CHARLOTTE, N.C., July 16,
2024 /PRNewswire/ -- As the home medical equipment
(HME) market continues to expand, providers face growing challenges
in revenue collection, impacting profit margins. Increased
regulation and complexity in navigating payer reimbursement
requirements, particularly with Medicare Advantage and commercial
payers, are driving reimbursement down, while the challenges of
recruiting and retaining skilled billing and collections staff have
escalated costs. Consequently, a highly effective revenue cycle
management (RCM) strategy has become the most crucial factor for an
HME provider's success.
As 25-year veterans in the home-based care industry, Prochant
recognizes the critical importance of an optimized RCM strategy. As
a result, Prochant sponsored an in-depth survey from in90, an
independent third-party consulting firm, interviewing 100 HME
executives - 40% of whom were CEOs or owners - directly involved in
revenue cycle management. The survey included major HME providers,
with a quarter of respondents representing organizations generating
more than $25 million in revenue.
These organizations had a payer mix that encompassed private,
commercial, Medicaid and Medicare.
Key findings from the report reveal:
- The biggest billing and RCM challenge identified was
reducing/preventing denials and appeals with 63% citing it as a top
pain point.
- The second biggest challenge was hiring, training and retaining
qualified intake, billing and collections staff.
- More than 80% of survey respondents reported dissatisfaction
with their current RCM approach, citing accounts receivable
(A/R) over 90 days overdue and excessive write-offs due to billing
errors and complexities as primary reasons.
The report highlights significant business impacts resulting
from inadequate RCM strategies. 62% of respondents reported lower
than desired revenue capture, while almost 50% found their revenue
cycle and billing management too costly.
In response to these challenges, 60% of respondents have
outsourced at least one RCM function in the past year, with over
70% attributing this decision to resource limitations and cost
concerns. The difficulty in managing RCM effectively, coupled with
the high cost and scarcity of local talent, drives many to seek
external expertise. For those that have chosen to outsource, about
50% of respondents reported that they were likely to outsource
payment posting, claims scrubbing and denials and appeals. For
those choosing an outsourcing partner, respondents value revenue
capture and real-time performance tracking/visibility.
For all findings and to leverage the insights from this
comprehensive research, HME providers and industry stakeholders are
encouraged to read the full report, which can be found here.
ABOUT PROCHANT
Established in 1999, Prochant delivers focused revenue cycle
management (RCM) solutions to healthcare providers for the
home-based care industry. Our expertise lies in providing
end-to-end RCM for home-based care, HME, infusion services,
specialty pharmacies and home health and hospice, consistently
delivering exceptional results to some of the leading healthcare
providers in the country. We combine innovative technology in
workflow and analytics and deep industry knowledge to streamline
the time-consuming and expensive reimbursement process. As a
result, we help healthcare providers accelerate their collections,
increase revenue and reduce operational costs while managing
risk.
Contact
Greg Krantz
VP, Marketing
+1 (888) 349-9015
Marketing@prochant.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/prochant-unveils-comprehensive-research-report-on-revenue-cycle-management-challenges-in-the-home-medical-equipment-market-302197213.html
SOURCE Prochant