Is it worthwhile to outsource medical billing?

outsource medical billing

Traditional medical practices dealt with their billing internally. Today, however, many entrepreneurs offer billing services that eliminate the burden of managing the billing process on your own. Are the services worth the cost, or would it be better to handle things the traditional method?

The facts are pretty evident; it’s more beneficial in the long run to contract out medical billing rather than handle it on your own. Let’s take a look at some of the main reasons.

Reasons to Outsource Your Medical Billing

Lower Costs

The companies that bill enjoy what’s called an economy of scale. Production companies that produce greater quantities of units, their prices per unit drop. The private practice may have many billing claims to submit however the billing firm is able to handle many times more. This allows them to manage every bill for a portion of the price for private practices. The billing firm can transfer these savings to the private practice.

An example of the recent benefits of outsourcing the billing process is worth a look at. Based on an industry-standard the fictional private practice could be assessed using in-house billing as well as billing outsourcing. The practice was staffed by doctors who were primary health care providers, and two medical billing specialists, and they made 80 insurance claims each day. The average was $125 per claim.

The expense of the billing department came to $118,000 to run an internal billing department outsourcing their billing would mean the cost was only $4,000. In addition, the software and hardware cost of in-house billing was $7,500 while outsourcing cost them only $500.

The benefit in cost is obvious from this particular example. outsourcing your billing can dramatically cut the expenses for your company.

Make Fixed Expenses Variable

If you are required to have an internal billing team your primary cost will be the salary that your workers earn. These salaries must be paid regardless of whether there is a downturn or a boom. Also, they are a fixed expense. Companies that bill, however, are charged an amount that is a portion of the cost of the bill. That means that if you file fewer claims, you will pay less.

Get Paid Faster

The billing firm’s expertise lies in the billing field but it’s not an additional project they manage due to necessity. They are able to manage the bills swiftly and handle rejections promptly and then re-bill after corrections have been made. The billing services ensure that the claims are electronically filed and set up to accept ERAs.

Take the Stress off Your Employees

Making your own payments isn’t only a matter of completing forms, which are difficult enough. It involves repairing errors and monitoring the process and conducting a fee review to ensure that the reimbursement is at the correct amount. All this is in a profession that is meant to provide medical treatment to patients. When you outsource your bill, it helps eliminate the hassles of running a business.

Focus on What You Do Best

There is no one who attends medical school to complete documents and fight against insurance providers. What you should do is provide high-quality healthcare to patients. If you let a billing firm take care of the billing for your benefit, you have more time to be with patients and decrease your requirement for hiring non-medical employees.

Greater Consistency

In a small-scale practice, you can’t afford to employ too many people that aren’t directly involved in the provision of healthcare. But, some employees are sick, use FMLA or leave for vacation several times per year. What is the impact on your billing department when one employee is on vacation, then shortly thereafter another suffers from the flu? Do you have the funds to allow your bills to build up? Are you able to afford an additional employee to ensure that there are no interruptions to the department that handles billing?

If you outsource Medical billing to an outside company, you’ll avoid having to make difficult decisions. The billing service will handle your bills punctually regardless of how small your practice is, regardless of the number of bills you’ve got and regardless of whether anyone within the practice you are sick or off at any given time.


Some people believe the outsourcing of your bill is losing control over your billing practices, but this is not true at all. When you contract out your bills you gain control and greater transparency. You can look over the information or observe this process at any given time and at your preferences. It provides you with the most current reviews of how your program is performing whenever you’ll need it.

Keep Up With Healthcare Changes

Healthcare is an evolving sector. Companies that bill are up to date with the latest developments within the field. Additionally, they are aware of any changes likely to be coming, which means they will inform you ahead of time. Without a billing firm, you’d have to research this by yourself and spend longer in a different location from patients.


In addition to offering the services of billing, some companies assist your practice in its credentials. Credentialing is a lengthy detailed, complex, and time-consuming procedure that takes away hours from your workforce. Transferring this task to a billing service is another benefit of outsourcing billing.

Payment Reminders

Sometimes, bills don’t be paid in time. This can be a major issue for any billing department that is small however for a billing firm it’s one of their specialties. For instance, the billing firm will automatically send reminders for payments as well, which is a further task you can get off of your plate and allows you to concentrate on your work.

Improved Returns

Generally, billing companies do 15% better in paying bills than departments for billing in private practice. This is an unqualified profit increase that your clinic can enjoy. Invoices that are not paid are a part of operating in every field, but billing companies can cut the amount of money you pay.

The outsourcing of medical billing is an area that is completely modern to the 21 century. Businesses can offer the services quickly and inexpensively This means that the most diverse benefits can be reaped by your practice.

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