Creative ways to address the medical coder shortage (and reduce cashflow problems)
It’s an ongoing struggle: Today’s medical practices can’t seem to hire enough revenue cycle management (RCM) staff, an August 2023 survey from the Medical Group Management Association (MGMA) found. Thirty-four percent of medical groups say medical coders are the most difficult to find and hire. This echoes a March 2023 MGMA stat poll. However, 26% percent say it’s medical billers. A third of all MGMA survey respondents say its schedulers as well as staff to manage prior authorizations while seven percent say the most challenging to hire are billing managers, provider credentialing staff, front-office staff, and patient engagement representatives.
On the medical practice revenue cycle side specifically, this ongoing healthcare worker shortage has led to difficulties managing accounts receivable (A/R) and a backlog of unpaid claims. These difficulties, in turn, continue to cause cashflow problems for medical practices already struggling with bad debt. Fifty-six percent of medical groups say their time in A/R increased in 2022 often because of the healthcare labor shortage, according to an August 2022 MGMA stat poll.
Other implications of the healthcare staffing crisis in the revenue cycle? Increased denials, decreased productivity and morale, and missed revenue opportunities.
However, what the MGMA and other references (e.g., this American Hospital Association article stating there’s a 30% shortage in medical coders) don’t tell you is why the healthcare staffing shortage exists. For example, are practice managers short staff in healthcare departments looking for a specific credential? Number of years of experience? Experience in a particular specialty?
Addressing the medical coder shortage
MGMA encourages medical practices to consider these creative solutions to address the healthcare staffing shortage:
Cross-train revenue cycle staff.
Offer part-time or shared positions.
Provide remote work options.
Automate parts of the revenue cycle to reduce workload.
Develop internship or apprenticeship programs.
MGMA also urges medical practices to consider partnering with a revenue cycle management outsource vendor. This can be a helpful option in a variety of scenarios such as when a medical practice can’t find the right medical coding expertise, the medical practice is in a highly competitive area, or the medical practice is growing and expanding and simply can’t keep up with the higher claim volume.
Other ideas to address the medical coder shortage?
Take a more deliberate approach to attracting and retaining medical coders and medical billers to your practice. For example, offer bonuses or referral incentives when current medical coders and medical billers refer new employees to your medical practice—and those candidates take the job and stay in a position for a minimum number of months. Another way to attract and retain medical coders and medical billers is to improve the physician-coder relationship, increase salaries or consider non-financial benefits such as four-day work weeks or flexible scheduling. Not sure how much to pay a medical coder? Take a look at the American Academy of Professional Coders (AAPC)’s 2023 Medical Coding and Billing Salary Report that includes average income based on certification, location (i.e., by state), years of experience, education, employer type, and more.
In addition to ensuring a fair salary, it’s also important to invest in medical coding and medical billing staff through education and professional development opportunities as well as annual bonuses. Some medical practices, for example, give medical coders and medical billers a percentage of shared savings incentives from value-based payer contracts. Keep in mind that the ability to find top talent during the healthcare staffing crisis is only as good as the medical practice’s overall candidate search strategy. This includes going beyond posting job openings on job boards and the AAPC website to include using recruiters and staffing agencies, advertising jobs on social media, hosting an open house or job fair, and cultivating relationships with medical coding schools to create a pipeline of talent.
Conclusion
Regardless of whether it’s for the short- or long-term, the right revenue cycle outsource partner can relieve a medical practice of the frustration associated with attracting and retaining revenue cycle talent. When combined with efficiency-gaining technology, revenue cycle outsourcing and other strategies can help practices combat the healthcare worker shortage with ease. Learn how edgeMED can help during the healthcare labor shortage and beyond and be sure to check the Healthy Snacks blog for more expert insights, best practices and industry trends.
