One Dental Billing

Common Myths about Outsourcing Revenue Cycle Management

Medical billing is imperative for medical providers who would like to claim funds that insurance companies owe them for the services that they’ve provided to their patients. In the past, medical billing was typically kept in-house. However, in recent years, many medical facilities have made the wise decision to outsource medical billing for a variety of reasons.

There has always been a discussion or debate on whether medical billing needs to be outsourced or have to be maintained in house. To be honest, there is no hard and fast rules in it. Each organization’s business dynamics and vision is different. So there cannot be one rule fits all. However, if you are a medical professional or a medical billing company in a dilemma then this article will help you to understand how both in house and outsourced system works.

Outsourcing Billing Services or In-House Billing:
  • The hidden costs of the billing services are much more than expected. The main issue lies when it captures only 55% of total cost in in-house billing.
  • The other multiple factors directly impact the billing cost which are often overlooked and are considered as tradeoff between outsourcing billing services vs in-house billing services.
  • Almost 45% margin for error doesn’t make the best odds for sound decision making and most importantly, it can overwhelm and destroy the others as well.

More Emphasis on Patient Care One of the greatest benefits of medical billing outsourcing is the fact that it allows medical professionals to place more emphasis on patient care. Rather than focusing on medical billing, they can spend more time with each patient and provide them with a higher quality of care. Reduced Labor Cost Maintaining an in-house medical billing department can be very expensive. The average salary of an experienced medical billing professional is approximately $35,000 a year plus health insurance, dental insurance, life insurance, unemployment insurance, and 401k. In addition, medical billers require costly supplies and equipment to adequately complete their job. By outsourcing medical billing, you can significantly reduce your labor cost. Fewer Errors Companies who provide medical billing services are known for their accuracy. When you opt for medical billing outsourcing, you can expect less errors and reduce the amount of denied or rejected claims your medical organization has to deal with. Compliance with Medical Billing Practices It can be difficult to keep up with the rapidly changing medical billing regulations. Something that was acceptable in the past may be changed by a regulation tomorrow. If you outsource medical billing, you won’t have to worry about staying up to date on medical billing practices and can still ensure that your practice is compliant. Increased Cash Flow When you keep your medical billing in-house, you won’t be able to process claims as quickly as you’d like. Some of the Advantages & disadvantages of in-house billing and outsourced billing services listed below:


Advantages of outsourced billing services
  • Cost effective
  • Transparency
  • Consistency
  • Easy to expand
  • More focus on patient care
  • Accuracy
  • Compliance with the standard medical practices
  • Faster claims
Disadvantages outsourced billing services
  • Changing costs: Usually the outsourcing dental billing companies charge a percentage of collection and during the active season, these costs become high and this creates difficulty in managing the monthly revenue in dental practice.
  • Hidden costs: There could be additional fees which may compromise printing charges, startup charges, and costs required to cancel membership.
  • Less attention on denials: Some billing companies use one or more software and are not that experienced in using it. This may lead to paying less attention to Denial management and A/R delays.


Advantages of in-house billing
  • The biller is available at any time of day
  • Maintain the confidentiality of the patient
  • Complete control
  • Return on Investment
Disadvantages of in-house billing
  • Higher charges: Cost of training provided to staff, the technology used, salary, and other charges for the employee’s costs more to the dental care provider.
  • Delay in billing settlement: If one staff is absent or out of the office, then the productivity of the billing department gets slowed down. In such a case, the revenue cycle of the dental office gets seriously hampered.
  • Effective training and management: The office staff needs to stay up to date by providing training from time to time about the modification in technologies and software upgrades.


Why Outsourcing is considered the best option?

When you decide to use outsource dental billing services, your revenue cycles are managed by experts. They follow the latest trends and make sure that claims are paid in a timely manner. This is why outsourcing is a better option as it is not easy for medical billing to manage the in-house team.

When you outsource to a medical billing company you just need to give your best time in establishing relationships with patients and do not need to worry about any employee taking leaves, or internal disputes, or leaving the company.

In-house, teams require a lot of time to function, so dentists can be free from such responsibility by giving their revenue cycle’s tasks to an outsourcing company, where they have experienced staff that flawlessly carry out such functions.

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