The most attractive reason for using a billing service is: Cost.
Not only does a billing service reduce your cost of operations, it should increase your income as well – thus, putting more money in your pocket in both ways.
Consider the following Cost Analysis of in-house vs billing service taken from the Physicians News Digest, June 7, 2010 online publication:*
To arrive at these numbers, we’ve used what we believe to be industry averages. Here are the characteristics of this practice: Three primary care physicians; Two medical billing specialists; 80 insurance claims filed per day (~20,000 per year); $125 billed per claim on average (~$2,500,000 per year); and, we assume that the billing service has a high collection rate on claims.
So, how much does each billing approach cost? Take a look at the annual costs:
This example shows that the reduction of in-house costs coupled with the increase in reimbursements results in a 20% increase in net income based on the same volume of billings.
Patient Account Services Inc. boasts a historical average of 30-50% increase in income due to advanced technologies and efficiencies, and a much higher collections rate than the 70% this 2010 study suggests.
Additional “Hidden” Increases in Cash Flow Include:
- No down time in billings and reimbursements due to employee turnover, sick or vacation
- Billing Services don’t get paid unless you get paid! Salaried employees get paid regardless –
- EMR software and training may also be included in billing services fees thus eliminating these associated costs while also allowing for CMS EHR incentive funds paid directly to the physician
- Increased efficiencies between front desk collections and your “back office” aka the billing service
The next best reason for using a billing service is: They’re the experts!
The average physician is not trained in computer hardware and software technologies, medical coding, claims processing, or practice and business management during his or her medical education. Yet to be successful and profitable, you must be an expert in all this! So what do you do?
You hire a certified accountant to manage your business financials and tax concerns; you hire a lawyer for legal processes; you hire certified medical technicians to manage patient care; so why not hire an expert in medical billing and technologies to manage your claims and revenue cycle processes? A medical billing company that has a proven track record, qualified personnel and references, and advanced technologies like Patient Account Services Inc.
A Qualified Medical Billing Company:
- Ensures Billing Compliance - with Medicare, Medicaid, and other third party payers by staying on top of the latest changes in regulations and requirements
- Reduces Billing Errors – by maintaining a staff of certified coding specialists, dedicated account managers, and advanced software technologies
- Specializes in IT – to make sure all electronic processes integrate with billing from insurance clearinghouses to banking institutions to electronic medical records!
- Improves Patient Satisfaction – by providing toll free, real time, courteous service for your patients’ billing questions or issues
Finally – maybe the most important reason to use a billing service is: Reduce stress and allow you to focus on patient care.
Did you go into medicine to become an expert in medical billing and practice management or was it to focus on treating patients? What is it costing you in time and effort to manage the day to day activities of your business and cash flow? If you suffer stress and strain on the business side, is this resulting in reduced quality of patient care?
In conclusion, if you could reduce the stress of managing your practice and increase profits, isn’t it time you consider the medical billing service company solution?