Best Practices for Outsourcing to Drive
COVID-19 has accelerated the trend toward outsourcing
revenue cycle tasks, according to a recent report by Modern Healthcare.
Outsourcing at the right time presents a proactive strategy to reduce costs and
drive financial recovery.
Even before the impact of the pandemic, many providers
were leaving a good portion of unresolved insurance accounts untouched due to
staffing shortfalls, budget constraints or an influx of volume. Left unworked, those accounts will age out, becoming less
collectible over time, as shown in the chart below:
Outsourcing, a Race Against Time (a Meduit white paper)
Best practices dictate working accounts every 30 days. If
that is not possible, outsourcing at the right time can balance internal team
efforts with maximizing cash generation, as shown in the following three case
Case Study 1: A mid-sized regional hospital was able
to increase its collections by five times through outsourcing. The hospital’s
business office worked accounts in-house for 120 days, then outsourced at day
121. Outsourcing resulted in a total ROI of nearly $1.5 million per month.
Case Study 2: A multi-hospital system engaged an
outsourcing partner to leverage AI solutions to resolve small balance accounts
that were not getting worked in a timely fashion. By doing so, the hospital
system increased its recovery rate by 10% on aged accounts in the first month
Case Study 3: A regional health center had claims
backlogs due to staffing challenges. Working with a third-party RCM organization,
the health center leveraged AI technologies to complete approximately 60% of
the claims volume, generating a cash acceleration of $4.7M over the baseline
average in a three-month period.
You can read more about these case studies in the AAHAM Spring Journal article Best Practices for Outsourcing Accounts Receivable to Maximize Revenue Collections, authored by Meduit CEO Jeff Nieman.
DOWNLOAD THE PDF HERE: