It’s evident that everything has pros and cons, and the same is the situation with medical billing! When it comes to running your medical business efficiently there are two options in the back of your mind: outsource the task to a medical billing firm or in-house. The ideal solution is different between practices based on various aspects, including the size of the business as well as what the market size is in your local area, and the condition of the practice’s financials as well as other aspects.
In-house management of medical billing can be a challenge and can be daunting in addition to being financially draining. Also, learning to invoice as well as code medical use is an ability that a lot of medical practices don’t have. This is why the article is filled with the pros and cons of in-house billing and.
Medical Billing Services
Let’s talk about both!
Pros and Cons of In-House Medical Billing
Based on the medical practice you have whether in-house or outsourced medical billing could have benefits. Let’s take a look at some of the most frequently cited benefits along with the disadvantages each.
In-House Medical Billing
Control of the process of billing: You’ll have direct control and supervision over the billing process when it is carried out internally. You can walk down the hallway and ask questions of your employees, and they respond immediately. Any changes to your billing will be implemented immediately. Monitoring your finances in person could make you more accountable and open.
Monitoring and controlling capabilities: The ability to monitor and control your own billing in-house gives you complete control over the financial transactions you make. It is possible to ask staff direct questions on any topic and get immediate answers. The billing process can be altered. The accountability and transparency of employees can be enhanced by working within the company.
Privacy of Patients In-house billing gives you more control over patient records which is crucial to maintain the confidentiality of patients. If confidentiality of the data is not protected it is possible that the patient will be reluctant to divulge more information, and the relationship between the physician and patient may be damaged.
Costs are increasing for services; staff costs for training in any technology, rules for employee compensation as well as benefits, computer systems, any hardware; as well as other equipment for offices.
Support Problems: Hiring an extensive amount of internal staff could be costly. When a member of the team is absent but the team is not adequately staffed, a depleted team could cause issues. Additionally, the in-house billing staff may not know about the most current services and the benefits it offers to employees.
Training and DevelopmentThe staff must be educated frequently to keep up to date with any technological developments, service upgrades, and more.
Pros of Outsourced Medical Billing
The cost is lower: billing in-house requires space for offices as well as technical support and an entire team. Medical billing outsourcing however works in a different setting, using their technology. Therefore, it’s not expensive.
Productivity: A lot of medical practice owners don’t have the time to train, hire, and manage their administrative personnel. They’re already overwhelmed caring for their patients, as well as performing other administrative duties. Patients, however, are expecting their doctor’s complete attention.
Maintaining records is much easier. When billing is outsourced, they maintain insurance claim e-reports on a daily, monthly, or even annual basis. The regular updates ensure accurate billing and records.
Cons of Outsourced Medical Billing
Price fluctuations Most billing firms take a share of the money they receive and the more revenue your clinic generates and the higher amount you’ll need to pay. This makes forecasting the cost of billing difficult, especially with significant differences between periods of high and low activity.
Access to data There’s a chance that you aren’t able to access the entire patient collection or have the ability to access the billing reports. They aren’t accessible electronically. It is possible that the practice doesn’t have a contract for billing that is in place with the business which specifies the services they’ll provide.
Security protocols that are not appropriate and compliant outsource medical billing could expose you to the risk of HIPAA security and privacy breaches. While HIPAA security and privacy issues are possible when billing in-house, they are riskier for medical bill processing when outsourced. The disclosure without authorization, regardless of whether it was deliberate or not, is a violation of HIPAA security rules. The likelihood of a data security breach increases as patient data becomes more accessible.
A number of medical practices outsource their billing requirements. Why? The answer is simple: third-party medical billing companies were developed to assist your medical practice in earning more money. Think of them as your legal advisors. If you’re currently contemplating outsourcing of your medical billing needs, Medicine is here to help! We provide complete service for managing your revenue cycle starting from our front office to back offices. Set up a time and date to speak to any of our billing specialists to find out more about how we can assist with your billing problems.