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                Hospitals outsourcing billing

                                   for financial gain

                                            A 2016 Black Book survey revealed that 39.8%   system for billing laboratory outreach and
                                            of US hospitals outsourced complex claims   why a lab outreach business should consider
                                            to specialized vendors, up from 20.4%   using an outside billing vendor to manage
                                            of hospitals in 2013.                 the business revenue. A debated subject for
                                                                                  many in the hospital financial sector.
                                            Black Book projects that the market will grow
                                            at an annual rate of 25% over the next two   Based on statistics, a median laboratory
                                            years, with the market reaching a value of   outreach business runs on a 30% operating
                                            $9.7 billion by 2018.                 margin adding $3.9 – 4.1 million to the
                                            Becker’s Hospital, CFO report, March 17, 2017  hospital’s bottom-line profit.
                                                                                  Chi Solutions, survey, April 2016
                                            Hospitals are now showing greater profit
                                            outsourcing of their hospital billing.
                                            Let’s consider using a separate accounts
                                            receivable system vs. hospital information

           In a competitive market, an outreach                 Finding the right revenue cycle management vendor is
        business should be viewed as a separate                 key to growth and profitability for the outreach business
           business using a distinct AR system.                 program.  Search for companies that are highly
                                                                experienced in laboratory billing and not physician billing.
                                                                Seek a vendor who accurately codes, bills, and
        A separate AR system is capable of setting up multiple   manages patient accounts through clear and concise
        fee schedules and specific statement formats, provides   financial reporting for complete transparency.
        seamless updating of patient accounts, and facilitates   Accounts need to be managed and reported on a
        nursing home census tracking, billing of Part-A and Part-B,   monthly basis.  Set your expectations that you want from
        insurance billing, patient billing, payment posting, and drill   your revenue cycle vendor and include those items in
        down reporting.  The laboratory should be in control of   the contract.
        managing patient and client billing as well as receivables,
        leaving the high-dollar amount to the patient accounting
        departments for services rendered.

        Streamlining the AR process by outsourcing can provide a
        multitude of advantages compared to performing the work
        in-house.  Billing vendors concentrate more on advanced
        billing and payment processing.  They have awareness of
        the laboratory as a changing industry.  They are able to
        handle and solve problems more efficiently
        with better cash flow results.

          RCM Enterprise Services, Inc. | A Revenue Cycle Management Company
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