common services offered to practices when outsourcing an RCM service
The revenue cycle management services may differ from practice to practice according to specific requirements. The most common services offered include the following,
- Insurance eligibility verification
- Charge capture
- Billing services
- Payment posting
- Denial management services
- AR calling services
The main aim of outsourcing RCM services is to improve the flow of revenue and boost the financial health of a practice.
The costs of Revenue Cycle Management services in 2022
According to the Medical Billing Service Review, healthcare organizations lose about $125 billion annually because of billing claims that are denied by insurance companies. The loss is due to inaccurate coding and the missing payment due dates.
A billing services company does not charge signup fees. But practices need to pay about $300 for every provider on staff. If there is a large medical practice with several doctors then the RCM services company will charge a flat fee of $1,000 for each office. Administrative fees are also involved which are based on the size of a practice and may range from $3,000 to $6,000. For claims processing, there are 2 options available, either pay a flat rate or a fee is charged on a percentage of the revenue collected from patient services.
If the medical practice is smaller they will usually pay hourly fees. The fees are based on how much time the billing services company takes on collecting the bills. This will cost a practice less if a full-time employee is hired to take care of medical billing tasks.
Moving ahead
The cost of outsourcing RCM services may be higher, but eventually, the greater success rates on insurance claims make it a cost-effective option for medical practices. Managing revenue cycle management tasks might be tedious for a medical practice so it makes sense to outsource RCM services to increase practice profitability.
