Medical Billing Outsourcing: Busting the Biggest Myths

What’s the first thing you do when your car is due for service? You get in touch with the service center for a quote, right? Imagine that the vehicle’s warranty has run out and the authorized service center’s quote is very high. Following an inquiry, you find out that the service center is overcharging you.

A friend suggests a third-party car repair service that will be affordable in comparison. However, you’ve heard that local mechanic services are not very reliable. Will you go ahead with authorized car service and pay the fee, knowing they are overcharging you?

Outsourcing or choosing to outsource is similar to this hypothetical conundrum. You probably have reservations when it comes to outsourcing business processes. It’s entirely likely those reservations are rooted in the many myths that surround outsourcing services.

This blog aims to bust some of the biggest medical billing outsourcing myths.

But first, let’s look at medical billing and why properly managing it is important for your revenue cycle. Settling insurance claims is a major revenue source for any healthcare practice. However, it is error-prone with several contributing factors—your in-house team is overworked; your staff lack technical expertise or a beginner is handling the process.

Given it’s as important as providing quality patient care, you need a concrete solution that will not only help you avoid errors, but also improve your bottom line. Medical billing outsourcing can help you in this pursuit.

Here’s What Medical Billing Outsourcing Isn’t

As a healthcare provider, you may have opinions about medical billing outsourcing based on what you’ve heard or read. Don’t be misled and lose out on the benefits as a result.

Myth: Medical Billing (and coding) Is Just a Data Entry Job

Truth: This is probably one of the biggest medical billing outsourcing myths. Medical billing is a complex process involving submitting claims to insurance payers and collecting settlement amounts thereafter. Medical billing staff also collect patient dues; something the insurance providers don’t cover. Submitting claims may seem like a data entry job, however, it requires in-depth understanding of medical coding and billing and insurance policies as well as expertise in denial and A/R management. In addition, medical coders should know how to read physician notes and work out nuances in electronic health records.

Data entry is just a part of the medical billing process.

Myth: It Is a Costly Affair to Outsource Medical Billing

Truth: When you have an in-house medical billing team, it may feel like your expenses are under control. However, if you believe it’s the best way to save costs in the long run, you’re not quite right. As we’ve already established, medical billing is a complex process that requires technical know-how. That’s also why you’ll probably spend a lot of money if you insist on having in-house billing experts. You will have to consistently spend on training, staff supervision and turnovers.

On the other hand, a medical billing agency not only accounts for these costs, but also allocates the right staff numbers depending on workload. They improve your operational costs and insurance collections.

Expensive costs are just one of many medical billing myths.

Myth: Outsourcing leads to data breach threats

Truth: Medical billing agencies have to be Health Insurance Portability and Accountability Act (HIPAA) compliant. In fact, outsourcing providers are responsible for preventing any data breaches with regards to a patient’s health information (PHI). If there is a data breach, the agency is liable for unlawful disclosures.

For this reason, medical billing agencies use certified tools with multiple layers of protection to store PHI and other medical records.

Hopefully, we’ve helped you bust some of the more common myths on outsourcing medical billing.

We’re here to help you with any medical billing processes you need help with—right from processing insurance claims to denial management and A/R collections. If you’re prepared to take a leap of faith by outsourcing your medical billing process, we’re here to help. Get in touch today.