Managing a hospital’s finances is no easy feat, especially when it comes to collecting payments for services rendered. At Marcam Associates, we specialize in accounts receivable (AR) services to relieve healthcare providers of this burden. Many successful hospitals recognize the immense benefits of outsourcing their AR to experts like us, allowing them to focus on what matters most: patient care.
In this article, we’ll dive into the seven key benefits of outsourcing accounts receivable for hospitals. We’ll also address some of the most common reasons hospitals hesitate to outsource and explain why they don’t outweigh the advantages.
1. Significant Cost Savings
Outsourcing AR can save hospitals a substantial amount of money. In-house billing departments can be costly to maintain, requiring dedicated staff, technology, and training. Hospitals often struggle with tight margins, and handling AR internally requires continuous investment in resources like payroll, software, and compliance updates.
Why it works: When hospitals outsource AR, they no longer have to worry about the overhead costs of managing billing staff or investing in ever-evolving technology. Instead, they pay a specialized partner only for the services they need, often leading to lower overall expenses.
Addressing the Objection: “We don’t want to lose control over our billing processes.”
Outsourcing doesn’t mean losing control—it means delegating tasks to experts. With the right partner, you’ll still have full transparency into your AR process, with detailed reporting and collaborative decision-making.
2. Enhanced Efficiency and Streamlined Operations
Outsourcing AR gives hospitals access to teams that specialize exclusively in medical billing and collections. These teams are equipped with optimized workflows, advanced software, and well-honed processes that improve the speed and accuracy of revenue collection.
Why it works: Hospitals that outsource their AR notice quicker turnaround times, fewer errors, and higher recovery rates. Our teams focus solely on billing, follow-up, and collections, allowing hospital administrators to focus on improving care and operational efficiency.
Addressing the Objection: “We’re worried about potential delays in payment processing.”
On the contrary, outsourcing typically speeds up the process. Dedicated AR professionals are incentivized to collect payments quickly, leading to improved cash flow for your hospital.
3. Access to Specialized Expertise
Managing AR in-house often means relying on generalists. Outsourcing, on the other hand, gives hospitals access to experts who are deeply familiar with the complexities of healthcare billing, insurance claims, and regulatory compliance.
Why it works: AR professionals are skilled at navigating the intricate web of payer contracts, reimbursement rates, and denial management. Hospitals benefit from this expertise, ensuring claims are processed accurately and timely, while reducing costly denials and write-offs.
Addressing the Objection: “Our in-house team already knows our patients and systems well.”
While familiarity with internal systems is important, specialized AR companies bring a level of expertise and industry knowledge that can’t always be matched by an in-house team. Plus, a reputable AR partner will work closely with your hospital to ensure smooth integration and maintain personalized service.
4. Improved Compliance and Reduced Risk
Healthcare billing and collections are fraught with complex regulations, including HIPAA, Medicare, and state-specific laws. Staying compliant requires constant vigilance and updates, which can be a burden for internal teams.
Why it works: Outsourcing AR reduces compliance risk because the partner is responsible for staying up-to-date with all regulatory changes. They are dedicated to ensuring billing practices are compliant, avoiding costly penalties or audits.
Addressing the Objection: “We’re concerned about data security.”
Reputable AR outsourcing companies, like Marcam Associates, use industry-leading security protocols to protect patient information. Our compliance teams are trained in safeguarding data and ensuring compliance with all regulatory requirements.
5. Better Patient Experiences
While it may not seem obvious at first, outsourcing AR can improve the patient experience. Billing is often a pain point for patients, especially if they receive unclear or delayed statements. Outsourcing to professionals ensures clear, timely communication with patients and quicker resolution of billing issues.
Why it works: Outsourced AR teams are trained in customer service and can provide patients with accurate, transparent billing information. This leads to fewer disputes, faster resolution times, and an overall improved patient experience.
Addressing the Objection: “We don’t want to lose our relationship with patients.”
A trusted AR partner acts as an extension of your hospital, representing your values and providing a patient-first approach. With transparent billing processes and improved communication, your hospital’s relationship with patients can actually improve.
6. Higher Accuracy and Fewer Billing Errors
Billing errors are costly and time-consuming to resolve. Inaccurate claims lead to delays, denied claims, and frustrated patients. By outsourcing, hospitals can drastically reduce errors through the use of specialized software and expert teams who focus solely on AR.
Why it works: AR outsourcing partners use advanced billing systems that minimize errors, improve claim accuracy, and ensure timely submission. The result is fewer rejected claims and a smoother billing process overall.
Addressing the Objection: “We’re worried that an external partner won’t understand our systems.”
Reputable AR providers partners work closely with hospitals during the onboarding process to ensure a seamless transition. They integrate with your existing systems and tailor their services to fit your specific needs. Many AR partners are proficient in various systems and need minimal training.
7. Focus on Core Competencies – Providing Quality Care
Perhaps the most compelling reason to outsource AR is that it allows hospitals to refocus on their primary mission: delivering high-quality care to patients. By outsourcing administrative tasks like billing and collections, hospitals free up time and resources to enhance patient care.
Why it works: When hospitals are bogged down with administrative tasks, it can detract from their ability to provide care. Outsourcing AR enables healthcare professionals to dedicate more time to improving patient outcomes rather than worrying about unpaid bills.
Addressing the Objection: “We’re concerned about relinquishing control.”
Outsourcing AR doesn’t mean losing control—it means choosing where to focus your hospital’s resources. With the right partner, you’ll gain a collaborative relationship that ensures your financial processes are efficient and aligned with your goals.
Why Hospitals Hesitate to Outsource AR – And Why Those Concerns Are Often Misguided
While the benefits of outsourcing AR are clear, many hospitals are hesitant to take the leap. Here are some common concerns and why they shouldn’t hold you back:
- Loss of Control:
Hospitals fear that outsourcing means giving up control over the billing process. In reality, outsourcing often provides more control through detailed reporting, increased transparency, and more predictable cash flow. - Security Concerns:
Hospitals may worry about the safety of patient data when outsourcing. However, leading AR providers invest heavily in security measures, ensuring HIPAA compliance and protecting sensitive information. - Impact on Patient Relationships:
Some worry that outsourcing billing may damage relationships with patients. However, outsourcing can enhance the patient experience by offering more efficient billing and clearer communication. - Initial Cost of Transition:
Hospitals may be concerned about the short-term costs of transitioning to an outsourced model. However, the long-term savings, increased cash flow, and reduced administrative burden far outweigh these initial costs.
Final Thoughts
Outsourcing accounts receivable is a proven strategy for hospitals looking to improve their financial performance, reduce administrative burdens, and focus on delivering exceptional patient care. The benefits far outweigh the risks when hospitals partner with a trusted, reputable provider partner like Marcam Associates. If you’re considering outsourcing your AR, we’re here to help. Explore our website or reach out to a team member to learn more!