The amount of effort that goes into managing medical billing in-house exhausts the resources of many healthcare providers.
Revenue Cycle Management (RCM) encompasses the complex medical billing process starting from the first interaction with a patient to the time a payment is collected. Involving constantly changing billing codes, insurance verification, claims processing, and difficult collections, providers find their hands fill when it comes to medical billing and coding. The solution that many providers are starting to focus on is the utilization of RCM services. Partnering with a company that focuses on the management of your medical billing process has shown to improve the bottom line for many providers. This leads to a decrease in staffing costs, an improvement in clean claims, and an increase in the speed at which a provider receives a payment. Finding the right vendor for RCM services coupled with an efficient PMS (Practice Management System) offers a secure and accurate answer to improving billing and revenue for your practice.
Benefits of RCM Services for Providers
1) Increased Clean Claims
A clean claim is a claim that is approved on the first submission. A decrease in a provider’s clean claims rate is usually a result of incomplete/incorrect documentation or coding errors that delay timely payments. This decrease happens more often to providers who are managing their billing in-house. Due to factors like high staff turnaround or your staff focusing on more than just billing, in-house RCM services are unable to maintain an ideal clean claims rate.This costs the practice revenue and valuable time. By partnering with a vendor of RCM services, providers are handing their claims processing over to billing experts whose focus is on increasing the number of approved claims. By finding the right vendor, providers can see their first pass acceptance rate rise as high as 99% compared to the national average of 70%. This means that providers receive payments much faster without the need for manual re-work. Billing Services that utilize a trusted medical billing software have a higher first pass acceptance rate due to RCM features like code-scrubbing and built-in clearinghouse edits that let you know what errors can be resolved before they are sent to the payer.
2) Eliminating Staffing Costs
One of the resources that providers have to throw their money into is hiring staff. In-house medical billing staff often has a high turnaround rate. This is a poor situation for a provider to face for multiple reasons. Not only do they have to spend time finding someone to fill these positions, but they then have to invest more time and resources into training this individual to successfully manage their billing. This high turnaround leaves providers with denied claims and no resources to improve them. By outsourcing RCM services, providers eliminate the need to hire in-house billing staff. Instead, a set of expert billing professionals are dedicated to managing their billing. RCM services allow a provider the peace of mind to focus on the other important aspects of their practice, knowing that their billing is in the right hands. A quality RCM services vendor provides dedicated account managers who help to differentiate between mid-month and end-of-month payers to optimize timely payments while maintaining a high number of clean claims.
3) Improved Efficiency
The billing software RCM services use can have a significant impact on their efficiency as well. A software vendor can help automate billing processes even further and allow them to easily manage their customers and follow-up on claims. Utilizing an RCM service for your billing and coding needs allows medical providers to refocus on patient care, while still improving their bottom line with timely payments and decreased operational costs. RCM services can make great improvements to a provider’s billing practices and productivity. As long as they choose the right vendor for their specialty and one that uses a qualified medical billing software, they will get their claims paid fast and improve their revenue cycle reimbursement.
Keep up with the latest in Healthcare
Join thousands of physicians, billers, and office managers getting the best healthcare content right in their inbox.
At CollaborateMD we are obsessed with getting your medical claims paid fast. All of us at CollaborateMD are here and ready to help make your life easier.
Give us a call at 877.480.6517 for more information.