Medical billing is an essential function of any medical practice and greatly impacts the sustainability of a physician’s business. The question is whether outsourcing to a medical billing company is the right move for your business. The answer is, it depends.

Obviously there are true benefits to maintaining an in-house billing department. Namely overseeing staff, access to reports and patient files as you see fit and the ability to implement changes to systems. This is all accurate if you are truly managing.

As a physician you are extremely busy treating patients. Managing the day-to-day functions of an office can be quite cumbersome and time consuming. Having an office manager or clinical director can be an asset so long as they possess the skills necessary to oversee these functions, remembering that you still maintain oversight of their job function.

There are some downfalls to keeping your billing in-house that you should consider. One important point to ponder is the experience level and ease of access to multiple people with various backgrounds to help with answering questions and skills necessary to recoup monies owed. At a reputable billing company, there will be many employees with varied backgrounds providing a more comprehensive solution to your billing. Their experience and expertise should not be understated and can definitely impact correct initial claims submission and ability to recoup money even in the face of denials. A good medical billing company can also be a great asset to the physician informing them of the latest medical news in addition to changes in proper coding and documentation policies.

Training and ongoing education can also pose an obstacle with in-house billing. Most physicians do not find it necessary or do not want to spend the money to make sure their billing and coding staff are trained properly and stay up-to-date with the constant changes with government and commercial payers. Some even hire uncertified staff with the belief that billing is easy and is as simple as just entering some codes and sending out claims. I often ask physicians if they would hire just anyone off the street to do their taxes, and of course they wouldn’t. Then why would you not make sure those doing the coding and billing are certified, experienced, fully trained in applying the correct codes and are aggressive and knowledgeable in fighting claim denials? The formula is simple, hire the best and you will see higher revenue. You will also be less likely to come under scrutiny from audits or worse, investigations!

Financially speaking, there are some big differences between in-house billing and outsourcing. In-house costs are fixed in that they remain the same from month to month regardless of practice revenue. You are responsible for employee taxes, insurance, training, employee turnover, office space, software and the real time investment, management. A medical billing company is usually paid on a percentage basis and the fee for their service fluctuates with your practice revenue. In this case, the billing company is especially motivated to make sure all money is collected as they are paid based on that figure. They carry the burden of training, turnover, taxes, insurance, software maintenance and staying educated with all aspects of billing and coding.

Addressing control, a good medical billing company will provide you access to your patient billing records so that you can manage and oversee all of your practice billing. They should generate detailed reports showing where your money is at all times and the status on collecting monies still outstanding. Their staff should also handle patient balances with care and skill as billing can impact patient retention and referrals.

In a financial example, let’s assume it costs a medical office $69,000 a year (include all the fixed costs mentioned above) for the first billing employee and $61,000 a year for each additional employee. If your practice is generating $1,000,000 annually with 3 billing staff, it would cost 16% of total collections to maintain an in-house billing department. If a billing company is charging you 8%, you can see that there is a great discrepancy in the financial value between the two scenarios.

So, do you outsource or keep it in-house? If you are good at managing, keep your staff fully trained and don’t mind paying a little more, keeping your billing in-house may be the right solution. If you are losing money, don’t have the time or want the headache of managing billing staff and want to spend less, then outsourcing may be the right fit for your organization. If your choice is outsourcing, make sure you do your homework and pick the best company (not necessarily the cheapest one) as no two companies are alike.


  1. After looking over a number of the blog posts on your website, I really appreciate your technique of
    writing a blog. I saved it to my bookmark website list and will be checking back in the near
    future. Take a look at my web site too and tell me
    your opinion.
    liverpool matchtröja

  2. My partner and I stumbled over here by a different website and thought I might check
    things out. I like what I see so i am just following you. Look forward to going over
    your web page repeatedly.

  3. Hello there! I know this is somewhat off topic but
    I was wondering if you knew where I could get a captcha plugin for my comment
    form? I’m using the same blog platform as yours and I’m
    having problems finding one? Thanks a lot!

  4. original viagra online canada

    viagra online


    viagra store express shippment

  5. Hello, Neat post. There’s an issue with your web site in web explorer, could test this?
    IE nonetheless is the market leader and a big component of other people
    will leave out your fantastic writing because
    of this problem.

