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Should Medical Billing be outsourced or kept In-House?

May 13, 2014

Healthcare reforms, payment cuts and insurance company policies have increased pressure on medical practices. In order to get paid on time, physicians are outsourcing their billing needs as lack of time, money and resources is posing hindrance in handling in-house billing.

By outsourcing medical billing requirements, providers will be able to reduce processing errors in medical claims that lead to claim denials. They will be able to get paid on time and use the spare time to improve profitability of their practice.

Industry Facts :

In 2011, there was a 2% increase in claims processing errors and this resulted in unnecessary administrative costs worth $1.5 billion
Inefficiencies and billing errors result in annual waste of thousands of dollars (between $600 and $850 billion) in the US healthcare industry
By eliminating claim errors, approximately $17 billion can be saved on an annual basis
On an average, mistakes can be found in 5-10% of all submitted claims

Can in-house medical billing help you attain best results?

There is no doubt that providers can retain control on billing services when they have an in-house billing team but it can also result in difficulties such as:

High costs: because providers will be paying salaries and giving employee benefits to in-house coders and billers

Investment in technology: A significant amount will have to be invested in buying latest technology

Errors due to low productivity: if providers don’t keep an eye on billing operations, employee neglect and low productivity levels can result in billing errors, causing denied claims

Issues related to support: if two to three coders from an in-house team go on a holiday, operations and cash flow will get stalled majorly

How can outsourcing prove beneficial for your practice?

Due to lack of billing expertise, many providers don’t get their payments on time, which affects their revenue cycle. Considering the complexities involved, outsourcing makes sense in order to ensure timely, error-free billing and various other benefits such as:

  • Reduced paperwork and overhead expenses
  • Timely, fast claims processing that improves cash low and offers better profit margin
  • Reduced employee expenses
  • Reduced claim denial rate
  • Offers sufficient time to providers and staff to provide quality patient careM
  • Access to experienced insurance negotiators for communication between physician’s office and insurance carriers
  • Reduced technology costs
  • Enhanced financial health of practices
  • Reduced medical billing errors
  • Enhanced patient satisfaction level
  • Billing compliance

Enhancing revenue opportunities with MBC!

By outsourcing billing and coding requirements to a billing company like Medicalbillersandcoders.com providers can optimize their billing process and offer effective RCM.

MBC will be offering the following benefits:

  • Error-free claim submission: As the coders and billers at MBC are certified and remain up-to-date with latest coding and billing regulations
  • Use of latest technology: At MBC ensures timely payments so, providers don’t have to worry about investment in latest systems and software
  • Effective revenue generation solutions: Helping practices identify areas that require improvement for enhanced collection rate

MBC has the largest consortium of skilled coders and billers who have been helping practices sail through billing challenges and enhance reimbursements.

MBC = Effective Billing Solutions + Enhanced Revenue

Category : Practice Administration