Why Outsource Your Medical Billing?

Here are Three Key Reasons:

1. Lower costs.  Very simply, it costs less to outsource the billing for a group of ten doctors or less, than to create and run an internal billing department.
2. Higher revenue.  Medicare and other payers often change the rules and deny medical claims.  Outsource billing company personnel know the rules, and assertively pursue denied payments.  Result- higher revenue.
3. More time to build the medical practice.  By outsourcing billing, the providers can focus on patient care and growing the practice, avoiding the distraction of managing a billing and collections operation.

Lower Billing Costs:

• 1.  A “Practice Billing Costs Worksheet,” published by Brandywine Health Services, itemizes the costs involved for medical providers when they create and manage their own internal billing departments. These costs include salaries, health insurance benefits, payroll taxes, vacations sick days, holidays, taxes, rent, overhead, software, software maintenance, workstation costs, electronic claims filing and clearinghouse charges, patient statement costs, postage, office supplies and more.  Ask us for a copy of this worksheet.
  
  

 Result? An internal billing department can cost 10.3% of total revenue, whereas an outsource billing company may charge 6% to 8% of revenue.  This savings of 2% to 4% of total revenue can add $20,000 to $100,000 or more at the medical practice bottom line.

Increased Revenue:

• 2. Many years ago, denied claims averaged 5% of the total claim volume of a typical practice.  Today, practices may experience a 25% to 30% or higher rate of rejected claims.  This reduces revenue and puts a heavy additional burden on a practice’s internal billing department.  Billing department personnel often also serve at the front desk, greeting patients and pulling charts.  The process of limiting denials, and then aggressively pursuing unfairly denied claims is a full time job, often the least pleasant of a billing specialist’s duties.
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 Result?  The unpleasant task of pursuing denied claims is often left partially undone.  This unnecessarily reduces revenue by 6%, sometimes much more.

Freeing Up Your Valuable Time:

• 3. More time to build the medical practice- A medical provider must take time to build the practice, to market to payers, referring providers and the general public.  The marketing plan to build a specific practice requires that goals be set, actions be taken, follow-up tasks be assigned, and results be measured.  Creating the marketing plan, and then following up to contact the referring providers and other referral sources takes time.  Advertising to potential patients in the target demographic arena and creating the Website for the prospective patients to visit first takes time.  Installing the internal systems that help to market- appointment follow up systems via phone and e-mail, snail mail follow up systems and other systems- all this takes more time. 

  Result?  This crucial marketing time can be created for providers simply by outsourcing the billing operations. 

Bottom line?  A medical practice’s bottom line can be substantially increased simply by outsourcing the billing operation.