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Outsourcing accounts receivable can be a strategic decision for hospitals that want to improve their cash flow, reduce costs, and focus on their core competencies.<\/p>\n
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In today\u2019s changing healthcare environment, it is critical to continually optimize the revenue cycle for the best possible outcomes. Some organizations prefer to keep all functions in-house. Still, for many, it makes good financial sense to outsource certain revenue cycle functions<\/a> to a third party, allowing the organization to scale RCM functions<\/a> according to need.<\/p>\n One key trend in the current healthcare market is that of changing payer behaviors. Insurers are adding more complex layers of pre-approvals and rules that providers must navigate for payment.\u00a0This added red tape has increased claims denials <\/a>across the board. Many payers, including Medicare and Medicaid, are still slow to pay<\/a>, despite technological advances that should speed up the process.<\/p>\n All of this additional intricacy adds up to more complicated reimbursement and increases the number of staff required to work your AR, and increases the cost to collect. Current claims processors are under heavy pressure to deliver timely and accurate results as the workload piles up and more help is needed. The added work involved slows the organization\u2019s cash flow and adds more expense to the revenue cycle.<\/p>\n The story gets even more grim \u2013 we all know that the longer an account goes unpaid, the less likely the organization will receive payment at all. After 120 days, the average collection rate drops to only 10 cents per dollar owed<\/em><\/a>. Failure to collect reimbursement lengthens the entire revenue cycle, reduces cash flow, and results in revenue leakage<\/a>.\u00a0 One KPI that is a good indicator of healthy A\/R processes is the percentage of accounts in the \u201cover 90 days\u201d bucket. Industry averages for accounts > 90 days should be no higher than 18-22% of accounts receivable<\/a>. Organizations that are falling at the top end of that range or even above should consider alternative methods of securing payments and reimbursements promptly.<\/p>\n As the operational realities of AR change, more healthcare organizations are evolving their internal processes to rise to the occasion and improve their collection rates. While evaluating AR practices, financial leaders must ask questions judiciously of outsourcing partners to ensure the best<\/em> match is made.<\/p>\n <\/p>\n When your organization is ready to implement strategies to improve your collections, Healthrise is here to answer your questions. With Healthrise<\/a> managing outsourced AR and Revenue Cycle Solutions, your organization can collect more cash, at a lower overall cost. Schedule a demo<\/a> and talk to a specialist that can help assess your needs and answer questions.<\/p>\n","protected":false},"excerpt":{"rendered":" Outsourcing accounts receivable can be a strategic decision for hospitals that want to improve their cash flow, reduce costs, and focus on their core competencies. In today\u2019s changing healthcare environment, it is critical to continually optimize the revenue cycle for the best possible outcomes. Some organizations prefer to keep all functions in-house. Still, for […]<\/p>\n","protected":false},"author":1,"featured_media":11748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[9],"tags":[],"acf":[],"yoast_head":"\nAccounts Receivable is Changing<\/h2>\n
Questions to Consider When Selecting an Outsource Partner<\/h3>\n
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Once the choices are a bit clearer, some additional questions to ask are:<\/h3>\n
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