When patients’ accounts go unpaid, it’s time to make an important decision. Do you continue to devote time and resources internally to obtaining payments or do you hire a vendor? More and more healthcare professionals are wrestling with this decision and many other questions regarding outsourcing their revenue cycle management.
As healthcare organizations look to a post-pandemic world, the ability to enhance cash flow grows in importance. Unfortunately, it can be tricky to find the best vendor.
The biggest advantage is that outsourcing saves you valuable time. On the other hand, you want to make sure the company you hire is not only cost-effective but also acts in a way to maintain the relationship you have with your patients.
Here, we’ll explore some of the points to consider before partnering with a revenue cycle management company.
Statistics from 2020
It’s no surprise that last year was far from profitable for healthcare organizations. Revcycle Intelligence published a survey of hospital executives and finance leaders that reported on some financial challenges that were experienced last year. As of August 2020, respondents to this survey saw:
- 48% increase in debt and uncompensated care
- 44% increase in uninsured or self-pay patients
- 41% increase in Medicaid patients
Combine that with a decrease in the number of privately insured patients plus a decrease in the clinical volume, and the need to resolve outstanding accounts becomes apparent. Ask yourself these questions to determine which vendor to select.Do They Have Healthcare Experience?
Anyone working in revenue cycle management knows the importance of complying with the Fair Debt Collection Practices Act (FDPA) and the Telephone Consumer Protection Act (TCPA).
But in healthcare, you need much more than that.
Healthcare is a unique industry with a specific language and government regulations. That’s why you should focus your search on companies who understand HIPAA medical privacy laws. Ask about their clients to determine the full extent of their healthcare experience. Next, ask about their process. Successful outsourcing arrangements depend on constant communication. Therefore, make sure there is a formal communication strategy to keep you in the loop.
Can They help at The Front of The Revenue Cycle?
When Benjamin Franklin said, “An ounce of prevention is worth a pound of cure,” he could have been talking about revenue cycle management. That’s where early out collections enter the picture. With the proper procedures in place from the beginning, the rate of patients paying on time accelerates.
This means starting the conversation with the patient as early as possible.
Look for a company that offers a billing services team to create patient-friendly statements. If patients receive bills that explain the charges in easy-to-understand language, they are more likely to pay medical bills quicker without tying up the billing office with phone calls.
How Professional Are the Representatives?
Regardless of whether you hire a company to assist with your early out or your bad debt, your reputation is on the line. Patients will form an impression of your organization based on the way they are treated. They will not know that they are being contacted by an outside vendor.
Talking to patients about payment issues requires a friendly and empathetic tone of voice. Plus, by using easy-to-understand language, free from medical billing jargon, you’ll avoid patient misunderstandings. You have two goals: receiving payment for current services and maintaining that patient for the future.
Choose the Right Partner: Contact Credit Management Company
As is the case with all business partners, your revenue cycle vendor can be the make or break point for your financial success. As they will be acting as an extension of your business office and representing your name, it’s important that you trust your partner to act in your best interest. With 55 years of experience, Credit Management Company is proud of the relationships we forge with our clients. To learn more about how we can improve your revenue cycle in the new year, contact us.