How Does Outsourced Medical Billing Help Doctors?

It’s often hard to convince physicians that they should hire an outside company to handle medical billing and coding instead of taking care of it in-house. After all, doctors use the triage system to prioritize patients according to the severity of their needs. They are likely to use that way of thinking in other aspects of life, too. If there is not an existing and clearly identified problem associated with that part of their practice, they probably won’t feel very compelled to take action.

However, there are numerous reasons that getting assistance with medical billing and coding is very advantageous to people who practice medicine. When health professionals are more aware of the reasons why that’s the case, they’ll be more likely to hire help before it’s too late.

A Shorter Medical Billing Cycle

According to data from the National Center for Health Statistics collected in 2015, 83.6% of adults and 93% of kids polled said they went to visit a doctor within the past year. Skilled doctors are constantly in demand, but even those who are very busy may have difficulty remaining profitable if they consistently deal with lengthy billing cycles.

Third-party companies that handle medical billing services can speed up collections and help maintain a shorter overall billing cycle. That’s one of the reasons why physicians who are initially reluctant to outsource for medical billing and coding because they view it as an extra expense realize that doing so is actually well worth the money.

A Reduced Number of Rejected Medical Billing Claims

People who have even a small level of familiarity with the medical billing industry know it requires communicating with insurance companies and submitting the proper paperwork. Otherwise, claims could get rejected, increasing the amount of time before doctors see payments for the work they do.

A doctor’s practice characterized by a high percentage of rejected claims could begin operating at a loss. If that’s the case and the problem persists for too long, busy practices may have to close.

However, companies that specialize in physician billing services have a commitment to getting payment for each claim. The representatives who work for those entities know the elements that are necessary for claims to get paid quickly and will do what they can to achieve ongoing success.

Less Medical Billing & Coding Paperwork for Doctors and Support Staff

While in medical school, most doctors probably didn’t think about the amount of paperwork involved with being a physician. Medical billing and coding probably was not something they planned for in their future typical workdays, because they were just thinking about treating patients.

Hiring a specialty company to handle that side of the career represents a substantial benefit for doctors and medical software companies who want to be more productive. Furthermore, it reduces the burden on support staff members who may be tasked with handling the bills but could be more useful if taking care of other responsibilities.

As you can see from this short but relevant list, getting outside help with medical billing and coding is a good move for doctors. That’s especially true for medical professionals who want to focus on patient care instead of talking to insurance representatives and filing paperwork.

  Related Posts
  • No related posts found.


  1. Derek dewitt  November 13, 2017

    I can see why a medical firm would want to outsource their billing services after reading this. I like that you talk about how less medical billing claims get rejected with designated representatives handling them. This would definitely make patients less frustrated and make things go much smoother at a hospital I bet.

    • master  November 14, 2017

      Often times staff in a medical practice are tasked with multiple duties. Billing functions like entering claims, posting payments, getting patient statements processed, and following up on accounts receivables can get put aside. Sometimes office managers fill in to do practice billing. On one occasion I met with a practice manager that was doing practice billing from home after hours.

      A good medical billing firm will usually collect ten to twenty percent more claim income than in-house billing staff. They are better able to finish daily billing tasks, they have the expertise, the time, and the tools to complete the work. At 1st Medical Billing® we have seen most difficult billing issues before. Unlike a solo billing person in a medical practice, we have other staff members to discuss difficult billing issues, we have seen multiple software billing systems, and we are data specialists that can collect.



Add a Comment