Claim processing is the economic life blood of a facility. It is highly technical and requires extensive specialized training. In today’s economic climate, operating efficiently is a matter of survival.
Shrinking profit margins, reduced allowables, increased regulations and red tape have led some hospitals to decide that outsourcing billing to a professional medical billing company is an attractive alternative.
Considering these realities, let’s examine a few of the advantages of outsourcing medical billing.
1. Experienced billing and coding professionals will be working for you
A billing company can afford to hire the best staff possible; a staff that comes with the highest level of training, expertise, and years of experience.
2. Help ensure Accurate Reimbursement
A professional medical billing company team has only one purpose: to increase the profitability of your facility. If your facility does not make money, the billing service doesn’t make money; so every outstanding claim is tracked until it is processed and paid to its fullest. Experienced, professional medical billers can ensure that charge entry errors or payer reimbursement issues are identified early before they spiral out of control.
3. Better Perspective on Financials
You will be able to quickly access accurate monthly and annual reports. Expert billing service personnel can be consulted to assist with any report-related questions.
4. Navigate a Constantly Changing Industry
Keeping up with the ever changing rules and requirements of medical billing is difficult under the best of circumstances, requiring constant education and vigilance. Overburdened office staffs don’t always have the time needed to dedicate to these tasks, leading to claim errors and denials that slow down or reduce cash flow.1
5. Help Ensure Billing Compliance
A professional medical billing service has access to a vast knowledge base that keeps them on the cutting edge, and via networking; they can share this knowledge with your facility.
6. Improve Cash Flow
You need to put money in the bank; not on the books. Cash flow is key. Your days in AR, or revenue cycle time, has a significant impact on your bottom line. Outsourcing medical billing should and will result in faster claim submission with fewer errors, so you receive payment from payers in the shortest amount of time. All denials will be promptly researched and resubmitted for timely payment, to achieve the highest reimbursement possible in the shortest amount of time.
7. Reduce Stress by Producing More Cash
The less money that is erroneously adjusted off or the fewer claims sent out incorrectly means more money in your pocket faster.
Multiple scrubs are used to ensure that claims are submitted correctly and can quickly review denials for accuracy.
Efficient policies and procedures will be utilized, reducing your cycle time and significantly increasing your cash flow.
A good billing service works hard to improve your collection rate. Most facilities employing a billing service see an increase in revenue that far outweighs the billing service fee. Typically, a hospital can expect a 5% to 15% increase in the amount they’re able to collect by switching to a billing service while many firms can help increase collection rates even more.2
Ask yourself these questions:
1. Are your Days in Accounts Receivable too high? (55 days or more) 3
2. Are your Dollars in Accounts Receivable too high? (17% of Net Revenues) 4
3. Is your Net Collection Rate less than 90%? 5
4. Are you experiencing an increase in Denied Claims? (more than 4% of gross) 5
5. Or are you simply falling behind in claim processing and need temporary assistance?
If you have any concerns or questions, call or email Donald Tapella
for a FREE consultation (816) 229-4887, ext.111
And for additional information, including a complete listing of our services,
visit the Medical Recovery Services website at: www.mrsa1.net