Outsource Medical Billing
Today, the big question facing many medical practices is, should they keep patient billing in house, or outsource medical billing.
On the surface, there are those within a medical practice who will say it is an easy decision. On the other hand, there are those who would feel quite the opposite. Certainly, both camps would agree, before making a decision of this magnitude, the principals involved would surely take enough time to analyze all the advantages and disadvantages of each system.
Factors to Consider While Choosing to Outsource Medical Billing
When considering the advantages and disadvantages of each method, the principals should determine whether the decision would
- Cut costs
- Save money
- Increase business
- Improve profit
- Improve patient relations
These are just a few of the important matters needing thorough analysis, thought, and discussion. The crucial decision, however, will more than likely involve the most important point under consideration, and vital to the organizations growth.
Outsourcing Cuts Costs
In today’s economy, the business buzzwords are – cut costs. A medical practice is no different, the issue of billing costs – and they may be astronomical — must be addressed. The most important in-house costs are generally:
- Number of physicians
- Number of billing personnel
- Number of claims filed
- Dollars per claim
- Software and their other associated costs
Dollar cost amounts will differ and depend on the size of a practice. However, as much as correct and timely billing drives revenue increases, outsourcing the billing function lowers costs, saves money, improves business, and increases net profit.
Patient Relations and Retention
Patients, of course, are the lifeblood of a medical practice, and it is only natural patients feel as though they should get the attention and care they expect. When patients get the idea their doctor is more involved with administrative, billing, and financial issues, they become uneasy, feel neglected, and may well seek the service of another physician, one more interested in patient care. Under these circumstances, the advantages of medical billing outsourcing far outweigh keeping this function in house. What’s more, physicians and staff can concentrate on what they do best — take care of their patient’s health.
Professional Medical Billing
Professional medical billing services are good at what they do; they process claims correctly, and adhere to the required deadlines and standards. These services train their billers well, and statistics show because of their comprehensive training they make fewer errors, resulting in more accepted claims, which ultimately increases cash flow and profit. These billing companies also furnish detailed business reports vital to business operations.
Crucial Business Interests
Employees of a well-run medical practice, have for the most part, well-defined responsibilities, and are patient oriented. If, therefore, the patient is of prime importance, then it will make sense to outsource the medical billing function and allow the staff to concentrate on the patient’s needs. The medical billing service is now responsible for this operation, and ownership has greater control of the practice.
Better Bill Collection
Slow pay and reduced collections are usually indicators of difficulty with the in-house billing process. This is a serious situation, and may be symptomatic of an even deeper internal problem. Under these types of conditions, if the billing service is able to collect money faster, medical billing outsourcing becomes a viable alternative, certainly worthy of serious consideration.
What Will Your Decision Be?
In truth, this question needs a great deal of deep thought and in-depth analysis. Certainly, emotional attachments and employee loyalty plays an important part in this decision. Consider, too, medical billing outsourcing services standards of performance vary widely, and all billing service companies are not the same. Selecting the wrong service only aggravates an already difficult situation. It’s a ticklish task, but in the end, the decision maker must choose what they believe is the best system for their business.
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