By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    An Expert’s Guide To Building and Improving Endurance
    June 30, 2022
    medical assistants
    What Do Medical Assistants Do On a Day to Day Basis?
    April 5, 2022
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    Latest News
    What To Expect On A Meditation Retreat In Miami
    February 6, 2023
    Botanical Extracts That Should be on Your Health Radar
    February 5, 2023
    Navigating Medical Care as a Wheelchair User
    February 4, 2023
    4 Common Myths and Misunderstandings About Brain Injuries
    February 5, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Health Insurance For Same Sex Couples
    February 11, 2012
    Racial Health Disparities Among People with Chronic Conditions in the US: Facts and Statistics
    July 25, 2013
    Drug Testing for Welfare Benefits? Two Sides to the Issue
    March 16, 2022
    Latest News
    Why Is a Referenced Based Pricing Tool Necessary?
    February 3, 2023
    Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
    January 25, 2023
    9 Hospitals That Have Introduced Green Initiatives
    February 1, 2023
    Why a Health Retreat Can Be the Best Medicine
    January 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The Pros and Cons of Outsourcing Medical Billing
Share
Sign In
Notification Show More
Latest News
meditation retreat
What To Expect On A Meditation Retreat In Miami
Health
Guide To Pursuing a Career in Nursing as a Foreigner in the USA
Guide To Pursuing a Career in Nursing as a Foreigner in the USA
Career
Botanical Extracts
Botanical Extracts That Should be on Your Health Radar
Health
Navigating Medical Care as a Wheelchair User
Navigating Medical Care as a Wheelchair User
Health
common misconseptions about brain injuries
4 Common Myths and Misunderstandings About Brain Injuries
Health
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > The Pros and Cons of Outsourcing Medical Billing
BusinessFinanceHospital Administration

The Pros and Cons of Outsourcing Medical Billing

aspilialleli
Last updated: 2014/09/11 at 8:11 AM
aspilialleli
Share
5 Min Read
medical billing
SHARE

If you’re a doctor or a practice manager, one of the hardest and most financially impactful decisions that you will have to make is choosing between outsourcing your medical billing operations and keeping an in-house billing staff. Medical billing is quite a demanding and heavy task; that’s why many medical offices make the choice of outsourcing it.

If you’re a doctor or a practice manager, one of the hardest and most financially impactful decisions that you will have to make is choosing between outsourcing your medical billing operations and keeping an in-house billing staff. Medical billing is quite a demanding and heavy task; that’s why many medical offices make the choice of outsourcing it.

But before you think of outsourcing, you must carry out a thorough assessment of your staffing, costs and volume metrics. (Read here for signs that it’s time to outsource your medical billing.) The decision should be made with careful consideration of many factors, including your staffing resources, experience with billing and personal comfort.

To help you decide whether to call that professional medical billing firm or not, I will lay out the pros and cons of outsourced medical billing.

More Read

should nurse practitioner forms an LLC

Should Nurse Practitioners Form an LLC?

Maximizing Outcomes Through Effective Patient Engagement Strategies
Robotic Technologies Can Improve Hospital Working Conditions
How to Attract More Clients to your Wellness Business
Why Work With A Healthcare Recruitment Agency & How To Choose One

PROS

medical billing1. Saves time – Medical billing is an extremely complicated and time consuming task. Outsourcing the task frees up time for you to focus on your patients.

2. Saves money – By outsourcing your medical billing, you could save thousands of dollars in annual salaries and benefits; office supplies and tools; and purchasing, upgrading, and maintaining billing software and computer equipment.

3. Transparency – Your medical billing service provider will provide you with supreme visibility into your medical billing operations without you having to manage or oversee any of your staffers.

4. Reduces billing errors – Hiring an experienced and professional medical biller will greatly reduce errors on your business due to improper coding, slow claims processing and inadequate follow-up.

5. Faster collection – Medical staffing firms are focused exclusively on handling billing; they’re not distracted by other tasks. This translates to claims that are submitted faster and money that is collected sooner.

6. More focus on patient care – You could spend more time focusing on patient satisfaction and providing quality care.

7. Improves patient satisfaction – Reducing the burden placed on your medical billing staff by outsourcing can increase patient satisfaction by improving patient flow. Your patients will be happy because they will receive uninterrupted courteous and professional assistance for their billing questions or issues.

8. Increases revenue – With the reduction in overhead costs, the timely submission of medical claims and the increased reimbursements, a higher profit is another advantage outsourcing can provide to your business.

CONS

1. Loss of direct control – When you outsource, you lose direct control of who is billed and when. Not having the ability to directly supervise the work puts your medical office in a vulnerable position.

2. Variable cost – Most medical billing companies charge a percentage of collections, so the more you bring in, the more you’ll pay out. This can make it hard to budget your practice’s expected billing expenses, since costs differ widely between slow and busy months.

3. Risk to patient satisfaction – Patients like having the ability to walk into their doctors’ office to make their payments or discuss the specifics of their bill. Patients are less likely to be satisfied by the service they receive when they can only discuss important matters over the phone.

4. Possible hidden costs – Hidden costs refer to costs associated with preparing for your medical office switching from in-house billing to outsourcing. There may be much money required for legal fees.

5. Limitations – Limitations may exist within some outsourcing companies. The services they provide may be limited due to the lack of access to information and a lack of communication between the medical office and the outsourcing company. 

Both advantages and disadvantages exist if you outsource your medical office billing. Be sure to weigh all options before making your decision, and make sure you choose a credible company. 

medical billing / shutterstock

TAGGED: medical billing

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
aspilialleli September 11, 2014
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Social Media, Physician Marketing, Online Marketing 3 Ways Physicians Can Increase Their Social Media Following
Next Article Interoperability of Electronic Health Data: Is It Time to Herd Unicorns in a New Direction?

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

meditation retreat
What To Expect On A Meditation Retreat In Miami
Health February 6, 2023
Guide To Pursuing a Career in Nursing as a Foreigner in the USA
Guide To Pursuing a Career in Nursing as a Foreigner in the USA
Career February 5, 2023
Botanical Extracts
Botanical Extracts That Should be on Your Health Radar
Health February 5, 2023
Navigating Medical Care as a Wheelchair User
Navigating Medical Care as a Wheelchair User
Health February 4, 2023

You Might also Like

green hospitals
Hospital Administration

9 Hospitals That Have Introduced Green Initiatives

January 20, 2023
saving money in healthcare
BusinessGlobal HealthcareHospital Administration

Best Money-Saving Tips for Health Managers

January 12, 2023
HR staff must deal with divisive views in healthcare
BusinessGlobal HealthcareHospital AdministrationPolicy & Law

HR Must Navigate Polarizing Views in Healthcare Workplaces

January 4, 2023
cybersecurity options for hospitals
BusinessHospital Administration

Should Hospitals Use SASE or Traditional Network Security?

January 4, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?