In healthcare, managing denials and submitting claims in a timely manner is essential to ensure smooth cash flow for hospitals and patient satisfaction. Many healthcare facilities use third-party medical billing providers to reduce billing errors and claim denials, improve cash flow, and ensure compliance with medical billing regulations while improving patient satisfaction. By outsourcing medical billing in 2023, healthcare organizations can realize tremendous savings in labor costs and overall infrastructure costs that often accompany hiring and employing medical billing staff.
This blog explains how any healthcare facility can increase its bottom line in 2023 by outsourcing medical billing.
Interesting Statistics on Outsource Medical Billing
Before going into the details on how outsourcing medical billing can ramp up the profits for healthcare facilities, here are some figures that can help you to understand why it is an essential step to move ahead in 2023.
Grand View Research reported on the global outsourcing market on medical billing to be valued in 2020 at USD 10.2 billion. The research further stated that by 2028 it will reach USD 25.9 billion at a CAGR of 12.66 between 2021 and 2028.
These figures indicate that medical outsourcing is rising, and several factors are promulgating this rise.
How Can Outsource Medical Billing Increase Profit in 2023?
As the medical billing environment has become quite complex in recent years with new codes, payment regulations, and compliance rules, it has become quite a challenge for healthcare practices to keep up with them. On the other hand, insurance companies regularly update their rules and requirements in complicated ways that can prevent claims from being paid. In such a scenario, the burden of revenue loss falls on the practices, which ultimately results in not being able to offer patients the services they need as denials increase or are rejected.
One of the best ways to overcome family practice medical billing services challenges is to outsource to an experienced medical billing and coding company, such as 24/7 Medical Billing Services. Not only will they improve revenue collection, but they will also help you stay up to date with the latest rules and regulations while being HIPAA compliant.
Here are a few ways that outsourced medical billing practices can improve the financial health of a healthcare practice:
1. Finding Overlooked Revenue Opportunities
Most healthcare facility staff are busy with the practice, taking care of the patients, and running the everyday show. Taking care of the medical billing means they are often overburdened, which results in them failing to see some of the ways that continually clog up the revenue management system. In most cases, the revenue collection gets slow or bottlenecked due to the following:
Lack of verifying the insurance
Errors in verification
Problems with timely submission of claims
Issues with the collection process
Lengthy submission process
Experienced outsourced medical billing companies can quickly mitigate all these issues. They can smooth the claim process, analyze the areas from where the money is bleeding most and rectify them in no time while providing consistency with the claims.
2. Using Data for Revenue Growth
All-equipped medical billing services will address more than the revenue issues of the practice. They will be utilizing the operational data of the healthcare practice so they can identify the elements that impact the facility’s revenue and profits. Pinpointing the factors that hurt the revenue collection is essential to growing the earnings in the right direction.
Several analytic tools and software can provide insightful charts and graphs into the revenue cycle and the facility’s operation. These data can be analyzed in a wide range of ways, and implemented policies can be tied to every aspect of the practice to improve revenue.
Also, using the data analysis software in medical billing when outsourcing provides a transparent view of the practice, which can be used for successful revenue collection in 2023.
3. Reduce Overhead Costs
When a medical facility hires a full-time/part-time medical billing and coding employee, the overhead cost of the practice increases. The facility also must provide the person with a salary and other benefits. Still, it also has to hire every billing software, train them to use it, and keep updating the software to the latest technology.
Keeping up with all of these is expensive and an ongoing expense. But when outsourcing medical billing, you no longer must worry about any of these issues. You can efficiently channel the money you would have used to buy expensive software and train your staff to improve the facility and better care for the patient.
Why does Collaboration help?
In medical practice, medical billing and coding often require dealing with a wide range of documents and different formats. Keeping them safe and secure is always an issue. Still, when you partner with a medical billing company, such as 24/7 Medical Billing Services, every document is stored in the same format and on a secure cloud-based platform. They help streamline the medical billing and collection process that improves the practice’s financial health and the patient’s overall experience.