Benefits of Outsourcing

  Outsourcing is a common practice when it comes to medical billing. Most doctors will at some point find themselves outsourcing their medical billing to an at-home specialist, a professional medical billing company, or a practice management company. Here are some of the reasons doctors choose to outsource their billing.  

Save Time

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Medical billing is an immense task. Outsourcing to a medical billing firm can take much of that burden off your shoulders. It will save you the time you need to concentrate on healing your patients. Henry Ford applied human capital philosophy in following way:


  • If a process is broken up into smaller steps;
  • And if workers are assigned to just a single step to complete;
  • The process is done faster;
  • And the workers become more and more specialized in the steps they are assigned.

Delegate Responsibilty

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There are so many things that you have to do in a course of a day as a doctor. Treating patients is just one big part of those many things.


  • Are there any items on your daily tasks, something you can assign to someone else?
  • And will assigning it to someone else free up your time?
  • Can you assign the tasks to someone who may be able to get the job done better than yourself?
  • At the end of the day, if the task is done by someone other than yourself, do you benefit?

Improve Cash-flow

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Improving cash flow involves maximizing revenue and reducing the cycle time. Revenue can be maximized by ensuring accurate coding, correct processing of insurances, and ensuring that you bill for all services you provide. 


  • Continuous monitoring of business metrics
  • Tracking time lost as a result of non-collection of necessary information 
  • Accurate and timely processing of insurance claims
  • Making sure you bill for all services you provided

Reduce Denials

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A great deal of rejected claims come back simply because of errors in coding. Hiring a medical billing firm to focus exclusively on billing can cut down on errors and save you revenue in rejected claims, because that is what a medical billing firm does, billing! An experienced biller would know right away how to deal with the usual denials. In most cases the billers even know the denial explanation codes from the top of their head. And this is not anything unusual. Its simply their experience talking.  

Improves Business

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Many doctors say that you do not just need an M.D. to be in private practice anymore-you also need an MBA. An experienced medical billing company does not just send out claims-its also a valuable business partner. A good medical billing firm will provide you reports, often monthly, detailing the financial health of your practice, and can recommend ways to boost profitability as well. 

Reduce Overheads

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When you outsource and outline the exact responsibility of the medical billing company, you know what to expect in terms of work. Also by clearly having terms of payment you get a predictable cost structure. When you hire a medical billing company that specializes in your area of practice, they can apply their accumulated expertise and experience to reduce your overhead. They will also combine best practices across multiple clients and pull resources to save time and money.