Top 10 Reasons to Outsource Medical Billing Services

  ennie newton    November 14, 2019    987

 

Before we get to the reasons why outsourcing medical billing services is good, here are some facts to mull over

  • An American Hospitals Association 2019 report has pegged the value of uncompensated hospital care since 2000 at more than $620 billion.
  • A Mckinsey article has reported that out of medical bills exceeding 3000$, a startling 99 % were not paid in full.
  • According to Bloomberg, bankruptcies in the health care sector have more than tripled in 2017. In the first 3  quarters of 2018, 8 hospitals have filed for bankruptcy and 9 hospitals have closed down. 
  • Healthcare providers lose $300 billion a year due to failures in claims processing, payments, billing, and collection of bad debt.

These facts call attention to the major problem that US healthcare providers face today – revenue erosion. A lot of factors contribute to this issue. Three major ones are the fragmented nature of the US healthcare system, the complexity of regulations and inefficiencies in billing. While we can’t do much about the first two, we can and must work towards tackling the third. 

Why is Outsourcing Billing  Beneficial For You?

So, how can we reduce these inefficiencies? One sure way is to outsource billing to professionals with adequate skills and knowledge. Medical Billing companies transfer the efficiencies they have gained through experience and scale to their healthcare clients. Here are some reasons why engaging an offshore medical billing service is a smart move for healthcare providers.

1. Savings in Time:

Outsourcing medical billing saves time in more ways than one i) healthcare staff spend less time on administrative duties, ii) many incoming phone calls are diverted to the billing company iii) time spent on training staff on changing regulations is saved iv) accurate claims mean faster claim settlements

2. Savings in Cost:

Using a professional billing service guarantees a positive ROI.  It saves on salaries for recruiting and training staff which can cost more than 4000$ a year. Healthcare providers can also save on office infrastructure and storage infrastructure for medical records. The improved workflows also bring big savings for hospitals in the long term. 

3. Constant Upgradation in Technology and Knowledge:

Medical billing companies are in a better position than hospitals and doctor offices to make capital investments in upgrading their technology on time. Moreover, medical billing companies gain specialization in the billing process over time. This enables them to adapt more easily to regulatory and other changes in the healthcare ecosystem.

4. Proactive Approach to Problem-solving:

Billing companies are more tuned in to the changes in the healthcare industry. This means that they can anticipate needs and problems before they loom large.  While in -house billing teams can only react to these changes, billing companies are capable of taking proactive measures.

5. Timely Access to Reports and Data Analytics:

A major benefit of using a billing service is that it becomes easier to get reports and data on time. Analytics of this data will give a healthcare provider valuable insights on where it stands and where it is headed. Information gleaned from this data can also prove to be useful for decision making and planning growth strategies.

6. Improved Patient Engagement and Satisfaction:

Outsourced billing lets your staff focus more on their core function of providing high-quality patient care. So patients feel more satisfied with the care provided. Moreover, a faster and more transparent billing process also lets patients plan their co-payments and reduces their anxiety about bills. Satisfied patients are in turn more likely to spread a positive word about your practice and bring in more revenue.

7. Better co-ordination with Payers: 

Billing services have specialized teams for each payer or a set of few payers and hence it is easier for their billing staff to build relationships with the staff on the payer’s side. This improves the coordination between the billing team and payer and reduces glitches in claim processing. 

8. Enhanced Data Security:

Billing necessitates storing highly critical data about patients and any breach in the data can have serious implications for the patient and the healthcare provider. Most medical billing companies invest in the security infrastructure required to safeguard patient data against theft and hacking.

9. Better Compliance:

Established medical billing companies are more likely to have trained their staff on the changes in  ICD 10 and other HIPAA regulations. They have transparent and well- organized billing processes in place. This makes compliance more effortless.

10. Better control:

One major reservation that healthcare providers have against outsourcing their billing is the fear of losing control of their finances. But contrary to this misconception, a majority of the hospitals and healthcare practitioners who have already made the outsourcing decision find that they have a better grip over their billing process when they have a highly experienced outsourced billing team to support them.

But the most compelling reason that makes the argument for outsourcing stronger is that it boosts your bottom line. The billing company gains when your revenues go up and lose when your revenues go down. So the business objectives of the medical billing services company are aligned to your goals of better patient care and revenues. 

 If you need a reliable outsourcing partner with the expertise to help you reach your revenue targets, contact us. Rannsolve is a Texas-based medical billing company that can skillfully manage your entire revenue cycle for you so you can give your undivided attention to the most important business there is – the business of saving lives.


 Article keywords:
Medical Billing Services, healthcare rcm, revenue cycle management

 


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