OUTSOURCED BILLING

A Breakdown of the Cost Differential Between In-House & Outsourced Billing
Schedule a Demo TODAY

OUTSOURCED BILLING

A Breakdown of the Cost Differential Between In-House & Outsourced Billing
Schedule a Demo

WHILE ON PAPER IN-HOUSE BILLING CAN BE LESS EXPENSIVE, A 5% IMPROVEMENT IN DEPOSITS MORE THAN OUTWEIGHS ANY COST SAVINGS

WHILE ON PAPER IN-HOUSE BILLING CAN BE LESS EXPENSIVE, A 5% IMPROVEMENT IN DEPOSITS MORE THAN OUTWEIGHS ANY COST SAVINGS

=

A LOOK AT THE NUMBERS

  

 

IF OUTSOURCING IS 5% BETTER, IT PAYS FOR ITSELF

 

KNOWING WHAT YOU DON’T KNOW

SCHEDULE A FREE ASSESSMENT

COST SAVINGS FROM IN-HOUSE BILLING

The potential cost savings from in-house billing fluctuates with size. Billing providers have the ability to leverage fractional employees to account for the natural swings in census. In-house billing teams don’t have the ability to scale up or back staffing as quickly. For treatment centers with less than $3M in annual deposits, it can actually be more expensive to operate in-house. Larger treatment centers can however leverage their size and scale to operate with lower costs than outside provider. 

We estimate a facility with $6M in annual deposits could save as much as $15,000/month by moving billing in-house. However, that entire cost savings is eliminated if an outside billing provider can improve collections by as little as 3%. 

The biggest challenge facing in-house billing teams is not having a firm understanding on industry benchmarks. Are authorizations above or below industry average? Facilities that are above average, what are they doing differently to improve operations? Are the proposed in-network rates good or should they be better? Should we be getting single-case agreements for HMO policies? Are we billing for crisis management? 

Understanding the context of the industry, the macro strategies for success, the industry averages on reimbursement, and the strategies for securing additional authorized days for patients who need them is what allows outsourced billing providers to improve deposits by a margin that greatly exceeds the additional cost and actually results in additional net profit for treatment facilities. 

We typically see a 20%+ increase in average authorized days when a new client makes the transition to Remedy. The additional treatment costs for those extra days is marginal, and as the additional billed charges translate into more deposits, the extra income mostly translates into higher profit margins. 

If you’re considering a switch, we’d recommend you contact us for a free assessment. We’ll provide our honest feedback, and in some cases we’ve suggested to keep billing in-house (they were primarily Medicaid with no authorization required). We’re here to help.  

Contact Us Today For A Free Assessment

We’re happy to review your authorization averages, length of stays, billing & collections, and in-network rates to determine areas where you may be able to improve your billing & deposits. 

=

A LOOK AT THE NUMBERS

IF OUTSOURCING IS 5% BETTER, IT PAYS FOR ITSELF

 

COST SAVINGS FROM IN-HOUSE BILLING

The potential cost savings from in-house billing fluctuates with size. Billing providers have the ability to leverage fractional employees to account for the natural swings in census. In-house billing teams don’t have the ability to scale up or back staffing as quickly. For treatment centers with less than $3M in annual deposits, it can actually be more expensive to operate in-house. Larger treatment centers can however leverage their size and scale to operate with lower costs than outside provider. 

We estimate a facility with $6M in annual deposits could save as much as $15,000/month by moving billing in-house. However, that entire cost savings is eliminated if an outside billing provider can improve collections by as little as 3%. 

The biggest challenge facing in-house billing teams is not having a firm understanding on industry benchmarks. Are authorizations above or below industry average? Facilities that are above average, what are they doing differently to improve operations? Are the proposed in-network rates good or should they be better? Should we be getting single-case agreements for HMO policies? Are we billing for crisis management? 

Understanding the context of the industry, the macro strategies for success, the industry averages on reimbursement, and the strategies for securing additional authorized days for patients who need them is what allows outsourced billing providers to improve deposits by a margin that greatly exceeds the additional cost and actually results in additional net profit for treatment facilities. 

We typically see a 20%+ increase in average authorized days when a new client makes the transition to Remedy. The additional treatment costs for those extra days is marginal, and as the additional billed charges translate into more deposits, the extra income mostly translates into higher profit margins. 

If you’re considering a switch, we’d recommend you contact us for a free assessment. We’ll provide our honest feedback, and in some cases we’ve suggested to keep billing in-house (they were primarily Medicaid with no authorization required). We’re here to help.  

SCHEDULE A FREE ASSESSMENT

Contact Us Today For A Free Assessment

We’re happy to review your authorization averages, length of stays, billing & collections, and in-network rates to determine areas where you may be able to improve your billing & deposits. 

MAKE THE CHANGE TODAY & WE’LL COVER THE COST OF YOUR CONTRACT TERMINATION 

6.5%

Flat Fee of Collected Deposits, Subject To Minimum Deposits

Upon executing a billing agreement with Remedy, we’ll reimburse you up to three month’s of your previous invoices toward your current contract termination fee – up to $90,000. Terms and conditions apply