Are you noticing your AR goes beyond 30 days? Is your billing team submitting more claims, but your monthly revenue is the same? Are you seeing a high turnover rate for your billing staff?
If you’re experiencing any of the above situations, then accounts receivable outsourcing services could provide you with some assistance. Since DME billing outsourcing is an investment into your business, learning its potential ROI can help determine if it’s worth your time. This article will guide you through evaluating your possible ROI for AR outsourcing.
Determining Your ROI For Accounts Receivable Outsourcing
Before determining if you should invest in DME outsourcing, you first need to understand how much your current billing operations costs. One way to learn the current billing costs is to review your yearly fixed and variable expenses, which will help you better understand your accounts receivable outsourcing ROI.
Some of the yearly fixed billing department expenses can include:
- Billing software fees
- Employee compensation insurance
- Payroll costs for billing staff (including employee benefits)
- Payroll taxes
Some of the yearly variable billing department expenses can include:
- Claim rejection rates (loss of income)
- Claim denial rates (cost to resubmit claim)
- Employee training
- Searching and hiring new billing staff
Calculating Your ROI
In order to calculate your ROI, gather and review all of the above data. This information will give you a bigger picture of your current billing costs. Then when you begin to interview potential DME billing companies, you have a current cost to compare.
It’s Not One for One
It’s important to note that in-house and outsourced billing staff aren’t the same. When you outsource, you gain additional resources that aren’t always possible with an in-house billing team. Keep the following in mind when evaluating your potential ROI for outsourcing.
- Access to significantly more DME billing experts
- Fresh new perspective into your processes
- Discover potential billing gaps
- Find areas for improvement
- Offer new ways to strengthen your processes
- Help you become audit ready
- Provide you with guidance on how to navigate regulation changes
#1 Reason to Consider Outsourcing Your Accounts Receivable Needs
The purpose of AR outsourcing is to help your team navigate the industry’s constantly evolving payor policies, copayments, and coinsurance details. Outsourcing companies can assist with developing and implementing strategies to strengthen your business. With that in mind, one of the most significant reasons DME providers choose to outsource is to maximize their claim payments and have peace of mind that they’re receiving claim payments on time.
2 Types of AR Services
Depending on your business objectives and budget, you can choose from two categories of AR services: AR Collections and AR Follow-Up.
AR collection services focus on proactively following up on your outstanding claims and invoices. They’ll also provide staff with regular education on industry rules and guidelines.
AR follow-up services focus on working on current denied claims until resolution is met and processes those claims through various resolution methods. Additional services can include handling payment posting, charge entry, and verification for claims.
Discover More About Medbill
When you have an efficient AR process, you’ll have a reliable monthly cash flow with more simplicity, and Medbill can help you achieve that outcome! Our accounts receivable outsourcing services can assist you in reducing your aging AR, increasing payments received within the first 30 days, and more.
Contact us to learn about our proven track record and how we can use our expertise to strengthen your AR.