In House Vs. Outsourced Medical Billing; Pro’s & Con’s

Author : nabeelali
Publish Date : 2020-10-12

In House Vs. Outsourced Medical Billing; Pro’s & Con’s

What Does Outsourced Medical Billing Mean?

Are you an independent practitioner? If yes, chances are you have dealt with numerous medical billing issues. Not simply that. This includes other complications in the billing process too. For instance, low paid claims, denied claims, payment delays, out of control account receivables, administrative hurdles & resource-intensive HR.

You can not ignore this. These problems are unnerving. Mainly because they are directly linked to the cash flow of your practice. To your finances.

Casting aside the medical services. Billing and revenue cycle management are very important components of your practice.

This is where outsourcing swoops in. Outsourcing refers to a third party. Typically, a renowned medical billing company in your area. They bill and code. You provide them with the necessary information. And they figure out the best way to handle your claims.

Suppose you are a practice in Dallas. You scan through the medical billing companies in Dallas, TX. This could change the generated revenue for your practice.

There are no in - house employees needed. And the process can be trusted to be error free. You may be assessing your options. In terms of the cost, staff, and volume of your practice. We are here to make things easier for you. We will span the pro’s and cons of both services to give you a better idea.

In – House Medical Billing: Upsides:

Remaining In Control:

With in house employees, you are more in control. This could be the case when you have people you can trust. And they have been long term employees. Both doctors and administrators might prefer this arrangement. They would prefer having the quality control during in house billing.

However, this is time consuming. It is also extremely hard to find capable medical billers.

Revamp Existing Processes:

Each practice puts in effort. Especially, on training the medical billers hired. A practice will purchase billing technology. This has cost a practice its resources. Drastically shifting to an outsourced solution can be daunting. One might consider refining existing processes to inculcate a higher return on investment.

But this is untrue for most independent practices. Not all practices have employees with a certified skill set. Or a billing department that has the potential to improve.


Increasing Costs:

Medical practice needs to be efficient. Healthcare requires numerous expenses. Reaching a break even is necessary. To do that, practices need to be managed well.

In – house billing is a hefty expense. Talk about paying salaries. Special employee benefits. Technology systems for medical billers to work accurately. And numerous other hidden costs that may appear. As well as office space.

Outsourcing is a viable solution.

Parallel Liabilities:

You might not want to hear this. But medical billing departments have a dark side. They can be breeding ground for embezzlement. Or simply carelessness. Employee neglect.

This could mean discarded superbills—encounter forms. Even unappealed claim denials. An administrative manager has countless duties. A single slip could cost your practice dearly. All it takes is one mistake.

Issues With Support:

If you are running a small practice. Chances are you average 2 – 3 staffers for operations. This can be an issue. If even 1 takes a day off. Your cash flow can be majorly clogged. This harms your practice over time.

Outsourced Medical Billing: Upsides:

Decrease In Expenses:

Outsourcing is definitively less costly than in-house billing. Once you calculate all your costs. A picture starts to emerge especially if you are just starting out. Or still recovering from a resignation. A higher number of in – house employees. Higher chances of vacations, sick leaves, and resignations. You are now using medical billing services Dallas

Outsourcing makes the most sense. You want the best for your practice. And need to lower the fixed costs.


Never settle for less. Your cash flow is pivotal to your practice. Ensure complete transparency in financial matters.

An outsourced medical billing company will offer extreme transparency. This would include detailed performance reports. That you could ask for. Any time. Any day. Higher visibility leaves you at ease. You do not have to micro - manage your staffers.

No Need To Review Certifications:

Hiring a medical biller is not a straightforward process. Each person needs to be reviewed. Precisely, the certification of the medical biller needs to be assessed. Does the person have the required skill set? And have they been truly certified? With a medical billing company, this is the least of your concerns. Particularly because the medical billing service is authentic, and certified. Less hassle for you. More time to focus on your practice.

Higher Productivity:

Each to what he knows best. This saying rings true. An administrative manager can not code. Similarly, a doctor should not have to manage.

Outsourcing medical billing services can result in higher levels of productivity. Each department of the practice can run more smoothly. Each individual can be focused on their specialty of the domain. This means better quality care for patients.


An outsourcer is contractually obliged to your practice. They will have to perform certain duties. Such as services. Appealing denials. Getting higher rates of success.

This ensures a constant level of consistency.


Costs Are Variable:

Most medical billing companies follow a rule. They charge a percentage of your collections. So when more comes in, more goes out too. Naturally, the practice still benefits far more than the outsourcer. But a chunk does go out to them too.

This cost is variable. It makes it tough to budget billing expenses. Since costs can vary from month to month.

Relinquish Control:

It can be hard for managers to take their hands off. They have to relinquish control to a third party. Where some might appreciate this. Certain managers prefer to be more in control.

Hidden Costs:

If you go for outsourcing. Read through the fine print carefully. Are there small, hidden fees? For printing statement? Sending reports?

Simply ensure that the money you are saving by outsourcing is not being consumed in the same process.

Outsourcing is a valuable solution for most practices. At Billing Freedom, we offer some of the best medical billing services. We enhance revenue cycle management. A skilled team employs an articulate approach crafted for your practice. We believe in what you do. And are an extension of your cause! Reach out today.

Category :finance
Author Website : medical billing services

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