Whether you have a new medical practice or have been in business for decades, you’re probably aware that that your medical billing process is one of the most important functions your company facilitates. After all, it’s how you pay the bills.
You may also know that you have the option to either complete your medical billing in-house or outsourcing the job to a 3rd party company.
Why would you outsource?
Because in addition to putting less pressure on your practice, outsourcing can actually help to increase your businesses revenue.
It’s quite simple. Outsourcing can increase your revenue by saving you the money you would spend by doing it all in-house, and that money can really add up.
Another way to say it might be: how can outsourcing prevent you from spending unnecessary money that you could be using for more crucial parts of your business?
If you have been completing your medical billing in-house for a while now, you may not realize how much money you have been throwing away. Here are a couple of expense pitfalls:
Money spent on the salaries of in-house medical building employees can be a major factor and an area where you can save a huge chunk of change. Employees aren’t cheap. Here is a breakdown of the cost of an average employee.
Statistics show that the average medical biller makes about $16.42 per hour or up to $56,000 per year. How much are you paying your employees?
That is just their hourly wage! You also need to consider the benefits that you need to pay to your employees.
These days, an hourly wage is not enough. You also have to pay for vacation time, sick time (in some states), bereavement, 401K contributions, life insurance and so much more.
Health insurance is the biggest expense. Many employers end up paying thousands of dollars on an annual basis to cover the premiums for each of their employees.
Vacation time? The average is eight days per year for employees who have been working for a year or more.
Life insurance? The average for that is around $150 on an annual basis.
Finally, long-term disability insurance will cost you an additional $250 annually.
This is just the minimum. Some offices are even more generous, so even if you only have a couple of medical billers, these costs can add up quickly.
In a perfect world, you would interview potential candidates, find the perfect employee, and have them work for you until the end of time. But that is not how it works in the real world.
According to the Bureau of Labor Statistics, employees in any industry usually stay at any given job for about 4.4 years, and this is no different with medical billers.
It is usually an inevitability that your employees will resign, transition, be promoted, or be terminated at one point or another. At that point, you need to spend time training the new hires until they are up to speed.
It can take months to train these employees and time and money spent here takes away from the money you could be using for better endeavors or keeping as profit.
Outsourcing your medical billing can be especially helpful If you are starting a brand new practice.
If you are just starting your provider from scratch, you need to focus on funding your practice, getting your credentials, choosing a legal structure, getting licensed, and last but not least, setting up your billing process.
Why not take one of these off your table?
When you outsource your medical billing from the start, you are getting professionals on your side that know the ins and outs of their industry, and they can quickly become invaluable partners for your business.
Getting a billing company at this crucial point in time can save you money and increase your revenue right off the bat.
Good 3rd party billing companies can do the footwork, ensuring that you get reimbursed at the highest possible rate. They’ll also verify your claims are being submitted correctly – now you know your billing is in good hands.
These companies can even teach you a few things, because they keep up with the rules and policies of the ever-changing medical industry.
Constant vigilance and education are needed to keep your billing routines successful, and while they do all the heavy lifting, they can also keep you abreast of these changes.
Save money by outsourcing your medical billing program. Not only will you save money on employees, but you will also get all the amazing benefits that these companies offer.
In addition to saving you money and potentially increasing your revenue, medical billing companies can offer a plethora of helpful services that many medical practices may not even be aware of, because, after all, medical billing is what they do!
Here are a few other outstanding services an outsourced billing company can provide:
That means that whether your office focuses on physical therapy, internal medicine, or even plastic surgery services, your billing company will have you covered.
In the end, the money, effort, and time saved by outsourcing your medical billing can be a real life saver for your practice. Carefully research your 3rd party medical billing company, find a partner that you trust, and watch your profits rise!