TruCare

RCM fundamentals

Revenue Cycle Outsourcing

Hiring an outside company to run some or all revenue cycle functions, such as coding, billing, denial work, or A/R follow-up.

Also called: RCM outsourcing, outsourced medical billing

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.

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