New Business Office Opportunities Emerge Amid Tech Advances
Hospital business offices are notorious for staff turnover, workforce shortages and redundant manual processes. These teams often represent the most transient and lowest-paid members of the healthcare workforce while shouldering one of the organization’s top priorities: cash flow.
These challenges are especially pronounced in community hospitals and Federally Qualified Healthcare Centers (FQHCs), which often face greater financial risks. In fact, a recent Commonwealth Fund survey found that 70% of FQHCs are experiencing staffing gaps.
As a result, many healthcare finance executives are turning to business office outsourcing to address these issues and maintain financial sustainability. With an expected 16% growth in revenue cycle outsourcing through 2028, the decision to outsource services, especially in the business office, will remain critical for healthcare leaders.
HFMA’s 2024 Health System CFO Pain Points Report, reveals that 49% of respondents cite a business office labor shortage, and 26% of health systems are looking to outsource revenue cycle roles.
However, healthcare leaders must consider additional factors involved in business office outsourcing. People, process, and technology all play a role in justifying the decision and ensuring success.
Here, we’ll share from our experience and suggest four specific questions to ask before making new business office decisions.
Four considerations for revenue cycle leaders
Hospitals and health systems consider outsourcing this challenging revenue cycle function for several reasons. They seek to improve the patient billing experience, increase staff stability and efficiency boost overall revenue capture.
However, before proceeding with any type of business office change, revenue cycle leaders should ask the following four questions.
Do the financials make sense?
Decision makers should request a deep analysis of the potential financial improvements and return on investment. Then, armed with this information, they can compare anticipated results to historical trends in billing and collections.
Do we have the talent and funding required from a technology perspective?
Modern business offices require data lakehouses, robotic process automation (RPA) and the ability to incorporate new AI technology capabilities. These tools are essential for handling payer challenges and improving business office efficiency. Consider how your current revenue cycle management strategy supports these needs.
Do our data analytics provide actionable insights?
Effective data analytics are crucial for identifying the root causes of issues like denials, slow cash flow, and declining employee productivity. Relying on outdated claims data could threaten an organization’s financial sustainability. Implementing strong analytics tools can reveal detailed insights into your revenue cycle processes.
Can we keep up with payers?
According to the HFMA report, 82% of CFOs have observed an increase in payer denials since 2019. To mitigate this, it’s essential for revenue cycle teams to stay up to date with payer policies and monitor changes that could impact payment timelines. Enhancing your billing and invoicing processes is key to staying ahead of payer challenges.
Improving Billing and Collections
Billing and collections remain top priorities for hospitals looking to improve cash flow. Many healthcare organizations still experience delays, with patient collections often requiring over a month for processing. To improve performance in the coming year, business office experts recommend these strategies:
Building a High-Performing Business Office
Whether considering a complete business office (CBO) solution or optimizing your current team, these strategies are essential for improving billing and collections. Revenue cycle management (RCM) solutions, such as TruBridge CBO and EBO Solutions, offer a comprehensive approach that can increase cash collections and reduce accounts receivable days.
Organizations seeking a CBO partner should look for a proven track record of success in improving revenue cycle efficiency through the use of best practices and advanced technology tools. A CBO outsourcing partner can help with rapid implementation, reduce billing errors, and streamline collections.
TruBridge’s CBO & EBO Solutions offer a powerful combination of technology and expert teams to support your revenue cycle transformation. Whether you are facing workforce challenges or looking to optimize your billing processes, we’re here to help.
Improve Revenue Cycle Efficiency and Cash Flow with TruBridge CBO & EBO Solutions
Explore TruBridge’s CBO & EBO Solutions today to learn how we can help your organization boost revenue cycle efficiency, improve cash flow, and enhance the overall billing experience.
