In the current economy, saving money is important for everyone, especially small medical practices. Figuring out where to cut costs is important. However, for some medical offices, it is difficult to find the areas where cost reduction is beneficial. One area to look at is medical billing. Some physicians enjoy performing their own medical billing and are experts. Others like having office staff perform the task, trusting they will find the best ways to increase cash flow back into the practice, and keep claim returns low. Still another group of physicians prefers to outsource it to a professional medical billing firm that specializes in billing, collections, and practice management. One of the best reasons to outsource is to increase the amount of money collected than a physician or his office staff would be able to, due to time constraints or lack of training.
But there are other reasons that a physician should look at when reducing costs in his/her office. By outsourcing, you will be reducing overhead costs associated with retaining employees. The burden of hiring and training employees, plus the cost of health benefits, would now be in the hands of the outsourcing company. Analyze your current costs to determine how much your practice spends. As your practice gets busier, outsourcing may make sense financially, and it will free up time for your office manager to work on tasks that are more important.
Another area to look at is the cost of staying current with ever changing legal and regulatory issues. Quality outsourced billing companies invest heavily in training and resources that enable them to adapt to industry changes, and have a strong checks and balances system.
We have spoken of technology in previous posts; sometimes it is easier to outsource electronic medical billing, as it is easier for the physician and office manager who might be too busy to learn a new technology, no matter how simple it is.
However, what most physicians need are the numbers to know if they will actually reduce costs. Clinic Service has a new Medical Billing Calculator, to help you determine if outsourcing will save you money. Click here and check to see if we can help you reduce costs in your medical practice.