As a medical practice owner or manager, you have to find the most efficient way to carry out tasks. Hiring a medical billing company is one way to do so. A billing company can help with revenue cycle management, freeing you up to focus on your patients. Here’s an in-depth look at the benefits of using a third-party company:
Reduce Billing Errors
Billing errors can be detrimental to your practice as they can cause insurance reimbursement delays. The risk of billing errors can be lower when working with billing companies as they have expertise in coding. They provide ongoing training for their employees to keep them updated on the appropriate codes for different diagnoses and procedures. You may be unable to do this in your practice because your core focus is patient care, not coding and billing.
Billing companies also have lower chances of making errors because they use advanced software. Since it’s their core function, they can invest in the best technologies. These companies also have numerous employees focusing on different aspects of billing — you may find employees working specifically on payment eligibility, others on payment posting, and others on claim audits. Having a skilled team take over every step of the billing process can facilitate early error detection and proper action.
Accelerate Cash Flow
A medical billing company can accelerate cash flow in your practice by submitting claims quickly. The faster you submit your claims, the quicker insurers can assess them. Billers are experts in coding, so there may be a lower chance of rejections or delays stemming from improper coding. A billing company can also improve cash flow by monitoring the status of your claims. You may be unable to do this alone, as the process can be time-consuming. Billers can identify unpaid claims, follow up with relevant insurance companies, and resolve highlighted issues to allow insurers to complete reimbursements.
Consistent cash flow is necessary for medical practices as it allows you to meet your obligations. You can invest in proper medical technology, provide a safe environment for patients, and hire staff to help them at every step of the treatment process — from registration to discharge.
Reduce Overhead Costs
High overhead costs can be crippling for small practices, as they may prevent them from meeting all their financial obligations. A billing company can help reduce your practice’s overhead by offering employee cost savings. When you partner with one, you don’t need to invest in employee training, as they already have skilled staff keeping up with the latest industry regulations.
You also don’t have to worry about employee salaries and benefits. Instead, you can agree on a payment rate that’s proportional to your collections or choose a flat fee. The former is more sustainable, as payment varies with your revenue, and the latter can promote better budgeting, as you know how much to set aside for each collection cycle. A biller can also lower overhead by eliminating the need to invest in billing equipment. You don’t need billing hardware or software, as your biller will use their own.
Focus on Patient Care
Handling patient care and billing can be challenging as they’re both time-consuming tasks. You may end up neglecting one for the other, impacting your practice’s image or revenue cycle. Medical billers can allow you to focus on your core function by handling every aspect of billing. You only need to focus on providing quality treatment, and your chosen billing company will handle the rest.
Find a Reputable Medical Billing Company
A medical billing company is a valuable partner for any practice as it can streamline your revenue cycle and allow you to focus on your patients. When choosing a billing company, consider the volume of your patients and your practice’s size. Hire one with enough staff and technological infrastructure to handle your patient volume to promote efficiency in billing. Also, verify the company complies with regulations like HIPAA to help keep patient data safe throughout the billing cycle.
