Healthcare is an industry where every moment counts — which is why medical providers are constantly on the lookout for ways to streamline operations and enhance patient care.
One compelling strategy gaining momentum is outsourcing business office functions to third-party experts. In fact, the healthcare outsourcing market is expected to register an increase in CAGR of 10.4% from 2020 to 2027.
But why should medical providers embrace this change, and what specific benefits can they expect to reap? Let’s push back the curtain and look at the practical reasons.
Why Should Medical Providers Outsource Their Business Office Functions?
The Financial Edge
The financial aspect often tops the list of reasons to consider outsourcing. Healthcare billing costs can significantly impact medical practitioners, both financially and operationally. According to a study conducted by Stanford University, primary care physicians bear the burden of spending an average of $20.49 to submit a bill for a single visit, which ultimately leads to almost $100,000 per year per physician for billing and insurance-related expenses.
These high administrative costs can lead to financial strain on medical practices and decrease productivity and time spent on patient care. Additionally, the complexity of the billing process can lead to errors and delays in payment, which can further impact the financial stability of medical practices. Outsourcing business office functions to a third-party service provider can help alleviate these concerns and allow medical practitioners to focus on providing quality patient care.
And these cost-saving advantages extend beyond labor. By outsourcing, medical providers also shed the overhead expenses associated with office space, equipment, and technology maintenance. Imagine redirecting these resources towards improving patient care and enhancing overall healthcare experiences.
Elevated Emphasis on Patient Well-Being
It’s no secret that patient care is the core of every medical practitioner’s mission. However, administrative tasks can often divert precious time and attention from this vital aspect. Outsourcing these functions enables medical teams to refocus their efforts where they matter most: on patient care.
A recent report by Survey Healthcare Global found that 34% of surveyed physicians linked medical errors to staffing shortages. This highlights the importance of outsourcing administrative tasks to ensure medical teams are adequately staffed and can focus on providing quality patient care. This is further asserted in a recent Medical Group Management Association poll, where healthcare leaders were asked which area they plan to outsource or automate in the next six months, and 36% responded with revenue cycle.
By outsourcing such tasks from the revenue cycle — like registration, coding, claims submission, remittance processing, and denial management — your medical team can dedicate more time and attention to providing quality patient care, ultimately improving patient satisfaction and outcomes.
Adaptive Solutions for Evolving Needs
In today’s healthcare landscape, change is a constant. Patient volumes can fluctuate seasonally, medical practices may expand to new locations, and healthcare regulations continuously evolve. To thrive in such a dynamic environment, medical providers need a strategy that allows them to adapt swiftly and effectively. This is precisely where outsourcing becomes invaluable.
Outsourcing partners like Capital Recovery Corporation are adept at offering scalability tailored to the unique needs of medical practices. Whether you’re experiencing rapid growth or need to adjust to a temporary decrease in patient volumes, outsourcing providers have the resources and flexibility to accommodate your requirements.
Consider this scenario: your medical practice has recently seen a surge in patient appointments, possibly due to flu season or a new marketing campaign. Managing the increased workload with an in-house team may result in overwhelmed staff and a drop in service quality. However, by outsourcing tasks such as billing and debt recovery, you can swiftly scale up to handle the influx of patients without the challenges of hiring, training, and retaining additional staff.
Tapping into Specialized Proficiency
Consider the healthcare industry’s shift towards value-based care and the intricacies of medical billing and coding. Outsourcing to experts who understand these nuances can make a significant difference. They ensure accurate coding, efficient claims processing, and adherence to ever-evolving regulations, minimizing the risk of costly compliance errors.
Companies such as Capital Recovery possess in-depth knowledge of the latest best practices, regulations, and technology, allowing them to assist your practice in staying competitive and compliant. By partnering with such firms, healthcare providers can concentrate on providing high-quality care for their patients while leaving the financial details to the professionals.
Ensuring Consistent Patient Engagement
Effective patient communication is a cornerstone of a successful medical practice. Outsourcing can bring in the power of Machine Learning and AI to enhance patient communication.
By analyzing patient behavior and preferences, Machine Learning and AI can determine your patient’s preferred method of contact and propensity to pay. This level of personalization in communication not only increases patient engagement but also boosts the likelihood of timely payments.
Furthermore, third-party providers often offer a variety of payment methods tailored to fit your patient’s needs. This adaptability ensures that financial transactions are seamless and convenient for both your practice and your patients.
How Capital Recovery Can Help
At Capital Recovery, we specialize in debt collection services for medical providers. We help with:
- AR receivables management
- IVR and online payment processing,
- Bad business debt collection
- AR management
- Medical billing and coding
- Claims processing
Armed with 30 years of experience and the latest technologies at our disposal, our team is dedicated to providing quality service and support to our clients — as well as ensuring compliance with industry standards and regulations — so you can focus on delivering quality patient care.
If you’re interested in outsourcing your revenue operations to Capital Recovery, please don’t hesitate to reach out.