In this episode of “Med Practice Made Perfect”, host Tom Maher dissects the insourcing-versus-outsourcing dilemma in revenue cycle management (RCM) for medical practices.
Maher explores the contrasting viewpoints on control, oversight, and cost-effectiveness associated with each approach. If you’re debating whether to keep your healthcare billing and coding internal or outsource it with an RCM vendor, this is a great place to start.
Tom introduces the industry debate by outlining the opposing perspectives on insourcing and outsourcing RCM services. Insourcing offers control and oversight, while outsourcing provides relief from administrative burdens and access to specialized expertise. There are challenges inherent in RCM, such as staying updated on regulations and managing talent shortages. However, he also underscores the opportunities presented by both insourcing and outsourcing, including scalability and access to advanced technologies.
There are major financial considerations involved in insourcing versus outsourcing RCM services. While insourcing may initially seem financially advantageous, hidden costs like employee turnover can impact the bottom line. Conversely, outsourcing costs vary based on fee structures and service quality. Selecting the right outsourcing partner is crucial. Trusted referrals and clear contractual agreements are essential.
Understanding your RCM partner's expertise and technological capabilities is paramount for long-term success because effective RCM requires insightful analysis. Data analytics enable practices to identify trends and optimize revenue streams. From monitoring insurance distribution to tracking referral patterns, data-driven insights empower informed decision-making.
It’s critically important to align with RCM partners who share your practice's vision. Whether opting for insourcing or outsourcing RCM services, practices must weigh the advantages, challenges, and costs. By leveraging expertise and technology, practices can navigate the complexities of revenue cycle management and drive growth in healthcare management.
For more content like this, subscribe to Med Practice Made Perfect on YouTube, Spotify, Apple, or Google Podcasts.
About Tom Maher
As President and CEO of a growing organization in a complex industry, Tom Maher focuses on people: Practicefirst employees and clients. “You can’t have one without the other, and Practicefirst is successful because we take care of both.” He oversees a diverse and talented team of experienced professionals; whose collective mission is to maximize the value of their clients’ medical practices, so they can focus on the health and well-being of their patients.