  6. ChicagoreaderThis zippy documentary by Matthew Cooke can’t compare to Eugene Jarecki’s tragic and masterful The House I Live In 2012.
    Overlooked acceptances:rush University Medical association went out as she didn’t bother reviewing i’ve noticed it very seriously this, i’d rather pointless Let’s keep an afternoon it.
    What if your red blood cells or white blood cells suddenly disappeared?

    kamagra 100 mg

  7. acquisto cialis medico

    generic cialis

    cialis online

    generic cialis buy on line

  8. canada pharmacies masters in medical education
    mail order pharmacy signs of an std in females
    discount pharmacy
    how to treat std

  9. payday loan installment online installment loans online installment loans [url=https://installmentloannbbm.com/]online installment loans[/url] ’

  10. buy generic sildenafil
    buy sildenafil citrate online india
    where to buy sildenafil online
    buy sildenafil online usa

  11. no credit check – https://berpaydayloanlendersquickloans.com/ get loan bad credit [url=https://berpaydayloanlendersquickloans.com/]finance payday[/url] ’

  12. can i order amoxicillin online
    need to order some amoxicillin
    amoxicillin order online
    order amoxicillin without perscription for pets

  13. application cash fast loan – https://malepaydayloanscashadvance.org/instant payday loan no credit [url=https://malepaydayloanscashadvance.org/]same day loans no credit[/url] ’

  14. installment payday loans – https://eghinstallmentloan.com/ personal installment loans poor credit [url=https://eghinstallmentloan.com/]installment loans no credit check[/url] ’

  15. texas title payday loans business payday loans bad credit loan payday loans payday lender bad credit loan [url=http://paydayxxx3.com/]bad credit loans for military payday loans for mil[/url] ’

  16. canadian online pharmacy
    canada pharmacy online
    online canadian pharmacy
    canadian online pharmacy
    Canadian Pharmacy

  17. online viagra prescription generic viagra alcohol and viagra [url=http://viagranaser.com/]viagra buy[/url] ’

  18. canadian pharmacy reviews
    Canadian Pharmacies
    canadian online pharmacy
    Online Pharmacy
    Online Pharmacy

  19. wh0cd188327 [url=http://eloconcreamforsale.pro/]elocon[/url] [url=http://clomid.mba/]buy clomid cheap online[/url] [url=http://prozac.news/]prozac[/url] [url=http://tadalis.store/]tadalis sx[/url] [url=http://buyproscar.shop/]buy proscar[/url] [url=http://seroquel.fund/]generic form of seroquel[/url]

  20. contra viagra

    generic viagra

    viagra online

    female viagra till salu

  21. car loans bad credit – https://onlinepaydayloansvunm.com/ usa payday loan store [url=https://onlinepaydayloansvunm.com/]payday loans people bad credit[/url] ’

  22. cash loan – https://cashadvanceccet.com/ payday loans america [url=https://cashadvanceccet.com/]advance cash payday loan[/url] ’

  23. payday loans no credit check no faxing – https://badcreditvqaz.com/ poor credit loans [url=https://badcreditvqaz.com/]bad credit[/url] ’

  24. same day payday loans direct lenders bad credit personal installment loan payday loan online [url=https://installmentloanvatv.org/]installments loans[/url] ’

  25. military loans quick cash avoiding payday loan debt [url=https://installmentloanztvb.net/]quick cash[/url] ’

  26. erieinsurance com usaa car insurance metlife auto home cheapest car insurance
    www iaai com auctions

  27. buy cialis viagra
    cialis for sale
    cheapest generic cialis uk
    generic cialis
    cialis brand name buy online

  28. siemens hearing aid manual hearing aid battery reviews hearing aid battery reviews
    price of hearing aids at costco siemens hearing aids prices costco costco hearing aid reviews 2017
    reviews of hearing aids from costco siemens hearing aids prices online hearing aid batteries 312 brown
    price comparison hearing aids phonak hearing aids reviews 2016 best hearing aids 2017 reviews

    best hearing aid batteries 312 reviews ebay used hearing aids for sale used hearing aids for sale on ebay
    hearing aid walmart hearing aid industry statistics phonak hearing aid prices comparison chart
    resound hearing aid reviews 2017 oticon hearing aid prices comparison chart rayovac hearing aid batteries review
    hearing aids research d 312 rechargeable hearing aid battery rechargeable hearing aid batteries walmart

  29. Hmm is anyone else having problems with the images on this blog loading?
    I’m trying to figure out if its a problem on my end or if it’s the blog.

    Any suggestions would be greatly appreciated.

Leave a Reply

Your email address will not be published. Required fields are marked *


Time limit is exhausted. Please reload the CAPTCHA.