Is Outsourcing Your Medical Billing the Right Choice?

Lea Chatham February 11th, 2013

Leave a Comment Latest by COMMENTOR NAME

Many medical practices consider outsourcing billing at some point. There are a lot of reasons why a practice might opt for outsourcing, but the truth is that it isn’t for everyone. The best way to decide if outsourcing is for your practice is to analyze the pro’s and con’s and ask yourself a few basic questions about your business.

First answer the following:

  1. Are you a new practice?
  2. Is billing for your specialty especially complex?
  3. Have you had a high turnover of billing staff or is there a lack of qualified billing staff in your area?
  4. Are your billing processes inefficient (i.e., high denial rate, high A/R, low patient collections, etc.)?
  5. Would you rather focus more on patient care and less on business management tasks?

If you answered “yes” to most of these questions then outsourcing might be a better fit for your needs. However, there are pro’s and con’s to both ways of doing your billing. Simply put, in-house billing allows you to have total control over your billing processes but it also means managing staff, paying more for full time employees, and opening yourself to problems ranging from poor training and job performance to embezzlement.

On the flip side, if you use a reputable billing service, you should see lower costs with a good return on your investment. Generally, you can expect a certain level of results and consistency in performance. The downside is that you will have little control over the process and the cost may vary based on your claim volume at any given time.

To assess the pro’s and con’s for yourself use this simple checklist:

  1. Would you prefer to hand over control over the daily billing process?
  2. Are you concerned about the time and cost involved in managing more full-time staff?
  3. Are you worried about the possibility of embezzlement or negligence in your billing?
  4. Would you rather pay a small percentage of your claims than a full-time salary?
  5. Are you comfortable with the varying cost of outsourcing billing tasks?
  6. Are you looking for more comprehensive reporting and substantial analysis of your business?
  7. Are you concerned about staying on top of changing reimbursement and compliance issues?

If you answered mostly “yes” again, then it is probably time to consider an outsourcing solution. Watch for our next post on outsourcing your billing, Ten Questions to Ask Before Hiring a Billing Service.

No Comments »

No comments yet.

Add Your Comment


Privacy Policy

Welcome to Getting Paid, a weblog by Kareo offering ideas, news and opinions about medical billing and practice management with the goal of making medical billing easier and yes, getting you paid. Visit the Product Blog for more information on our products.

Subscribe to the Newsletter

Enter your email address to receive "Getting Paid" as a monthly email newsletter. Privacy Policy

Subscribe to RSS Feed

CDW 2015 TOP 50 Health IT Blog

Follow Kareo

Find Kareo on LinkedIn Find Kareo on Facebook Find Kareo on Twitter Find Kareo on YouTube Find Kareo on Flickr

Search the Blog

Categories

Monthly Archives

Web–Based Software by Kareo

Practice Management

Simplify the daily essential tasks of your medical office from patient records, to scheduling and more.

Electronic Medical Records

Improve patient care with electronic charting, electronic prescribing and medical labs interfaces.

Medical Billing & Collections

Streamline your entire medical billing and collections process from charge entry to reporting.

Clearinghouse Services

Integrated electronic claims, electronic remittance advice and insurance eligibility services.

Analytics & Data

Store and access data with insightful reports, document management and faxing, and an integration