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Three Myths About Outsourcing, Debunked

Outsourcing. You say it and some healthcare managers shudder with horror. Others in the industry sneer as though they’ve just heard something obscene. However, the ones truly in the know smile and nod at the naysayers because they know that outsourcing done right gets exceptional results. We regularly outsource in our personal lives. I have not once sewed my own suit, but I know there are specialists who are much more experienced and just plain better at it. I also know that if I invested in the equipment and training necessary to do it well, I would be wasting my own time and the return on my investment would be nonexistent. That’s why I leave tailoring to the professionals. I know those who are against outsourcing have their reasons. I’m writing to debunk some of the most common ones I’ve heard. I don’t speak for every vendor, but I guarantee this is true for Signature Performance.

Myth 1: “The hourly rate you charge is much higher than what I pay for my in-house people.”

At first glance, this looks true, but our hourly rate includes not only the hourly pay to the associate, but associate benefits and incentives, the equipment they use, the office space they occupy, their ongoing training, the HR and Finance support to manage payroll, the audit process to ensure their quality, associate engagement, the management oversight to make your program run smoothly and dozens of other overhead costs you may not have considered when calculating your in-house hourly rate. We also have qualified resources available if your staff takes planned or unplanned time off. This is a major benefit to you, especially if you have difficulty replacing a biller, coder, or other critical team members.

Myth 2: “I’ll lose control of my program.”

It’s all about setting clear expectations. Do you want monthly reporting meetings? Sure. Weekly update calls? Daily emails? We can do that, too. We’re willing and able to take on your complete program, but we don’t want you to feel as though it’s no longer yours. At Signature, we’re your partner. We want your facility to be successful. Hiring us allows you to focus on the clinical and patient care while we focus on the administrative functions such as Revenue Cycle Management and Health Information Management – keeping you informed and up-to-date on results.

Myth 3: “Vendors don’t do a good job.”

Outsourcing gets a bad rap because people have had or have heard of a bad experience with a vendor over-promising and under-performing. There are a few things that may be at the root that should be examined before writing off outsourcing all together.

Was the vendor set up for success?

Not that you would do this, but situations where the vendor is viewed as a threat rather than an asset leave the vendor at a disadvantage. When they face avoidable access issues, misinformation, missing information, or unreasonable expectations on production or accuracy, they are destined to miss the mark, no matter how hard they try. Our Signature Team becomes an extension of your team, building a successful work relationship to achieve results.

Did the vendor’s deal seem too good to be true?

Then it probably was. If a vendor offers services well below the market rate it may seem like a bargain, but you have to ask how they’re paying for all the costs mentioned above, like ongoing training and quality assurance. If the filet mignon is being sold at burger prices, you shouldn’t be surprised when you end up with a burger. If you want a high-end program that is going to improve your quality, cash flow, compliance and patient satisfaction, you need to be willing to invest in your success.


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