Staffing shortages often mean that hospital and health system accounts go untouched and unresolved for too long. Over time, those accounts become less collectible and eventually will be written off to bad debt. While it may seem logical to outsource to vendors charging the lowest fees for resolving aged accounts, this strategy fails to drive higher recoveries and associated revenues when compared with the cost of outsourcing.
That is why Meduit has drafted a new white paper – Beware the Hospital RCM Red Herring: Price vs. Value.
This white paper demonstrates how an outsourcing partner’s collection efforts are directly related to the contingency fee they charge. The lower the fee, the fewer collection efforts an agency will employ; in turn, recoveries suffer. The key is selecting the right outsourcing partner that can show a higher netback and deliver the highest ROI.
The white paper includes a case study of one hospital group that sought to reduce their expenses by working with a low-cost vendor to work 50% of their bad debt accounts. After six months, the hospital canceled the contract with the low-cost vendor citing a lack of customer service and lower collection. They then reached out to Meduit to assume 100% of the work, even though Meduit quoted a slightly higher contingency fee.
Learn more in the white paper, which you can download here: