If you work as a medical professional or oversee a healthcare facility, you’ve probably encountered a myriad range of challenges on the surface and deep-rooted ones when it comes to medical billing and collections. Low or delayed payment, organizational complexity, and trouble finding qualified medical billers are all common issues that healthcare professionals face when it comes to medical billing. Since billing procedures are closely related to your medical setting’s revenue, these issues only make an already urgent matter worse.
Your medical billing function can be outsourced, which is a terrific approach to handle such issues. By outsourcing, you can give your third-party service provider control over coding and billing. You merely provide them with all the relevant information. They will handle billing and submit claims to the payer, eliminating the need for internal staff and extra infrastructure. Let’s dive deep into the details to make a sound decision, shall we?
How Much Does Outsourcing Medical Billing Cost?
When executing the medical billing task in-house, the majority of healthcare facilities collect roughly 60% of their claims as opposed to the 75% obtained when medical billing is outsourced to a company.
Imagine for the purposes of this straightforward cost estimate that your clinic sends out $2,000,000,000 in billed claims in a single year. You would then have a total of $1,200,000 from internal collections. In contrast, collections from outsourced billing can total around $1,400,000 whereas, in-house billing is $200,000 higher than that.
Now, let’s talk more numbers?
Outsourced onshore billing: In the United States, medical billing services account for 6.5% to 8% of total monthly revenue. This often results in a minimum monthly revenue of $40,000.
Minimum monthly payments range from $2,500 to $4,000. However, depending on your volume and the number of billers the business would need to recruit to cover the necessary minimum hours for your billing, this is readily subject to change.
Offshore billing: It is not true that using offshore billing providers increases your vulnerability to data breaches.
In terms of medical billing, it is true that certain nations have laxer information security rules. There are several excellent, HIPAA-compliant offshore medical billing providers to pick from.
Another excellent strategy to save money is to use offshore billing services. They typically provide rates between 2% and 3% of monthly collections, which are cheaper than those of their onshore competitors.
Minimum fees are typically $500 per month, which is significantly less expensive than onshore fees.
Hybrid billing: Consider a hybrid style of medical billing if you want the “best of both worlds” in this area.
If you’re not familiar, hybrid billing is when a practice uses both onshore and offshore resources to carry out different activities.
The pricing of hybrid services might range from 3% to 5.5%, depending on the amount of collections. Minimum fees are also dependent on the amount collected. They typically range from $850 to $3,500 a month.
Is it worthwhile to outsource medical billing?
We already highlighted how challenging and urgent medical billing is. Medical settings are faced with several challenges especially when it comes to their in-house staff and resources.
It’s unusual to see an independent medical practice start up and hire staff to handle revenue cycle management. As a result, the staff frequently spends time making sure they follow all applicable laws. As the facility expands, this poses a serious problem. It takes a lot of time to stay on top of the revenue cycle management software. Then there’s the issue of having to update your computer system frequently to keep it RCM-compatible. You name it and the challenge pops up!
Additionally, hackers frequently target medical billing software, which stores private patient information. Sounds scary, doesn’t it? Therefore, you must regularly update your security procedures to ensure the confidentiality of patient information. Even if it takes a lot of time, this must constantly come first in computer operations.
With all these things to take into account, choosing to outsource medical services for billing and collections to outside providers makes sense.
Whether In-House Billing Is Better Than Outsourcing Medical Billing Services?
Comparatively speaking, internal billing is not more economical than outsourcing. A healthcare practitioner can monitor the billing process and adjust it appropriately for increased productivity with an in-house billing practice. However, if you perform in-house billing, you must ensure that every member of your staff has the knowledge and skills necessary to deal with patients’ questions, handle claims, administer the process, and manage the RCM independently. It is undoubtedly difficult for anyone to handle patients’ claims while still concentrating on their patient care.
Most professionals choose outsourcing at this point because they realize that by doing so, they will have more time for their primary practices and may delegate the processing of insurance-related tasks to a reputable medical billing business. In addition to making the procedure smoother overall for the doctors, it also helps patients end up satisfied.
Pros of in-house medical billing
More control over the billing process: When medical billing is handled internally, you have direct control and oversight over financial processes. You can just ask questions of your staff down the hall, and they will answer in real time. Any billing changes you make will take effect right away. You might be more accountable and open if you keep track of your finances in person.
Capabilities for observing and controlling: You can have total control over your financial activities when you employ in-house billing. The team will answer any straight inquiries you have regarding any topic right away. The billing process is mutable. Workplace transparency and accountability are helped by internal operations.
Keeping patient information private: For the purpose of protecting patient confidentiality, in-house billing enables better control over patient records. If the privacy of the information is not protected, the patient might be reluctant to provide more details, and the doctor-patient relationship might suffer.
Pros of outsourcing a medical billing company
Less Expensive: In-house billing requires a committed workforce, office space, and technological assistance. However, with the aid of technology, outsourced medical billing will operate in a different setting. Bonus: It won’t break your bank!
Productivity: Many proprietors of medical practices just lack the time necessary to recruit, train, and supervise administrative staff. Taking care of their patients and carrying out other administrative duties already puts them under a lot of stress. Furthermore, the patients demand their doctor’s undivided attention. Thus, the billing companies step into the picture, to take over the complex billing processes and help the in-house team conquer productivity.
Ease of Record keeping: They keep insurance claim e-reports on a weekly, monthly, and annual basis when billing is outsourced. This regular updating guarantees proper billing and paperwork. With the right medical billing company, you can ensure simple and easy record keeping!
While many doctors still prefer to handle their own billing, the benefits of outsourcing medical billing are all too clear. Instead of becoming bogged down in the details of paperwork and administration, you would be better off focusing your time and expertise on enhancing patient care and your practice. The expense element is particularly difficult to overlook. Practitioners can save anywhere from a few thousand to a quarter of a million dollars by outsourcing the billing services. What are you waiting for? Medisys Data Solutions is merely one click away!