WHY OUTSOURCE

Based on a recent Black Book Survey of Physicians (blackbookrankings.com) here are some startling industry stats:

• 42% of All physicians practices (1 to 5 doctors) hope to outsource their billing in the next 12 month
  • One reason is because they are having to update and maintain the software they were sold.
  • Also they do not know how to use these big software systems.
  • These software systems have doubled the time that doctors spend with a patient instead of shorting it.
• 81% of All physicians say they are overworked or at full capacity
  • Up from 75% in 2012 and 76% in 2008
  • Only 19% say they have time to see more than patients.
• Physicians spend 20% of their day on paperwork
  • Billing paper work that has nothing to do with the patient care
• 89% of All physicians agree their billing and collections systems need upgrading
• 87% of All physicians state a preference for a single source RCM/EHR vendor
• Based on a single provider office sending 6,200 claims per year. According to Medical Group Management Association (MGMA) it cost an average of $27.50 to rework a denied claim.
  • This equates to roughly $33,000 per year.
• Effect ICD-10 will have on a practice:
  • 50.1% say it will create a severe administration problem
  • 11.3% say it will improve diagnosis and/or quality of care
  • 75.3% say it will unnecessarily complicate coding
  • 38.3% say it will expose physicians to liability/penalties

In-House vs Outsourcing

As you can see, the future of Revenue Cycle Management is having a specialist outside the office do the hard stuff, so the doctors can focus on practicing medicine.