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Hospitals outsourcing billing

for financial gain

A 2016 Black Book survey revealed that 39.8% system for billing laboratory outreach and
of US hospitals outsourced complex claims why a lab outreach business should consider
to specialized vendors, up from 20.4% using an outside billing vendor to manage
of hospitals in 2013. the business revenue. A debated subject for
many in the hospital financial sector.
Black Book projects that the market will grow
at an annual rate of 25% over the next two Based on statistics, a median laboratory
years, with the market reaching a value of outreach business runs on a 30% operating
$9.7 billion by 2018. margin adding $3.9 – 4.1 million to the
Becker’s Hospital, CFO report, March 17, 2017 hospital’s bottom-line profit.
Chi Solutions, survey, April 2016
Hospitals are now showing greater profit
outsourcing of their hospital billing.
Let’s consider using a separate accounts
receivable system vs. hospital information

In a competitive market, an outreach Finding the right revenue cycle management vendor is
business should be viewed as a separate key to growth and profitability for the outreach business
business using a distinct AR system. program. Search for companies that are highly
experienced in laboratory billing and not physician billing.
Seek a vendor who accurately codes, bills, and
A separate AR system is capable of setting up multiple manages patient accounts through clear and concise
fee schedules and specific statement formats, provides financial reporting for complete transparency.
seamless updating of patient accounts, and facilitates Accounts need to be managed and reported on a
nursing home census tracking, billing of Part-A and Part-B, monthly basis. Set your expectations that you want from
insurance billing, patient billing, payment posting, and drill your revenue cycle vendor and include those items in
down reporting. The laboratory should be in control of the contract.
managing patient and client billing as well as receivables,
leaving the high-dollar amount to the patient accounting
departments for services rendered.

Streamlining the AR process by outsourcing can provide a
multitude of advantages compared to performing the work
in-house. Billing vendors concentrate more on advanced
billing and payment processing. They have awareness of
the laboratory as a changing industry. They are able to
handle and solve problems more efficiently
with better cash flow results.

RCM Enterprise Services, Inc. | A Revenue Cycle Management Company