Outsourcing is a common practice when it comes to medical billing. Most doctors will at some point find themselves outsourcing their medical billing to an at-home specialist, a professional medical billing company, or a practice management company. Here are some of the reasons doctors choose to outsource their billing.
Medical billing is an immense task. Outsourcing to a medical billing firm can take much of that burden off your shoulders. It will save you the time you need to concentrate on healing your patients. Henry Ford applied human capitol philosophy in following way:
- If a process is broken up into smaller steps;
- And if workers are assigned to just a single step to complete;
- The process is done faster;
- And the workers become more and more specialized in the steps they are assigned.
Just Ask Yourself This: There are so many things that you have to do in a course of a day as a doctor. Treating patients is just one big part of those many things.
- Are there any items on your daily tasks, something you can assign to someone else?
- And will assigning it to someone else free up your time?
- Can you assign the tasks to someone who may be able to get the job done better than yourself?
- At the end of the day, if the task is done by someone other than yourself, "do you benefit"?
If you're running a small practice, your staff may not be able to focus exclusively on billing-or have the necessary expertise. Practices that don't outsource often can't afford to have one employee focus on billing without giving attention to other clerical duties. A medical billing firm will have the knowledge and experience to take care of all the medical billing issues that arise with your practice, and free your staff to concentrate on other aspects of running the practice.
As was mentioned before, handing specialized task to someone who does nothing but that very task will do it better and faster. In most clinics the front desk person is usually tasked with just about everything one can think of. This is usually done to limit the amount of employee expense. As a side note, it's worth checking out Medical Billing & Coding Salary. However, this form of finance management backfires with a tremendous amount of cost in forms of specialization mismanagement. As you can imagine, something as important as billing and collections, if left with specialization mismanagement can result in higher and higher denial rates and often slow and inconsistent follow-up. Imagine tying up the front desk person with not only the usual duties but also to have them tied up over the phone for hours on end to get claims status checks from insurance carriers as well as initiate calls to various patients to remind them of their missed payments.
A great deal of rejected claims come back simply because of errors in coding. Hiring a medical billing firm to focus exclusively on billing can cut down on errors and save you revenue in rejected claims, because that is what a medical billing firm does, billing! An experienced biller would know right away how to deal with the usual denials. In most cases the billers even know the denial explanation codes from the top of their head. And this is not anything unusual. It's simply their experience talking. By working on billing, payment entries, light/heavy bookkeeping, denial handling, patient accounts, insurance follow-up, and various other things; anyone in their place would come to know just about everything there is to know about billing and everything that relates to it as well.
It's a well-known fact that most cases of fraud come from within a company. If you outsource your medical billing, you'll have an outside eye looking at your finances and providing checks and balances that you and your staff might not have the time or ability to provide. If there are inconsistencies in your finances, a medical billing company will have a good chance of spotting them.
Not only that, but in our recent experience, we've even seen medical billing companies list and correct all kinds of clinic processes. And a service like that can be invaluable any doctor, any he clinic, or any group practice.
Most practices with limited resources can't designate multiple employees to concentrate on billing. This means it takes longer to submit claims, follow-up can be inconsistent, and your money comes in later than it could. With a medical billing firm, your claims will be submitted more quickly and follow-up will be more persistent-all adding up to more and quicker revenue for your practice.
Now take what you just read and apply it to your own medical practice. If your medical billing is being done properly Medicare should be sending you a payment in your bank account within two weeks.
Many doctors say that you don't just need an M.D. to be in private practice anymore-you also need an MBA. An experienced medical billing company doesn't just send out claims-it's also a valuable business partner. A good medical billing firm will provide you reports, often monthly, detailing the financial health of your practice, and can recommend ways to boost profitability as well.
At Sage Medical Billing, we work to suit our client's needs, not the other way around. And because we work with AdvancedMD, we have literally hundreds of reports that we can customize to suit the needs of our clientele.