Traditional medical practices did their billing in-house. Now, companies like Merchants Credit Bureau (MCB) offer billing services that take the stress out of billing. Is it worth the cost or better to do things the traditional way?
It is clear that outsourcing medical billing is more cost-effective than doing it yourself. Let’s take a look at the reasons.
Economy of scale is what billing companies benefit from. Medical billing companies that produce more units have lower costs. Private practices might have many billing claims to file, while billing companies can handle more. They can handle every bill at a fraction of the cost of a private practice. These savings can be passed on to your private practice by the billing company.
It is worth looking at a recent example of the benefits of outsourcing your billing. A hypothetical private practice was assessed with both in-house billing, and outsourcing its billing. There were three primary care physicians and two medical billing specialists. The practice filed 80 insurance claims per days, with an average cost of $125 per claim.
For an in-house billing team, the cost was $118,000 annually. Outsourcing the billing came at a cost of only $4,000 in comparison. If a practice also takes into account the cost of using medical billing software and hardware, the savings is also in excess of $5,000 when using a third party medical billing company.
This example shows the cost advantage. Your business can dramatically reduce costs by outsourcing your billing.
The salaries of your employees will be the biggest expense if you have to create your own billing department. These salaries must be paid regardless of whether the business is slowing down or growing fast. They are therefore a fixed expense. Medical billing services charge a percentage of the bill. This means that if you file fewer claims you will pay less.
Take the Stress off Your Employees
The billing company’s expertise lies in billing. They do not handle it as a side project. They are able to quickly handle bills, rejects promptly and re-bill after errors have been corrected. They ensure that all claims are electronically filed and can be set up to receive ERAs.
Not only is it a tedious task to submit your bills, but you also need to correct errors and monitor the process. Fee reviews are necessary in order for reimbursement to be at the right rate. This all happens in a practice which is supposed to provide medical care to patients. These headaches can be eliminated by outsourcing your billing.
Nobody goes to medical school to fill out paperwork or argue with insurance companies. You are best at providing quality healthcare to patients. You can free up your time to spend on patients and decrease the need to hire non-medical staff by allowing a billing firm to do their job.
A small practice cannot afford to hire many people who are not directly involved with providing healthcare. Employees can get sick, take FMLA, or go on vacation several times per year. How does your billing department react when an employee is on vacation but then gets the flu? Are you able to afford to let your bills pile up? Are you able to afford to hire a few more employees to help prevent disruptions in your billing department
You don’t have to make difficult decisions when you outsource medical billing. No matter how small or large your practice, a billing company will always process your bills on time and consistently.
Many people believe that outsourcing billing is a way to lose control over your practice. However, this is completely false. Outsourcing your billing allows you to have greater control over the process and more transparency. You have the ability to review and monitor the data at any moment, at your own discretion. You can access up-to-the minute information about how your practice is performing whenever you want it.
Healthcare is an ever-changing industry. The industry is constantly changing and billing companies keep up to date. They are also aware of any changes coming so they can inform you before they happen. You would need to conduct this research yourself, which can lead to more time away from your patients.
A billing company is focused on billing, while a private practice is more concerned with health care. This ensures that only experts perform each job and keeps everything running smoothly.
Companies can help you with your billing and credentialing. Credentialing can take a lot of time and effort. Outsourcing your billing is another benefit.
Get Paid Faster
Sometimes, a bill is not paid on time. For a small billing company, this is not a problem. A billing company, for example, will automatically remind you to pay your bills. This is another task taken off your plate so that you can focus on your practice.
In general, billing companies are 15% more successful at collecting bills than private practice billing departments. This can result in a significant revenue increase for your business. A billing company can help reduce the cost of unpaid bills.
The decision to outsource billing is a simple one-factor decision for most independent and small medical practices.
But cost is not the only factor that medical practices should consider when deciding whether to outsource. You should consider all factors necessary to make your business a success. Don’t be afraid to ask professionals for help. It may be that the money you spend upfront is more cost-effective and leaves you with less problems in the future.
Give us a call at 706-823-6200 to speak with one of our medical billing experts and schedule a free consultation on how our team at MCB can help your practice.