{"id":10813,"date":"2020-08-05T09:44:10","date_gmt":"2020-08-05T14:44:10","guid":{"rendered":"https:\/\/www.billingparadise.com\/blog\/?p=10813"},"modified":"2020-08-06T13:48:53","modified_gmt":"2020-08-06T18:48:53","slug":"medical-billing-to-outsource-or-not","status":"publish","type":"post","link":"https:\/\/www.billingparadise.com\/blog\/medical-billing-to-outsource-or-not\/","title":{"rendered":"Medical Billing \u2013 To Outsource or Not"},"content":{"rendered":"

Is outsourcing medical billing<\/a> to vendor companies a wise option? Many practices deliberate it and after careful evaluations conclude it is indeed a sensible alternative to setting it up in-house. Here\u2019s why they trust the viability of the outsourcing option, most of the physicians want to stay patient-care focused and do not want an additional burden of overseeing a billing division within their practice.<\/span><\/p>\n

Many physicians opined that though outsourcing does weaken their control over collections, the advantages far outweigh these drawbacks. First, the maintenance of an in house billing division cost a fortune according to a leading practitioner Dr. Evert Smith who after a quick cost comparative analysis on his little notepad determined the following based on his practice that he shares with two other physicians.<\/span><\/p>\n

Their practice of three physicians would require two medical billing specialists to file 70 insurance claims per day (@ 20 business days a month = 1400 claims) the annual would be 16,800 claims.\u00a0 An average amount billed per claim averages to $ 150 and the annual value of claims filed would be $ 252, 0000.\u00a0<\/span><\/p>\n

\"\"<\/span><\/p>\n

Here is a table of the cost that the practice would be spending to run the in-house billing division estimated by the doctor.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/section>

\"\"<\/p>\n<\/div><\/div><\/div><\/div><\/section>

Billing Operational Cost:\u00a0 <\/b>The practice with three doctors needed two medical billing staffers, with an average salary of $ 42,000 for each employee, the cost to the practice would be $ 84,000. Health insurance for both employees would add to $ 8,000, and federal and state taxes would cost another $ 12,000. The cost for training them on updated software would cost $ 2,000. In addition, miscellaneous cost that would include office space, paper & stationary and other hardware would cost $ 16,000 approximately.\u00a0<\/span><\/p>\n

Outsourced: <\/b>A billing service would need 8 hours per week, which would average at $ 15 an hour, plus the equipment for follow-ups with the practice, an approximate cost will add to $ 6,000.\u00a0<\/span><\/p>\n

Software & Hardware Cost:\u00a0 <\/b>The best of billing software would cost the clinic $ 7,000, and if the service was outsourced, the practice would need a computer and printer to communicate or print documents forwarded by the billing company, the relative cost would just be around $ 500.<\/span><\/p>\n

Outsourced<\/b>:<\/span> \u00a0The outsource company would also need the same application costing $ 7,000, however the work output would be tenfold handling multiple practice accounts.<\/span><\/p>\n

Claim Processing Cost: <\/b>It would cost the practice $ 300 per month for processing the claims (@ $ 100 per practitioner) the annual cost $ 3,600.<\/span><\/p>\n

Outsource: <\/b>The billing service company<\/span> charge 6% to 7% of the amount collected as their fee.<\/span><\/p>\n

Average billing amount collections:\u00a0 <\/b>Depending on the specialty of the practice, an in-house billing department collects 60% of what is billed.<\/span><\/p>\n

Outsourced: <\/b>The billing company on the other hand collects 8% to 10% more of what the practice collects.<\/span><\/p>\n

In spite of the cost factor that favors outsourcing as a preferred option, practices based on their needs and analysis must choose a service that is proven for efficiency in billing and coding. There are countless billing companies that promise the stars and deliver dust. Caution in choosing a billing company that saves you cost, and fulfills your needs should be the sole criteria.\u00a0\u00a0<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/section>\n","protected":false},"excerpt":{"rendered":"Is outsourcing medical billing to vendor companies a wise option? Many practices deliberate it and after careful evaluations conclude it is indeed a sensible alternative to setting it up in-house. Here\u2019s why they trust the viability of the outsourcing option, most of the physicians want to stay patient-care focused and do not want an additional [...]","protected":false},"author":2,"featured_media":10816,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[721,841,717,716],"tags":[],"class_list":["post-10813","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-billing-collections","category-medical-billing","category-most-popular","category-most-recent"],"_links":{"self":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts\/10813","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/comments?post=10813"}],"version-history":[{"count":0,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/posts\/10813\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/media\/10816"}],"wp:attachment":[{"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/media?parent=10813"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/categories?post=10813"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.billingparadise.com\/blog\/wp-json\/wp\/v2\/tags?post=10813"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}