Benefits of Outsourcing Medical Billing Management for 2023 December 22, 2022
The billing and coding staff drive the healthcare system behind the scenes. It’s also their job to ensure that all medical codes are up-to-date, so patients are fully reimbursed.
Likewise, medical billing is challenging for firms and medical practitioners without skilled personnel. Therefore, doctors, professionals, and healthcare providers prefer to outsource medical billing to third-party service providers.
So why choose to outsource medical billing? Besides saving time and money, healthcare outsourcing services are advantageous in many ways. For your medical practice, carefully consider all the benefits of outsourcing in healthcare.
This article will discuss the benefits of outsourcing medical billing management for 2023 and why it is often a better option.
5 Major Benefits of Outsourcing Medical Billing
1. It Provides Efficient Cost Management
Regarding infrastructure modifications and overhead payroll expenses, and medical outsourcing is more cost-effective than hiring more staff in-house to handle the billing processes. An in-house billing system allows you to tightly control upfront expenses, including labor, hardware, software, training, and ongoing expenses for maintaining the system. Updates and changes to billing software can also be complex and expensive.
By outsourcing the process, you can invest in value additions for your clinic, which reduces operating expenses. It is possible to make use of the backend office space for treatment rooms and diagnostic areas, which can increase your practice’s profitability.
2. It Increases Your Revenue
According to the news, the global medical billing outsourcing market will be worth US$ 25.7 Billion by 2028, growing by 12.2% over this period (2021-2028). Outsourcing in healthcare improves the profitability of many organizations. For example, RCM outsourcing is responsible for 5.3 percent of revenue increases among hospitals with more than 200 beds. In the same regard, nearly 80% of those with less than 200 beds attribute 6.2 percent of their revenue increases to medical billing outsourcing.
Another benefit of outsourcing in healthcare is that it increases income for physicians. Medical practices lose a significant amount of money annually due to denied claims. Using outsourced clinical services from medical billing companies prevents revenue leakage and facilitates the flow of payments. Take note that your bottom line and the success of your practice depend on a constant cash flow.
Furthermore, healthcare organizations must select a billing company with care to ensure quality, compliance, and performance are not at risk.
3. It Reduces Billing and Coding Errors
Professional environments are not immune to mistakes. Despite this, you cannot blame your employees for the increasing billing, coding errors, and fraudulent activity your practice could experience if they are not adequately informed.
That’s why it’s easy to reduce errors with medical billing outsourcing companies. With their experience and training centered around medical billing codes, professional medical billers can submit your claims accurately and on time. Medical billing outsourcing companies continuously stay up to date on code changes and fraud prevention.
They are responsible for ensuring that the billers they hire are trained and equipped to submit medical claims. As a result, they can minimize the number of denied and rejected claims due to billing errors and provide feedback to help maximize reimbursements in the future.
4. It Offers Flexibility
Traditionally, medical billing outsourcing has been known for its flexible pricing and delivery models, and most vendors customize their solutions for each company. Therefore, smaller practices can choose transactional RCM services instead of paying a percentage of collections to cover the cost of the work performed. For example, providers may require a fixed monthly fee per account, claim, CPT code, or location.
Additionally, you can outsource various billing functions to different providers, leaving your internal staff to handle other billing functions. Using a flexible delivery model, you can utilize the billing specialist’s knowledge without giving up complete control. Of course, due to ever-changing needs, your practice can re-bundle services from only one service provided together with your own staff later on.
5. It Offers Security & Guaranteed Compliance
Healthcare compliance and data security knowledge are essential. Medical billing staff must stay up to date with new rules and protocols constantly, which makes compliance even harder. As standards change, it is crucial to have a dedicated expert who stays up to date with new developments. Another primary concern is the patient’s health privacy. It may be risky to keep records in-house. In some cases, office computers and servers crash, erasing all data.
An established medical billing company can provide security during and after the billing process. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) regulations require them to invest in security measures. By keeping up with all changes, their services remain competitive.
Reasons to Outsource Medical Billing
If your medical practice often has revenue cycle leaks, outsourcing may be the most appropriate solution for you. With medical outsourcing, you can see steady and noticeable growth in your practice’s revenue. Below are the reasons to leave your medical billing to the experts:
- There is a shortage of skilled medical and non-medical personnel to meet the growing demand
- A lack of staffing or the inability to add a full-time specialist
- Regardless of the size of a business, budget constraints influence capital investment decisions and operation costs
- Compliance requirements that are constantly changing and complex
- Healthcare is increasingly competitive, not only between providers but also with peripheral businesses;
- Concerns relating to non-medical issues include cyber-attacks on digital health records and other patient information.
The Digital Journal reports that revenue from medical billing outsourcing will increase by 16 percent from 2022-2032.
Tap Into Our Expertise
Outsourcing your medical billing depends on your needs. The capacity and finances of your practice are important factors to consider. To experience the benefits of outsourcing, you should look for a medical billing company with a team of expert medical billers.
At 5 Star Billing Services Inc, we offer the highest level of performance for high-quality medical billing and coding. Save your money by outsourcing to a professional billing service.