Examining the costs of employee turnover

Dec 12, 2013 | Hospital Finance Efficiency

Bringing in fresh new talent to an organization is a good thing, but it isn't always easy, nor is it always recommended. Sure, you'd like to think that if you hire the best and brightest in the field that you operate in you won't have to spend time assimilating new employees into the office, but the various idiosyncrasies that make your organization unique can be challenging for any new hire, regardless of their knowledge or skill level. 

As such, hiring new employee is always going to be expensive. Even if you have a human resources department, chances are someone from your specific group will have to partake in the interview or application review process. This takes precious time, which isn't always affordable to time-crunched departments. As a medical billing and accounts receivable department, you already have a significant amount of paperwork, third-party claims and other time-consuming tasks to handle. You might not have the time to interview prospective employees. 

Bringing them up to speed is going to be costly as well. In addition to getting the new employee accustomed to your specific operations, they may be tasked with taking over a departed employee's workload, which requires unique knowledge that can't be easily learned. Reestablishing relationships with patients can also be difficult as the personal element will always be a factor. 

However, if you were to outsource many of your accounts receivable processes to an outside organization, you can alleviate the risks caused by turnover. This is one of many advantages the Huffington Post recently listed in regards to outsourcing medical financial processes. 

"Employing a staff for billing purposes can get expensive," wrote Tom Lowery, the article's author. "Hiring one new person means the costs of training, the employee's salary, benefits, and taxes, as well as compensation for turnover. Outside billing services eliminate these headaches by already having trained professionals."

The key is to find an organization that not only has the work ethic to keep up with your demanding workflow, but also possesses the skills and knowledge necessary to ensure the quality of your production is never compromised. By outsourcing accounts receivable cleanup and third party claims processing tasks, you can focus on what's really important in your company and reduce the chances of turnover having a negative impact on your department.