Considering that billing and payments are the lifeblood of your business, it is important to weigh all factors properly.
At Excellent Medical Billing Services, we contend that outsourcing your medical billing and collection can save your practice thousands of dollars each year and improve your cash flow. And we are just the company to make these benefits a reality for you.
To understand why we believe in third party outsourcing for medical billing, please look at the chart below. This is a hypothetical billing scenario based on industry averages. For this example, we are using a practice with three healthcare providers who process 80 claims per day at $130 average per claim. This equates to 20,000 claims for the year, which is a gross billing of $2.4M.
If you carry your billing in house, you will have a significant set of fixed costs, including salaries and benefits, payroll taxes, required software and hardware, and staff training.
In either scenario, you will have direct billing costs; in house you will pay the clearing house or you will pay fees to your third-party provider.
As far as collections, even though you likely have qualified staff, national industry averages show that third party medical billing experts collect payments at a higher percentage.
So, in the example below, you will see that there is a potential 28% increase in your net collections with the use of a third-party medical billing service. Just imagine what that extra $100,000 to $400,000 could do for your practice – allow you to purchase new equipment to provide new services, replace aging equipment, hire another doctor, nurse, PA or support staff, take more salary, etc. The options are endless.