Exploring the Purpose of Ancillary Management Services

Updated on June 26, 2023

A patient’s medical treatment plan doesn’t end when they leave a hospital or medical office. Whether physical therapy or at-home healthcare, ancillary services are critical to their recovery.

Patient Care

Ancillary services are medical procedures and tests that help physicians diagnose patients. They are typically found in hospitals, medical offices, or free-standing ancillary service centers. These services include laboratory testing, radiology, and genetic tests. These tests provide valuable information to physicians and healthcare providers.

A physician can also utilize diagnostic ancillary services to ensure a patient receives the correct treatment. These are more short-term ancillary services.

Therapeutic ancillary services are more long-term ancillary services. These services are offered to a patient even after the primary care provided by their physician is complete. These services include a variety of therapies, such as physical and speech therapy, and custodial services, such as home health care and hospice care. When a practice chooses to add an ancillary service, it must perform a thorough cost-benefit analysis and decide if it makes financial sense for the practice. 

Patient Retention

According to Chris Manfuso, Founder of Docancillary, patients’ medical treatment doesn’t end when they leave the hospital, and at-home healthcare is a crucial component of their recovery. By offering these ancillary services in-house, hospitals and medical offices can open their doors to a new demographic of patients while improving patient retention and satisfaction by making it easier for them to follow through with their physician’s recommendations. Diagnostic ancillary management services, including laboratory tests and imaging, are integral to a patient’s care. Custodial ancillary services, which encompass nursing and home infusion therapy, are more long-term ancillary care options that help to improve the quality of a patient’s life.

Ancillary service providers also save hospitals and medical offices from extensive financial burdens by operating independently of them. This allows them to work with various vendors to offer a comprehensive and holistic patient experience. 

Increased Revenue

Adding ancillary services allows physicians to retain revenue that would otherwise be sent out the door. It is important to analyze what your practice most often refers to, such as lab services or prescriptions, to determine if you have enough demand to offer those services in-house. This analysis can be done with your EHR or by keeping a log of referrals over a month or two.

Increased Efficiency

Ancillary services help businesses run more efficiently and effectively. They provide various solutions for companies, from logistics and marketing to accounting and HR. These services can also be helpful for a company that is growing and needs additional capacity or expertise. Often, ancillary services are needed for diagnostic purposes, such as lab tests, urine drug screening, or X-rays. While physicians could perform these tests in-house, referring patients to a free-standing service specializing in this area is more cost-effective and faster. A sophisticated ancillary management service will work with claims adjusters and payers to schedule imaging only within a network of superior imaging facilities. This allows the payer to save on costs and improve efficiency in meeting the needs of injured workers. In addition, a sophisticated ancillary service will help manage the equipment lifecycle by working with imaging facilities to upgrade their outdated technology. 

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The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.