In today’s complex healthcare landscape, medical billing and revenue cycle management have become increasingly challenging.
One way to address these challenges is to outsource medical billing to a specialized third-party provider. Outsourcing medical billing can offer numerous benefits, better scalability, more time to focus on your core practice and, best of all, increased revenue. But it’s important to carefully evaluate potential providers and develop a clear implementation plan to ensure success. Use our expert tips on what medical billing outsourcing is, how your office can benefit and best practices to implement your next best process.
What Is Medical Billing Outsourcing?
Medical billing outsourcing is the hiring of a third-party company to handle the administrative processes related to medical billing and payments.
For healthcare providers, outsourced billing means a qualified external company will follow up on medical claims to insurance companies and other payers on their behalf. This can include tasks such as verifying patient insurance eligibility, coding medical diagnoses and procedures, submitting claims, and tracking payments and denials.
Outsourcing medical billing can help healthcare providers streamline their operations, reduce costs, and improve revenue cycle management.
By outsourcing, healthcare providers can work with experts who specialize in medical billing and coding, and who are up-to-date on the latest regulations and requirements.
Medical billing outsourcing can be a valuable tool for healthcare providers who want to focus on patient care and leave the administrative work to qualified support experts.
Benefits of Outsourcing Medical Billing
Some of the benefits of outsourcing medical billing are:
Cost Savings
With outsourcing, you’ll be able to access fully-vetted professionals who are dedicated to your medical practice for less than what you would pay for resources in the U.S.
One major benefit of outsourced medical billing is that it allows medical practices to save on the costs of hiring and training in-house billing staff.
Medical practices can avoid administration costs, added office expenses or any other unnecessary costs.
Reduced Administrative Burden
Billing can be time consuming, leaving managers caught up in accounts receivable, instead of growing the practice. Outsourcing billing allows you to have streamlined processes—resulting in better patient satisfaction.
Outsourcing administration allows medical practices to focus on their core business, rather than spending time and resources on administrative tasks.
With increased productivity and efficiency, medical practices can stop focusing on administrative tasks and focus on delivering quality care and all the things that drive their practice forward.
Increased Scalability
With agile staffing that fits their needs, healthcare providers can easily scale their practice. On average, you’ll have 30-40% greater scalability for your practice than you do now.
With medical support pros available on your team’s schedule, in your time zone, it’s easy to grow your practice. Outsourced medical billers have real-world experience to help take your business to the next level.
Related: Healthcare BPO: What Is it, Pros and Cons
In-House vs. Outsourced Medical Billing
In-House Billing Department
An in-house billing department is a team of staff members who are employed by a healthcare organization to handle all of the billing and collection activities for the organization.
Outsourced Medical Billing
An outsourced billing department is a team of professionals who are contracted by a healthcare organization for all or some of the billing and collection activities on their behalf. These experts do the same billing administrative tasks as an in-house department, only off-site.
Related: Tackling Healthcare Staffing Shortages: Strategies and Solutions
Tips for Choosing the Right Outsourced Medical Billing Provider
Choosing the right outsourced medical billing provider is an important decision that can have a significant impact on the financial health and operations of a healthcare practice—we understand you want to pick the right partner.
Here are some tips to help you choose the right provider:
-
- Consider experience and expertise: Look for a medical billing provider with a track record of success and experience in the healthcare industry. Make sure they have experience working with your specialty and are knowledgeable about the latest billing and coding regulations.
-
- Make sure they’re in your time zone: A qualified provider should be like an extension of your billing department. It’s important to ensure they sync with your schedule. In case you have any urgent requests or need info right away, your outsourced medical billing partner is just a call away.
-
- Consider the level of customer service: Look for a provider that is responsive, accessible, and provides excellent customer service.
Successfully Implement Outsourced Medical Billing
-
- Choose the right provider: Select a reputable and experienced medical billing provider that can meet your needs and provide high-quality services. Evaluate the provider’s expertise, technology, and infrastructure, then check references and reviews to ensure they have a track record of success.
-
- Define your goals and expectations: Identify the goals and objectives you want to achieve through outsourced medical billing. Determine what metrics you’ll use to measure success, such as increased revenue, improved collections or reduced denials.
-
- Develop a clear communication plan: Establish clear lines of communication with the billing provider, including regular check-ins and progress updates. Ensure that you have a dedicated point of contact at the billing company who can answer questions and address concerns.
-
- Establish clear workflows and procedures: Develop clear workflows and procedures for how charges will be submitted, how denials will be handled and how payments will be processed. Ensure all staff members understand the new workflows and procedures.
-
- Prepare your staff: Be sure your staff is aware of the transition to outsourced medical billing and understands their new roles and responsibilities. Train staff on any new processes or procedures, such as how to submit charges or access reports.
-
- Monitor performance and adjust as needed: Regularly monitor performance metrics and track progress towards your goals. Use this information to make any necessary adjustments to workflows, procedures or communication plans.
Need Better Medical Billing on Your Terms?
Your medical practice is growing, but you want to be smart about the way you do it. At Solvo, we can help. Avoid exorbitant labor expenses, while you take advantage of all-in costs with zero overhead. Plus, you’ll get a 30-day rolling contract with no cancellation fee.
We’re experts at hiring qualified talent, and when working with us, you won’t have to worry about rigid labor laws, hiring the right support staff and more. Stop struggling and start scaling with us.
