In each edition of Cycle Up, we sit down with one of the leading voices on the Meduit team. In this issue, we're talking with Brian Kagle, Senior Vice President of Sales, CBO, about why more hospitals are looking to outsource business office functions and why it makes sense as part of a long-term strategy for revenue cycle performance.
Q. After 30 years in healthcare, what attracted you to Meduit?
A. When I looked at Meduit, what stood out was the emphasis on innovation. When you look at our Comprehensive Business Office solution, it has everything. When you mix in the AI, the automation tools, and our advanced denials solution, it really sets us apart.
Q. Why do you think that is?
A. Well, there are a lot of reasons. One thing is definitely our independence. A lot of our competitors are tied to their own hospital systems, which means their resources and attention can get pulled in different directions. We don't have that conflict. Every client gets our full focus, and we can stand behind our service level agreements and deliver on what we say we're going to do.
Q. What are you hearing from hospital leaders right now?
A. More executives are actively exploring outsourced business office support. I think they’re looking for a turnkey solution. They’ve hit the wall with staffing or technology or both. They don't have the tools, they don't want to invest in building them, and they want a partner who comes to the table with everything already in place.
Q. You mention tools. Is that in response to payers using AI to generate more denials?
A. That’s a pretty big deal right now. Payers are investing billions into technology to be more stringent on claims processing and slower on payments. That puts enormous pressure on hospitals, especially standalone facilities. Their cash days on hand decline, and if they don't have the technology and resources to keep up, they start going south. I'm seeing it every day.
Q. What does outsourcing actually look like day to day for a hospital’s internal team?
A. It's not an all-or-nothing proposition, at least not with our CBO. We can come in and work on one specific line of business or spread out over several. We can take 80% of the day-to-day workload off a hospital's plate, the mundane, redundant processing, so people can move into more analytical positions and focus on higher-level projects. That’s better for the organization, and it’s better for the employees. Nobody wants to spend their day on repetitive tasks when they could be doing more sophisticated work.
Q. For hospitals considering outsourcing, what's the first step?
A. I can’t speak for everyone, but we have a risk-free assessment that benchmarks where a hospital is today against their peers and maps out where they could be. And we stand behind those steps contractually with service level agreements. Then, speed to value is key. We can ramp up quickly and start delivering short-term wins while building processes that help sustain performance.
Q. Where do you see the industry heading?
A. Costs are rising, and the burden is going to continue shifting to hospitals and patients. I think more non-clinical areas like revenue cycle are going to need additional support, which is why I think there’s a groundswell for outsourcing right now. Some organizations will try to do it on their own, but I think you're going to find more and more that they don't have the resources, the talent, or the technology and tools to keep up. The importance of business office outsourcing is only going to grow.