More Healthcare Providers Outsourcing RCM Services

December 3rd 2014 - Wednesday

Driven by pressure from changing value-based payment models, healthcare providers are increasingly outsourcing revenue cycle management (RCM) services, according to industry research house Black Book.

Black Book predicts the market for RCM outsourcing will approach US$10 billion by 2016.

According to industry watchdog Black Book, hundreds of healthcare providers have contracted companies in the past two years that handle all aspects of RCM.

“It has been no surprise that many overwhelmed hospital leaders have realised that RCM isn’t their organisation’s core competency, and have turned to large end-to-end outsourcing firms for RCM to refocus on patient care and clinical service delivery,” said Doug Brown, managing partner of Black Book Market Research.

Without end-to-end RCM, average processing costs for claims reimbursements run from US$30 to US$90 per transaction, Black Book said, totaling US$252 billion for providers in 2014. Outsourced RCM knocks down the cost, Brown said.

“The healthcare industry also has the opportunity to leverage the economies of scale offered by RCM outsourcers, which successfully handle high volumes of encounters,” he said.