Medical billing is a foundational aspect of your healthcare practice. Providing quality healthcare is your core business and support activities such as CDR billing can affect your performance adversely if they are not handled promptly and accurately. To make sure that you get paid for services that your practice provides, you need to have a focused, reliable, and knowledgeable team to oversee your process. Those activities might include medical coding, handling insurance companies, processing claims, and following up on patient accounts that are unpaid.
As a business leader, you need to make a critical decision on whether you will have your internal staff do your billing in-house, or hire a professional billing service to do this for you.
Outsourced Billing Services vs. In-house Billing
If you decide to do your own billing in-house, the staff responsible for it will need to have practice management software to track the balances of your patients and to release bills to customers. You will be responsible for following up payment rejections, denied claims, etc. Your practice also needs to keep up with evolving policies and regulatory frameworks, like using the ICD-10 coding system.
Conducting your own billing in-house is usually less expensive; however, for medium-sized and small practices, it can be a time-consuming and challenging task. You can lose a lot of revenue due to rejected claims, unpaid claims, etc. That is when you need to have help from a professional billing company that can provide you with revenue cycle management services so that you can focus on your core business instead.
Outsourced Billing Services – 5 Important Benefits
1. Economies of Scale
Billing service companies are able to distribute their billing expenses over its many clients. That offers economies of scale that get passed on to your practice. Usually, they are able to operate with a lower cost and more collection percentages are recorded. You also can save on office space, hardware, staff, overheads, and time.
2. Dedicated and Highly Trained Staff
There is only one purpose that an outsource has, which is to increase your profitability. They conduct reviews of payment methods and make sure the right figures are being paid by carriers. Also, they follow up on claims to ensure that every cent is settled as much as possible. Since that is the area they specialise in, they have teams of experts that are able to navigate through industry procedures that continue to evolve.
3. Get Paid Faster
For all business ventures, cash flow is absolutely essential. The number of days that your money stays in the revenue cycle has a significant impact on your bottom line. An advantage to outsourced billing companies is they are able to submit claims quicker and with minimal errors that allow your customers to pay their bills on time.
4. Allows You to Focus on Your Core Business
With in-house billing, you have to spend a lot of time trying to contact delayed or rejected payments, unpaid claims, etc. That introduces a lot of headaches as well as diverting your attention away from your core business of helping patients. When you hire a billing company it frees up your time to allow you to increase your revenues and handle a higher patient volume.
5. A Changing Industry
As the healthcare industry continues to transform, medical billing is also affected by this transition. It is very hard to keep up with the ever-evolving rules and regulations. It might require constant attention and staff education to deal with system changes. For example, CPT codes are introduced every year and there are new carrier fees and rules practically every day. Allow the professionals to handle these issues so that you can provide healthcare, which is what you do best.