Medical Billing To Stay In-house Or Outsource

There are many reasons why medical billing outsourcing to a professional medical billing and coding company makes sense

. A major problem with in-house medical billing services is cumbersome. Human Resource Management is the most compelling single reason why physicians and other medical service providers outsource their medical billing to a medical billing company that specializes in providing this service.

Once a medical billing specialist leaves, you are forced to fill the vacant spot right away or your cash-flow may be compromised. That often means hiring someone with lesser or worse yet very little medical billing experience. Inexperienced medical billing specialist makes errors that can cost your practice money. Also you need to train your new medical billing specialist. Will you spend your time doing this? Or will you pay someone else to do it? Is that a good use of your time? Even if you still have other medical billing specialists, their use in training will take away from their time normally spent in helping to get you paid in a timely manner. Medical billing outsourcing avoids these problems all together.

As your business grows, your revenues will grow and so will the medical billing and coding workload. However, your employee costs are fixed costs, while your billings and receivables are not fixed. So, when your business has grown to the point where the workload overtaxes the current medical billing personnel, you will need to add another medical billing specialist maybe more. That is an abrupt increase in fixed costs, because now you are - in effect - overstaffed, as the volume of the workload has not as yet caught up to your newly-expanded billing capacity.

Use medical billing outsourcing to change your medical billing expenses from a fixed cost to a variable cost and improve your ability to manage your business.

When you choose medical billing outsourcing, your costs vary directly with your medical billings. If your medical billings drop, your costs drop. If your medical billings go up, your costs do not rise disproportionately. This simple fact can make your business planning easier.

When you outsource your billing by taking advantage of our professional medical billing specialists, the overhead and paperwork is ours, not yours.

Medical Billing Specialist's Employee salary

Medical Billing Specialist's Employee benefits

o Workers compensation

o FICA

o Healthcare insurance

o Vacation, sick leave, etc.

o Performance bonus

Computer hardware purchase & maintenance

Software purchase & renewal

Clearinghouse fees

Postage

Stationery

Physical (Office) Space

Training and re-training

Recruitment costs

YOUR time

YOUR opportunity costs

The cost of an outsourced medical billing model is fairly straight forward. Since the fees of the vast majority of medical billing outsourcing services appear to be a percentage of a provider's revenues, the annualized cost of the medical billing service's fees will be a fairly close approximation of the provider's medical billing related costs for this model.

In the event a provider is considering an outsourced medical billing model, he/she should keep in mind that this model is not necessarily the silver bullet to ending all medical billing related costs and headaches that medical billing services tend to advertise. True the medical billing company will acquire some of the costs associated with the medical billing process but the provider will still need staff to act as the intermediary between the provider's office and billing service, i.e. someone to transmit data to the billing service.

For more information visit: http://www.medical-billing.com

For more information visit: Medical Billing

by: smithanderson

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