The health care outsourcing market is growing, with technology, billing solutions and home health services becoming more common. Outsourcing can help your organization flourish by lowering equipment and software expenses, improving cash flow and enhancing the patient care journey. This field has great potential, so let’s explore how it can help health care organizations and what you need to know about choosing a partner.

How Outsourcing Helps Health Care Teams Succeed

In today’s competitive health care landscape, optimizing operational efficiency and financial performance is paramount. Outsourcing strategic functions lets your organization focus on core competencies — patient care and improved outcomes.

Outsourcing can offer dramatic benefits to health care organizations. Some technology solutions, for example, can help you provide a seamless experience with end-to-end resources throughout the patient journey. Other outsourced tasks might include billing or home health services. Like technology, they can help reduce staffing requirements and improve quality. However, these benefits depend on working with trustworthy partners.

Research shows that outsourcing in hospitals and health care organizations is gaining traction. Globally, analysts predict a compound annual growth rate (CAGR) of 9.7% between 2024 and 2029, from just over $395 billion to almost $627 billion.

Key Results of the Black Book Survey

Black Book Market Research surveyed health care clients benefiting from outsourced services. The survey reveals the health care outsourcing expansion, with more providers turning to outsourcing and automation to navigate financial challenges and operational inefficiencies.

Some vital results the poll uncovered include:

Collaboration and the Push for Outsourcing

The survey highlights that nearly 73% of medical group practices are working with consultants to develop accountable care reimbursement strategies. Many are also contemplating revenue cycle outsourcing as they evaluate their technology options. The demand for these outsourcing services stems from the need to enhance return on investment (ROI) in revenue cycle management (RCM), cut costs and improve operational efficiency.

CFO Perspectives on RCM and ROI

From the viewpoint of chief financial officers (CFOs), the lack of a clear ROI is a pressing concern. According to the survey, 79% of CFOs believe that eliminating non-ROI-generating financial and coding technology vendors is crucial. Over half — 54% — are confident that outsourcing RCM processes can boost productivity and solidify their financial foundations. The urgency for RCM upgrades is underscored by the fact that 89% of healthcare providers recognize the need for modernization.

Challenges in RCM Management

The survey also points out that a mix of outdated tools and modern technology complicates RCM management. As improper RCM practices begin to impact cash flow, claims management emerges as a critical area ripe for vendor opportunities. In fact, 83% of hospitals, along with 58% of contract management and 55% of denial management entities, are already outsourcing certain aspects of accounts receivable and collections.

Insights for Smaller Hospitals

The survey reveals 50% of U.S. hospitals anticipating a core RCM solution replacement have yet to launch a sustainable RCM plan. It finds that 40% of hospitals with fewer than 200 beds are postponing RCM transformation efforts, potentially jeopardizing their financial stability and quality of patient care. Furthermore, only 10% of hospitals believe their RCM strategy will be influenced by their core information system (CIS) vendor relationship, with 58% of CFOs in smaller hospitals prioritizing vendor relationships over RCM performance.

The Role of Outsourcing in RCM Strategy

Despite these challenges, the survey indicates a growing recognition of the value of RCM outsourcing. About 80% of hospital CFOs view outsourcing as a temporary solution until they can afford new RCM software. More than two-thirds are pursuing outsourcing agreements lasting 18 to 36 months. Furthermore, 72% of CFOs in smaller hospitals see end-to-end RCM outsourcing as the most effective immediate strategy. In comparison, 93% of larger hospitals anticipate supplementing their RCM software with outsourcing services as they navigate coding challenges and explore value-based reimbursement opportunities.

3 Benefits of Outsourcing in the Health Care Industry

Outsourcing delivers numerous benefits to the health care industry.

Significant Cost Savings

Cost savings rank high among the primary advantages health care outsourcing provides. Organizations can minimize their spending on essential operations like IT while enjoying access to highly specialized knowledge and experience. With these cost savings, they can increase investments in other areas, like upgrading patient access and outdated equipment.

Specialized Health Care Solutions

Highly specialized services solve unique industry needs and complex workflows to improve revenue. AI-powered technology allows for efficient communication with patients, in their preferred channel such as text, email, or chat. Partnering with the ideal vendor can translate directly into a healthier bottom line.

Better Focus on Patient Care

Your organization positions itself to gain many efficiencies through outsourcing. That’s especially true in service categories where the landscape changes rapidly. By outsourcing, you leverage your vendor’s assets and expertise instead of adding responsibilities to an often already overwhelmed staff — your team can focus on its core mission of delivering world-class patient care.

While outsourcing may put some patient-facing responsibilities in the hands of your vendor partners, this is easily overcome through a strong vetting process and working with a vendor who white labels their services. That means they use your branding, scripting, and processes to ensure patients get the same personalized service they would get from someone on your own staff. Look for someone with policies and procedures that align with your values and can offer your patients the best experience from start to finish. You’ll also want a partner with dedicated implementation resources who can manage the process for you.

Health Care Revenue Cycle Management Outsourcing

Health care revenue cycle management (RCM) includes many different parts of the patient’s journey, and you can outsource it to an experienced provider. A revenue cycle strategy is crucial for value-based care and a positive end-to-end patient experience, spanning nearly every interaction with your organization, from patient intake to patient payment. Doing it in-house usually requires a large team to manage these varying touchpoints while maintaining compliance and minimizing errors.

Some examples of tasks that can fall under health care revenue cycle outsourcing include:

• Collecting payments either before or after appointments
• Issuing statements
• Providing self-pay options, such as mobile pay or a patient portal
• Calling patients to collect unpaid bills
• Helping patients make payments, understand bills and other processes

With health care’s evolving payment landscape, dedicated RCM professionals can help you respond to challenges with a suite of fully integrated tools. Millennia, for instance, uses a comprehensive solution to intelligently automate patient engagement. We reduce the demands placed on your staff while improving the patient experience for better cash flow and compliance.

The benefits of outsourcing revenue cycle management include everything from strengthening your relationships with patients to improving cash flow. Outsourcing your revenue cycle management strategy allows the experts to tackle these processes for optimal results so your team can focus on what it does best.

Outsource Your Revenue Cycle Management Processes With Millennia and Increase Your Revenue

Hospitals and medical groups are looking for ways to reduce costs and fill staffing gaps and outsourcing is a strategy that can result in financially healthier organizations. At Millennia, we make increasing patient revenue a seamless part of your workflow.

Millennia Patient Payment Solution works with your existing health information systems to:

• Increase digital engagement: Provide patients with interactive technology that’s a joy to use to enhance adoption and save time.
• Boost provider revenue: Capture more patient payments faster with solutions that maximize payment processes and options.
• Create enjoyable patient journeys: Impress patients with a seamless digital experience to encourage their loyalty.

Learn how our solutions can help you achieve a 100%-300% increase in self-pay revenue while integrating with your current technology.

Request a consultation for more information.

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