What Happened When a Mid-Sized Hospital Outsourced Its Medical Billing—Revenue Lift or Hidden Costs?

Before Outsourcing: A 150-bed Midwest hospital faced 18% claim denials, 55-day payment cycles, compliance struggles, and high staff burnout.
The Move: Partnered with a certified billing company using AI-driven tools to cut errors, automate coding updates, and connect EHRs.
Revenue Results: Denials dropped to 7%, collections improved from 55 to 32 days, and net revenue rose 9% in six months.
Efficiency Gains: Billing hours reduced by 40%, letting staff focus more on patients and front-desk operations.
Hidden Costs: Service fees (5–7%), initial communication issues, and reduced control over daily coding decisions.
Key Takeaway: Outsourcing boosts revenue but works best with transparent communication, clear controls, and tech-enabled partners like Practolytics that blend AI accuracy with expert oversight.

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Before Outsourcing: A 150-bed Midwest hospital faced 18% claim denials, 55-day payment cycles, compliance struggles, and high staff burnout.
The Move: Partnered with a certified billing company using AI-driven tools to cut errors, automate coding updates, and connect EHRs.
Revenue Results: Denials dropped to 7%, collections improved from 55 to 32 days, and net revenue rose 9% in six months.
Efficiency Gains: Billing hours reduced by 40%, letting staff focus more on patients and front-desk operations.
Hidden Costs: Service fees (5–7%), initial communication issues, and reduced control over daily coding decisions.
Key Takeaway: Outsourcing boosts revenue but works best with transparent communication, clear controls, and tech-enabled partners like Practolytics that blend AI accuracy with expert oversight.