Definition
Revenue cycle outsourcing moves billing functions from in-house staff to a third-party vendor. Scope ranges from single tasks like coding or credentialing to full end-to-end billing. Because the vendor handles protected health information, the practice must sign a business associate agreement with it.
Why it matters
The contract decides what you actually get. Pricing may be a percentage of collections, a per-claim fee, or a staffing rate, and each rewards different behavior. The practice stays responsible for claims billed under its NPI, so it should require reporting on denials and aging.
Example
A 6-provider group outsources denial management and A/R follow-up but keeps front-desk collections in-house. Monthly vendor reports track A/R over 90 days and denial overturn rate.