Independent medical practitioners often rely on outsourced medical billing services to avoid complications and receive their payments in order. On the other hand, in-house medical billing is used by organizations with employees skilled in billing tasks and with a reliable billing device and technology in place.
Even though the decision of choosing one of these ways to set up a billing system majorly depends on the doctors and practitioners running the place, certain factors must still be considered before choosing one option. Here are 6 differences you need to know between in-house and outsourced medical billing to make the right choice.
1. Complete Control
With an in-house medical billing system in place, you have complete power and control over your system as the main doctor of the clinic or medical organization.. Executing procedures and passing on instructions becomes easier and clearer. Even though outsourcing services can make things easier, they don’t necessarily provide complete control or insights into their management system.
The lack of transparency in the latter can affect certain organizations’ practices and working patterns. In a way, outsourcing services can take over this task and leave the organization to take care of other important tasks, thereby saving them time and avoiding additional efforts.
Cost is an important aspect that affects both systems. Needless to say, outsourced medical billing costs more than in-house medical services due to the difference in management styles and the amount of work that needs to be done. Depending on the amount of work you provide to the outsourced medical billing service, you have to pay a certain amount or a definite percentage. As the number of workers increases, the charged fees will increase too. On the other hand, in-house billing may cost much more as you need to pay extra costs like employee salaries, infrastructure fees, and technology costs.
It is extremely necessary for medical setups to keep expanding or, at least, make their services and patient care better. As mentioned, having your billing system within your organization can be expensive. This may not provide enough room or profits to expand your clinic; on the contrary, hiring a Third Party Medical Billing Company can provide the opportunity of expanding your organization and taking advantage of saved time and costs. You can divert the money towards expanding your clinic or hiring new employees. Overall, this can make a major difference in patient care and enhance your clinic’s reputation.
Relying on a smaller set up to run bigger projects within your organization can be challenging and lead to several issues in the long run. This is also true with the reverse scenario, wherein you have a big team for smaller cases. In this case, you lose a lot of money and time. Without proper knowledge and competency in setting up an in-house billing arrangement, you may not get adequate support from your staff. With outsourced services, you do not have to worry about getting proper support when you need it. Most third-party services are available on their toes to help their clients and resolve issues at the earliest.
5. Liabilities and Responsibilities
With an extra team of employees working on a separate task in your organization, you tend to have more liabilities and responsibilities. At times, employees skilled in particular tasks may also have to focus on other tasks, which can impact their productivity and undervalue their skills.
Just like with any role or project, in-house management and internal teams have more liabilities, which can be problematic in the future without a proper system in place. Additional responsibilities like taxes, credit periods, and cash flow also need to be monitored, increasing the liabilities.
Ideally, third-party services are extremely competent and experienced in the services they provide. You can rely on them completely and expect their results to be perfect, which is not the case with in-house systems. Outsourced medical billing parties will ensure that your bills are made with precision and inclusive of all important details. On the other hand, setting up an in-house billing arrangement may impact the results. They may not be as accurate as you expect, which can impact the overall medical procedure. When running a medical facility, angry or dissatisfied patients are the last thing you want, and it can be avoided by presenting detailed and accurate results in all processes.
As you can see, there are several differences, pros, and cons in both types of billing systems that can affect the quality of your services and the overall productivity of your employees. To narrow down your options, you need to go with one that best suits your organization’s needs. Do your research and keep the time and cost factors in mind when comparing your options.