There are many pros and cons to outsourcing medical billing for doctors. Let’s explore some of the key advantages and disadvantages of outsourcing this important task. By doing so, you can make an informed decision about whether or not medical billing outsourcing is right for your practice.
Pros:
1. Reduction of Administrative Burden
Outsourcing the medical billing process can be a huge relief to doctors who are growing tired of spending more time on administrative tasks. Medical practices face many challenges in this regard, including increased demands for HIPAA compliant documentation, increasing government regulation and increasing need for professional liability insurance. With all of these administrative requirements, it is easy for your practice to get bogged down with managing the back room while neglecting growing revenue problems. A good outsourcing partner will let you focus more on patient care while they take on some or all aspects of medical billing, claims submission processing and reimbursement tracking.
2. Reduction in Operating Costs
Many new medical practices have under-estimated their costs by planning based upon an unrealistically low number of patient visits. If you are not currently outsourcing medical billing, but find that you cannot handle the volume or meet your business goals due to administrative overload, then it is time to consider outsourcing this important function. Medical billers work within HIPAA guidelines and can quickly scale up to meet the increased need for services.
3. Improved Staff Competency
Outsourcing allows your medical practice to benefit from highly trained staff working in a healthcare environment that is certified by URAC and JCAHO. These HIPAA compliant professionals have years of experience in coding specific diagnosis and treatment information according to industry-standard guidelines set forth by CMS (Centers for Medicare & Medicaid Services) and NUBC (National Uniform Billing Committee). This amount of expertise simply cannot be found in most newly hired medical office staff.
4. Expanded Revenues
Gone are the days when outsourcing was simply about saving money. Today, it is just as important that medical practices partner with service providers who offer expertise, responsiveness and are willing to provide innovative solutions to grow your revenue stream. This can include prioritizing uncollected accounts receivable and offering payment plans for those patients who cannot pay their balance in full. The right outsourced billing partner will also work to increase patient loyalty by offering useful services such as insurance verification and pre-authorization for procedures and tests.
Cons:
1. Loss of Personal Contact With Patients
Unfortunately, some doctors feel that losing direct contact with patients means a loss of personal touch. However, it is important to realize that outsourcing does not mean you are no longer interested in your patients. This is the perfect time to focus more energy on patient needs while having a trusted medical billing expert handle administrative functions. You can spend extra time providing care for uninsured or underinsured patients who need your help the most, without worrying about losing money due to paperwork and slow payment issues.
2. Quality Assurance Concerns
Of course, one of the biggest concerns doctors have regarding medical billing outsourcing is whether or not they will receive reliable financial information for their practice. Will my biller always ensure accurate coding? Will I receive everything owed to me by insurance companies? The reality is that happens regardless of which path your medical practice takes. Even when you handle all your medical billing, sometimes mistakes are made.
3. Long Term Commitment Is Required
Finally, one of the biggest challenges is simply deciding to outsource in the first place. Many doctors hesitate because they feel it may be easier to do everything themselves rather than transition to a new way of working with staff and paying attention to other priorities in their practice. This might be true if you work alone or have very little staff support, but few practices operate this way today. It is important to realize that outsourcing requires a long-term partnership between healthcare professionals who keep each other informed about changes likely to impact their practice over time – for better or worse. Outsourcing allows you to remain competitive by taking advantage of the latest technologies and expertise available in the marketplace, without requiring your direct oversight. The right outsourced billing partner will make it easy for you to grow your practice by freeing up precious time to devote to more pressing needs while offering financial solutions that increase access for patients who cannot afford care.