The new strain of the coronavirus ( COVID-19 ) put severe economic pressures on hospitals and healthcare systems globally. The financial burden increases due to the rising demands for medical equipment and supplies to fight against the COVID-19. Moreover, medical practitioners also don’t have a sufficient amount of time to manage the medical billing process efficiently. Which has increased the revenue loss of their hospitals. Therefore, healthcare providers are preferring to outsource hospital billing services to survive financially.
Medical billing is a time consuming and complicated task. Therefore medical practitioners find it difficult to manage this process along with their tight schedules. Because if they decide to handle the revenue cycle with their current busy routines, they can’t pay attention to the entire process appropriately. Which ultimately increases the chances of medical billing errors.
It’s worth mentioning here that, statistics estimate that over 20% of a hospital revenue ends up lost, due to loopholes and improper handling of the billing process.
In addition to this, the growing emphasis on compliance, risk management, modified or newly introduced billing rules as well as insurance policies have increased the trend of outsourcing billing services. Outsourced hospital billing experts, on the basis of their extensive industry experience, help medical practitioners to sustain their existence in the market.
If you are still confused to choose between in-house or outsource hospital medical billing services, then look no further. I have compiled the following reasons that urge outsource hospital billing services.
- Reduces Escalating Costs
As we have already discussed that hospitals face catastrophic challenges in light of the COVID-19 pandemic. For example, this ongoing pandemic increases the financial burden in the following ways.
- Effect of COVID-19 hospitalizations on hospital costs;
- Canceled non-emergency medical services, leave lingering marks on hospital revenue;
- Additional expenses related to purchasing the most needed personal protective equipment (PPE); and
- The cost of additional incentives for the frontline workers, who are providing relief to the COVI-19 affectees.
Due to all these unprecedented challenges, healthcare providers don’t have sufficient budgets to maintain an in-house hospital billing system. Because they need to spend a lot of money on all operational costs.
The overhead costs including hiring and training of billers, higher salaries, innovative billing software, postage, clearinghouse fees, printers, additional computers, and office workspace. These expenses would increase the financial burden of medical practitioners and affect the revenue cycle drastically.
But if you choose to outsource hospital billing services, you can get rid of all these expenses and utilize the saved money on providing quality care to the patients. Which can increase your reputation in the market. And you will see an increased patient flow.
- Improved Patient Care
Sometimes medical practitioners give preference to in-house billing services. But the excessive administrative burden such as records of patient check-in, medical coding, and dealing with insurance companies create chaos in terms of patient care.
Because healthcare providers remain busy in the back-end task and don’t have enough time to concentrate on the core aspects of their business. As a result, their patients are disappointed with medical services, and may be possible that they never return back. This situation badly impacts the entire revenue cycle of your hospital.
On the other hand, by outsourcing hospital medical billing services, you can get rid of the administrative tasks and freely concentrate on improving your patients’ experience. When your patients are satisfied with your services, they will recommend you as the best healthcare providers in their circle. Hence you will see an immense change in the patients’ visits.
- Reduce Billing & Coding Errors
If you choose to outsource hospital billing services, you get access to the trained industry specialists. These experts make every possible effort to ensure the submission of medical claims in a timely manner. Outsourced billing experts undergo constant training to get complete knowledge about the updated billing and coding rules. They prepare medical claims with respect to these changes and decrease the chances of claim denials.
In addition to this off-shore billing, companies have certified medical coders, who transform the medical services and patient’s diagnoses into standard codes, accurately. Billers use these codes to prepare the submitted claims. Moreover, they cross-check the provided information including the patient’s name, date of birth, address, insurance eligibility, ID, and payers details. Which ensure the submission of clean claims.
- Streamlined Cashflow
The financial prosperity of every hospital depends on efficient revenue cycle management. Outsourced billing vendors not only submit the error-free claims but also monitor every single claim until healthcare providers get paid.
If a medical claim is denied or rejected, they follow a systematic procedure to manage such claims. For example, billing partners identify the root causes behind denials, then rectify the errors and appeal the claims in a given time frame. This process ultimately increases the reimbursements and medical practitioners enjoy a streamlined cash flow.
Do you want to unlock the maximum revenue for your hospital? You must choose to outsource hospital medical billing services. Medcare MSO is one of the best medical billing companies in the United States. Which provides complete and reliable billing services to optimize the revenue cycle management of your hospital.