South Florida Hospital News
Thursday January 18, 2018
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August 2011 - Volume 8 - Issue 2

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Outsourcing Makes Good Cents In Health Care Industry

We’ve been doing it since dinosaurs roamed the earth. Nothing is more primitive than sharing the work. You hunt, I’ll gather. A particular village is well- equipped and more efficient at churning butter? Let them do it. Chores and tasks essential to ensure quality of life are done better, faster and cheaper. It’s win-win.
 
Outsourcing in the 21st century is no different. In today’s health care industry, companies are choosing outside experts to handle the often mundane but always crucial details of their business.
 
Why? First, saving money is key in outsourcing. Sharing the work means a more beefed-up bottom line because outsourcing companies have economies of scale already in place to perform specific functions.
 
For example, a hospital or physician group could fork over anywhere from $100 to $200 to credential a single physician. By outsourcing to a company like Med Advantage, which specializes in medical credentialing nationwide, the cost plummets due to sheer volume, a maintained staff that is solely trained in credentialing, automated verifications and spreading the verification cost over various clients.
 
Another advantage to outsourcing is minimizing risk. Without outsourcing work, organizations could end up adding to someone’s already full plate and allowing business to slip through the cracks. You would never trust an intern to prepare a crucial pitch to a major potential client, but you’d be foolish not to utilize him or her to research or fact check.
 
Speaking of risk, every day large corporations trust companies like Paychex to know the ins and outs of payroll, taxes and human resources. That item is confidently checked off the company’s massive to do list. The same is true with hospitals and physician groups. Through outsourcing, organizations can rest assured their credentialing processes are in certified, expert hands. The margin for error is greatly reduced because they’re doing what they know.
 
Outsourcing also provides quality control. You wouldn’t go to a family physician for back surgery, just like if you’re a hospital or managed care company you would not outsource to a credentialing company that has not been recognized for their quality of work by the National Committee for Quality Assurance (NCQA) or URAC.
 
As the saying goes, time is money, so naturally those two benefits of outsourcing also go hand-in-hand. The average hospital takes five months to credential a physician while a Credentialing Verification Organization (CVO) could do it in a fraction of the time - as little as 32 days - according to an article posted on outsourcing-center.com. When companies can complete tasks more quickly, it saves money.
 
In our instant gratification, fast-paced, digital world outsourcing work to companies with areas of expertise simply makes good cents.
For more information, contact Med Advantage at (407) 282-5131 or visit www.med-advantage.com.
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