Thriving in Modern Healthcare: The Impact of Oncology Billing Partnerships on Small Practices

​Small oncology practices face immense financial pressures to maintain state-of-the-art care facilities. These challenges, compounded by the necessity to keep up with cutting-edge medical technology and manage operational costs, make it essential for small oncology practices to find effective solutions across the revenue cycle. Partnering with an oncology billing company like RC Billing can help these practices navigate the demands of modern cancer care, ensuring they remain both clinically effective and economically viable.

Industry Trends in Cancer Care

Over the past decade, the landscape of small medical practices in the U.S. has shifted significantly. According to the American Medical Association Physician Practice Benchmark Survey, the proportion of physicians working in small practices (defined as those with 10 or fewer physicians) declined from 61.4% in 2012 to 51.8% in 2022. Meanwhile, the number of physicians in larger practices (50 or more physicians) rose from 12.2% to 18.3%. These trends highlight the growing challenges small practices face in staying competitive. With fewer resources, partnering with a billing company is a strategic move to utilize their in-depth expertise and assist with operational efficiency and financial health.
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In addition to the pressures from operational and technological demands, small oncology practices are increasingly challenged by the rising cost of hiring and retaining experienced staff. With the significant increases in the cost of living, salary expectations have surged, making it difficult for small practices to compete with larger institutions. This trend is particularly concerning for small practices with limited budgets, as the higher salary requirements can strain their financial resources. By partnering with specialized oncology billing companies, these practices can alleviate some of these financial pressures. Outsourcing billing functions help manage cash flow and reduce the need for extensive in-house administrative staff, allowing small practices to allocate resources more effectively.

Benefits of Partnering with an Oncology Billing Company

Specialized Expertise

​Oncology billing companies bring a wealth of specialized knowledge crucial for navigating the complex landscape of cancer care billing. This includes staying updated on coding changes, treatment advancements, and insurance regulations. Small practices may lack the dedicated staff to handle these specifics and can benefit from this expertise, leading to reduced billing errors and claim denials.

​Financial Stability and Cash Flow Management

​Maintaining a healthy cash flow is vital for small practices, which often operate under tighter budget constraints. Specialized oncology billing companies help stabilize finances, ensuring sustainable growth and operational efficiency. This support allows small practices to focus more on patient care than financial management.

​Deep Understanding of the Billing Cycle

Partnering with an oncology billing service provides small practices with a comprehensive understanding of their entire billing cycle. Leveraging the experience and strategies of a specialized billing partner can identify strengths and weaknesses in the billing process, optimizing financial performance.

When to Enlist a Billing Company

​Small oncology practices should consider partnering with a billing service when facing increased billing complexities, a rise in denied claims resulting in AR aging increases, or when administrative burdens detract from patient care. As practices grow and treatment options expand, keeping up with intricate billing and coding details can become overwhelming. A specialized billing service allows medical staff to refocus on clinical duties while experts handle financial intricacies, optimizing both financial performance and operational efficiency. The commercial insurance industry can also create an undue burden on practices that do not have the resources or skillset to consistently appeal denials of payment. This may have a negative consequence of increased denials. 

Implementing New Operational Workflows

​New operational workflows introduced by the billing service may require adjustments in capturing patient information, submitting claims, and following up on unpaid claims. While these changes can initially slow down processes, proper training and adaptation lead to long-term improvements in cash flow and operational efficiency.

Considerations for Small Practices

Oncology billing companies offer customizable solutions that scale according to practice size and patient volume. This flexibility ensures small practices do not pay for unnecessary features while having the option to add services as needs grow or become more complex. Engaging with a billing service involves costs, but the return on investment through improved collection rates, reduced overhead, and minimized claim rejections often outweighs the expense.

Contractual and Legal Considerations

​Entering a contract with a billing service requires careful consideration. Contracts should clearly define the scope of services, performance metrics, fee structures, and terms for dispute resolution. Consulting legal counsel confirms the agreement aligns with the practice's interests and complies with all applicable regulations.

New System Adaptation

​Training staff to efficiently use new billing systems and/or EMR’s can be challenging, especially for small practices without specialized IT skills. Tailored training programs, whether on-site or virtual, help staff navigate new software features and adapt to changes in billing procedures, ultimately leading to increased productivity and efficiency.

​Let RC Billing Support Your Small Practice

Navigating the complexities of modern healthcare, small oncology practices face significant challenges, particularly in billing and financial management. Partnering with specialized oncology billing companies offers a strategic solution, equipping these practices with essential expertise and stabilizing their financial operations. This collaboration allows practices to focus on patient care, improve cash flow, and adapt services to their needs. Embracing these partnerships is crucial for small practices to thrive in an evolving healthcare landscape.

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