Popular professional networking sites as well as medical services related websites are flooded with articles on benefits of outsourcing medical billing to a billing company. The most common claims are that it can get your revenue flowing in smoothly even during duress. However, providers’ apprehensions about outsourcing their revenue cycle management (RCM) to an external entity retains its own place. So, let us consider some basic parameters to get an answer to this question.
Infrastructure and Cost-cutting Measure
Since an outsourced team will work for you in a different location using their own resources, it is definitely a sizeable and effective cost-cutting measure for a medical practice. No salaries, electricity bills, dealing with staff shortage, absenteeism, etc.
- Advantageous Option: The expertise and round the clock services of a physician billing service cannot be overlooked when it comes to a practice’s performance, efficiency, reducing billing errors, and ensuring successful reimbursements in the first go.
Reports and Ready made In-depth Analysis
It is observed that most practices resort to outsourcing medical billing only in the year end to cleanup pending account receivables (AR). Rather than falling back on a last minute stitch in time saves nine, it is desirable and recommended to conduct periodic audits and analysis of a revenue cycle. To achieve this it is mandatory to maintain low AR buckets and meticulous follow up.
- Advantageous Option: Billing companies offer monthly customized reports which help providers track their revenue status along with the areas that need improvement. Timely and constant tracking by dedicated AR team helps in getting quicker reimbursements.
Medical Specialties and Experienced Employees
If you happen to run a multi-specialty clinic chances are that you might find employing specialist coders and billers a costly affair. With the ICD-10 implementation just a few days away certified and experienced coding and billing professionals are experiencing a major transition in their employment prospects and scope for earning.
- Advantageous Option: In such scenario physician billing services can not only save huge resources but also increase your revenue cycle management (RCM) efficiency manifold. On the flip side, the experts will come at a cost not that will not easy on providers’ pockets.
Size of Medical Practice and Billing Staff
Patient influx of individual healthcare facilities demand different types of handling and timeline for completing one circle of filing the claims with insurance companies. A small medical practice can manage its billing smoothly but facilities like community hospitals can be lengthy and taxing. The in-house staff has to perform preliminary requirements like appointment scheduling, patient and policy verification, documenting patient histories using EHR-friendly methods, code with the latest coding standard (ICD-10); which is extremely detail oriented and acutely specific.
- Advantageous Option: An outsourced billing partner, in this case, handles all these processes separately, thus allowing your staff time for other care-related activities that might add to the patient satisfaction levels.
Hence, the pros of physician billing services weighs heavier than its cons based on the basic above mentioned parameters. What does your practice demand?