Why are more hospitals outsourcing revenue cycle management?
The sole reason that hospitals have started to outsource the revenue cycle management is to ensure that they have a positive balance and can focus on providing better healthcare facilities. There are so many patients who are insured, and they do not pay a single penny, as all of their treatment is done on credit.
The payment's clearance from the insurance company may take some time, but since the service has been rendered by the hospital, it becomes costly. Especially when it takes too long to clear then the hospital writes it away as bad debts. But such bad debts cause a dent in the hospital's bank balance and ultimately will lead to a negative balance.
This is why hospitals have started outsourcing the revenue management cycle to other companies who offer such services. It enables them to focus on the provision of better health care services rather than being tangled up with revenue collection.