For most doctors, the tasks involved in the medical billing process are a necessary evil. Many doctors find that after futile attempts to handle this side of the practice “in-house” they simply do not have the manpower or the time to focus on the operational side of the business.

Some practices experience a turnstile of employees that come through the door and lack the expertise to execute procedures properly. In many cases, the doctors are somewhat unaware of the amount of total charges billed versus the amount collected. Unfortunately, when the doctor realizes that their current processes are costing them thousands of dollars in revenue per month, it is too late. The average medical practice delivers almost one-fifth of its services for free because in-house billing fails to provide adequate payment performance.

To remedy the situation in dealing with payroll and HR issues, physicians consider outsourcing to a medical billing service. If you are considering outsourcing, choose wisely. At a minimum, your next billing service should provide the following:

Savings of time and resources - Medical billing is an immense task and truly a science in itself. Outsourcing will save you the time and allow you to concentrate on patient care. Practices that do not outsource often can’t afford to have an employee focus solely on billing without giving attention to other clerical duties. A medical billing firm will have the knowledge and experience to manage all of the medical billing issues that arise with your practice, allowing your staff to concentrate on operating the business.

Ongoing communication – Your choice of a medical billing service should be a business partner, not just a vendor. A good partnership relies on constant communication at all times to achieve common goals and objectives for both parties.

Reduction in rejected claims - Statistics show that 59 percent of in-house billers do not review explanations of benefits and 55 percent of billers have never appealed a denied claim. Most rejected claims are due to coding errors. Hiring a medical billing firm to focus exclusively on billing can decrease errors and save you revenue on rejected claims.

Added security - It’s a well-known fact that most cases of fraud are found within the medical practice. If you outsource your medical billing, you’ll have an outside eye reviewing finances and providing checks and balances that your staff might not have the time or ability to provide. If there are inconsistencies in your finances, an experienced medical billing company will be more likely to identify them.

Generate faster revenues - Most practices with limited resources cannot afford to designate multiple employees to concentrate on billing. This takes longer to submit claims, follow-up can be inconsistent, and your revenues are delayed. With a medical billing firm, your claims will be submitted promptly, follow-up will be more persistent, adding more revenue to your bottom line.

Negotiate with insurance carriers – Statistics indicate that many doctors are unaware of the details of contracts with insurance carriers. Your medical billing company can give you the detailed information you need to successfully negotiate a contract with an insurance carrier. Knowing your costs and fee schedules will go a long way toward giving you the upper hand in insurance contract negotiations.

Transition to EMR - Soon many practices will be required to move to EMR. (Electronic Medical Records) President Obama has implemented a rebate plan up to $44,000 for practices that transition to EMR. One state has currently mandated EMR and others will soon follow suit. A reliable billing service company should give you detailed information and explain the advantages of government stimulus money.

Added value - An experienced medical billing company doesn’t just send out claims-it’s also a valuable asset to your business. A detailed medical billing firm will consistently provide you reports detailing the financial health of your practice, and can recommend ways to boost profitability also.

In closing, billing companies can be extremely beneficial to a medical practice and can potentially achieve much higher revenue goals. But be aware, not all billing service companies are the same. When considering outsourcing, address the expectations that you may have with your next billing service company. Research and due diligence are required when making the right choice. Be cautious not to choose a company that lacks the interest in maximizing the profit potential of your practice or the expertise to handle denials. A system should be in place to educate you on all industry changes. Be sure to hold your next billing service company accountable for their performance. To achieve the aforementioned goals for your practice, hire a full service billing company with an experienced staff that has a genuine interest in meeting all, not just some, but all of the practice billing needs.