As part of an ongoing strategy to meet Meaningful Use requirements and cut costs, a growing number of providers are turning to revenue cycle services, according to a new report from KLAS — Revenue Cycle Services: Which Firms Deliver Big Returns.
The study found that ICD-10 preparation and reduced reimbursements are also contributing to the demand for outside revenue cycle assistance to improve cash collections, reduce A/R days, and manage legacy claims.
“Providers are looking at every process in their revenue cycle,” said Mike Smith, VP of professional services research at KLAS. “Many are turning to third-party firms for extra help with everything from temporary project-based work to continual assistance with ongoing A/R follow-up or even full outsourcing of their revenue cycle department.”
The report, which identified process improvement as the most significant benefit of outsourcing, focuses on three primary sources for addressing providers’ revenue cycle struggles:
- Engaging with extended business office services (EBOS) firms for self-pay, private and government insurance, workers’ compensation, legacy A/R, and financial clearance and counseling
Contracting with revenue cycle outsourcing (RCO) firms for providers seeking full-scale outsourcing
- Working with revenue cycle transformation (RCT) firms for providers seeking leadership and direction in improving processes and reassessing
Of the firms included in the report, Deloitte Consulting, PwC (government insurance), and Cymetrix (private insurance, self-pay, service to patients) led the pack in extended business office offerings, and Huron edged out PwC in revenue cycle transformation.