7 Reasons why Medical Billing Outsourcing works for Physicians
Medical Billing Outsourcing isn’t ideally a new concept for practices in the US. By letting a third party handle the medical billing services, growing number of healthcare providers are making profits and are getting ample time to focus on quality patient care.
- Between the forecasted period of 2018 to 2023, the global medical billing outsourcing market is expected to register a CAGR of 10.5%
Wondering whether you should outsource your medical billing services or keep it in-house? Well, here are top seven reasons why the concept of medical billing outsourcing is actually working for physicians across the US:
- Cost Reduction
- Approximately 10-12% of practice collections is spent on medical billing procedures
- Majority of administrative cost in the US healthcare system (approximately 62%) has been attributed to billing and insurance related activities
- Billing costs are very high in US, costing nearly 4 times more than the cost of medical billing in Canada
Cost reduction is one of the topmost concerns of medical practices and by outsourcing the billing services to a reliable medical billing company, practices can reduce overhead costs significantly.An expert team of coders and billers can get the practice paid on time, reduce denials and increase revenue.
- Increased Revenue
- As per a survey, with a good billing team, practices can experience 95% claim payment upon initial submission within 45 days
Outsourcing can help practices save time as well as money. Timely submission of error-free claims leads to increased revenue for practices.
- Increased Control
- It has been estimated by statistics that more than 20% of a physician’s revenue is lost due to mistakes or loopholes in the medical billing process
If the billing process is being outsourced to a reputed partner, providers can enjoy better control over their medical billing processes and the money involved. Their staff will not only send reports regularly to ensue transparency but also help identify loopholes in the revenue cycle.
- Improved Collections
- Did you know, it costs four times more to collect from patients than it does from Insurance Companies?
- More than 70% providers within the medical billing industry have reported that it takes 30 days or more to collect from patients
Patient payment collection requires expertise and experience. Since more than 30% of average healthcare bills come from patient’s pocket, Engaging an expertized medical billing company seems like the best thing to do as these companies have trained personnel.
- Access to Trained Staff
- When providers choose a reliable medical billing company, they get access to the expertise of their staff. These professional billers and coders make use of the latest tools and technology to deliver best results to their clients.
- More Time for Patient Care
- According to Medscape’s 2019 report, the biggest contributor to physician burnout (59% respondents) was too many bureaucratic tasks
Physicians do not get enough time to focus on patient care. They spend too many hours at work but less on delivering care and more on administrative tasks.
- Adherence to ICD-10 and HIPAA
- Adherence to HIPAA rules and ICD-10 is a must for practices. With outsourcing, Practices don’t have to worry about adherence to coding or regulatory changes because they have experts working for them.
Interested to know how Medical Billing Outsourcing can boost your Practice’s Revenue?