A new report by Grand View Research examines the growth of medical billing outsourcing. Grand View projects the outsourcing market to grow by more than 150% from 2015 to 2024.
Here are five of the factors that will contribute to the significant growth, according to Grand View:
- Current systems in practice for managing revenue are gradually becoming obsolete due to lack of expertise in new payment models and revenue management tools.
- Providers are facing increasing challenges in managing claims and reimbursement, resulting in losses.
- Outsourced billing companies are developing new, advanced technological solutions that allow them to provide more efficient and cost-effective services.
- Providers are struggling to keep up with ever-changing, ever-growing regulatory billing requirements.
- Growth in bad debt and uncollectable accounts (likely due to in-house billing shortcomings) have cut into providers’ revenue and profitability.
As Grand View notes, “Large medical groups with high claim volume are experiencing significant revenue growth due to outsourcing. … Implementation of RCM by medical providers has improved their cash flow, reduced claim denials, and helped them gain an analytical approach to allocate resources and ensure effective revenue management.”