Why do Doctors hesitate in Outsourcing their Billing Process?

Why do Doctors hesitate in Outsourcing their Billing Process?Medical billing can prove to be quite strenuous when performed in-house. It involves a great deal of resources in terms of labor-intensive and technology. This also incurs a lot of expenditure which rarely is feasible for practices. However, despite this fact, quite a number of physicians express apprehension in outsourcing their billing services for the following reasons.

Lack of direct Control

The main reason for hesitation is that there is no direct control over the medical billing staff. There are a number of functions an office manager has to perform which includes finance management, revenue cycle and accounts receivables. With a lack of direct communication with the billing staff, there is no direct supervision of the work which leaves the manager in a susceptible position. They find it difficult to trust that the work is being performed in the desired manner and on time.

Possibility of hidden cost

Another most common reason for reluctance toward outsourcing is the fear of hidden costs which billing companies may include. This too is one of the most common myths for many physicians.


Some medical billing companies may have limitations with respect to services they provide. This limitation may be due to lack of proper communication between the outsourcing company and the office manager or due to lack of available information.

Transparency in the work

In case the software and technology of the outsourced company are not similar to the in-house company then there are fewer chances of transparency in their work. There are some companies that use different software for billing, restricting clients from getting a clear insight into the work process. This is in fact one of the main reasons for reluctance toward outsourcing.

Outsourcing can be expensive

Outsourcing the medical billing and collection services can sometimes turn out to be expensive, especially for low volume surgery centers. The cost factor is what matters most.

Irrespective of these cons some physicians still prefer to outsource the revenue management services because it allows them to focus on their business and it can eventually lead to a wider scope with respect to compliance and security. There is an unbiased monitoring of work and measurement of performance which ensures profit beyond doubt.

A promising fact due to Obamacare and the ever increasing administrative expenses, outsourcing will go a long way. It is predicted that by 2015 more hospitals and doctors will prefer outsourcing their medical billing.