In the medical Industry, the insurance claims and other billing issues are a growing concern for medical physicians.
There are many medical entrepreneurs, practicing doctors, healthcare providers, and administrators that are embracing the concept of outsourcing their medical billing. Others stick to a more conservative approach and keep the processing and collection in-house.
Both approaches of Revenue Cycle Management have many advantages and disadvantages. Let’s take a look at the pros and cons of outsourcing your medical billing.
Limited Insight and Claim Processes Control
Medical professionals are trained to handle the patient side of their medical practice but few are qualified to handle the finances.
When medical professionals fail to consistently monitor for payments and insurance billing, they can lose tons of revenue.
Even if a medical professional knows how to deal with coding and billing, they often don’t have the time to do a comprehension of analysis of the situations that lead to insurance claim denials and rejections. Understanding the handling the 40% of the re submission of claims that get denied may be a time consuming and a daunting task.
Many practice managers do not allocate the proper time, resources, and budget needed for billing follow-ups since the existing staff is not trained nor incentive to deal with such problems.
Billing Staff Costs vs. Outsourced Billing Costs
When you compare the costs of keeping billing in-house as opposed to outsourcing, you will immediately notice the striking cost difference.
It costs around $180,000 to hire two professionals to manage your medical billing. However, if you outsource the same operations, the cost will is a fraction of the price.
High Levels of Accounts Receivable
In medical practice, accounts receivable levels can be on the ground, but it can spike up for a brief period. Buggy software that is not updated can be one of the causes of mounting AR insurance.
It’s crucial that you do not reestablish your patient-to-pay revenue cycle process. At the same time, it can be a possibility for your medical facility to follow up with claim errors or denials.
Any such situation will heavily contribute to the skyrocketing of your accounts receivable and negatively impact your revenue growth.
When you are not Techy
As a medical professional, you may lack technical skills. When you are working on an in-house billing, you will need practice management software, and in most cases, you will need to hire someone to manage it.
Other staff will also need to be trained to work on the new information technology setup which starts to get pricey.
Dealing with software upgrades and other technical problems may become a headache. The viable solution is to outsource the coding and billing to let the experts handle it, while you focus on what really matters.
You Lack Business Savviness
As a well-trained medical professional, your business side of your practice may not be a priority you may not be able to or want to deal with the administrative and clerical side of the business. Outsourcing the billing process will free you up to concentrate on patients.
Whether you are a startup or a well-established medical institution, coming up with medical billing and coding solutions is vital. There are many medical billing and coding companies, but we ask you to consider Medcare MSO. Medcare MSO is cost-effective, efficient, results-oriented and easy to work with!