Physicians may want to outsource billing to a reliable third-party company to direct their resources towards more core and profitable functions.

Billing is one of the most vital functions of medical practice, regardless of the size and specialty. However, despite its crucial role in the profitability of the practice, it is not a core function. To do it right, you require dedicated billers and coders and constant oversight of medical claims and reimbursements. This, then, calls for a considerable time, effort, and resources to ensure billing is done timely and accurately. Hence, physicians may want to outsource billing to a reliable third-party company to or utilize a medical billing virtual assistant direct their resources towards more core and profitable functions.

When would you want to outsource your billing?

Several events may trigger the need to outsource the orthopedics medical billing function:

• Your current patient accounting system might be obsolete and needs replacement.
• You might have lingering credentialing issues.
• You might be experiencing constant changes in reimbursement models.
• You might have weak net revenues, poor cash recoverable, and massive claim denials.

If your medical practice is suffering from any of the events highlighted above, now is the time to outsource your billing to an outside company expert in the field.

What are the benefits of outsourcing billing?

Most importantly, outsourcing billing to a reliable, independent partner will help you exploit the diverse range of expertise that the billing company enjoys. Having a trusted partner will essentially act in the capacity of a professional revenue cycle partner. You will have a more precise direction to improve your revenue streams while having a comprehensive knowledge of regulatory issues and legal compliance concerns.

Partnering with a billing Accounting Software USA will also help ensure that your demographic data is accurate, your bills are correct, and that these bills go through the right clearinghouse. This will inevitably translate into improved revenue streams through precise billing, reduced errors, and fewer claim denials.

Additionally, since the outsourcing partner is an expert in the field, handing over your billing function to them will offer helpful analytics regarding your practice. You can easily spot if your accounts receivables are aging or if the payers are delaying payments. You can also assess how your patients are responding to the changes in reimbursements.

Other benefits of outsourcing medical billing include the following:

• You can negotiate better contracts with payers through better analytical insights into your billing system.
• You can dedicate the same time and resources to the core functions of your practice, such as seeing more patients.
• You can cut out on extra staff and resources that are otherwise required for an in-house billing function.

When is outsourcing not a solution?

Regardless of the benefits that accrue from outsourcing your billing to an outside partner, it might not always be a wise decision to outsource. For instance, some specialties may have too complex billing procedures that may require regular clinical review, such as cardiothoracic surgeons. In such cases, billing is not something that can outsource that easily since the billing partner must necessarily possess a high degree of knowledge of the discipline itself.

Read more: 3 Mistakes to Avoid When Selecting Your Medical Billing Software

Similarly, outsourcing billing is also not the right option in settings where a ‘closer touch’ with the patients is a must. For instance, for mental health services, having an intimate relationship between the care management team and the patient is of utmost importance. Hence, outsourcing might not be an excellent fit for such circumstances.

Checklist for selecting the right outsourcing partner

Once you have made the strategic decision to outsource your medical billing for small practice, it is advised you go through this rigorous checklist before selecting your outsourcing partner:

• Ensure your billing partner is an expert in the field with proven expertise and a solid reputation.
• Run a though reference check on the vendor, asking for recommendations from other practices under the same model as yours.
• Seek transparency in the billing process so that you have a clear picture of your billing function at any given point in time. Make sure you have clearly defined terms of the agreement, fee structure, and implementation plans.
• Ensure that the billing company is using the most up-to-date technology to get the work done.