However, it made financial sense to handle billing internally when you first opened your practice. However, as your company grows in size and scope, billing has become more complicated. Many practices find it prudent to outsource this task because there are so many moving parts to keep track of in order to maintain a steady flow of revenue.
If you’ve been considering outsource medical billing, this article will go over all of the reasons why medical practices should do so, as well as the operational benefits it provides. You can use it to see if it’s the right fit for your practice.
1. Reduce the chance of medical billing errors
Billing training has been provided to your staff, but how comprehensive was it? Consider the difference between doing this work in-house and outsourcing it to a group of experts. They receive ongoing training in industry best practices and bill more hours per year than anyone else at your practice. With fewer errors, revenue flows more quickly.
2. Leverage the expertise of billing professionals
With so many different payers on the scene, you can’t be expected to know everything there is to know about medical billing. Every one of them will have its own quirks, which third-party billers will be well-versed in. This saves time because you don’t have to learn the ins and outs of each insurance company.
3. Allow employees to focus on more important tasks
You’ve got a lot of administrative details to keep track of. You can free up some of your back-office staff from billing work and use them for other important tasks. Of course, if you had planned to hire more billing staff but no longer need them due to a third-party issue, you can redirect the funds to more personnel or new practice equipment.
4. Get a Better Understanding of Your Financial Situation
Your third-party billing company will assist you in achieving greater transparency. According to a report from Medical Economics, they will use software tools to provide analytics into how old your accounts receivables are growing and at what volume, or how patients react to any changes in how reimbursements are issued.
5. Save money
If you’ve been trying to cut costs and make your practice more profitable, medical billing outsourcing might be the quickest way to get there. According to Connect, purchasing the most recent version of specialized billing software and investing in employee training will almost certainly cost more than outsourcing the work.
6. Integrate Medical Billing Services with Your Electronic Health Records Software
Patient information is an important consideration. Connecting your electronic health records or EHR software to the computer system of the third-party billing team is simple and straightforward. This ensures that patient data is accurate and that billers can process each bill as quickly as possible.
7. More satisfied patients
Patients appreciate it when billing statements are clearly written and include payment instructions. The professionals at the third-party company to which you outsource billing will consistently handle all of the minor details. External billing takes care of this task much faster while adhering to the latest rules and regulations with each insurer. Your own team may be slow to get paperwork out.
8. Get Rid of Your Old Accounting System
If your practice’s accounting system was purchased and installed many years ago, you might want to consider upgrading through a third party. Forget about the time and money spent figuring out which new accounting system is best for your company. For the most efficient use of time, the medical billing services team will use the most recent version of their software.
9. Use Medical Billing Services to Expand Your Business
Billing was a routine and simple affair when your practice was small and just getting started. However, as you prepare to expand, keeping track of billing from various specialties and doctors will become more difficult. For doctors looking to expand their practice in the coming year, it’s a good idea to weigh the benefits of outsourcing versus doing the billing in-house.
10. Double-check your compliance
According to EU Today, outsourcing your medical billing services will help you stay in compliance with the Health Insurance Portability and Accountability Act (HIPAA) privacy regulations.
You’ll have peace of mind knowing that third-party billing professionals will be trained in the most recent compliance requirements, resulting in faster bill payments.
Do you want to learn more about medical billing services?
When it comes to outsourcing your billing, there are a lot of things to consider. You may require additional information before proceeding after considering these ten primary medical billing considerations. Download our free and informative ebook, The Complete Guide to Medical Billing Services, to get up to speed.
- Using a medical billing solutions company will help your office make fewer mistakes on patient statements.
- Third-party billers will have more experience than anyone on your team, so you can expect greater accuracy and faster payments.
- Are you looking for more financial transparency in your practice? Third-party billing services will help you understand your revenue flow.
- Billing services will easily integrate with your electronic health records or EHR software, improving accuracy.
- When you work with medical billing professionals, you can more easily comply with the Health Insurance Portability and Accountability Act’s privacy regulations.
When Should You Outsource Medical Billing?
Outsource medical billing could be the best solution for your revenue cycle leaks. Outsourcing your billing to the pros can save you a lot of time and money. Your practice’s revenue can rise steadily and noticeably. If you answered yes to these questions, it’s time to call in the professionals:
Do you have trouble staying on top of billing and credentialing?
- Do you require a more detailed analysis and reporting of your financial performance on a weekly, monthly, or quarterly basis?
- Is it difficult for you to find qualified, experienced medical billers who can complete the job quickly and accurately?
- Do you find yourself falling behind on reimbursement and compliance issues all the time?
- Are your claims being denied on a regular basis because of simple billing mistakes that could have been avoided?
Is Medical Billing Services Outsourcing Necessary?
Although it is not strictly necessary, if your revenue is suffering, it is time to outsource. Medical billing professionals to boost your revenue, maximize reimbursements, and maintain a healthy and transparent revenue cycle. It is critical, particularly in this global pandemic. Although insurance companies have their requirements, this does not guarantee that they will pay for the services.
Budget-friendly: Outsourced medical billing is advantageous because of its cost-effectiveness. Your financial situation will undoubtedly improve now that you are not responsible for medical billing technology, software, and other costs.
Become more visible: At any given time, an effective medical billing company should be able to generate a variety of comprehensive reports. This convenience allows providers to get a detailed picture of their financial situation without having to rely on employee micromanagement.
Consistent Outcomes: When you outsource your billing, the company you hire is required to deliver the agreed-upon services at a certain level of success. The fact that most contracts include support means you’ll never have to hire staff.
Giving Up Control: Although outsourcing the stress and labor of billing to another company, may seem like a relief to some, handing over those procedures and responsibilities to someone else can be difficult for some. Nonetheless, the positive outcomes are well worth the effort.
Prices that Change: The majority of billing companies take a percentage of the revenue they collect, so the more money your practice makes, the more money you’ll spend. This makes budgeting billing costs difficult, especially given the large differences between slow and busy months.
The fine print: Read all contracts carefully before outsourcing your billing. There are frequently hidden charges for printing statements, generating reports, and other startup costs. You may also incur unnecessarily high costs due to cancellation fees. Make sure the money you save by using a medical billing company isn’t outweighed by hidden fees in the fine print. Now that you’ve weighed the advantages and disadvantages of both, it’s time to put them to the test.