The expertise needed by hospitals and doctor's offices to successfully navigate in that environment is more and more outsourced to vendors specializing in that type of service.
The ultimate goal of outsourcing medical billing is Revenue Cycle Management (RCM), the time it takes from submission of payment to payment received. Apart form a timely submission the key component to shorten the Revenue Cycle Management is the correct submission. Submitting a claim in such manner that it gets approved on the first submission represents real money to the hospital or doctor. Driven by their clients outsourcing providers therefor place key emphasis on the successful 1st acceptance.
The Medical Outsourcing market is expected to grow in the high single digits in 2016. The continued increase in adoption can primarily be attributed to a combination of the following:
- Increasing emphasis on compliance and risk management and the need for efficient processes
- Reduction in processing costs compared to an in house medical billing department
- Built in staff redundancy by outsourcing
The overall medical billing market is dominated by a few big industry players. Companies like Cognizant Technology Solutions, HCL Technologies, Accenture and Genpact are estimated to control about 70 % of the global outsourced medical billing market.
Outsourcing Medical billing is one of those industries where it is hard to argue against the benefits it provides. The reduction in costs associated with it help to lower insurance premiums for everyone. As such the medical outsourcing industry can play a viable part in reducing the continued expansion in healthcare costs.