Before outsourcing medical billing, ensure it fits your healthcare facility correctly. While unsuitable for every practice, outsourcing offers a more controlled and sustainable approach to managing your revenue cycle. The real advantage for practices aiming to expand lies in the long-term feasibility.
Compared to in-house employees, outsourced medical billing company in California generally provides better control and stability for your facility’s finances as it grows in patient volume, staff size, and other aspects. The benefits of outsourcing extend to various aspects of your facility.
This article will explore why your healthcare facility should consider outsourcing medical billing. We’ll also discuss why it might not be suitable for other practices, providing a comprehensive understanding of the topic.
Outsourcing Medical Billing: Why It’s a Smart Move
Get Paid Faster
Outsourcing medical billing has perks. With fewer billing errors, you get paid quicker. Trusted outsourcing companies make things smoother, boosting revenue and profit potential. In short, outsourcing speeds up payments and turnover
Improved Transparency
Some doctors worry that hiring outside help for medical billing means giving control of revenue cycle management to strangers. That’s not quite right. When you partner with a medical BPO, they commit to delivering positive results based on the metrics you set.
You can establish metrics like collection ratios, first-pass payments, and denial rates. Outsourcing companies must then support their outcomes with data, providing you with clear insights into your cash flow.
A reliable medical billing company regularly creates understandable reports using key performance indicators. They can identify delays and payment issues more efficiently than many in-house staff members. This way, you can keep a close eye on your financial performance without having to micromanage
Cut The Extra Costs
Maintaining in-house billing departments can lead to rising expenses. On-site medical billing may not be a smart investment due to overhead costs such as infrastructure installation, onboarding, payroll, benefits, and insurance.
Many healthcare practices lack the time and funds to handle an entire team of in-house billers. Finding a replacement for an employee who leaves can also be challenging. By outsourcing medical billing, your partner firm takes care of these concerns, saving you time and money.
Reduce Medical Billing Errors
Mistakes in billing and collection policies can seriously impact your revenue. Everyone makes mistakes, but even one error can result in delayed payment or a denied claim in medical billing. Issues like inaccurate patient information, duplicate billing, and authorization errors can be costly.
Guaranteed Compliance
In healthcare, rules are always changing. This makes it tough for billing staff to keep up. Every new rule needs an expert to stay updated. Outsourced billing services stay competitive by staying current. This way, they ensure clean claims and compliance.
Better Patient Satisfaction
Every medical facility aims to offer top-notch care to its patients. However, juggling all tasks simultaneously can make it challenging to meet patient expectations. Your support staff is responsible for various duties, such as handling appointments, managing finances, overseeing check-ins and checkouts, and addressing clinical issues. Outsourcing medical billing can help ease the burden on your team when external parties can handle certain tasks. This allows your staff to focus more on attending to patients, resulting in higher satisfaction and increased patient retention.
Access to the Professional Services
Medical billing is a complex process. It has many parts, and the landscape of managing revenue cycles changes a lot. Rules and regulations in the industry are updated quickly. You can fall behind easily if you don’t have a team dedicated to keeping up with the latest standards.
Usage of Highly Integrated Electronic Health Records (EHR)
If you’ve ever handled medical billing, you’re familiar with the time-consuming task of entering patient data into electronic health record (EHR) systems. It’s a common challenge for billers.
Some healthcare facilities fear outsourcing medical billing might not sync well with their existing EHR systems and procedures. However, this concern can be easily addressed by choosing a billing provider experienced in major EHR systems or one that handles the integration for you.
Outsourcing your medical billing means you won’t have to deal with technical issues related to EHR systems.
Scalability of Services
Your healthcare facility can grow better without billing issues. No matter your practice’s size, outsourcing billing helps eliminate problems, allowing your organization to reach its full potential. As you grow, outsourced billing adapts, making progress achievable
Drawbacks of Outsourcing Medical Billing
Outsourcing medical billing can be beneficial, but it also challenges healthcare providers, immediate care services, and especially smaller facilities. Let’s explore the downsides of outsourcing medical billing for your practice.
Lack of Control Over Resources
- Outsourcing may lead to losing control, creating conflicting software and infrastructure issues that hinder transparency between parties.
- Some billing agents may prioritize high-value accounts, potentially affecting the fairness of the billing process.
- Patient discomfort may arise if external agents access and process their account information, leading to customer service concerns.
Limited Financial Resources for Transition
- The shift to an external billing setup can be expensive for standalone clinics, rural outpatient facilities, small medical centers, and private physicians.
- Drafting service contracts addressing collection protocols and commission levels can help smaller practices manage costs effectively.
- Choosing an outsourcing partner with compatible technology that aligns with your budget is crucial.
Insufficient Security Protocols
- Implementing integrated software solutions requires maintaining the security of patients’ information.
- Allowing third-party access may expose your systems to cyberattacks and malicious activities.
- Regular software updates by the outsourcing company are essential to prevent data breaches.
- When evaluating potential partners, inquire about their digital relationship management, training programs, and procedures for identifying external threats.
Risks of Data Breaches
- Data breaches pose significant threats to organizations, as evidenced by the alarming number of ransomware incidents reported by the US Department of Health and Human Services.
- Approximately 34% of healthcare facilities were attacked in the previous year, with 65% of those attacks successfully encrypting patients’ information.
- While most data was reclaimed, only 70% of encrypted data were returned to hospitals after paying the ransom through cryptocurrency.
- Emphasizing the importance of assessing your facility’s software infrastructure and the security protocols of the chosen billing agency with caution.
Conclusion
Outsourcing medical billing is a key and complex aspect of healthcare. It boosts revenue, lowers risk, and makes work smoother. Yet, handling patient info during the transfer can be tough.
