Why Your Practice Should Outsource its Medical Billing

Medical billing is an essential part of business operation for private medical practices, ambulatory Surgery Centers, and other medical facilities. Medical billing translates specific health care services into itemized billing claims to ensure hospitals; doctors and practitioners receive reimbursement for the health services they provide to patients. The financial stability of a healthcare practice is highly dependent on the efficiency and knowledge of medical billing staff. Below are a few reasons why your practice should consider outsourcing your billing.

1. Cost

Some practices opt to outsource their medical billing operations, based on assessment of cost, staffing and revenue cycle management. In-house medical billing usually requires higher cost and a greater chance of liability, resulting from employee neglect and inefficiency. Outsourced medical billing can often be less expensive, which would largely benefit newer practices or those undergoing staffing transitions. Practices that outsource their medical billing also save money, by not having to finance an in-house billing staff, including health insurance, workers compensation and other employee-related cost. Money saved from outsourcing may be used to improve the medical services provided by a private medical practice.

2. Time

When practices chose to outsource their medical billing, a private medical billing service handles of all the billing data entry and claim submission. These private companies also follow up on claims, delinquent accounts, and invoice correspondence. Outsourced medical billing frees up time possibly spent on the micromanagement of staff. By freeing up time, more time can be utilized to tend to patients and increase revenue.


Billing systems and software are often expensive and difficult to maintain. In most private medical practices, the billing staff often lacks experience. Thus, these practices are limited to only the expertise of their billing staff. Companies that outsource have access to greater resources to better manage their revenue. Medical billing companies provide a vast amount of expertise and software, as billing and revenue is their primary competency. Many medical billing companies provide around the clock support to their constituents, which allow access to billing experts that are available to help at a moments notice. Moreover, it may prove cumbersome for in-house billing staff to keep up with the ever-changing rules and regulations related to medical billing.

4. Transparency and Accountability

Outsourced medical billing also provides transparency and consistency. Medical billing companies would be able to generate performance reports, providing a great deal of visibility of a practice’s billing operations.

An important factor in deciding between in-house or outsourced billing is based on the management style of a specific medical practice. Medical offices that prefer a more hands-on approach in their management style may feel more comfortable with in-house medical billing. However, for those that prefer outsourcing, there is the opportunity to maximize reimbursements and take advantage of a great, affordable resource. Newer practices can benefit substantially by being able to better manage their growth and focus on patient care. Without the need to hire additional staff and purchase software, private medical practices can acquire more control of their operations and more efficient control of their revenue.