For smaller provider offices, medical billing can be challenging, demanding much time and attention to detail. Many providers are now turning to outsourced medical billing companies to help out. While outsourcing may not be right for every office, there are many financial advantages when a provider chooses to use an medical billing company.

Increase the bottom line

There isn’t usually an hourly rate for services. Most billing companies charge a percentage fee of collections or a flat per claim fee. There are typically no capital investments in software or hardware. There’s no need to pay overhead and salaries for additional in-house medical billing staff. It eliminates the costly and unproductive training periods of new employees as well. With the reduction in overhead costs, the timely submission of clean, correct claims and an increase in reimbursements from dedicated claims management processes (including appeals), a higher profit is another major advantage outsourcing can provide.

Improve cash flow

With improvements in technology, claims are processed faster and with fewer errors, translating into quicker payment by an insurance company. Outsourced medical billers are dedicated to one thing – medical billing. Coupled with lower error rates, this translates into fewer denials and improved cash flow. They are able to submit claims to insurance companies in a timely manner and allows for a more aggressive follow up of denied claims. The sooner you bill patients the better chance of payment as well. They can follow up on non-payments, which reduces bad debt.

Reduce accounts receivable

With a significant reduction in the number of first pass rejections along with dedicated claims management and appeal processing, medical billing companies are able to greatly accelerate payment turnaround. Claims no longer have to wait while staff is sick or on vacation. Billing interruptions ultimately affect the timeliness of reimbursements. With most billing companies, money can be in hand within 14-18 days.

Using the services of a medical billing company can increase your bottom line while improving your cash flow and reducing your accounts receivable. Outsourcing allows a continuous, steady flow of owed money, allowing you to focus on patient care and growing your practice.

Comments or questions? Contact info@pro-onemedicalbilling.com or give us a call today at (800) 574-1063.