Why Outsourcing Your Medical Billing Makes Good Financial Sense
Revenue losses derived from a decrease in patient visits drive the need for outsourced medical billing.
Executive summary: Today’s healthcare teams must lower overhead costs as much as possible because patient volumes have severely decreased, and predicting exactly when they will return to higher levels is not possible. The experts at CPa Medical Billing are just what the financial doctor ordered: outsourced medical billing and credentialing provides an array of immediate benefits to boost your practice’s cash flow and days of cash on hand.
The entire world is celebrating the efforts of our medical heroes, but for those healthcare financial executives not on the front lines, the current health crisis has seriously impacted their facilities’ financial pictures.
If you were ever part of starting up a practice or health center you would never forget the early days and how unpredictable it was to gauge countless factors like patient visits and revenue. There was lots of fixed cost uncertainty attached to establishing your medical practice, including medical billing. Today, just about every practice is in some sort of start-up mode.
Rebound from your revenue slump with outsourced medical billing, your “low hanging fruit”
As social distancing requires slow reopenings, practices previously booking four or more visits per hour per provider could now be reduced to just two visits per hour – and that’s if patient demand is enough to fill 2 visits per hour. A recent survey shows practices have reported a 55 percent decrease in revenue, and a 60 percent decrease in patient volume on average since April.
Reducing costs and administrative duties while increasing cash flow
The four major benefits of outsourcing your medical billing are decreased practice costs, decreased daily staff duties, increased cash flow and converting admin space to revenue generating space. Medical billers are constantly adjusting for medical coding changes and new technology platforms. Tele-health is yet another new layer of complexity to consider, and billing guidelines are constantly changing – sometimes daily.
Cutting costs is difficult, and we are here to help.
Budget cuts are typically tough, but we can make a very strong case to cut your billing department and pivot to outsourcing medical billing.
The following are a few key factors to consider:
- Immediate reduction to expenses: Cutting salary, benefits and all other associated overhead.
- Increased focus on patient care: Practices and facilities perform best when they focus all their efforts on patient care, including the patient experience.
- Gain revenue generating space: Removing admin billing staff opens up the opportunity to convert to revenue-generating space (i.e. exam rooms, in-house labs, or pharmacy).
- Deferred labor payments: Outsourcing allows deferred labor payments as billing fees are not due until 30 days after you collect your receipts – this provides an average of 45 extra days of free cash flow.
- Free cash flow increases days of cash on hand: Extra days of cash on hand is always a good thing, even more so when patient volume is unknown.
- Receive up to 90% increases in net collections: Our health center clients gained an average increase of 45% in net receipts, and our private practices gained an average of 20% in net receipts. Why? Simply put, CPa Medical Billing brings an expert staff of billers and certified coders that perform better than most in-house billing departments.
Improving patient satisfaction
Our outsourced billing services also include a patient statement call center, which takes the burden off your front desk staff so they can focus on providing more time and attention to your patients.
Extra time, care, precautions and empathy are all needed during this difficult time, and removing patient statement calls will give the practice more time to focus on patient care and the patient experience.
The CPa Medical Billing team is here to support you as much as we possibly can throughout these difficult times and beyond, so contact us today to get in touch with our team to find out how our industry-leading services can support you and your practice.