If you own and operate your own medical practice, you know how time-consuming and expensive it can be to maintain a staff of in-house billing and coding specialists who are always available to take on new patients.
You also know that the more patients you take on, the more you need to be able to bill for their services.
That’s why so many small businesses and independent practitioners outsource their medical billing and coding to third parties.
If you’re already thinking about outsourcing your medical billing and coding, this article will help you understand the benefits and the risks so that you can make the right decision for your business.
What is medical billing outsourcing?
Medical billing outsourcing is the practice of hiring a third party to process and pay your medical bills.
You can outsource many aspects of your practice, including administrative and financial services such as billing, collections, and insurance management, or you can choose to outsource medical services such as coding and billing.
While there are many medical billers and coders who will provide services to you on a contract basis, an ideal medical billing outsourcing partnership would be with a medical billing company that would accept your medical practices as a client and provide you with a full range of services.
What service should you outsource?
The type of service you should outsource will depend on your specific needs.
If you mainly bill for outpatient services, you may want to outsource your in-house coding team and have the third party handle your outpatient claims.
On the other hand, if you specialize in inpatient claims or are dealing with a high volume of medical bills, an ideal solution might be an integrated medical billing system that includes both coding and billing services.
How does medical billing outsourcing work?
Medical billing and coding can be a challenging and complicated process, and that’s why so many practices outsource these services.
When a patient visits a doctor’s office or hospital for treatment, their visit is recorded on a computerized system known as a health record.
That system keeps track of the patient’s demographics and medical history as well as their treatment and any tests that are performed.
The health record is typically shared between the patient, the doctor, and the hospital.
When should you outsource your medical billing?
There’s no one-size-fits-all answer to this question, as it depends on your own particular circumstances.
If you have a large caseload and record keeping is difficult or time-consuming, you might consider outsourcing your medical billing as soon as you start experiencing issues. If you’re unable to keep up with the ever-increasing medical billing and coding requirements, it might be time to outsource your services.
This is the case even if you’re experiencing growing pains and the expansion of your practice is causing you problems. As long as you’re experiencing increasing demand for your services, it might be time to find an outsourcing partner.
The cons of outsourcing your medical billings
There are a few potential cons to consider when looking into medical billing outsourcing. If you decide to outsource your billing and coding services, you’ll have to find a medical biller and/or coder who is willing to work with your particular circumstances.
While many billers and coders are dedicated to serving the medical industry, some may have restrictions on their services that could prevent them from billing or coding your particular ailments or procedures.
You’ll also have to decide how much control you want to lose over the administration of your practice.
The pros of outsourcing your medical billings
There are a number of benefits to outsourcing your medical billings and coding.
The obvious advantage is that you will be able to free up additional time for your day-to-day practice while still being able to handle the high load of patient care.
You may decide to outsource your billing and coding to free up your schedule for patient care, or you may choose to outsource in order to bring in additional income to supplement your income from clinical care.
If you choose the former, you will need to make sure that you have someone to cover for you while you’re out, or you will need to hire a health care assistant.
A health care assistant is a person who will help you with the administrative and clinical aspects of your practice while you’re away.
Conclusion
Medical billing is a complex process that requires a great deal of study and experience to effectively perform. For this reason, many doctors and medical practices outsource their medical billing and coding services to ensure they’re not spending more time on the job than they have to.
Once you decide to outsource your medical billing and coding, you must carefully evaluate several firms to find the right fit for your business. You want to make sure that the third party you choose is equipped to handle the volume of medical bills you process each year.
Once you find a medical biller and/or coder you like the look of, you can work out an agreement for them to process your medical billing and coding on a contractual or management basis.
