Welcome to the second article in our seven-part series, where we highlight the pillars of successful private medical practices. This will discuss the value of a well-vetted revenue cycle management team for your private practice.
The Second Pillar of Private Practice Success: Identify a well-vetted revenue cycle management team.
Like all businesses, your private practice needs cash flows; however, medical professionals face unique revenue challenges in the healthcare industry. First, there is room for administrative delays caused by events such as:
- Inaccurate coding
- Human error in the medical claims process
- Inaccurate or incomplete demographic and contact information for billing
Additionally, there is often a knowledge barrier within the healthcare industry. This makes it difficult to recruit and maintain highly qualified staff, and often results in increased errors or delays throughout the cashflow process.
The knowledge barrier is especially present in the discussion surrounding regulatory compliance. As the industry advances, the rules and regulations change at a rapid rate. The variety of legislation – such as HIPAA, Safe Harbor Regulations, and overall compliance expectations – is creating unique requirements for each standard. The increasing list of compliance regulations, coupled with the continuous changes, creates a difficult environment to remain current.
For these reasons, among several others, many healthcare practitioners choose to outsource their revenue cycle process.
The Benefits of Outsourcing
Various organizations and providers have realized that they are afforded the ability to provide an increased quality of care – while living up to their mission statement- through outsourcing efforts.
Through outsourcing, practitioners gain access to a fully trained, competent staff, without the immediate overhead cost of employing those individuals. A staff with expertise can actively reduce denials through proper claims management.
Utilizing an efficient method of claims management can contribute to a reduction in the average net patient accounts receivable days. This means you get paid for your hard work in a timely fashion.
Finally, an outsourced group can help ensure there is maintained regulatory compliance. This will help minimize any related disruptions to your operations.
Overall, the effects of outsourcing the revenue cycle management process can result in an increase of days-cash-on-hand. Additionally, practices often see year-over-year improvements to their bottom line. Establishing a healthy financial foundation is critical to the success of your practice.
So, how does one vet a revenue cycle management company?
Choose a revenue cycle partner that values both technology and the human relationship.
Quality revenue cycle teams will utilize a modern technology suite that is integrative to your operations, paperless billing options, and processes that are beneficial to both parties involved. Furthermore, they will be eager to monitor the process and solve any billing delays swiftly. They will have staff available for necessary communications and revenue cycle management, who are happy to help your team and patients.
However, the number one focus of your revenue cycle partner must be well-established communications. This means you should avoid partnering with a group that is afraid to tell you when you are going in the wrong direction, or anyone who struggles with transparent and timely communication in general.
The team at On Demand is prepared to utilize their communicative abilities to begin bridging the knowledge barrier felt within the industry. Our team can hold successful communications with practitioners and patients alike to ensure the transfer of information is fully comprehended. These communication tactics, coupled with the use of modern technology, allow us to aid you in the process of informed decision making for your practice and revenue cycle management processes.
Remember, On Demand Solutions can be a pivotal part of each pillar of your private practice success – from initial business plans to daily management of your practice. If you would like to learn more about any of our seven pillars of success, or about revenue cycle management in particular, get in touch.
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