Is Outsourcing Medical Billing Services the Right Decision for Your Practice?
Healthcare practices find medical billing time-taking and challenging. However, having the right billing partner can reduce the hassle of the overall process. In addition, outsourcing medical billing services to specialists can minimize the chances of delayed payments and claim denials. Likewise, hiring third-party billing professionals can be tedious and medical practices should make a wise decision while outsourcing. Overall, handing over billing and coding to professionals reduce the administrative burdens and allow healthcare professionals to spend more time on patient care.
Whenever you are going to select a third-party medical billing company, there is a need to focus on pros and cons of outsourcing. In this article, we have mentioned some pros and cons of choosing a medical billing partner.
Pros of Outsourcing Medical Billing Services
- Cost-effectiveness
Hiring an in-house billing team costs more than outsourcing. In addition, third-party billing companies have experienced professionals like certified coders. As a result, the overall billing process becomes seamless and it optimizes the end-to-end revenue cycle process. Moreover, you need to train the in-house teams which results in additional costs. So, outsourcing medical billing can be a great decision to improve the financial health of your practice. - Efficient Practice Workflows
Productive teams bring great results for a medical practice. Also, it enhances the overall business process leading to greater profitability. So, hiring third-party billers help healthcare providers to make billing and coding efficient. Further, it enables physicians to focus on patient care and stop worrying about the administrative tasks. - Working with Specialized Teams
If you own a podiatry practice, you can outsource medical billing to specialized teams that understand the podiatry billing. As a result, you are able to reduce claim denials and maintain a streamlined claim submission process. Also, specialized teams take less time and offer better services than in-house teams as they are more experienced and well-versed in billing. - Minimize Billing Errors
Less errors in billing means more payments on time. As a result, outsourcing makes the revenue cycle high-performing and improves reimbursements. When billing specialists manage the RCM process, there is a lesser chance of errors. - Improve Cash Flow
A high-performing revenue cycle results in improvement of cash flow. In addition, getting reimbursements on time and reducing the accounts receivable improve cash flow. Outsourcing medical billing to experts helps medical practices optimize overall cash flow management.
Cons of Outsourcing Medical Billing Services
- Lesser Control of Billing Operations
When medical practices hand over billing to third-party companies, they have lesser control over the billing operations. If the billing service providers do not share regular reports and stay in touch with you along the way, it can lead to frustration. However, discussing these aspects before outsourcing medical billing to professionals can help avoid these situations. - Security Risks
Protecting patient data in accordance with the HIPAA rules is essential for healthcare providers. In addition, outsourcing billing means you hand over patient data and financial details to a third-party company. As a result, it increases the potential security threats of data leakage. To avoid this occurrence, medical practices need to verify the company and check their repute before finalizing the contract. - Lack of Communication
Hiring medical billing companies located at different part of the globe becomes challenging at times. Since third-party company is working at a different time zone, the communication may lack sometimes. However, it can be reduced if a dedicated account manager keeps the medical practice posted during a pre-decided time. As a result, medical practices can avoid the problems that may occur due to lack of communication. - Quality of Service
Whenever you outsource medical billing and coding to professionals, try to run a background check. In addition, ask their customers about their experience and go through the testimonials. As a result, you will be able to opt the best quality of service and avoid these challenges. Further, find a billing company that knows everything about your specialty and has a prior experience of billing. - Risk of Losing Reputation
Making a mistake in hiring a third-party billing company can destroy the reputation of your medical practice. In addition, it may delay the reimbursements and damage your cash flow.
How to Choose the Best Billing Company for Your Practice?
Making the billing process seamless is a desire of every medical practice. Similarly, streamlined billing and coding help healthcare providers to optimize the RCM process. Also, hiring the right companion for your practice improves the overall efficiency of billing operations. As a result, providers get paid on time and attain a better cash flow. Here are some key factors that you need to consider before making a decision of hiring third-party billers.
Ask for Recommendations
Try to research the companies that offer medical billing outsourcing to healthcare practices. In addition, reach out to other medical practices and ask for recommendations. You will find a better billing partner if someone had already hired their services in the past.
Find Track Record
Find out the experience and expertise of the medical billing company. Similarly, check how their past experience with other healthcare providers look like. Are they familiar with the latest healthcare regulations? Do they comply with HIPAA rules? Do they have experts that can handle specialty-specific billing? Ask these questions before making the final decision.
Reporting and Analytics
Check how third-party billing company will communicate with you. Outsourcing medical billing services to companies that keep effective communication will help you thrive. Ask them to share regular reports and address the concerns when needed.
Pricing and Terms
Learn about their pricing structure. Everything should be clear and transparent. The terms and conditions should be properly defined. Also, check which services need additional charges and how the payment terms work.
Summing Up
Healthcare providers can get a lot of benefits after outsourcing medical billing services. Similarly, it gives providers ample time to focus on patient care. Likewise, it results in saving costs, improve the end-to-end revenue cycle process, and making process efficient.