Medical practice revenue is based on effective billing. According to a study (2013) by the Practice Profitability Index (PPI) around 36%of the 5000 physicians interviewed foresee negative trends in their profits. Their Report (2014) states that nearly 20% of physician’s time is spent in administrative tasks – coding, documentation, and administration, rather than on patient care. Are you satisfied with the current scenario of your practice where paperwork is keeping you from your core profession?
Below listed are 5 major reasons that could prove advantageous to you when you outsource your medical billing services
1. Enhanced Patient Care: Don’t fritter your years of medical practice in administrative tasks. By outsourcing your medical billing services, you and staff will be better equipped to handle patient care. The PPI Report (2014) reveals that nearly 48% of physicians interviewed are not yet equipped to handle the increase in patients expected due to the new health reforms. Outsourcing your billing lets you revert to patient treatment while billing experts handle the administrative tasks.
2. Minimization of errors in reimbursement claims: Once you outsource your medical billing services, the experienced billers ensure proper submission of claims. This immediately reduces denial and rejected claims. It is a known fact that practices lose an average of $25 to $30 on every denial claim and also resubmission. According to the PPI Report (2014) 65% of physicians already foresee declining reimbursements due to the health care reforms.
3. Efficient Workflow: When you outsource, the billing experts integrate their workflow with that of your staff. Both need to make profits- if your claims are rejected they lose out too! They work closely with your staff, are knowledgeable, and trained to review all payments with a keen eye. They are aware of which claims could be rejected on what grounds, and thus prevent time and effort lost in reimbursement claim cycles.
4. Reduced Administrative Costs: Once you outsource your billing services, a lot of administrative costs reduce automatically – paper work, capital investment into hardware and software upgrades, labor costs (average practice is known to spend 30-40% of their revenues on in-house billing staff).
5. Enhanced Revenues: Efficiently handled reimbursement claims will show an upward revenue profit. Staff concentrates more on patient care and is better equipped to handle patient inflow. The new health system reform law is expected to reduce the number of uninsured Americans by 32 million people, meaning more walk-in patients!
Thus, with reduction in overhead costs, efficient administrative workflows and effective submissions in medical reimbursement claims- outsourcing medical billing services is the best advantage leading to effective handling healthcare competition and influx of patients, a trend due in the coming years.