Why are more and more physicians and medical practices choosing to outsource their medical billing? The demand for a rapidly growing medical billing outsourcing market has finally surpassed the demand for the in-house billing sector. The medical outsourcing market is expected to rise from $6.3 billion (2015) to $16.9 billion by 2024. This new data runs in tandem with the fact that 90% of independent and small medical practices were planning to outsource their medical billing as well.
Reasons Behind the Demand for Outsourced Medical Billing
The healthcare industry continually goes through changes to suit the needs of patients and practitioners alike; from the implementation of new health codes and the Affordable Care Act, medical professionals are finding it difficult to comply with all of the new regulations; these medical regulations are constantly changing and sometimes difficult to keep track of. There are many reasons why some of the Nation’s top physicians and medical professionals are outsourcing their medical billing:
- Lack of In-House Professionals
Professional and reliable in-house billers and coders are hard to come by, especially since revenue cycle management is becoming more and more complex and difficult to understand without the proper experience and training. Achieving proper cash flow and maximum reimbursement for services provided is essential for the health of a business. In-house billers can process hundreds of claims per month. Medical billing companies can process thousands of claims per month.
- Lower Overhead
In-house medical billing is expensive. Very expensive. Costs related to staffing, overhead, IT expenditures and office/storage space can add up very quickly and can become a significant cost for a healthcare provider. Outsourcing your medical billing can eliminate a majority of these costs and shift to a variable cost system based on the number of claims processed and reimbursements received, instead of the old industry standard, which was a fixed cost for medical practices (regardless of the number of claims processed).
Medical practices that have a high amount of claims can experience significant revenue growth by outsourcing. This is due to the fact that nearly 20% of all claims are processed incorrectly by payers, resulting in no payment or underpayment. Even small practices can use an outsourced medical biller to chase down unpaid claims and see a large increase in cash flow and revenue.
Medical Outsourcing Makes Sense
Outsourcing your medical practice’s medical billing seems to be what everyone is doing nowadays. With the rise of outsourcing and the decline of in-house billing, making the step now – rather than later – can dramatically increase your revenue from the claims processing cycle. It’s important to remember that not all billing companies share the same amount of expertise and experience. Paying less for a billing company that is inexperienced doesn’t make sense. Paying a fair price for an increased payout benefits everyone.
If you’ve been considering outsourcing your medical billing, consider hiring The Psych Biller for your medical billing needs. We have years of experience in billing for medical professionals, chiropractic and mental health professionals alike. With over 18 years of medical billing expertise, we can put our expertise to work for your practice. We can guarantee that you’ll see maximum returns with a minimal delay. If you are tired of looking for a new medical biller, contact The Psych Biller for clean claims and a secure and reliable follow-up procedure. Contact us today!