How COVID-19 Has Impacted the Revenue Cycle Management Industry
There is no shortage of memes to illustrate the dumpster fire that 2020 has been for so many people around the world. Just about everyone has had their lives disrupted in some way, shape, or form. The same is true for our work lives, which have been moved to our living rooms, kitchens, and any spot with good WiFi and some peace and quiet.
Within the revenue cycle management industry, the COVID-19 pandemic has wreaked havoc, leaving a trail of layoffs, unpredictable workloads as hospitals and healthcare providers scale back or completely eliminate elective procedures and people stay home, afraid of going out to the doctor or emergency room.
A survey of chief financial officers and revenue cycle managers conducted through the Healthcare Financial Management Association offered glimpses into how their businesses have been impacted by the COVID-19 pandemic. More than half of the respondents have said their work and claim volumes have been unpredictable or erratic. And more than one-third said there has been more work for them to do because of confusion over billing codes and requirements for COVID-19 claims. And 36% said they were overstaffed because the claim volumes have been lower than expected.
Hospitals nationwide are losing a collective $20 billion per month because of the coronavirus pandemic, according to data published by the American Hospital Association. Those losses are putting additional pressure on revenue cycle departments to process claims efficiently while also making sure to maximize the amount of revenue coming in the door.
The “new” normal that is how companies are operating is going to be here for some time. The companies that are able to adjust their operations effectively and manage their teams with some working remotely and others in the office are going to be the ones that survive the pandemic. Collection agencies can help their healthcare clients by offering back-office support to help the providers manage staffing levels while also collecting unpaid bills before and after they go into default.
The ups and downs of the pandemic’s impact on the healthcare industry are only beginning to be felt. Revenue cycle managers are going to have to continue adjusting to the constant changes. This presents an opportunity for collection agencies to help in both the short- and long-term. Collection agencies can be the difference makers that help healthcare providers get through this crisis.
If you would like to get more information on how a first and/or third-party collection agency can assist your revenue cycle, challenge your current agency or you simply want to know the questions to ask of your current agency, please feel free to reach out to us by email at support@preferredgroupoftampa.com or visit our website at www.preferredgroupoftampa.com where you will discover a wealth of information. Preferred has been in the medical debt collection business for 35 years and we would love to partner with you.