Becker's ASC Review

7 EXECUTIVE BRIEFING 1 EXECUTIVE BRIEFING SPONSORED BY How outsourcing billing helps to combat ASCs' top challenges Achieving financial success in an ASC has become more difficult in recent years, with a growing list of challenges threatening and straining the bottom line. With less room for error, surgery centers are seeking solutions that can help them better navigate and overcome these barriers to viability and profitability. Revenue cycle outsourcing is one solution growing in popularity throughout the ASC industry and is becoming a preferred option for de novo centers. Here are five of the top challenges facing ASCs and how outsourced billing empowers surgery centers to effectively combat them. 1. Staff recruitment and retention One of the top challenges — if not the top challenge — for ASCs today is staffing. Competition for skilled healthcare workers has increased as availability of staff has declined (i.e., supply and demand). On top of recruitment challenges, keeping qualified personnel has proven more difficult for ASCs for myriad reasons, including staff leaving for higher-paying healthcare positions, exiting the field altogether and retiring. By outsourcing revenue cycle management, ASCs reduce the amount of work required for effective recruitment and retention initiatives while also freeing up valuable time and resources. Outsourcing reduces the number of staff that must be recruited and retained. With ongoing access and support from a team of ASC revenue cycle experts, a center can eliminate open, in-house business office positions; reliance on part-time and as-needed business office staff; and paying for overtime when staff are unavailable or unable to take on expanded workloads. If an existing business office staff member leaves the center or wishes to move to reduced hours, the ASC billing company can take over the available work. The ASC billing company provides additional support to existing business office staff, which makes them more productive, successful and satisfied with their work. Any personnel working excessive overtime or juggling multiple roles can move to a more reasonable schedule, helping reduce the potential for burnout that often leads to staff turnover. By eliminating in-house business office positions, an ASC's leadership team can allocate more time and resources to recruiting clinical and operational staff. Open office space can make working conditions more comfortable for the remaining business office staff. Additionally, that space can be converted to help with clinical and operational performance or eliminated altogether to reduce occupancy expenses. Saving on business office salaries and benefits can help an ASC offer more competitive salaries and benefits to prospective staff. The financial improvements associated with outsourcing can further support staff recruitment and retention. ASCs can offer higher salaries, better benefits and bonuses, and make investments in new technology, furniture and other amenities that can create a more welcoming, productive and attractive work environment. 2. Cash flow As reimbursement has tightened and expenses associated with staffing, supplies, equipment, occupancy costs and facility support services (e.g., HVAC maintenance, equipment maintenance, housekeeping) have increased, ASC shortcomings in cash flow have been magnified. QuickBooks notes that 60% of small businesses, which describes most surgery centers, report cash flow as a problem. Challenges with cash flow place increased strain on ASCs and their owners, making it more difficult to cover growing expenses and ensure centers can maintain what is required to perform procedures and generate revenue. When ASCs outsource their billing, they are partnering with experts who work to ensure clients get paid for services in a timely manner. Outsourced RCM companies not only focus on coding and billing but responding efficiently and effectively to denials and delays in payment to reduce cash flow disruptions. In addition, outsourcing ASC billing delivers significant cost savings that help centers achieve and maintain positive cash flow. Outsourcing delivers instant, business office staff-related cost savings as it empowers an ASC to reduce or eliminate overtime, part-time and/or as-needed work, in addition to decreasing the number of full-time staff. Scaling back business office employees generates additional savings, including reduced expenses associated with recruiting, hiring and training staff; purchasing furniture and technology; and obtaining insurance. Outsourcing RCM may provide an ASC with an opportunity to reduce its physical footprint, saving money on occupancy costs. For ASCs that experience case volume surges or declines (e.g., seasonal volume), outsourcing can cut the costs associated with shifting levels of staff. If an ASC experiences a case volume decline due to factors such as provider absence or facility construction, the center can easily and more cost- effectively modify its use of outsourced RCM services than it could by adjusting staffing levels.

• Cover