by: Sarah Joson
Friday, October 9, 2015 |
A study created by BlackBook Research revealed that healthcare organizations and private-practicing professionals are shifting towards outsourcing revenue cycle processes while looking for the right revenue cycle management (RCM) platform without having to disburse large sums of their software budget.
According to Doug Brown, managing partner of BlackBook, hospital and physician practices continue to face intense pressure to improve revenue cycle management processes and have found that outsourcing is one of the most useful and greatest solutions to the challenges of the complex and diverse healthcare segment.
The survey revealed that 83 percent of the respondents outsource accounts receivable and collections, 58 percent of hospitals outsource contract management, 68 percent of physician groups with more than 10 practitioners now outsource combination of collections and claims management, and 55 percent outsource denials management.
Brown added that with the anticipated impact of ICD-10, more processes related to revenue cycle management will be outsourced as well. He said claims processing will gain traction as ICD-10 will affect the cash flow of organizations. Eligibility and benefits management and other functions are predicted to see an increase in activity.
CFOs of healthcare providers are closely monitoring their existing service providers. The report indicated that almost 79 percent of health organization financial decision-makers are looking to end contracts with financial and coding technology vendors that aren’t adding value to the company through ROIs. More than 50 percent said RCM outsourcing will improve the efficiency of their operations and finances.
Still, hospital CFOs doubt that outsourcing is a long-term solution, but is the best option for temporary fixes or until new software is selected, bought, and integrated. Other CFOs said they are considering new outsourcing contracts for at least 18 to 36 months.