While giving care to the patient is the most important component of medical practice, billing is what ensures that the hospital is open to the next patient. Having an efficient billing system has been said to be more of a business survival issue than a good practice one.
Whether you are an experienced practitioner or new to the medical practice, how to handle medical bills would probably be a major concern in your practice. You can either choose to handle the billing process in-house or outsource it (give a separate firm the responsibility of handling the billing process).
However, there are several reasons why outsourced medical billing would be preferred to handling the bills yourself. Some of those reasons are highlighted below:
It Lets You Give the Patient Your Complete Attention
Understanding the importance of patient satisfaction makes the idea of outsourcing your medical bills a welcome relief. As a doctor, you want to ensure that your focus is on the patient and leave the clerical part of your practice to able hands.
This need is more pronounced for small medical practices that cannot afford to hire a large workforce. Hence, all hands would be on deck when it comes to handling bills, which means less time spent taking care of the patient.
Reduction in Accounting Errors
Denied or rejected claims have been an issue that has plagued the medical practice in recent times. This has been in part caused by billing errors from the medical practice staff. An outsourced medical billing system reduces the likelihood of accounting errors.
This is because the sole business of such companies is to handle billing for other medical practices. Also, staff of billing companies are professionally trained for the specific purpose of handling that specific task.
It Saves Money
The cost of hiring an in-house biller would include the annual salary, benefits and insurance, office supplies and furniture, purchasing, maintenance and upgrading of billing software and computer equipment among others.
An outsourced billing firm would charge a flat rate per claim handled or a percentage of claims. Also, because the firm handles the bills of a lot of hospitals they can charge lower rates per claim which is good news for your medical practice.
Compliance With Billing Practices
Just as government changes so does the practice and regulations. Thus, a practice that was previously acceptable might be changed by regulation tomorrow. While doctors are more concerned with giving care to the patient, they cannot at the same time be expected to keep track of billing practices.
An outsourced company, on the other hand, is only concerned with billing so they can keep track of changes to Medicare practices and third party (e.g. insurance companies) participation.
The natural consequence of a reduction in overhead cost, timely submission of medical claims and an increase in disbursement would result in increased revenue. Hospitals can now focus on offering better services because they have better cash flow. It would in turn keep hospitals competitive in the health care industry.