Financially Overwhelmed Hospitals Ditching... #ICD10 #ICDRemediator #ICD10Matters #HealthIT

Financially Overwhelmed Hospitals Ditching Fragmented, Niche RCM Solutions for Comprehensive, end-to-end Outsourcing Service Vendors, says Latest Black Book Poll



Responding to the demand for consolidated revenue cycle management outsourcing options, a sundry of small niche vendors, from eligibility experts to patient bill estimators, are seeking shelter under larger RCM organizations as reimbursement reforms and value-based models currently being carved out will make it more difficult for many marginalized RCM solutions to survive without joint ventures or acquisition. Black Book Market Research's annual Satisfaction Survey of all RCM stakeholders discovered that nearly half (45%) of the nation's struggling hospitals plan on diving deep into full RCM outsourcing



November 19, 2014 08:34 ET | Source: Black Book Market Research



NEW YORK, N.Y., Nov. 19, 2014 (GLOBE NEWSWIRE) -- via PRWEB - The consolidation trend by end-to-end RCM outsourcing vendors is accelerating, triggering more insecurity for smaller, niche healthcare RCM solution providers. Larger, more complex RCM outsourcing vendors have filled service gaps in their offerings to meet the 20% growth demand by borderline troubled hospitals for fully integrated, end-to-end solutions, incorporating more ancillary aspects of the full revenue cycle.



"After carefully identifying and assessing their organizations' core competencies, hundreds of hospitals have moved to outsourced RCM services over the last two years," said Doug Brown, Managing Partner of Black Book Market Research LLC, and co-author of the bestseller, "The Black Book of Outsourcing" (Wiley Publishers). "It has been no surprise that many overwhelmed hospital leaders have realized that RCM isn't their organization's core competency, and have turned to large end-to-end outsourcing firms for RCM to refocus on patient care and clinical service delivery."



Black Book estimates the market potential of RCM outsourcing to be $7.7B, with projected growth to nearly $9.9B by mid-2016. Much of the market growth is attributed to the end-to-end service vendors.



Claims reimbursement processing costs will reportedly vary from $30 to $90 per transaction, and billing paperwork will cost providers a collective total of $252 Billion in 2014, according to Black Book projections.



"In the financial services industry, business process outsourcers have reduced banking and brokerage transaction costs to less than a penny in most cases," said Brown. "The healthcare industry also has the opportunity to leverage the economies of scale offered by RCM outsourcers, which successfully handle high volumes of encounters. RCM outsourcers also have the staff and technology expertise to integrate patient billing, collections, accounts receivables, and grievances as ICD-10, and value-based payment models present even more potential for internal inefficiencies... without capital investment for state of the art technology and staff.'





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