Outsource medical billing services can be a great way to increase revenue while also freeing up resources that can be put toward other areas of the business. By partnering with an expert medical billing service, you can focus on other priorities, like growing your customer base or developing new products.
With an experienced partner at your side, you will be able to minimize risk and increase trust with your customers. In addition, outsourcing will help you scale your business as you grow and accommodate more patients throughout the country. It’s never too early to start considering these options as they can have a significant impact on revenue growth in the future.
There are many reasons why outsourcing medical billing services can increase your revenue. They are:
Organization and Staffing
Do you have a full-time in-house medical billing manager, who reports to the chief financial officer (CFO)? Does your organization have an IT team that can support an outsourced solution? These are important questions to ask yourself before beginning to look for a medical billing outsourcing partner. Why? By outsourcing medical billing services, healthcare centers can utilize their resources for other areas of the business and take on other, higher-value projects. By having an in-house staff, the outsourcing partner can free up management’s time to focus on other priorities. Revenue cycle management in medical billing is the best choice to save money for healthcare centers.
Money spent on the in-house medical billing employees such as salary, incentives, health insurance, vacation time, 401K contributions, sick time and other premium costs holds an average of $56,000 per year as per the latest statistics in 2022. By outsourcing medical billing services, healthcare providers can save a huge chunk of change.
Similarly, healthcare providers spend money on training the in-house medical billers and keep updated with the latest changes in the medical insurance adds to the expenses and thus reduces the revenue generated through health insurance and payments. Outsourcing saves this cost.
Increased revenue, lower operational costs, and streamlined processes are all benefits of outsourcing, but they can be achieved only if the organization has the right personnel and processes in place. When outsourcing medical billing services, healthcare providers must make sure to have the right individuals in place to support the new functionality and workflow. Do not bring in a partner who is unaware of the organization’s culture or systems and not capable of handling the workload. Research the outsourcing organization’s current capabilities, and make sure they can handle the necessary tasks.
As the medical billing landscape evolves, so do the tools the outsourcing provider uses. New technologies allow partners to offer physicians a more efficient and streamlined experience. Some of the technology providers want to implement include, but are not limited to:
Electronic health records (EHRs) and health information exchange (HIE) systems:
An HIE is a type of information system that allows health providers to view and share health information, such as patient diagnoses, lab results, and medication allergies. An EHR (Electronic Health Record) is a centralized electronic system that houses patient health information.
The use of electronic billing eliminates the need for paper billing, accounting, and tax documents. An electronic system tracks your revenue, expenses, and tax obligations. Electronic health records and health information exchange systems are becoming the norm in organizations that either have an existing system in place or are looking to move away from faxed and paper-based processes. There are many benefits of these systems, including improved security and reduced risk of fraud.
When a healthcare provider is starting a new practice in their center, expertise in handling the documents with more accuracy and efficiency is needed and hiring an employee for this reason will cost you more bucks than outsourcing. Outsourcing your new branch of healthcare service to the existing medical billing service provider will not cost you much but improve the revenue. They do all the footwork and ensure that your bill gets reimbursed at the highest possible rate, claims are submitted correctly, and the bills are safe.
Constant vigilance and education are essential to ensure that your billing routines are successful. Medical billing services provider does all the heavy lifting and keeps updated on the latest developments and policy changes in the industry.
Substantial Revenue Growth Opportunity
Many businesses outsource medical billing services to see a significant revenue boost. However, less than 5% of firms with a billing department that outsources their services see a revenue increase. Why? Some medical billing outsourcing partners tend to focus on the lowest-price, manual billing firms. These providers include practices with low revenues, little brand equity, or practices that are on the cusp of closing their doors. As these practices are often cash-poor, the low-margin billing engagements represent a substantial revenue growth opportunity for the partner. The higher-margin practices that rely on outsourced services, however, represent significantly greater revenue growth opportunities.
Why? These practices have higher revenues, higher margins, are well-known brands, and offer a higher level of service. So, healthcare providers must choose the medical billing and coding services from a well-established partner with proven success rate, infrastructure, certified and trained professional.
High Ongoing Cost of Medical Billing Services
According to the American Medical Association, the average cost per Medicare patient is $325. With the cost of health care rising, you would expect the average cost of billing services to increase as well. However, this is not always the case. You want to make sure your provider’s costs are commensurate with your business’s needs and services. If they are not, you want to make sure to address that with your potential outsourcing partner. What can you do to ensure your costs are in line with the average cost of billing services? The first step is to understand the financial health of your practice. The average medical practice has a 65% occupancy rate.
Not yet Fully Automated or Intuitive
While the automation and implementation of recent technologies are becoming more common place, not all outsourced medical billing partners have fully automated systems. Why? Many medical practices have legacy systems. These systems were not designed to handle the volume of medical billing transactions generated by an EHR or HIE. As such, practices must manually calculate bills, enter information, and create new accounts. With these processes being held manually, the outsourced medical billing provider has by far the lowest cost of operations. With outsourcing, however, the outsourced partner can fully automate and integrate the client’s systems. As a result, the revenue generated by the new service is not wasted on manual processes. Your revenue is fully utilized.
Reduced Risk and Error
Medical billing service partner becomes more reliable, efficient, and risk-free with automation and the latest technologies. Healthcare providers must ensure that outsourced medical billing partners adhere to industry best practices, client standards, and follow industry regulations. Healthcare services need to ensure that the outsourced medical billing partner is certified by the Better Business Bureau (BBB) and has an A+ rating or better. When selecting an outsourced medical billing partner, centers must look at several factors, including track record, customer reviews, BBB rating, and A+ rating.
As the healthcare landscape continues to evolve, so do the tools and technology the medical billing outsourcing partners use. Modern technologies allow partners to offer physicians a more efficient and streamlined experience. Practices also need to think about the cost of their services, as the average cost of performing billing services is $30 per patient. With all these factors in mind, healthcare providers make sure that they are selecting a partner who can provide the best solutions at the best prices. There are many benefits to outsourcing medical billing services. These include increased revenue, reduced risk, and error, and reduced ongoing cost of services. Outsourcing medical billing services can also help healthcare providers streamline processes, increase efficiency, and lower operational costs. MHRCM is your trusted outsourcing partner with the latest tools and technologies for your practices.