Practice for sale and the fight to remain independent

Practice for sale and the fight to remain independent

By James Muir, Vice President Revenue Cycle Management, Sales

Practice for sale and the fight to remain independent

Trends show that physicians who own private practices are looking for a way out. Fed up with their rising business expenses and shrinking payouts from insurers, many are selling their practices to hospitals. Experts report the number of physicians unloading their practices to hospitals is up 30% to 40% in the last five years*

According to the Jackson Healthcare 2014 national survey of U.S. physicians the top 3 reasons Physicians sold out or quit practicing medicine were:  1. High Overhead; 2.  Reimbursement Cuts; 3. Administrative Hassles.

Independent physicians wanting to remain independent consider RCM outsourcing as a clear alternative. By strategically outsourcing your RCM you alleviate your administrative hassles and have the freedom to focus on practicing medicine. Most medical doctors were not formally educated on how to negotiate with insurance companies, minimize overhead, enforce a compliance plan, hire and manage staff, manage the revenue cycle or effectively handle the extensive list of back office tasks that go into running a medical practice. For these reasons, hiring a 3rd party company with experts in billing, coding, compliance, accounting, denial resolution, claims processing and everything you need to support the business and keep it profitable is well worth the investment. To remain independent a practice must combat rising cost by operating more efficiently.

Outsourcing RCM to a 3rd party like NextGen RCM can help you operate more efficiently and the overall cost-to-collect for the practice will be less 95% of cases (this can be determined by completing a simple RCM assessment). The 4 reasons for this are:

  1. Because NextGen is the manufacturer of the software solution, NextGen can offer the clients the use of NextGen’s software suite at no charge as part of the co-sourcing agreement.
  2. Because of economies of scale NextGen RCM can afford to keep top talent on staff that most practices cannot afford or don’t have access to.
  3. NextGen RCM helps offset the losses from declining reimbursement (and rising costs) by delivering the talent, providing the ideal NextGen setup and training your organization on the best practices to optimize financial performance cut workflows from days to hours.
  4. NextGen RCM provides personalized Account Management and Oversight to guide practices consultatively and deliver the insights needed to stop the money leaks that cause poor financial performance and help you manage and anticipate regulatory and payer changes