outsource medical billing

Advantages and Disadvantages of Medical Billing Outsourcing

Determining whether or not to outsource medical billing or keep this process in-house is a difficult decision for many doctors and practice managers.  There is no cookie cutter answer that can be applied to all practices. Before deciding, one should consider a few factors: age of the business, size of local labor market, and state of practice finances.

Billing and revenue cycle management are the most significant processes of your practice, besides clinical services. The amount of money you receive is dependent upon these processes. Therefore much consideration should be placed into deciding how to handle them. Do a thorough assessment of your practice’s cost, staffing, and volume metrics before deciding what is best for you. Also, check our Medical billing agency in USA to find out how med billing services can help you.

Let’s take a look at what most doctors and administrators consider to be the main advantages and disadvantages of both options.

In-House Medical Billing or Not Outsourced Medical Billing


Retaining Control: Both doctors and administrators appreciate the ability to have hands-on control over financial operations through in-house billing with loyal and trusted employees.

Return on Investment: Medical billing training and costs of billing technology are an investment. Switching to outsourcing results in loss of time and money. The value of making adjustments to the existing process in place is great and likely to produce the best ROI.

Close Proximity: The ability to only be steps away from addressing issues make solving problems more convenient.


Higher Costs: When all is said and done, the cost of keeping billers employed i.e.  salaries, benefits, and billing technology systems, is more costly than hiring a third-party billing company.

Liabilities: The likelihood for embezzlement and general employee neglect are greater in-house if managers do not keep watchful eyes on billing operations.

Support Issues: Having a small staff leaves room for backups in cash flow. This particularly happens when staff is temporarily absent or quit their job.

Outsourcing Medical Billing or Outsourced Medical Billing


Less expensive: This is appealing to new business owners or job transitioning due to employee resignation.

Transparency: Comprehensive performance reports are provided upon request by Med Billing Services allows you to view the operations without having to manage employees.

Enhanced Consistency: A medical billing company under contract will provide certain services with an expected level of success, for instance, appealing denials.  Staffing would no longer be a concern due to their obligation to support your needs year-round.


Hands-Off: For some managers, it is more difficult to surrender control of the billing process to an outsourced billing company.

Variable Cost: Since many medical billing companies charge practices a percentage of collections, the more business you have, the higher the amount you will pay. There are inconsistencies with this due to the flux of patients throughout the year.

Hidden Fees: Before hiring a medical billing company, read the fine print. Look to see if there are startup charges, fees for printing statements or sending reports, and a cancellation policy in place.

Every practice has their individualized needs and we hope that this helps you make the right choice for you and your practice.


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