Many medical practices are now outsourcing their medical billing department. Why? Short answer: medical billing companies get you the most bang for your buck. They are designed to do one thing: maximize revenue for your medical practice. Think of them as your lawyer: they go to bat for you against the insurance company, fighting for every penny they can get you per claim.
They are experts at medical coding and will educate you on services that you may not even realize you should be claiming. While there are definitely perks to having a loyal in-house medical billing staff, it’s unlikely that your staff has the time, effort and motivation required to successfully negotiate claims, code services appropriately, follow up on unpaid claims and stay current on changing medical codes and insurance requirements.
1. You will make more money. Most medical practices find that after switching to an outsourced billing company, their total revenue increased anywhere from 10% to 30% within the first year. This is because the medical biller knows how to utilize the medical coding system in such a way that maximizes revenue for the doctor or healthcare practice.
Additionally, when a claim is denied or goes unpaid, the medical billing company is willing to put in the sweat required to make sure you get paid for the service you provide. And paid at a good rate.
2. It will free up internal resources. Many times, especially in smaller practices, a family member or friend is handling the medical billing. They are often overwhelmed by the task and are just trying to stay afloat. It takes a lot of time and constant training to stay abreast of the current medical coding requirements and changes made within the insurance industry. Take the burden off your staff and let them focus on other essential tasks. They will probably thank you!
3. You don’t have to think about it. When you outsource medical billing, you are passing off the responsibility to someone else. And that someone else is a trustworthy and knowledgeable source. You no longer have to overhear questions or complaints from down the hall about insurance claims. You no longer have to worry whether or not you are getting paid (and at the best rate) for the services you provide. Most medical billers are numbers people, not caregivers, which means they are naturally wired to make sure they have all their ducks are in a row. This is the kind of person you want handling the finances of your practice.
4. They are highly motivated to get you the most bang for your buck. Did you know that medical billers make their money based on a set percentage that the doctor gets paid for each service? The more money they can get you, the more money both of you will make. An in-house staff person, on the other hand, who is being paid hourly to handle insurance headaches that often take months to fight, may get the job done, but is not motivated to get you the best rate. In fact, many claims are accepted at the insurance rate without an attempt to negotiate the price. This is usually because the staff person doesn’t have the time or know-how to negotiate a better rate.
5. They are experts in their field. Medical billers have been trained to understand all of the specific codes and services within your specialty. If there’s a surgical procedure, for example, that can be done a couple of different ways, they will inform you of the fee structure for each so that you can decide what is financially best your practice. Additionally, because they are working with several different practices in your field, they often find new ways to code services in order to get you the most money for that service. While this may sound greedy to some, it has become necessary to take a more aggressive approach with the insurance companies as they deny more and more claims. You should get paid for the service you provide, just like everyone else. Let them be the experts so you can focus on what you do best: helping people.
For more details on medical billing, read our Medical Billing Buyer’s Guide.
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