Billing and revenue cycle management is one of the most important considerations of medical set-ups of any size. Whether you are a small practice or a large hospital system you desire your financial billing procedures to go smoothly so that your practice is paid faster and revenue is earned. There are two options available for medical practices either to have an in-house billing team or go for outsourcing medical billing services. In this article, we will discuss the advantages and disadvantages of outsourcing medical billing.
When should your practice outsource its billing services?
It’s a good idea to outsource your billing services when your medical practice is going through the following circumstances.
- Your practice patient accounting system is obsolete and needs replacement.
- There are credentialing issues prevailing
- Reimbursement models are erratic and not stable.
- Your net revenues are low and cash recoveries don’t turn out as you expect.
The Upsides of outsourcing medical billing
- Turns out to be less costly – Outsourcing medical billing turns out to be less expensive when you’re starting a new medical practice or there’s a transition because of a staff member’s resignation.
- Transparency – When you outsource to a third-party medical billing company they will provide you with performance reports automatically. This provides you to have a clear look into your billing operations and procedures without having to micromanage.
- Improved consistency – Medical practices that outsource experienced enhanced consistency level in terms of financial performance. A medical billing company is indulged to perform financial tasks such as appealing denials for your success. The outsourced company is to support all your financial needs and meet your goals so your practice runs smoothly.
- Helpful analytics – The outsourcing billing partner offers helpful analytics for your practice which gives a clear picture of how accounts receivable is aging and how patients react to a change in reimbursements.
- Also, provide software solutions – The billing company may also offer solutions to Billing Services EMR software and Practice Management (PM) software. Administrative capabilities can also be provided such as eligibility verification and patient follow-up with an additional fee which further helps to streamline workflows.
The downside of outsourcing billing services
- Variable cost – Usually billing companies to charge you a percentage of collections, which means the more you will bring in, the more you’ll payout. This can make it difficult for your practice to budget expected billing expenses since costs vary drastically on slow and busy days.
- Hidden fees – There may be hidden fees such as startup charges or fees for sending reports. Therefore it is important that you read the contract carefully to make sure outsourcing turns out to be cheaper as opposed to maintaining and paying entire internal financial staff.
Suggestions
Outsourcing billing services are becoming popular and it is advised that your practice selects a vendor that has a good and stable repute and also comprehends the precise needs of your practice and is motivated to fulfill your financial goals. The vendor should also offer current technology to get things done and always make sure there are transparency and clarity regarding fee structure and implementation plan. Hopefully, you are good to go with a billing partner that has greater expertise and resources to help your practice perform better.
