The Upsides and Downsides of outsourcing your Medical Billing

If you are looking for medical billing companies near me, it’s essential to understand the pros and cons of outsourcing the billing solution.

Medical billing is undoubtedly one of the most demanding non-core activities. Outsourcing it to a third party medical billing company can be a great way to free up your and your team’s time, so you can focus on what matters – taking care of patients.

Finding the best medical billing companies near me is always wise because of the distance aspect and the fact that you can easily hold parties responsible for their actions. Hiring locally also allows you to vet candidates easily. But to help you make an informed decision, here are some pros and cons of outsourcing your medical billing.

Upside: Frees up your time

In the medical profession, time is always of the essence. And in some cases, it can mean the difference between life and death. One great thing about outsourcing your non-core activities like billing is that it allows more focus on patient care. Medical billing is not just a demanding task but a challenging one. In fact, it is possible to spend hours or even the entire day working on different cases.

Downside: No control over the billing staff

One of the main reasons medical managers are hesitant about outsourcing this critical function is the fact that they don’t have direct control over the employee. Most managers handle a range of matters, including accounts receivables, finance management, and revenue cycle. So when they have no control over the billing staff, the best they can do is trust and hope that everything is done as expected. Luckily, this can be handled by hiring a reliable company.

Upside: Improves patient satisfaction

When the medical receptionist has time to focus on patient care, they are bound to offer undivided attention, which translates to better services and the ultimate satisfaction. Outsourcing minimizes the burden on the front office team and increases efficiency, productivity, morale, and patient satisfaction.

Downside: Security breaches

Since a third party will handle the patient information, there is the risk of security and HIPAA privacy breaches. This is especially true if the biller in question doesn’t comply with HIPAA regulation. And while breaches can still happen in-house, it can be riskier when the service is outsourced. Working with a highly reputable company can help address this issue.

Upside: improves cash flow and increases revenue

Billing interruptions are the leading cause of delays. When claims have to wait for your in-house biller, you’ll likely experience a hitch in your financial flow. Outsourcing facilitates a continuous and steady flow of claims and cash.

Downside: contractual misunderstandings

It is not uncommon for parties to have contractual disputes. This is especially true when one party doesn’t take the time to read the contract keenly. Hiring a legal entity, like a lawyer, can help ensure that the clauses are in your best interest.

Upside: saves you money

Outsourcing your billing needs can help save you money in benefits and annual salaries, as well as office furniture and supplies, computer equipment, and billing software.


From saving money to reducing billing errors to freeing up your time, several ways outsourcing your medical billing needs can improve your service deliverability. 

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