Outsourcing medical billing and coding is a practical option for many healthcare organizations. If you’re wondering whether or not it makes financial sense for your medical practice to outsource these services, you should ask yourself a few questions to gain a better understanding of the current state your facility is in and what needs to be done to improve its financial situation. The team at Applied Medical Systems recommends asking yourself the following three questions:
1. How does your A/R and bad debt compare to your peers?
In order for your healthcare facility to reach its optimal level of profitability, collecting payment timely and efficiently is crucial. Although it’s important to measure key indicators such as the amount of days spent in accounts receivable, these numbers are essentially meaningless when you don’t have any baselines to use for comparison purposes. By using the Medical Group Management Association (MGMA) table below you can find out how successful your practice performs financially as compared to other healthcare organizations:
2. Are you gaining or losing money by doing billing in-house?
When a claim is not paid the first time it is submitted, the chances that a medical facility will ever receive payment for that work significantly drops. Therefore, catching potential denials before claims are submitted is imperative. If your in-house medical billing team is unable to do this and is losing money as a result, outsourcing may be a good idea.
In addition, if you are spending an excessive amount of money on staffing and other related overhead costs, notice that medical claims are not being submitted on time, and your reimbursements are not at the rate you’d like them to be, outsourcing medical billing makes sense.
3. What would be the impact if one of your billing staff left?
If your in-house medical billing and coding departments lose one or several staff members, your operations as well as your cash flow can be stalled. In the event that staff members get sick, go on vacation, take a leave of absence, or simply quit, the profitability of your practice will be majorly compromised.
By outsourcing medical billing, you will never have to worry about staffing or hurting your cash flow since outsourcers such as Applied Medical Systems have the resources and staff necessary to support your needs all year long. Outsourcers are equipped with a large number of medical billing professionals and are not slowed by vacations, illnesses, or reassignments.
By answering these three questions, you should be able to identify whether outsourcing medical billing is a solid decision for your healthcare facility. If you believe that your practice will benefit from outsourcing services, contact Applied Medical Systems today.