Why You Should Consider Accounts Receivable Outsourcing
Overdue payments and claims denials can profoundly impact a medical practice’s bottom line if they remain unresolved. A well-structured health system should be able to pursue and recover lost revenue and track unpaid claims efficiently. It’s possible to hire an in-house team of highly-trained coders and billers to improve cash flow, but many small businesses may struggle to find the time, money, and resources to screen, onboard, and train the right crop of professionals.
Accounts receivable (AR) outsourcing presents an alternative. Rather than build an internal team to secure working capital, organizations can connect with a third party to oversee their strategic account management efforts. These solutions are scalable, customizable, and flexible—but how sustainable are they? Keep reading to learn more about AR outsourcing and the advantages and disadvantages of the traditional approach.
The Disadvantages of Outsourcing Accounts Receivable Management
A well-structured AR management strategy is your protection against non-payment. Lost revenue and aging accounts negatively impact your bottom line when ignored and unresolved. Outsourcing accounts receivable management can be a cost-effective and scalable solution to dedicating the time and effort needed to build an internal team. Still, there are qualities a homebrewed team offers that an outsourced solution may struggle to replace.
The downsides of accounts receivable outsourcing include:
You naturally depend on a third-party firm’s expertise and resources when collaborating with one to handle your AR processes. Many organizations outsource their accounts receivable management to focus more on patient care and other duties—they expect their service provider to help them collect what they’ve earned, strengthen their core business, and promote their long-term productivity and profitability.
When a firm falls short, the consequences can be severe, and trying to turn the situation around and decouple from a provider can be messy, resource-intensive, and time-consuming. It’s essential to perform detailed research and weigh your options to ensure you outsource to a company that understands your requirements and has the experience to enhance and maintain your accounts receivable management strategies.
In many cases, it’s easier to communicate with in-house employees than with an outsourced team. When you build an internal team of billers and coders, you keep all your information under one roof. Your control over patient information and account details is direct, and with the proper structure, it may be more reliable than what any third-party firm can offer.
When you outsource account management, you may lose visibility and control. If your partner doesn’t offer the resources you need to communicate and collaborate with them effectively, the experience can become frustrating and stressful.
The Advantages of Outsourced Account Management
An outsourced account management firm with up-to-date tools and resources can transform your health system and help optimize your revenue stream. You’re free to address other vital responsibilities while your third-party team of billers and coders track down payments and resolve claim denials quickly and efficiently. Outsourcing services offer a scalable and cost-effective alternative when you don’t have the money or time to establish an internal team.
The key benefits of outsourced account management include:
Access to Expertise
An outsourced accounts receivable management team should have a solid background in medical billing and coding procedures. They should be up to date on the latest Current Procedural Terminology (CPT) and have a firm grasp of your short- and long-term core business objectives. When you align with an outsourced team, you don’t need to spend money finding, training, and onboarding professionals—the firm handles that for you, ensuring you receive the support you need to create and maintain orderly medical records.
Pursuing denied claims requires time and concentration that many medical professionals may not have to spare. Horizon Healthcare RCM approaches accounts receivable management with an attention to detail that simplifies the payment recovery process.
Effective AR processes involve more than uncovering lost accounts and sending the occasional payment reminder to patients. Proper billers and coders prioritize your reimbursement efforts and initiate positive interactions to elevate the patient experience.
If your in-house team struggles to provide adequate follow-up, your outsourced provider ensures overdue patients understand their financial responsibilities and have all the documentation they need to resolve their accounts successfully. You don’t need to worry about revenue falling through the cracks or damaging your relationship with patients due to inconsistent communication. The ideal outsourced management team is highly-trained, thorough, and courteous.
Reliable accounts receivable outsourcing services include deep analysis that promotes your visibility. Outsourcing firms use advanced software to provide a complete view of your health system. They apply varied and detailed reporting options, including performance and liquidation reports, inventory reconciliations, root cause analyses, and more. With these insights, you have the resources to identify learning opportunities and improve your medical billing follow-up procedure.
Horizon Healthcare RCM Is Your Source for Impactful Outsourced Account Management
You don’t need to struggle with accounts receivable follow-up. Our team has the billing and coding expertise to carry out your AR processes while you attend to patients. It’s a simple solution that improves your profitability and increases your mobility.
We’ve mastered medical terminology and align our services with your short- and long-term financial objectives. When you partner with us, a certified accounts receivable management team leads every project, applying advanced technology to identify trends and create versatile solutions to remediate cash flow issues.
Ready to enhance your health system? Reach out today.