Recently, medical billing companies have been facing a tough time due to the payment reductions caused by the Patient Protection and Affordable Care Act. In addition, a new challenge – the HHS Sequestration has worsened the payment scenario. The Center for Medicare and Medicaid Services has brought into effect the sequester provision of the budget control law on April 1, 2013. According to this law, a 2% cut will be implemented on all Medicare provider payments. The impact is more since we are beginning to see that HMOs and some of the Commercial payers following suit. Let’s see how the HHS Sequestration Plan impacts the revenue cycle management of medical billing companies,
Important Features: A 2% deduction is done for all services rendered by Healthcare Facilities and Providers effective from April 1, 2013. This reduction is also applicable for Medicare Part C (Private Insurers) and Medicare Part D (Prescription Drug Plans). Wondering how these features impact the medical claims billing companies? Let’s delve into more details,
The Chain Reaction: Basically, it is the healthcare Providers and Facilities who are directly impacted by the HHS Sequestration cuts. However, medical billing companies also suffer because on a percentage of collections model, their invoice values get reduced. Providers will also likely ask for a reduced pricing to offset their loss and to balance the revenue cycle management. Therefore, a Medicare reform like the above not only affects the Provider, but also the outsourcing medical billing company, forming a chain reaction.
Solution: The best solution to reduce this financial loss and keep the revenue cycle management profitable is to outsource a part of the medical billing services to an offshore medical billing company. This way, medical billing companies can avoid overhead expenses like hiring, training and technology up-gradation, which will be comparatively greater than the outsourcing cost. While medical billing companies save a substantial amount by offshore outsourcing a part of or the entire physician billing, the 2% payment reduction will get compensated to a greater extent.
Choose Right: Choosing the right and reliable offshore medical billing company is very important. In that case, look no further than e-Care India, one of the leading offshore medical billing companies that render exceptional services while improving your cash flow.