When to Hire an In-house Revenue Cycle Management Team versus a Revenue Cycle Management Company
May 11, 2023
When it comes to managing the revenue cycle, many businesses face the question of whether to hire an in-house team or outsource the work to a revenue cycle management (RCM) company. The decision is a complex one, and should be made with careful consideration of the strengths and weaknesses of each option.
For starters, the in-house team approach offers the advantage of control. The business retains control over all aspects of the revenue cycle, from the coding and billing processes to the collection of payments. It also allows for greater customization of the process, since the team can be tailored to the specific needs of the business. Additionally, the in-house team approach offers the potential for cost savings, since the business can avoid the expensive fees associated with hiring an RCM company.
On the downside, the in-house approach requires a heavy investment in time, money and resources. The business must hire and train its own team, purchase and maintain necessary technology, and ensure that its billing and coding processes are compliant with industry regulations. It can also be difficult to find staff with the necessary expertise, since RCM is a highly specialized field.
For businesses that lack the resources to hire and maintain an in-house team, the RCM company approach may be the better option. The RCM company will handle all aspects of the revenue cycle, from coding and billing to collecting payments, freeing up the business to focus on its core operations. Additionally, RCM companies are typically staffed by experienced professionals who are up-to-date on the latest industry regulations and best practices, minimizing compliance risks.
On the downside, the cost of outsourcing to an RCM company can be expensive. The fees typically include a setup fee and a per-transaction fee, which can add up quickly for larger businesses. Additionally, the business must relinquish some of its control over the revenue cycle process, since the RCM company will ultimately be making decisions about how the process should be managed.
In the end, the decision between an in-house team and an RCM company comes down to the individual needs of the business. Businesses with the resources and expertise to effectively manage the revenue cycle internally may benefit from the in-house approach, while businesses that lack the resources may find that outsourcing is the more cost-effective option.
In-house team approach:
- Advantage of control
- Greater customization of the process
- Potential for cost savings
- Heavy investment in time, money and resources
- Difficult to find staff with necessary expertise
RCM company approach:
- Handles all aspects of the revenue cycle
- Staffed by experienced professionals
- Expensive fees
- Relinquish some control over the revenue cycle process