Choosing how to handle billing can be a big decision for any healthcare practice. Should you keep billing in-house or trust an outside company to do it? Each option has its strengths and weaknesses. In this blog, we break down the pros and cons to help you decide what’s best for your team and medical practice.
What Is In-House Billing?
In-house billing means your own staff handles all billing tasks from start to finish. This includes coding, claims submission, data protection, following up on denials, etc. Your own team uses your systems and works in your office.
Pros:
- Full control over your billing process
- Direct access to billing staff and filing records
- Easy communication between departments
- Always aware of your level of data protection and privacy compliance status
- When a patient has a question about a bill, they can communicate directly with their own physician’s office
These advantages make in-house billing a good choice for some practices that want to manage everything themselves and prefer immediate access to their billing team. However, there are disadvantages that come with in-house medical billing.
Cons:
- You must hire, train, and manage staff (which can be expensive)
- It’s challenging to stay up-to-date with billing rules and codes
- Can be tough to scale as your practice grows
These drawbacks often make in-house billing harder for smaller practices or those looking to grow quickly without adding extra administrative tasks.
Additionally, in smaller facilities, staff members often juggle multiple roles. A billing specialist may also serve as a receptionist or scheduler. This multitasking can result in limited time available for billing responsibilities. Consequently, this can lead to delayed submissions, coding mistakes, and even denied claims.
Healthcare providers themselves may also have to address billing issues. This can be time-consuming, and means the ability to focus on patient care diminishes. As a result, patients may receive less attentive care. There may also be a higher risk of treatment errors and decreased revenue due to fewer billable hours.
What Is Outsourced Billing?
When you outsource medical billing, a third-party company, like Hometown Billing, takes care of all billing processes. The company specializes in revenue cycle management (RCM) and has trained professionals that handle everything from coding to collections.
Pros:
- No need to hire or train billing staff
- Experts handle your billing, reducing errors and claim denials
- Up-to-date on insurance guidelines, billing rules, and code requirements
- Integration with various billing software platforms and electronic health records (EHR) systems
- Increased revenue with faster claims processing and insurance payments
- Improved clarity with defined key performance indicators (KPIs)
- Services are scalable with your practice
These benefits make medical billing outsourcing a smart option for practices that want to save time, reduce errors, and grow without hiring more staff.
Some cons for outsourcing may include:
- Less direct control over billing operations
- Must trust an outside company with sensitive patient data
- Communication may take longer if issues arise
- Patients unhappy with third-party representative support
These challenges can be managed with a reliable billing partner, but they may be concerns for practices that need tight control or rapid internal response times.
Hometown Billing’s team has over 36 years of combined experience. With our dedicated professionalism and skill, you can rely on us for dependable billing management. We prioritize customer service and patient support, as well as protecting your bottom line. To learn more about our services and expertise, contact us today.
Why Outsource Revenue Cycle Management With Hometown Billing?
There are many benefits of outsourcing medical billing. For most practices, the biggest reason is to save time and money. By working with billing experts, your team can focus more on patient care. A good billing partner will also improve cash flow and reduce billing errors.
Top reasons to outsource your billing management with Hometown Billing include:
- Fewer claim denials
- Faster reimbursements
- Cost savings
- Access to billing specialists without needing to hire in-house
- Better reporting and insights into your revenue
- Specialized knowledge of complex billing processes for various medical industries
- Denial management
With the right company, outsourcing medical billing can improve both your finances and your day-to-day operations while giving you peace of mind that your practice is in good hands.
Cost Comparison: Outsourced vs. In-House Billing
Hiring an in-house team means paying for salaries, training, benefits, software, and more. On the other hand, medical billing outsourcing often charges a percentage of your collections or a flat fee. This makes costs more predictable and usually lower.
While outsourcing may seem expensive at first, it often leads to more money collected and fewer billing headaches.
Which Is Best for Your Practice?
Here are a few things to think about:
- Practice Size: Small practices may benefit more from outsourcing medical billing because they don’t have the staff to manage it in-house.
- Claim Volume: High-volume practices may need a team that can scale quickly.
- Specialty Needs: Some specialty medical services require complex billing support that third-party companies can effectively provide.
These factors can help guide your decision and make sure your billing setup matches your practice’s goals and resources.
Contact Our Team at Hometown Billing
Deciding between in-house billing and outsourcing isn’t easy, but it all comes down to what works best for your team. If you want to lower costs, improve accuracy, and spend more time with patients, it may be time to outsource medical billing.
Hometown Billing is a medical billing company that offers trusted, scalable billing support tailored to your needs. We help healthcare providers of all sizes collect more and stress less. If you want to learn more, contact us now to see how outsourcing your billing can improve your bottom line.
