What are the Benefits of Outsourcing Medical Billing?

Medical billing is becoming more and more involved as new diseases and conditions get discovered and new codes are released, and this can become very onerous for small medical practices that do not consider outsourcing medical billing. At some stage or the other a decision needs to be reached that the amount of time and effort spent on administrative tasks such as coding and billing are a huge waste of a physician’s time, and that the money spent on outsourcing medical billing is money well-spent.

Outsourcing your medical billing will take the burden of concentrating on too many aspects of your medical practice off of your shoulders, and will free you up to do more of what you actually want to do and are trained to do – take care of patients. This is critically important, especially for a small practice, in a health care industry that has become more competitive and highly fast-paced over the years.

With the amount of local and international companies offering some extremely reasonable rates for medical billing using internationally competitive quality standards, it is incumbent on all health providers to think about outsourcing medical billing lest they get left behind. This can be done by either investing in your own medical billing and coding systems or by outsourcing medical billing to a company or individual that specializes in medical billing.

Companies that contract to do medical billing are staffed with extremely competent billing and coding experts and that will deliver the maximum results quickly and efficiently at very cost-effective prices. When one has the option of outsourcing medical billing and dispossessing oneself of all the tedious and laborious billing, practice management, regulatory compliance, and accounting that goes with the running of a medical health care business, why on earth would you continue to punish yourself by doing it yourself?

Advantages of Outsourcing Medical Billing

Some of the many advantages of outsourcing medical billing as opposed to either trying to do it yourself or purchase medical billing system to do it in-house are:

More Focus on Patient Care

You studied medicine in order to attend to patients, to help people with medical problems or conditions, so why spend time on administrative tasks? By outsourcing medical billing you will be able to concentrate on doing what you do best and what you love doing, focusing all your attention on your patients. This is especially important for smaller practices where it is not possible to employ a large office staff to take care of all the administrative tasks.

Improved Patient Satisfaction

The most important person in a medical practice is not the physician; it is the patient, because without the patient there would be no practice. Often in small practices the receptionist doubles as an administrative clerk, dealing with billing queries and insurance claims and various other tasks, which is really not ideal, as their job is to keep the patients happy, which they cannot do if they are over-worked and stressed. By outsourcing your medical billing you will have reduce the burden on your front office, which will increase productivity, efficiency and employee morale, which will, in turn, improve patient flow, and that will keep your patients happy and coming back.

Reduction in Billing Errors

Outsourcing medical billing means that your bills will be handled by experienced professionals who will ensure that your claims are submitted accurately and in a timely manner. Medical billing companies specialize in medical billing, and therefore ensure that the personnel that they hire are well-trained and equipped with the knowledge that will enable them to do submit the correct medical claims every time, which will reduce the amount of denied and rejected claims. These companies will also provide you with feedback that will assist in maximizing the reimbursement on future claims.

Improved Cash Flow

The one problem of doing your billing in-house is that either you may be overworked and not have time to do all the billing, or your staff member who is doing the in-house billing gets ill or goes on leave and either way what happens is that the billing does not get done, therefore there is also no money coming into the practice. This ceases to become a problem when you outsource your billing, as that will ensure that you have a continuous flow of bills going out and income streaming in. A fluid cash flow is vital for your bottom line and the success of your medical practice.

Financial Savings

Outsourcing medical billing could potentially save you thousands of dollars annually in salaries and benefits; office furniture, stationery, billing software and computer equipment. Medical billing companies generally either charge a flat rate per claim or a percentage of the reimbursement amount of each claim, and either method will still be less than what it would cost you to set up an in-house billing office and pay a staff member in wages.

Increased Revenue

Another advantage that outsourcing medical billing can have is that due to the timely submission of medical claims, reduction in overhead costs, and increased reimbursements, you may also experience more profit. This is important as it will allow you to invest in the most modern technology, and provide the best service using the best products, which will be noted by your patients. Competition in health care has grown because patients are becoming more knowledgeable about what is being offered by whom, and are making choices based on who can offer them the best care and services.

Ensured Billing Compliance

The health care industry is ever-changing, and this is partially due to the challenge of medical billing and keeping up with all the changes in Medicaid, Medicare, and third party payers. This means that ensuring that the correct protocols are followed takes up a lot of time, and this is time that physicians can ill-afford to spend away from their patients. Outsourcing medical billing puts the responsibility of staying current on the latest changes in regulations and requirements, maintaining compliance and ensuring that claims that are submitted are clean squarely on the shoulders of the billing company.