If you run a small medical practice, you know firsthand how important it is to manage your billing and collections as effectively as possible. Your business’ financial health depends on it–but, there are two different strategies you can take: in house medical billing or outsourced medical billing.

In this article, we’ll take a close look at each approach and discuss the advantages and disadvantages of both, so you can make the best decisions possible for your business.

In-House Medical Billing

As medical practices strive for better revenue cycle management, one of the decisions they must make is whether to handle medical billing in-house or to outsource it to an external medical billing company.

Both choices have their advantages and disadvantages, so it is important to weigh the pros and cons of both before making a decision.

Pros

More Control

One of the biggest advantages to handling medical billing in-house is that it allows providers to maintain complete control over their billing process. By keeping it in-house, providers can ensure that the billing process is handled with their specific policies and procedures in mind.

Additionally, when providers handle their own billing they are better able to get paid in a timely manner, as they do not have to wait for external medical billing services to make sure the bills are sent on time.

Personalized Service

Another benefit of in-house billing is that providers can build a relationship with their patients and make the billing process more personalized. Many patients prefer to handle their billing directly with their provider instead of dealing with an outside company.

Furthermore, since the provider is dealing with the billing themselves, they can provide patients with more timely information regarding their bills and other payment inquiries.

Cons

Increased Workload

The main drawback of in-house billing is that it can be time-consuming and labor-intensive for the provider. It requires a dedicated staff of billing specialists who are trained and well-versed in billing and coding. This can be costly and may not be feasible for smaller practices as it can cause costly billing errors.

Additionally, since medical billing is complex and constantly changing in the healthcare industry, providers must stay up to date on the latest rules and regulations in order to remain compliant.

Scalability Limitations

Another downside of in-house billing is that it can be difficult to scale. As the provider’s patient base increases, so too does their billing workload. In order to keep up with demand, providers must invest in additional staff and resources. This can be an added burden on providers who are already stretched thin.

Outsourced Medical Billing

Pros

Can Be Cheaper

One of the top advantages of outsourced medical billing services is that it can be more cost-effective than handling it in-house. Outsourcing typically requires lower overhead costs, as there is no need to invest in additional staff, software, or other resources.

In addition, medical billing companies are often more efficient, as their staff is well-trained in billing and coding and have the latest software and technology at their disposal.

Do What You Do Best

Another benefit of outsourcing medical billing is that it allows providers to focus on their core competencies. They can free up their time and resources to focus on patient care instead of being bogged down with administrative tasks.

Furthermore, since external billing companies are better equipped to stay up to date on the latest rules and regulations, outsourced medical billing can help providers remain compliant, thus reducing the risk of potential compliance issues.

Cons

Slightly Less Control

One potential downside of outsourcing medical billing services is the potential for errors due to a lack of familiarity with the practice. Outsourced billing services may not be immediately familiar with the practice’s procedures and protocols, potentially leading to incorrect coding or data entry errors in the short term.

Outsourcing can also lead to a loss of control over the billing process. Since the practice is relying on the vendor to manage the billing, there may be less visibility into the process, which can lead to delays in payments or a lack of communication regarding billing discrepancies.

Potential Impact On Patient Satisfaction

Another potential downside of outsourcing is that it could negatively impact the doctor-patient relationship. By handing the billing process off to an outside company, providers are no longer in direct contact with their patients regarding payment inquiries or other billing-related matters.

This could lead to frustration on the part of the patient and ultimately a breakdown in the doctor-patient relationship.

In the end, there is no “one size fits all” approach when it comes to medical billing. Each provider must weigh the pros and cons of both in-house and outsourced medical billing and decide which option best suits their practice.

Why You Should Consider A Professional Medical Billing Company Like PMN

If you’re looking for an experienced medical billing company, look no further than PMN. Our team of experts are experienced in all aspects of medical billing and coding and are trained to be up to date on all of the latest legislation and codes that govern medical billing services.

We provide personalized service and reports to maximize your reimbursement with quick and accurate medical billing solutions. Our team also offers exceptional customer support specifically tailored to the requirements of your practice.

No matter what your medical billing needs are, PMN can provide the service and expertise needed to reduce your claim denials, improve your cash flow, and make your medical billing process easier.

Contact us today at (949) 215-5055 to learn more about our comprehensive medical billing solutions and to get started with PMN, or visit our office in Laguna Hills, Orange County, California!

FAQs

Benefits Of Using An Outsourced Medical Billing Company

Outsourced medical billing services can handle a wide range of billing functions, such as claim submission and follow-up, coding and accounts receivable management. By outsourcing these tedious tasks, a practice’s staff can focus more of their energy on patient care, improving their efficiency and productivity.

How Does In-House Medical Billing Compare With Outsourced Medical Billing In Terms Of Cost?

In-house medical billing can be cost-prohibitive for many small and medium practices, since it requires hiring experienced staff and investing in software and other equipment. Outsourced medical billing services are usually more cost-effective, since they provide a thorough and professional approach to billing without the commitment in terms of staffing, technology, and infrastructure.