The advantages of outsourcing revenue cycle management
When revenue cycle management (RCM) is managed internally, many home health and hospice organizations experience financial losses caused by poor performance such as aged AR, write-offs from unresolved denials and late NOEs and NOAs, unsupported contractual adjustments and underpaid claims. Outsourcing RCM services can help, but many agencies are hesitant to give up control to a third party.
This inability to justify the return on investment of outsourcing RCM services can keep agencies from scaling. As these organizations seek to enhance efficiency, reduce costs, and improve overall financial performance in this new era of care, they must understand the advantages of outsourcing RCM.
What are the benefits of outsourcing RCM?
The specialized expertise offered by companies with RCM services can have significant advantages — especially with companies that focus exclusively on billing and coding in the home health sector, as they stay ahead of industry regulations and employ efficient processes to handle claims processing and denial management, ultimately leading to more accurate billing and improved revenue collection.
More benefits of outsourcing RCM include:
- Increased cash flow
- Business continuity
- Ability to scale quickly
- Advanced training
- Payor expertise
- Compliance management
- Assistance with identifying and resolving EHR set-up issues
Outsourcing RCM can also help with cost savings by reducing the need for extensive in-house teams, associated salaries and benefits.
This strategic shift allows them to concentrate on delivering high-quality, compassionate care while leaving the administrative and financial aspects to specialized outsourcing partners.
Who can benefit from outsourced RCM?
According to Grand View Research, the US medical billing outsourcing market size was $5.2B in 2022, and is expected to grow at a compound annual growth rate of 11.56% from 2023 to 2030.
The demand for outsourced RCM is clearly growing, but who benefits? Home health and hospice agencies that are experiencing:
- Staffing turnover in skilled, certified positions
- Payor audits and regulatory compliance concerns
- Cash flow issues
- A new EHR or lack of system knowledge
Outsourced RCM offers agencies a strategic solution to enhance financial efficiency and streamline operations. These services help redirect internal resources toward their core mission — providing exceptional patient care.
By leaving the administrative burdens of billing and reimbursement to specialized RCM companies, agencies can focus on enhancing clinical operations, improving staff training, and fostering patient satisfaction.
Connect with us today to see how MatrixCare can help you take control of RCM.
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MatrixCare provides an extensive range of software solutions and services purpose-built for out-of-hospital care settings. As the multiyear winner of the Best in KLAS award for Long-Term Care Software and Home Health and Hospice EMR, MatrixCare is trusted by thousands of facility-based and home-based care organizations to improve provider efficiencies and promote a better quality of life for the people they serve. As an industry leader in interoperability, MatrixCare helps providers connect and collaborate across the care continuum to optimize outcomes and successfully manage risk in out-of-hospital care delivery.
MatrixCare is a wholly-owned subsidiary of ResMed (NYSE: RMD, ASX: RMD). To learn more, visit www.matrixcare.com and follow @MatrixCare on X
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