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Five Ways to Reduce Healthcare Administrative Costs Includes Outsourcing

Posted by David Fong on Aug 14, 2017 5:00:00 AM

A recent Managed Healthcare Executive magazine article entitled: “Five ways to reduce healthcare administrative costs,” identifies five strategies that healthcare executives can use to reduce onerous administrative costs. According to the article, administrative costs make up about 15 percent of all healthcare expenditures -- well over $300 billion annually, as found in the 2016 index report from the California Association for Healthcare Quality. Outdated, manual processes and rejected claims eat up a large portion of this administrative cost.


The key to reducing these costs lies in refining these manual processes and changing with the times. Here are the five strategies you may want to consider implementing at your organization.


  • #1: Digitize processes, verify benefits
  • #2: Streamline physician work flow
  • #3: Use digital engagement solutions
  • #4: Open communication to let data flow
  • #5: Outsource with a purpose


In my opinion, this last strategy offers the fastest and most efficient way to reduce administrative costs. Outsourcing allows certain processes to be performed by outside experts—leaving healthcare providers to focus on patient care.


Medical coding is a critical administrative function, and rejected claims due to faulty coding can have a serious impact on a provider’s revenue stream. Aviacode removes the pain of medical coding and auditing for physician groups, facilities and surgical centers allowing them to focus their attention on patient care. Our coders and innovative technology enable a workflow that minimizes errors, accelerates the billing process and reduces impact on your bottom line.


Aviacode uses the best credentialed and experienced coders in the industry. All our coders are AAPC or AHIMA certified, has years of experience, and are continually working to improve their productivity and to stay on top of changes in rules and regulations.


Advanced medical coding guarantees accuracy and turnaround; is less costly and less hassle for practice managers, physicians, hospitals, and providers. Our solutions can be used for temporarily eliminating backlogs, providing overflow coding coverage, or permanently for transition to specific specialties or departments.


Aviacode contractually guarantees our coding service accuracy to give you peace of mind. Let us help you reduce your administrative costs and significantly improve your bottom line with expert coding and elimination of rejected claims.


Topics: Revenue Cycle Management, Medical Coding, outsource