A study reveals an increased interest among executives to work with third-party partners to support their revenue cycle management.
In large part due to the workforce shortage in the wake of the pandemic, most providers plan to outsource revenue cycle functions, according to a study by CWH Advisors.
The consulting firm surveyed 38 hospital and medical group executives in November and December 2022 to gauge interest in the use of third-party partners going forward.
More than six in 10 respondents (61%) said they expect to make greater use of third parties for offering patient financing options in the next two years, with 63% indicating they were dealing with staffing shortages in their revenue cycle departments.
Only 42% of respondents said they are satisfied with their current patient payment solutions. Improving check-in and payment capabilities are high on the list of areas of improvement for providers in order to offer patients a more retail-like experience, the survey stated.
"We designed this study to get providers' point of view on their patient payment needs, to better understand how technology supports payments processes, and to learn more about how the procurement of those services occurs," David Stievater, partner at CWH Advisors, said in a press release.
"Overall, our research found that providers work hard to balance their financial goals of accelerating cash flow and reducing debt with offering excellent service and flexible payment options to patients."
Kaufman Hall's 2022 State of Healthcare Performance Improvement report found that revenue cycle is the most common area for outsourcing among hospital leaders. Of the 86 hospital and health system leaders surveyed for the report, 27% said they've pursed outsourcing revenue cycle functions, which was ahead of other solutions like environmental services (23%) and IT services (21%).
Nearly two-thirds (65%), of medical billing companies have a positive outlook on the sourced billing industry, according to another report by Tebra. Forty three percent of respondents also said they view outsourcing as a significant opportunity, while 42% see significant opportunities to expand services.
Jay Asser is the contributing editor for strategy at HealthLeaders.
Consulting firm CWH Advisors surveyed 38 hospital and medical group executives in the fourth quarter of 2022 to assess the outlook with outsourcing for patient financing.
Sixty one percent said they expect to increase their use of third parties for revenue cycle functions in the next two years, with 63% indicating they were dealing with staffing shortages in their revenue cycle departments