Outsourcing is revolutionizing many industries, and healthcare is no exception, especially when it comes to medical billing services. Nowadays, healthcare professionals face large workloads and unrealistic deadlines, which is why the idea of outsourcing medical billing is proving so attractive to health information managers and hospital CFOs. If you’re debating whether you should outsource medical billing services, here are five signs that suggest it might be time to take the leap:
1. You’re dealing with employee turnover.
If you don’t outsource medical billing, chances are you have staff members who are responsible for handling that aspect of the business. As you may know from experience, it can take years to fully train a staff member to perfect the skills necessary for medical billing. Unfortunately, after investing so much time and resources in your employees, it’s possible that you will lose them to retirement or a future career change. If you’re currently dealing with employee turnover, you should consider outsourcing medical billing services. That way, you won’t have to train new staff only to lose them in the long run. Outsourcing will allow you to enjoy the same quality of medical billing services without the expense of hiring and training employees.
2. Your revenue does not exceed the industry median.
Another sign that you should outsource your medical billing services is if your revenue does not exceed the median for the industry. Take a look at your revenue and cost numbers to determine whether your financials could improve. If you currently do in-house billing and collections, it’s likely the cost of your medical billing services is far higher than it could be. After all, the cost of in-house billing and collections includes hiring, training, and retaining employees. Not only will outsourcing likely reduce your costs, but it can also lead to improved results.
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3. Your patient collections are insufficient and account receivables have a slow turnaround.
Your revenue may be low due to inadequate patient collections and a slow turnaround for account receivables. Fortunately, if you outsource your medical billing services to a reputable and reliable agency, you will enjoy timely payments and a greater focus on patient balance collections and denied claim management and appeals.
4. Paperwork is taking you far too long.
Yet another sign that you should outsource medical billing services is if your paperwork is taking too long to complete. Healthcare professionals in many offices spend an excessive amount of time dealing with payment and billing issues. If too much time is allocated to administrative tasks, this means a reduction in time spent on patient care and revenue per patient.
5. You have not prepared for ICD-10.
In order to implement the ICD-10 phases, you need to make changes to processes and train employees to ensure all regulations are met. The cost of hiring qualified employees or training current staff may be more substantial than anticipated. By outsourcing medical billing services, you won’t have to deal with the expense of training or hiring experienced people. All reputable firms for outsourcing medical billing services will consider ICD-10 readiness and training when hiring employees.
With each passing day, more and more healthcare professionals are expressing their preference for outsourced medical billing services. If you’re still unsure whether it’s time to make the switch, pay attention to the signs and then decide.
