According to the Global Medical Billing Outsourcing Market Size study, the global medical billing outsourcing market was worth US$10.2 billion in 2020 and is projected to register a compound annual growth rate (CAGR) of 12.6% during 2021-2027.
Some of the driving forces behind this projected growth come from the pandemic and private physicians needing to trim their budgets and generate more income. The industry was struck hard when the ability to see patients in person was derailed by COVID 19 and fear of being exposed to the virus kept patients home. The drop in some physicians’ revenue, according to research, was as much as 50%, but on average was about 30-35%. Physicians will be looking to save on overhead costs and make up some of their lost revenue by outsourcing their medical billing.
Another reason is the shortage of healthcare workers. The pandemic has seen an unprecedented reduction in workers while seeing an increase in the need for medical care, both due to COVID infections and in the specialty area of mental health. For example, the two states most impacted by the pandemic are New York and California. These states may see their labor forces drop by as much as 500,000 by 2026. However, patient visits are estimated to increase by another 10% by 2026. Outsourcing will be a way to eliminate the void left by the staffing shortage and keep cash flowing into practices.
Medical billing is an important part of the health of a medical practice and ensuring that it is executed successfully is critical. Although it may seem counter-intuitive, outsourcing medical billing can be the answer. Looking at the overall cost of salaries, benefits, and continually training staff to keep up with this complex job, having an outside company that focuses solely on medical billing can actually save you money. It can also give your office staff back critical time, allowing them the ability to provide a good patient experience. Not having to be divided between following up with payers on medical claims and handling patients can increase the happiness of not only your patients but your workers as well.
Here is a list of benefits that can come from outsourcing your medical billing.
- Reduces Billing Errors. A medical billing company’s sole responsibility is to ensure they provide exceptional medical billing services. Which means staying compliant and up to date on the most current medical codes and payer guidelines. This helps to reduce the number of denials and rejected claims due to billing errors. They can also provide feedback to help maximize income from future claims.
- Improves Cash Flow. Most practices have only a few people that handle their medical billing, some only have one. What happens when your biller goes on vacation, gets sick, or worse leaves? Medical claims have to wait and cash flow slows down. By outsourcing to a medical billing services company you never have to worry about that as they have teams dedicated to ensuring your claims go out promptly.
- Ensures Billing Compliance. We all know that healthcare is an ever-changing industry. Keeping up with Medicaid, Medicare and private payers is what makes billing complex and hard to stay on top of. Since all medical billing service companies do is focus on the billing cycle they have to stay up-to-date on the latest in government regulations and private payer guidelines in order to maintain compliance and the submission of clean claims.
- Increases Revenue. Understanding that by outsourcing your billing you can save money on overhead expenses such as salaries, benefits, training, office space, and supplies, you can see how there would be an increase in revenue. Also, outsourced medical billing service companies can help you clarify your medical claims to ensure you are obtaining the most reimbursement for your patient care. This is done by reviewing documentation and pointing out modifiers that should be listed based on the notes. And by getting clean claims out on time, you will also see an increase in revenue due to fewer claim denials.
- Improves Patient Satisfaction. Having to handle both billing paperwork and face–to–face patient interaction can be challenging at the best of times. Reducing the stress on your staff by removing the burden of medical billing frees them up to provide exceptional customer service and focus on what is important – the patient’s experience.
How Outsourcing Your Medical Billing Can Impact Your Bottom line?
We understand that the decision of hiring a medical billing company requires a great deal of thought. We also know that outsourcing can positively impact your bottom line if you partner with the right company. You can lower your overhead expenses and increase your cash flow. With an entire medical billing team focused on your revenue cycle management, your internal staff can focus on providing quality patient care.
Let Billed Right become your strategic partner. With over 15 years of experience handling a variety of medical specialties, we understand all the pain points and how to eliminate them from your daily workflow. From understanding claim profitability, navigating complex payor rules, keeping up-to-date on ever changing reimbursement methodologies, and analyzing denial trends impacting your practice, we partner with you to navigate all the facets of the revenue cycle.
Contact Billed Right today to learn how we can be your strategic partner and not only increase your revenue but grow your practice.