Why do Independent Practices fail when Outsourcing RCM to EHR companies?

 Erika Regulsky Billing & Collections, EHR Vendors, RCM

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Why Independent Practices Fail When Outsourcing to EHR Company?

Independent practices are reliable sources when it comes to getting care immediately. PCP providers, ER rooms, and general medical practitioners, it is also common that other specialty providers like OBGYN, Podiatry and mental health practitioners all have independent practices. But these independent practices have the responsibility of managing the complete practice with the collections they make. It is reasonable that they seek outsourcing options to cut costs and focus on core functions like patient care, improving patient access, and purchasing medical equipment to provide better patient engagement.

Why do independent practices choose EHR companies to outsource?

It is a well-known factor that there are plenty of RCM and billing services outsourcing companies. But why do independent practices choose EHR companies to outsource? The reason is simple. EHR companies mostly make their revenue from subscription fees. The reason why they have also included billing and RCM services packages from 2% collections as their fee is that they get reimbursed for a service that they don’t have core expertise on and get paid for it too.

Typically EHR companies target independent practices for this same reason, they get more revenue from these independent practices than they get subscription fees from selling their EHR software to hospitals and health systems. independent are already caught up with their daily clinical and patient care operations they hardly have time to concentrate on the billing and revenue cycle processes.

We have encountered many of our independent practice clients who have similar problem scenarios. They first buy EHR and when the EHR company salesperson states that they provide billing and RCM services at 2% of collections per month, these independent practice managers and doctors seem this to be a good deal and go for it. 6 months down the line they return back to a proper RCM and billing services company like Medical Billing Star and request to undertake their entire revenue cycle operations because of the following drawbacks when outsourcing RCM services to an EHR company:

Independent practice RCM

Identifying a correct RCM services partner for an independent practice that provides a dedicated RCM manager, billing supervisor, and certified billing, and coding experts is the correct path to a well-performing independent practice. We advise independent practice managers and providers to first get a consult from Medical Billing Star’s RCM team and understand the revenue leakages and correct financial performance before continuing the EHR company’s RCM services as data and numbers do not lie and can provide deeper insights on how to grow your independent practice.

Talk to our RCM team through a virtual meeting or set up an onsite appointment where our experts can come visit your practice and provide analytical data in person.

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I’m a multi-certified revenue cycle management professional and compliance officer with 20+ years of experience. I contribute articles to leading healthcare publications and journals. I am currently working as Senior Transition Manager, in BillingParadise headquartered at Diamond Bar, California. BillingParadise offers Medical Billing Services that intersect perfectly with the EMR/Practice management system you use.BillingParadise has offices in New Jersey, New York, Florida, Georgia, Minnesota, and Texas.


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