7 Reasons Why Physician Practices Should Outsource Medical Billing

Healthcare reforms now require physicians to improve the quality of care. At the same time, clinical tasks are a massive timesink. Delivering better care to patients is the primary job of the physicians but there is always a challenging business side, with revenue targets that must be accomplished and require attention. Monthly collections of physician practices mostly depend on efficient medical coding and timely submission of the payment claims to insurance companies. In-house medical billing and coding is a massive task and needs efficient resources to complete the billing process. The increased cost of the technology and trained resources has made it more affordable to outsource medical billing than to manage it in-house.

On average, 80% of medical bills contain errors and earnings are lost due to loopholes in the billing process. Outsourcing physicians’ medical billing and coding to a dedicated outsourced company are beneficial in various ways. It saves time, resources and eliminates errors which ultimately results in increasing the revenue of providers.

Here are seven major reasons why you should outsource medical billing to a medical billing company.

Reason #1: Outsourcing billing frees up time.

Medical billing and coding is a time-consuming task and restrains providers to focus on other areas of practice. Providing quality care to patients and maintaining the financial side of the office is something that requires time and constant attention from the management. Outsourcing billing process to a third-party medical billing services provider eliminates the time restraints and allows more time to spend with patients.

Reason #2: Easier to keep up with updates.

Medical billing is a field that requires constant upgrades of the resources and there are periodic coding updates as well. It can get difficult to follow up with the current certifications and also requires a hefty investment to meet the changed requirements. Outsourcing physicians’ medical billing to an outsourced billing company eliminates the need for following up with the latest updates. For instance, ICD-10-CM update required training for clinical staff and providers and compliance at a given date. Medical billing companies hire expert coders to handle the medical billing process who are well-equipped to perform the tasks according to the latest certifications and updates.

Reason #3: Improved billing accuracy.

It is the responsibility of a medical billing company to make the process of billing efficient and quick. At the same time, an expert medical billing company can reduce billing errors and maximize the outcomes. The expert billing team would also double-check the accuracy with claim scrubbing process and clean claims entail higher collections.

Reason #4: You only pay for what they do.

Medical billing services providers offer various plans and providers can choose what suits them best. Mostly, medical billing companies charge a fixed rate per claim or take a certain percentage of the reimbursement. It is more reasonable and affordable than hiring an in-house medical billing staff. By outsourcing billing, providers save on:

1. Office supplies and furniture
2. Annual salaries and bonuses
3. Maintaining medical software and technology

Reason #5: Uninterrupted billing and cash flow.

Delayed reimbursements and sluggish cash flow is a major drawback for the healthcare organizations and which disturbs the entire revenue cycle. Outsourcing your medical billing to an expert medical billing provider or company ensures an efficient and uninterrupted billing cycle. These contract medical billing companies always make sure to submit your claims in real-time. This assures a steady cash flow and optimizes your revenue cycle management. Compared to your in-house staff they have a large team to make sure that the billing process is uninterrupted.

Reason #6: Reduces the burden on your front desk staff.

It is the responsibility of your receptionist to greet the patients, answer the telephone calls, entertain the queries of your patients and even deal with the billing information. Outsourcing your medical billing services does not only increase the accuracy of your bills but also decreases the responsibilities of your front office staff. Moreover, this can be beneficial in the following ways:

1. Lessen the burden of your front office staff
2. Improves customer service
3. Increases employee morale
4. Patients would be delighted to receive professional and uninterrupted assistance for their billing queries and confusions
5. Optimizes the clinical flow
6. Results in happier and satisfied patients

Reason #7: Data protection.

Data loss and other cyber incidents are a major concern of almost all healthcare organizations around the world. Outsourcing to a professional coding company will ensure data security and protection of patient health records. However, you must take precautionary measures on your part and make sure that the outsourced billing company is offering required security and compliance according to HIPAA requirements.